Some taxi and transport trade representatives have reacted positively to the government's proposal to make the installation of surveillance cameras in cabs compulsory, saying it could help reduce quarrels between drivers and passengers.

The government told the legislature on Monday that in the next two years, it wants to mandate the installation of CCTV cameras in taxi cabins, as well as dashcams and Global Positioning System, along with the provision of at least two electronic payment methods.

Chow Kwok-keung, a former chairman of the Hong Kong Taxi and Public Light Bus Association, described the cameras plan as long overdue.

But he said the government should offer financial assistance, saying the trade is going through tough times.

"This is like spring season arriving late. As for costs, you can find CCTV cameras in the market costing around HK$4,700, HK$5,000, or more than HK$7,000," he told RTHK.

"But we're a bit disappointed that it seems the government won't be subsidising the camera installations at all. So we feel a bit unhappy."

Chow said e-payment is clearly the trend moving forward and the industry has to bear the responsibility to provide the systems needed.

Transport sector lawmaker Frankie Yick, of the Liberal Party, also welcomed the proposals, noting that the use of CCTV cameras inside taxis is something he has called for for many years.

He said drivers actually want the cameras to protect themselves, as they're now subject to a points-deduction system that can lead to a licence suspension for malpractice.

Yick said some drivers have encountered instances of passengers accusing them of engaging in wrongdoing, and cameras could help all sides.

He also brushed aside any privacy concerns.

"I've checked with the privacy commissioner, and I have got positive answers. Because inside the cab, it's not a private environment, it's semi-private, so you have to know that it's not a closed situation," the lawmaker told RTHK.

"And I think the most important thing is to make sure that the passenger is well-aware that the [CCTV] system is on."

As for e-payments, Yick said he has come across instances where taxi owners have installed an e-payment system, but the drivers didn't want to use them and so kept them away from passengers.

He expressed the hope that making the systems mandatory would "help Hong Kong's reputation".