Government outlines proposal to deregulate taxi industry

A MAJOR overhaul of the taxi industry in Tasmania will create changes for passengers and drivers.

Former Tasmanian MP Ross Butler, who now drives taxis, speaks out against deregulating the industry.

A SHAKEUP of the taxi industry in Tasmania would see drivers set their own fares and allow customers to shop around when booking a ride.

The State Government has outlined a raft of proposed changes, and public forums explaining the sector overhaul start this week.

A key element of the Taxi and Vehicle Hire Industries Regulatory Review would see fares in the booked market deregulated in areas of sufficient competition.

To address the rapidly changing taxi landscape since the arrival of Uber, the Department of State Growth has released proposed changes to “deliver a level playing field for all those in the industries”.

The changes, which would start in Hobart, would mean booked taxi services would no longer be subjected to a maximum regulated fare.

“Where there is fare deregulation, a taxi operator may set its fares at any rate it determines. Passengers need to exercise their judgment and may need to obtain fare estimates from multiple service providers to find a service that suits them,” the review paper says.

Under the proposal, rank and hail taxis will not be able to set their own fares.

Another element of the proposal to deregulate the industry would see an unlimited number of taxi licences released on to the market and a huge reduction in their current price.

Hobart taxi driver Ross Butler, a former member of the Tasmanian House of Assembly, has slammed the proposed changes to licences as “outrageously unfair” as it could destroy livelihoods.

“The proposal will destroy a lawful asset … that will destroy the economic well being and potential for retirement income of owner-operators who currently own OOTLS [owner-operator taxi licences],” he said.

Under the new framework, annual administration fees and safety requirements will be applied to all operators, including ride-sharing networks such as Uber.

But the changes also propose to deregulate the supply of owner-operated taxi licences, by making licences available according to demand and slowly reducing their reserve price by 20 per cent over five years until they cost nothing but an administration fee.

At present the licences, which sell for $60,000 each in Hobart and $35,000 in Launceston, are only available on a limited tender process.

Mr Butler, who started driving taxis in 2005, said the proposed changes would also affect the livelihoods of taxi drivers.

“Many drivers are struggling to make $8-10 an hour,” he said.

Mr Butler said the Government was proposing to destroy assets that may have formed part of superannuation nest eggs or part of an estate they expected to leave to family beneficiaries.

A spokesperson for the department said no decisions had been made about the proposed changes, and consultation with the industry would continue.

Regional forums about the changes are being held around the state between October 31 and November 2 with the first will be held in Hobart on Wednesday.