A meeting on July 16 between the Transport Department of Hong Kong SAR Government and representatives of taxi and light van groups failed to resolve differences that led to two airport demonstrations earlier.

On July 14, about 300 taxis staged a seven-hour blockade of the airport while on July 15 more than 10 light vans drove at slow speeds around its perimeter.

At issue is the taxi pick-up area that has been moved from its previous location to a point some distance from the terminal and the setting up of a temporary "dial-a-taxi" area.

The department maintains the changes are made to foil taxi and van drivers that offer a discounted price for ferrying travelers as well as to ensure a smoother flow of public transport.

But Legislative Council transport panel chairman Andrew Cheng Kar-foo thinks a financial solution is the best answer - reduce taxi fares, thereby putting discount operators out of business.

Secretary for Transport and Housing Eva Cheng Yu-wah said using blockades as protest tactics was "unacceptable" and stressed the new regulations would be enforced.

"The new arrangement overall is to ensure orderly operation in the airport," she said. "We don't expect any major amendments to be made as a result of these discussions, though there could be minor adjustments on certain details."

She said the call-a-cab stand was only a temporary measure and that the department would look for a long-term solution after consulting the industry.

Taxi drivers maintain the new pickup point is too far away, and that taxis and vans entering the area have to pay HK$40 for the first 30 minutes.

But Motor Transport Workers' General Union taxi driver branch director To Sun-tong appeared to break ranks on July 16, saying the union fully supported the new pickup area.

He said his union's concern was how quickly the government had caved in to the protest by some members by agreeing to set up a temporary call-a-cab stand.

"If policy can be changed so easily, how can the government settle anything?" he asked.

To said the industry had been consulted and agreed on the new pickup area.

If there is any dissatisfaction, those involved should have said so at the meetings instead of pulling off a stunt like July 14's, he said.

But Kwok Chi-biu, chairman of the Urban Taxi Drivers' Association that organized July 14's blockade, said the differences arose from the fact that some members of the industry may not have realized the new pick-up area was not the one they had been discussing for the past three years.

He said his association had been told the pick-up area would be in Parking Lot No. 3, which previously was adjacent to the terminal building.

However, that area has now been renamed Parking Lot No. 5 with Lot 3 now located at the far-away terminal two.

"We were only notified on July 10 about the new location," Kwok said.

He called for the pick-up area to be returned to it previous location, which was less than a 10-minute walk for travelers, who would also not have to cross the road.

Andrew Cheng said the new measures would not solve the problem of discount operators.

What would work, he said, would be to lower urban taxi fares by 20 percent to eliminate discount competition.

"To solve the problem of discount taxis, the government must make amendments. The price should go according to the meter with no negotiations allowed," he said.

"The fact that some taxi drivers are prepared to give a discount shows there is room for a reduction in fares."

He suggested fares be lowered from HK$15 to HK$12.50 for the first two kilometers, with each succeeding 0.2 km reduced to HK$1.10 from HK$1.40.

Light van operators voiced discontent about the meeting, saying the department had flatly rejected their proposals.