Limousine operators call on SA government to change laws as industry struggles to remain viable

South Australia’s limo fleet is fleeing the state, business owners say, because of a unique local law that makes it impossible to keep them on the roads.

Limo drivers Andrew Belham from Silver Crest Limousines, Peter Liebich from Liebich Red Limousines, Asghar Yosufi from Hummer SA, Allan Aspinall from All Occasion Limousines and Peter Klar from P & K Limousines say limos are being sold to interstate businesses who can still drive them legally. Picture: Brenton Edwards

Limousine owners are urging the state government to change the law around stretch vehicles as the luxury car hire industry struggles to stay afloat.

Business owners have called on Transport Minister Tom Koutsantonis, to bring South Australian legislation in line with the rest of the nation and allow their vehicles to stay on the road for longer.

Under current legislation, stretch vehicles in SA are only allowed to remain in use for 15 years or until they reach 320,000km before they have to be taken off the road – regardless of their roadworthiness.

Interstate, the vehicles are allowed to be used until they fail a roadworthy check.

P & K Limousines owner Peter Klar said the laws were forcing operators to close their businesses due to the high cost of replacing a vehicle, which ranged from $400,000 to $500,000.

“It’s just not a viable proposition,” Mr Klar said.

“It’s easier to quit and get out.”

Andrew Belham from Silver Crest Limousines, Asghar Yosufi from Hummer SA, Allan Aspinall from All Occasion Limousines, Peter Klar from P & K Limousines and Peter Liebich from Liebich Red Limousines. Picture: Brenton Edwards

Mr Klar said one of his limousines had only travelled 24,000km but could no longer be used because it was too old.

“There’s not a limousine in Adelaide anywhere near 320,00km,” he said.

He said the legislation had forced many operators to sell their vehicles interstate where they could continue to be used, bringing the number of limousine operators in SA to just 11.

“Interstate there are no regulations,” he said.

“You can have a car as old as you like, providing it is roadworthy, and keep operating it.”

The state government last year made changes to the legislation that allowed operators to apply for an exemption to use their vehicles until they were 20 years old.

However, Mr Klar said operators could not afford to spend money on the applications for all vehicles older than 15 years.

“In the last five years, there’s been 30 vehicles sold out of Adelaide because no one wanted to go through the bureaucratic stuff I went through with the exemption requirements,” Mr Klar said.

Transport Minister Tom Koutsantonis. Picture: David Mariuz

“They’re all still operating interstate but they can’t operate here in Adelaide.”

He said the average number of kilometres his limousines travelled in SA had dropped from 23,000km a year in 2013 to just more than 4000km last year.

Opposition transport spokesman Vincent Tarzia said the legislation was “ludicrous”.

“If a limousine is roadworthy, its age should not be a barrier,” he said.

“Tom Koutsantonis could solve this issue with the stroke of a pen if he wanted.”

Mr Koutsantonis, a former taxi driver, said it was clear to him that limousine operators in SA were at a “disadvantage compared to other jurisdictions”.

“We will not compromise on safety, however we cannot allow a situation to continue that could threaten the ongoing viability of this industry,” Mr Koutsantonis said.

“I have instructed my department to look into the matter urgently and provide a workable solution that is consistent with other jurisdictions.

“We intend to bring SA’s approach in line with most other states and do so quickly, provided safety standards can be guaranteed.”