NSW taxi compensation package in tatters after backbench blow-up
A half-a-billion dollar compensation package for NSW taxi drivers hangs in the balance following a stunning revolt by state government backbenchers over “fairness’ of the plan.
NSW
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A compensation package for taxi licence holders worth half a billion dollars is in tatters after a backbench revolt forced the government to go back to the drawing board in an attempt to find extra money for drivers whose investments have been junked.
The Daily Telegraph can reveal that a raft of government MPs blew up in a party room meeting on Tuesday, demanding taxi licence holders get fair compensation for the impact of rideshare companies like Uber on the industry.
The internal revolt has forced the government to make further changes to compensation payments worth $100,000 for a Sydney licence, and up to $130,000 for licences in regional NSW.
Backbench critics said those payments would not be “fair” to taxi drivers and the government needed to find more money.
The Telegraph understands that Castle Hill MP Ray Williams was the first speaker to slam the $500 million compensation package, introduced to the party room meeting by Transport Minister David Elliott.
Mr Williams said the Treasury boffins behind the package needed to “f*ck off,” according multiple sources.
Mr Williams was followed by at least half a dozen speakers all calling for extra compensation as a matter of “fairness”.
While legislation to enact the $500 million compensation package may still be introduced to parliament, it is likely to be done in a way which gives the government’s leadership team time to find more money for drivers, multiple government sources told The Telegraph.
Treasurer Matt Kean stood by the compensation package on Tuesday, telling parliament “it’s a good package and we stand by it”.
The government faced criticism from the industry when the package was announced last month, with many drivers being left disappointed that they were not being compensated the full amount that they paid for a taxi licence.
The extra compensation was to be paid for by extending a $1 passenger levy on all taxi and rideshare journeys.
Sources in the government party room meeting said that Mr Elliott blamed former Transport Minister Andrew Constance for initially proposing compensation payments of just $25,000.
Mr Elliott declined to comment, but has previously said that he was doing “everything” possible to fix the problem he inherited.
Mr Elliott had previously been pushing to compensate taxi licence holders up to $200,000 for the impact of Uber on the industry.
Cabinet’s expenditure review committee knocked back that proposal in the lead up to the June budget, before a smaller compensation package was agreed to last month.
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