Deregulation won’t impact taxi services

A number of local taxi owners will lose substantial amounts of money under deregulation measures announced by the State Government but the manager of Warragul-based West Gippsland Taxis, Bruce Moss, says services for the public won’t be affected.

He said the 12 West Gippsland taxis, including two wheelchair access vehicles, would continue as normal providing a seven days a week around the clock service.

According to Mr Moss the losses for owners would be in the compensation - the government describes it as a “transition package” - offered for taxi licences.

For designated regions outside the metropolitan area - the Warragul-Drouin taxi area is one - owners will be offered $50,000 for the first licence they own, $25,000 for a second but nothing for any additional licences.

All of West Gippsland Taxis’ vehicles are owned by local people who are also directors of the company and Mr Moss, an owner himself, said the compensation was “not in the ball park” of what some paid for their licences. “They paid way more,” he said. However, he doesn’t believe they’ll be driven out of the industry despite losing heavily on the value of their assets.

Mr Moss said details of the commercial passenger vehicle industry deregulation are scant at this stage and it was a matter of “wait and see” what eventuates.

The changes also encompass ride share vehicles, such as Uber, and hire cars.

The government announcement issued jointly by Premier Daniel Andrews and Transport Minister Jacinta Allan said the “transition package” for taxi licence owners will be paid over an eight-year period and funded by a $2 levy on each trip that owners of all vehicles - taxis, ride share and hire cars - will be required to pay to the government.

That’s another detail in Mr Moss’ “wait and see” file.

“We don’t know how that’s to be collected and paid,” he said.

However, the government says owners could decide not to pass on the levy to customers and absorb it themselves as part of the changes that would also see fares regulated.

Mr Moss said everybody welcomes competition in the industry, provided it is a level playing field for all.

“Taxis pay licence fees, commercial registration and huge insurance; ride shares don’t”.

We’ll have to wait and see how that is dealt with in legislation, he said.

WGT also provides many services for agencies such as the Department of Veterans Affairs, the Transport Accident Commission and WorkCover and reduced fares for holders of some concession cards.

“I don’t think ride share operators would be prepared to do that,” he said.

About 40 drivers work varying numbers of hours per week for owners of the West Gippsland taxi licences.

Mr Moss said the group’s aim is to improve the service it provides as the area’s population grows.

Taxis will continue to be available 24 hours a day, seven days a week, he said.