August 2006

THE AGENDA KEEPS GROWING, BUT IT’S DIFFERENT

As reported elsewhere in the edition, the Australian Taxi Industry Association (ATIA) met with the National Taxi Regulators Group (NTRG) last month to discuss a number of national issues.

The ATIA also met to discuss a range of national industry matters. Three of these were:

• Availability and standards of vehicles for use as taxis
• The Trade Practices Act (TPA) and rostering of taxis
• LPG price

Taxi operators across Australia are faced with uncertainty as to where the Australian vehicle industry is heading and the impact of this on the availability of vehicles suitable for use as a taxi.

The loss of the front centre seating position has been a significant blow to taxi operators who opted to run “5 Seaters”.

There is the problem of Station Wagons being unavailable. The vehicle manufacturers are obviously keen to push buyers into the “cross over” range. I’m aware of at least one Ford Territory now licensed as a taxi in Melbourne.

Then there is the additional requirement in Victoria of all taxis to be Victorian Taxi Yellow.

With only some 16,000 taxis in the whole of Australia and given that many operators opt to use second hand vehicles, the market for new vehicles being sold as taxis is small in comparison to the new vehicle market. It is perhaps little wonder (but disappointing) that vehicle manufacturers in Australia now have little or no interest in the taxi market.

The other concern is in respect to LPG friendly engines. New emission standards have created difficulty for some vehicle manufacturers to comply across fuel alternatives.

The TPA and taxi rostering is also a matter of national interest and impact, and as we are all aware rostering taxis off in depots with multiple operators is a big no no. (Rostering taxis on is okay.) The implications of this matter are felt mostly in metropolitan interface areas and urban and country cities/towns.

The VTA believes that it time again for this matter to be pursued with the Trade Practices Commission with a view to finding an arrangement that better suits taxi operators and drivers whilst not reducing the level of taxi service to the public.

It is pleasing that the VTTD has advised (or is about to advise) urban and country taxi depots and operators about the outcome of the country taxi review and how they can go about implementing some of outcomes.

The five most immediate of these are the ability to negotiate fares for contract and regular bookings, reduced licence fees, application to extend age of vehicle, specifying hours of regular service, and application process for subsidy to purchase WAT’s.

In regard to the outstanding matter of providing financial assistance to non-metropolitan depots, operators and drivers for provision of M50 services, the VTA has engaged consultants to undertake the research work and prepare the case for government action.

On another matter, the VTA has engaged Professor Harry Clarke and Dr John Shannon from the Department of Economics and Finance, Latrobe University, to assist in reviewing the current CPI-1 taxi fare setting model. Part of the brief is also to advise on LPG price impacts and implications at this point in time and going forward.

Yes, the agenda is growing and yes, it is different. This means that priorities and resources have to adjust accordingly.

Neil Sach
VTA CEO