Hon Peter Foss inquires about the potential deregulation of the taxi industry in WA, including communications with the Commonwealth and the State's position. The answer outlines the government's stance against deregulation, preferring staged licence releases and industry reform, and clarifies that a buyback scheme will not be pursued due to lack of industry support.

AnsweredQoN 913Legislative Council
Asked
24 June 2003
Portfolio
Planning and Infrastructure

QuestionView source ↗

I refer to the possibility of deregulation of the taxi industry in Western Australia -
(1) Has the Commonwealth, the National Competition Council or any of its agencies communicated a definitive position to the State concerning deregulation of the taxi industry in Western Australia?
(2) If so, will you table it?
(3) Has the State reached a definitive position on its intention with regard to the deregulation?
(4) If so, what is it?
(5) Further, has the State communicated its position to the Commonwealth?
(6) If so, will you table that communication?
(7) Is it the intention of the State, assuming it has made its mind up that some form of buy-back will take place, to permit voluntary surrender for buy-back prior to any legislation being in place to make buy-back compulsory?

AnswerView source ↗

Answered
20 August 2003
Responded by
Parliamentary Secretary representing the Minister for Planning and Infrastructure
Response time
57 days
· There should be regular (at least annual) releases of new licences with sufficient new licences being released to improve the relative supply of taxis and the first release of new licences occurring before 30 June 2003; · There should be a commitment to the independent monitoring and review of reform outcomes on a regular basis, and to additional action if the demand/supply imbalance is not improving; · There should be immediate reform of the regulation of the other providers of chauffeured passenger to increase competition; and · There must be a strong commitment that the program of staged licence releases will proceed. (3) The Government has never supported the deregulation of the taxi industry. (4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
· There should be a commitment to the independent monitoring and review of reform outcomes on a regular basis, and to additional action if the demand/supply imbalance is not improving; · There should be immediate reform of the regulation of the other providers of chauffeured passenger to increase competition; and · There must be a strong commitment that the program of staged licence releases will proceed. (3) The Government has never supported the deregulation of the taxi industry. (4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
· There should be immediate reform of the regulation of the other providers of chauffeured passenger to increase competition; and · There must be a strong commitment that the program of staged licence releases will proceed. (3) The Government has never supported the deregulation of the taxi industry. (4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
· There must be a strong commitment that the program of staged licence releases will proceed. (3) The Government has never supported the deregulation of the taxi industry. (4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
(3) The Government has never supported the deregulation of the taxi industry. (4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
(4) - (7) The Member would be aware that I have recently released the report of the Taxi Industry Review undertaken by Hon Graham Giffard MLC, following a comprehensive review of the future regulatory structure of the metropolitan taxi industry. Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
Hon G Giffard consulted widely with the taxi industry and with taxi user representative groups in developing the industry reform package and I am confident that the reforms will produce a fair outcome for all stakeholders. The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
The main elements to the reforms are: · the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
· the issue of new non-transferable licences to taxi drivers; and · the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
· the licence fee for new licences to be significantly less than the current lease rate; The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
The Review of the Taxi Industry has shown that a taxi plate buyback is viable and is probably still the right mechanism to drive down industry costs and improve viability for the backbone of the taxi industry – the rank and file taxi drivers. However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.
However, although 71% of plate lease drivers and 51% of shift lease drivers indicated their support for buyback, only 29% of investor owners and 35% of owner-drivers indicated their support. It was clear that there is not broad industry support for buyback and so I have told the industry that buyback, whether compulsory or voluntary, will not be pursued. It would only be reconsidered if in years to come the industry approaches Government with a request for the implementation of the policy.

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