Taxis say no to regulator attempts to curb fare costs

Geelong taxis has hit out at a proposal from the state regulator to halt price increases on certain cab fairs.

Geelong Taxis has hit out at a proposal to make no increase to certain cab fares after the state’s pricing regulator revealed its plan to keep costs steady during current market uncertainty.

The Essential Services Commission announced Tuesday it was proposing to make no change to the maximum fare that can be charged for unbooked taxi services.

Unbooked services include hailing a vehicle from the street or taking a taxi from a rank.

Geelong Taxi Network chief executive Peter Valentine said he was unhappy with the commission’s proposal.

He said it had been several years since fares were last revised, while drivers were facing higher running costs due to price fluctuations and increasing registration fees.

“We don’t agree with it,” Mr Valentine said.

“Every little aspect goes up and yet they’ve said we’re not going to increase it (the maximum fare).

“So it is weird and I don’t understand it.”

The commission’s director of pricing Marcus Crudden said now was not the time for change.

He said the commission considered issues including ongoing changes in consumer demand for taxis and the impact of the coronavirus pandemic on consumers and the industry.

“Keeping fares unchanged at this time is ultimately in the interests of Victorians who use unbooked taxis and will allow the industry to remain viable,” he said.

While the commission regulates fares for unbooked taxi services, it has no control over booked trips.

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Mr Valentine said the two-tier fare system was a source of confusion for passengers.

“I don’t know why the state government can’t just align the two,” he said.

“Our argument is you either set all the fares or you set none of the fares.”

Taxi users and other stakeholders can provide feedback on the commission’s proposal until July 31.

The commission will release its final decision in September, with any changes to come into effect from October 1.

Originally published as Taxis say no to regulator attempts to curb fare costs