❓ The Minister for Transport updates the house on the government's plan to provide additional adjustment assistance payments to Perth metropolitan taxi plate owners during the second stage of the on-demand transport reform, including exploring a levy on charter and taxi trips.
AnsweredQoN 472Legislative Assembly
QuestionView source ↗
TAXIS —
INDUSTRY REFORM
472. Mr A. KRSTICEVIC to the
Minister for Transport:
Can the minister please update the house on how the Liberal–National
government is assisting taxi plate owners transition as part of the government's
on-demand transport reform?
INDUSTRY REFORM
472. Mr A. KRSTICEVIC to the
Minister for Transport:
Can the minister please update the house on how the Liberal–National
government is assisting taxi plate owners transition as part of the government's
on-demand transport reform?
AnswerView source ↗
I thank the member for this question. As has been stated all
the way through this reform process, the government will continue to monitor
the transition in the taxi industry. I will update the house on the government's
plan to provide additional adjustment assistance payments to Perth metropolitan
taxi plate owners during the second stage of the on-demand transport reform.
Over the past few weeks I have talked extensively with plate owners about their
individual circumstances. Although some plate owners will be able to transition
their businesses into a changed regulatory environment, it appears that others,
who are highly leveraged, will face further challenges as the second stage of
reform is implemented.
It is evident that the values of Perth metropolitan taxi
plates have declined in the past 12 months, reflecting a generally lower demand
for taxi trips and a decrease in the amount of time a taxi is engaged by a fare-paying
passenger. The transition assistance package I have already announced comprises
adjustment assistance of $20 000 per plate, and $6 000 for peak period and
area-restricted owned plates, as well as a hardship fund and business
development support. This will be able to be accessed as soon as the amendment
bill currently before this house is passed, and will provide immediate
financial support to taxi plate owners during these initial reforms.
It has now been acknowledged by the government that it may be
appropriate to provide further transition adjustment assistance for
conventional and multipurpose taxi plate owners. To that end, I have now asked
the department to explore a levy on every charter and taxi trip to fund the
additional payment and to also determine how long the levy should be in place.
I have also asked the department to consider the amount of additional
adjustment payment that should be made to taxi plate owners. This work will be
done in consultation with industry and incorporate relevant modelling and data.
As significant legislative amendments are required to put this initiative in
place, the additional adjustment payments will be included as part of stage 2
of the reforms. Drafting of the new legislation for stage 2 is expected to
commence later this year. I wish to reiterate that the government is not making
a compensation payout nor does it plan to buy back plates either compulsorily
or on a voluntary basis.
The taxi sector is a viable and
necessary part of the on-demand industry. The government is not taking away any
right to own a taxi plate or the right to operate a business that is
innovative, competitive and resilient. Throughout these reforms I have
encouraged taxi operators to take advantage of the more relaxed operating
conditions and develop their businesses to attract new customers. Although the
reform agenda presents a challenging period of transformation for the on-demand
transport industry in Western Australia, it also presents many opportunities
for the taxi industry to evolve and provide improved services to the community.
I think it is fair that I share how
we have got to this position.
Ms
R. Saffioti interjected.
The
SPEAKER : Thank you, member for West Swan, I call you to order for the first
time. Minister, a quick answer through the Chair, we are running out of time.
Mr D.C. NALDER : In 2012, there were 13.6 million taxi trips. In 2013—this is
all before Uber—this had decreased to 13.1 million trips. In 2014 the
number of taxi trips decreased again to 12.6 million. We were already down one million
trips before Uber even entered the market. Uber entered the market in October
2014. The final quarter of 2014 was the strongest quarter for taxi trips in
that year. In the whole year of 2015, the number of taxi trips reduced by 15
per cent. When we determined the way forward, we saw a fairly consistent
reduction of 15 per cent for a whole year. When we made the decision to
withdraw 20 per cent of the taxi plates out of the marketplace, we made a payment
of $20 000 and established a hardship fund and a business development fund. It
was considered at the time that this was an appropriate reflection of what was
happening in the marketplace. In 2016, we have seen a couple of things happen.
In early 2016, Uber reduced its taxi fares considerably again, and we have seen
a further decline in the number of taxi trips being undertaken—another
16 or 17 per cent decline. We have seen a decline of around 32 or 33 per cent
since Uber entered the marketplace.
The
SPEAKER : Quickly—30 seconds.
Mr
D.C. NALDER : Quickly, we are saying that it is not just about the number of
trips that are being undertaken. We acknowledge that this is also a transition,
and the value —
Ms
R. Saffioti interjected.
The
SPEAKER : Member for West Swan, I call you to order for the second time.
Minister, 30 seconds.
Mr
D.C. NALDER : The value of plates, moving forward, will actually be part of
an overall business, and that is a massive transition for the people who own
taxi plates. We are cognisant of that; we will work with the industry and
provide more detail as we progress.
the way through this reform process, the government will continue to monitor
the transition in the taxi industry. I will update the house on the government's
plan to provide additional adjustment assistance payments to Perth metropolitan
taxi plate owners during the second stage of the on-demand transport reform.
Over the past few weeks I have talked extensively with plate owners about their
individual circumstances. Although some plate owners will be able to transition
their businesses into a changed regulatory environment, it appears that others,
who are highly leveraged, will face further challenges as the second stage of
reform is implemented.
It is evident that the values of Perth metropolitan taxi
plates have declined in the past 12 months, reflecting a generally lower demand
for taxi trips and a decrease in the amount of time a taxi is engaged by a fare-paying
passenger. The transition assistance package I have already announced comprises
adjustment assistance of $20 000 per plate, and $6 000 for peak period and
area-restricted owned plates, as well as a hardship fund and business
development support. This will be able to be accessed as soon as the amendment
bill currently before this house is passed, and will provide immediate
financial support to taxi plate owners during these initial reforms.
It has now been acknowledged by the government that it may be
appropriate to provide further transition adjustment assistance for
conventional and multipurpose taxi plate owners. To that end, I have now asked
the department to explore a levy on every charter and taxi trip to fund the
additional payment and to also determine how long the levy should be in place.
I have also asked the department to consider the amount of additional
adjustment payment that should be made to taxi plate owners. This work will be
done in consultation with industry and incorporate relevant modelling and data.
As significant legislative amendments are required to put this initiative in
place, the additional adjustment payments will be included as part of stage 2
of the reforms. Drafting of the new legislation for stage 2 is expected to
commence later this year. I wish to reiterate that the government is not making
a compensation payout nor does it plan to buy back plates either compulsorily
or on a voluntary basis.
The taxi sector is a viable and
necessary part of the on-demand industry. The government is not taking away any
right to own a taxi plate or the right to operate a business that is
innovative, competitive and resilient. Throughout these reforms I have
encouraged taxi operators to take advantage of the more relaxed operating
conditions and develop their businesses to attract new customers. Although the
reform agenda presents a challenging period of transformation for the on-demand
transport industry in Western Australia, it also presents many opportunities
for the taxi industry to evolve and provide improved services to the community.
I think it is fair that I share how
we have got to this position.
Ms
R. Saffioti interjected.
The
SPEAKER : Thank you, member for West Swan, I call you to order for the first
time. Minister, a quick answer through the Chair, we are running out of time.
Mr D.C. NALDER : In 2012, there were 13.6 million taxi trips. In 2013—this is
all before Uber—this had decreased to 13.1 million trips. In 2014 the
number of taxi trips decreased again to 12.6 million. We were already down one million
trips before Uber even entered the market. Uber entered the market in October
2014. The final quarter of 2014 was the strongest quarter for taxi trips in
that year. In the whole year of 2015, the number of taxi trips reduced by 15
per cent. When we determined the way forward, we saw a fairly consistent
reduction of 15 per cent for a whole year. When we made the decision to
withdraw 20 per cent of the taxi plates out of the marketplace, we made a payment
of $20 000 and established a hardship fund and a business development fund. It
was considered at the time that this was an appropriate reflection of what was
happening in the marketplace. In 2016, we have seen a couple of things happen.
In early 2016, Uber reduced its taxi fares considerably again, and we have seen
a further decline in the number of taxi trips being undertaken—another
16 or 17 per cent decline. We have seen a decline of around 32 or 33 per cent
since Uber entered the marketplace.
The
SPEAKER : Quickly—30 seconds.
Mr
D.C. NALDER : Quickly, we are saying that it is not just about the number of
trips that are being undertaken. We acknowledge that this is also a transition,
and the value —
Ms
R. Saffioti interjected.
The
SPEAKER : Member for West Swan, I call you to order for the second time.
Minister, 30 seconds.
Mr
D.C. NALDER : The value of plates, moving forward, will actually be part of
an overall business, and that is a massive transition for the people who own
taxi plates. We are cognisant of that; we will work with the industry and
provide more detail as we progress.
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