Drivers face less compensation if NSW Taxi Council reject extra 20 cents per ride offer

NSW taxi drivers could be worse off if the industry’s council rejects the government’s compensation offer in favour of an independent review, the Transport minister has warned.

Taxi drivers in NSW could face a sharp drop in compensation if they reject the government’s latest offer and trigger an independent review, transport Minister David Elliott has warned.

The Telegraph understands the NSW government is already discussing a range of people who could head the review, including former public servants economist Rod Simms, Jane Halton and NSW Productivity Commissioner Peter Achterstraat.

It comes after the NSW Taxi Council was given a 24 hour deadline to agree to a new compensation package which will result in passengers getting hit with an extra 20 cents per trip until 2030.

Transport Minister David Elliott on Monday morning revealed the NSW Taxi Council had rejected the government’s latest compensation offer – totalling $905 million – saying it was “all about the money”.

“To say I’m disappointed that eight men on 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, disclosing that he had been informed the council would reject the package in a late-night Sunday phone call.

Minister for Regional Transport and Regional Roads, Sam Farraway (left), next to Minister for Transport, Veterans and Western Sydney, David Elliott (right). Picture: Richard Dobson

“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.”

Mr Elliott said “the big risk” for the taxi industry was that if they didn’t accept the package, it will go to an independent assessment which could result in drivers getting less.

The NSW Taxi Council has been given a day to rethink their decision. Picture: Bianca De Marchi

“I’m quite confident that independent assessment will spend its time comparing what NSW is offering (compared) to the rest of the world. And there is a huge risk that our caddies will actually get less compensation,” he said.

The Transport Minister implored the peak body to accept the offer on Monday “because tomorrow will be too late” to introduce it to parliament this year.

He also took a shot at the services being offered by cabbies in NSW and said: “I‘d be lying if I didn’t say feedback about the quality of taxis in this state”.

Premier Dominic Perrottet also called on the association to accept the “fair and generous” compensation offer.

The NSW Premier also urged the association to reconsider. Bianca De Marchi

“It’s more than twice the size of the Victorian project. We believe this is fair and generous and the Taxi Council should accept it,” he said.

“If they don’t support it then we will have an independent assessment to take a look at it. If you look around the country, the support that we are providing the country leads the way.”

Mr Perrottet said if the taxi council supported the offer then they would move legislation on the matter.

NSW Taxi Councils CEO Martin Rogers said the body rejected the package because the level of compensation wasn’t high enough.

He hinted there could still be backbench turmoil after being contacted by multiple MPs.

“Our concerns with the current package is (that) it’s still a little bit short. It’s not just from an industry perspective,” he said.

“Last night I spoke to a number of MPs across all parties who are saying that for their own electorates it’s not enough. How do they go back to their constituents or taxi licence owners and actually say ‘accept this package’?”

Mr Rogers also indicated the council was unlikely to accept the offer within the 24 hours demanded by the government, saying there were still two weeks of parliament before the end of the year.

Taxi passengers will foot the bill of the government’s planned industry compensation package. Picture: Bianca De Marchi

While he didn’t give a figure on how much compensation cabbies wanted, he referred to a peak body report which stated that licence plate values had dropped by $1.6 billion since the introduction of rideshares like Uber.

Mr Rogers noted the $700m difference between the $1.6b loss and the $900m offer from the government had set the “parameters” the council wanted in terms of compensation.

“We’ve got till the 17th of November. We’ve got two weeks in parliament,” he said.

“What we want to do is actually sit down and talk with the Premier and the transport ministers to come to a resolution that is not only satisfactory for our industry, but for those MPs and the constituents in their elections as well. We should sit down and work out fair and proper compensation.”

CEO of NSW Taxi Council Martin Rogers (left) at a taxi forum in February 2018.

Passengers will pay an extra 20 cents on taxi and ride share trips until 2030 to fund an extra $260 million in industry assistance under a final ultimatum from the Perrottet government.

The Daily Telegraph revealed that the government has now presented the industry with a ‘take it or leave it’ offer would take the total compensation package for taxi licence holders to $905 million.

The new package will be the government’s “final offer” to taxi drivers, despite a revolt in the Coalition’s own ranks calling for more cash.

Under the plan, taxi licence holders in Sydney are expected to be paid $150,000 in compensation.

Regional licence holders would get up to $195,000 in per plate – but the compensation would be as low as $40,000 for licence holders in some parts of the state.

The extra compensation would be funded by increasing the “passenger service levy” by 20 cents to $1.20 (plus GST), and extending it for another two years.

Transport Minister David Elliot claimed the taxi council’s rejection was motivated by money. Picture: Bill Hearne

The levy would be scrapped in 2030 and the industry would be fully deregulated.

The final offer, agreed to by Premier Dominic Perrottet, Transport Minister David Elliott and Regional Transport Minister Sam Farraway late on Sunday, is the most generous compensation package in Australia.

However, it falls short of what is being demanded by some in the government’s own ranks.

If the current offer fails to get support from Labor, the cross bench, and rogue Coalition MPs, taxi drivers will not get any extra compensation before the March election.

The offer forms part of a total $905m compensation package. Picture: Brian Cassey

The Daily Telegraph understands that the bill will not even enter parliament unless the taxi council supports it.

The package agreed to on Sunday is understood to be substantially similar to a proposal Mr Elliott failed to get through cabinet’s expenditure review committee (ERC) before the June budget.

A later compromise to give taxi licence holders $645 million passed ERC in September, but was last month torpedoed in Coalition party room after a backbench revolt.

Castle Hill MP Ray Williams sensationally broke ranks, calling for taxi licence holders to be compensated the full amount they paid for their plates.

Castle Hill MP Ray Williams. Picture: Damian Shaw

Transport Minister David Elliott. Picture: Richard Dobson

That could have seen some taxi drivers compensated up to $350,000. Mr Williams wanted the passenger service levy doubled to $2 to pay for the increase.

Labor Leader Chris Minns has refused to be drawn on the issue, however his Small Business spokesman Steve Kamper believes they should get $200,000 in assistance.

Mr Elliott on Sunday said he hoped the final offer would ease “the financial burden on our cabbies”.

“I urge the Taxi Industry to support this generous package so that taxi licence owners get the money they deserve as soon as possible,” he said.

Mr Farraway also called on the taxi council to accept the offer.

“This is our package, our final offer and should it be accepted by the NSW Taxi Council and its members then the funding will be in the bank accounts of taxi owners,” he said.