FROM THE MINISTER FOR TRANSPORT

Monday, August 22, 2005

VICTORIAN GOVERNMENT TO REVIEW STATE OF COUNTRY TAXIS

The review of Victoria’s country taxi industry is now underway, Acting Transport Minister Bob Cameron announced today.

Mr Cameron said the Government recently committed to finding ways to promote the long-term viability of Victoria’s country taxis.

“The Government has announced a wide-ranging investigation into Victoria’s country taxis after specific issues were raised during the Essential Services Commission’s review of taxi fares,” Mr Cameron said.

“It’s clear that the country taxi industry is facing different challenges than those of metropolitan Melbourne.

“When the Essential Services Commission looked at the level of fares in the taxi industry, country taxi operators and drivers made several submissions outlining particular problems faced by the industry in regional Victoria.

“Similar concerns were also raised when Parliamentary Secretary Carlo Carli and senior staff from the Department of Infrastructure met with representatives of the country taxi industry earlier this month,” Mr Cameron said

Mr Carli said the review would consider the financial viability of country taxi services and recommend ways to improve the provision of taxi services in regional Victoria.

“People living in regional Victoria deserve to have reasonable access to taxi services and we are aware of the difficulties faced by some country operators. We want to find a way forward for country taxis,” Mr Carli said.

“Just as different issues face the country taxi industry, we have to think about providing different incentives and opportunities for people who run taxi services in the country.”Mr Cameron said the Victorian Government recently announced an eight per cent increase in taxi fares.

“We have already moved to implement an across the board pay increase for Victorian taxi drivers. Now we are looking at whether we can do more for taxis in the country,” Mr Cameron said.

“The Government has also acted to increase the Multi Purpose Taxi Program cap to $1000 and an increase in the trip cap from $25 to $30.”

A copy of the terms of reference for the review of country taxi services is attached.

SUMMARY - TERMS OF REFERENCE

REVIEW OF THE REGULATORY STRUCTURE AND OPERATIONS OF VICTORIA’S COUNTRY TAXI INDUSTRY

The Director of Public Transport intends to review the operations of, and the regulatory and licensing structure of taxi services in regional Victoria.

The Director will work closely with the Victorian Taxi Association and seek the views of individual operators, councils, unions and community groups.

Terms of reference

The key focus of the review is to:
(a)Investigate and assess the financial viability of taxi services in small country town environments;
(b)Investigate and assess the costs and financial returns associated with the delivery of services to people requiring wheelchair accessible taxis in regional Victoria, with particular emphasis on small country towns; and
(c)Recommend measures to improve outcomes for providers of those services and the communities they serve and to optimise the role of taxis in regional areas.

The review will make recommendations on options to assist taxi operators who are identified as suffering financial hardship including, but not limited to:

Span of operating hours;
Country taxi fare structures;
Wheelchair accessible taxi procurement arrangements and operations, including vehicle types, replacement schedules and financing arrangements;
Opportunities for taxi service providers to earn ancillary income by meeting wider transport needs in the communities they serve;
Licence fees;