Election 2018: Labor announces raft of incentives for taxi industry after SA Best unveils its plans

TAXI drivers have been promised money and incentives from both Labor and SA Best to deal with the impact of ride sharing service Uber.

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TAXI drivers have been promised money and incentives from both Labor and SA Best to deal with the impact of ride sharing service Uber.

Labor will on Sunday announce a package to support taxi drivers, including a pledge to reduce the cost of their compulsory third-party (CTP) insurance by almost $5000 a year for two years if they are re-elected.

From July 1, 2018, the cost of the Lifetime Support Scheme levy would also be reduced by $900 under the Labor plan.

Transport and Infrastructure Minister Stephen Mullighan said while the introduction of ridesharing had been enthusiastically welcomed by South Australians, it had resulted in some challenges for the taxi industry.

Transport and Infrastructure Minister Stephen Mullighan.

“Under the current CTP scheme, taxis are paying a much higher CTP premium than other point-to-point services,” Mr Mullighan said.

“We believe issues raised by the taxi industry that current premiums do not reflect the additional competition and the change in risk relativity has merit.”

In addition to the reduction in the Lifetime Support Scheme Levy a re-elected Labor government will provide all taxi owners and operators, including access taxis, with a $4000 CTP assistance payment.

Each eligible taxi licence owner or operator will be entitled to receive a $4000 rebate for CTP premiums paid between July 1, 2017, to June 30, 2018, and July 1, 2018, to June 30, 2019 (maximum of two payments per taxi licence).

The promise comes as SA Best Leader Nick Xenophon on Saturday promised a raft of new measures to support taxi drivers.

SA Best Leader Nick Xenophon looks at cab record books from taxi driver Barrie South of West Beach during a press conference. Picture: Tracey Nearmy

Under his plan, taxi drivers would get an additional $10,000 payment in the next financial year based in part on three years of additional revenue, put into a compensation fund set up to support the industry.

His plan includes a move to increase the current licence fee of $85 — currently being charged for all taxis, hire cars and Uber vehicles — to $600 to raise $2 million a year for a compensation fund for taxi drivers.

“This is all about fairness for struggling small businesses and drivers, as well as passenger convenience,” Mr Xenophon said.

He noted the sector — which employs about 3000 people and is worth more than $150 million a year — had been impacted significantly by the introduction of Uber in 2015.

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Liberal leader Steven Marshall ruled out supporting Mr Xenophon’s levy because it would increase costs for Uber users.

However the Taxi Council of South Australia on Saturday welcomed the initiatives announced by SA Best.

“It is clear the industry is in need of further support given the challenges it is facing and the critical role it plays in the South Australian public transport system,” a spokeswoman said.