Vernon Moore, chairman of the New Hong Kong Tunnel Company, told legislators Friday any delay now would affect the company's ability to generate what is considered to be a reasonable return and would mean even higher toll increases in the future.

Moore's warning came as the Legislative Council's transport panel discussed 12 suggestions on how to improve the distribution of traffic between the three harbor tunnel crossings.

Several transport groups are expected to stage a protest today against the increase in toll charges.

Tolls for the Eastern Harbour Crossing will be increased by HK$10 to HK$30 on May 1, depending on the class of vehicle. Private cars, for instance, will pay HK$25 against HK$15 now.

Taxis and minibuses will have a grace period of one month and five months, respectively. The government estimates tunnel usage will fall 17 percent when the tolls are increased and that the traffic flow for the already congested Cross-Harbour Tunnel will increase by 3,800 vehicles.

The traffic flow for the Western Harbour Crossing is expected to increase by 8,400 vehicles per day.

The 12 options suggested by the government include increasing Cross-Harbour Tunnel tolls, buying out or extending the franchises of Western Harbour Crossing and Eastern Harbour Crossing, and improving ferry services.

Deputy Secretary for the Environment, Transport and Works Annie Choi said the government has no preferred option.

At Friday's meeting, Democrat legislator Andrew Cheng called on the company to postpone the toll rise.

However, Moore said any postponement will only lead to higher increases in the future. He said the arbitrator recommended in 1997 that tolls be increased by HK$5 in 2003.

Had the government respected the arbitrator's opinion, the toll for cars through 2007 would have been only HK$20 instead of HK$25 from May 1.

Earlier, most of the panel members called on the tunnel company to disclose its financial information.

This followed a report by Chinese University finance professor Raymond So who suggested the company had made an average annual 19.6 percent return on equity over the past 17 years, and not the 8.4 percent it claimed in the annual report.

Moore rejected the request, saying the arbitrator had examined how the company calculated its return on equity.

teddy.ng@singtaonewscorp.com