The NSW Taxi council’s bid for higher compensation for licence holders missing in state budget

Transport Minister David Elliott put forward a proposal to increase taxi compensation by extending a $1 government charge on point to point rides, but it was knocked back by cabinet.

Premier Dominic Perrottet is “more than happy” to meet with the taxi lobby over their calls for more compensation for taxi licence holders, after the group expressed their anger at being left out of the state budget.

The NSW Taxi Council yesterday lashed out at Treasurer Matt Kean and senior ministers for not agreeing to a proposal to increase compensation payments for licence holders by extending a $1 levy on all rideshare and taxi rides.

CEO Martin Rogers called for an urgent meeting with the Premier and Mr Kean this week to air their concerns.

“I’m more than happy to meet with them,” Mr Perrottet said on Wednesday.

The Premier said that licence holderes had already been paid some compensation for their licences, and conversations about increasing those payments are ongoing.

Premier Dominic Perrottet said he is happy to meet with the taxi council over their calls for higher compensation. Picture NCA Newswire/ Gaye Gerard.

“I know that they’ve asked for further support, and we’re working through that with the Transport Minister,” he said.

Transport Minister David Elliott submitted a proposal to cabinet’s expenditure review committee which would have compensated taxi licence holders impacted by rideshare companies like Uber by as much as $200,000.

Transport Minister David Elliott failed in his bid to get increased compensation for taxi drivers in the state budget. Picture: Gaye Gerard

The money would have been raised by keeping in place a “passenger service levy” on taxi and rideshare trips worth about $1 per ride.

The proposal would have kept the levy, which currently applies to all taxi and rideshare trips, in place until it raised the money required.

NSW Taxi Council CEO Martin Rogers said that the industry has copped a more than $1.5 billion hit since Uber was legalised.

The passenger service levy has raised almost $250 million in revenue so far.

Mr Rogers said the levy has “over collected about $100 million”.

“There’s no actual plan in place at the moment to distribute that $100 million,” he said.

The Daily Telegraph was told the money can’t be distributed to taxi licence holders without new legislation.

Mr Rogers said he was “extremely disappointed” that Mr Kean did not increase compensation to taxi licence holders in Tuesday’s budget.

He said taxi licence holders had been “decimated” by the arrival of Uber.

“Six years ago $1.6 billion was ripped out of the assets of 5000 families across NSW,” he said.

Mr Rogers said Mr Elliott and Regional Transport Minister Sam Farraway “developed a proposal which they were taking to the Treasurer on our behalf”.

NSW Taxi Council CEO Martin Rogers (left) with Taxi company owners Bob Jones and Allan Clulow.

“There are many members of parliament who want fair and proper compensation, there are two Transport Ministers that want this to be dealt with, but for some reason, the proposal hasn’t been considered by the treasurer in this year’s budget,” he said.

“We actually need to have an urgent meeting with the Premier and the treasurer this week to resolve this.”

Government ministers declined to comment on why the proposal did not make it through the expenditure review committee process and into the budget, citing cabinet confidentiality.

But Mr Elliott has previously told the industry he did not believe initial compensation payments of $20,000 for licence holders went far enough.

Earlier this year, Mr Elliott assured taxi drivers through a budget estimates hearing that the government “has got their back”.