NSW Taxi council accepts government’s $905 million compensation package

After it was given a 24 hour deadline to accept a new industry compensation package, the taxi lobby has confirmed its decision.

The taxi lobby has accepted the state government’s final ultimatum for industry assistance at the eleventh hour, Transport Minister David Elliott says, meaning $905 million in compensation is set to flow to licence holders.

The Daily Telegraph was told that the NSW Taxi Council agreed to accept the offer late on Monday night, subject to the compensation payments not being subject to income tax.

Mr Elliott was preparing to pull the bill from parliament at a meeting of Coalition MPs on Tuesday morning, which would have denied drivers any compensation until at least the March election.

If the bill had been withdrawn the industry assistance package would have been pushed to an independent review, which could have seen drivers given far less.

The taxi lobby originally rejected the government’s “final offer” of $905 million in assistance, demanding more for drivers whose investments had been junked.

Transport minister David Elliott. Picture: Richard Dobson

That will be paid for by increasing a tax on all taxi and ride share trips by 20 cents until 2030.

However Mr Elliott said that he reached the agreement late last night with just nine hours to spare.

It comes after the Transport Minister gave the taxi lobby a 24 hour deadline to accept the compensation package.

The government was threatening a review of industry assistance if the package was not agreed to.

It is understood the NSW government had already been discussing a range of people who could head the review, including former public servants such as economist Rod Simms, former Finance Department secretary Jane Halton and NSW Productivity Commissioner Peter Achterstraat.

The taxi industry were given a 24 hour deadline to accept the compensation package. Picture: NCA NewsWire/Bianca De Marchi

If legislation does not pass parliament before next week to pay out taxi drivers, any compensation could be delayed until the review is finished, which could be well past the march election.

“To say I’m disappointed the taxi council are trying to hold nearly a billion dollars’ worth of compensation to the state’s cabbies is an understatement,” Mr Elliott said after the Taxi Council originally rejected the offer.

“My appeal to the taxi council on the back of the conversation I’ve had with the Premier this morning is that they’ve got 24 hours to accept this compensation package.”

Labor Leader Chris Minns yesterday backed the package as “fair and reasonable”.

“I think we need to show the industry and those who are stakeholders here that there’s bipartisan support for this package,” he said.

NSW Taxi Council CEO Martin Rogers was contacted for comment last night but did not respond.