September 2007

WHAT AN INTERESTING TIME IT IS…

We’re at a point in time when the eyes of the government are squarely on industry performance, what with the release of the Taxi Driver Safety Strategy and taxi industry accreditation just around the corner. Plus all taxis need to be fitted with tactile numbers on all passenger doors by 31 December and there’s the issue of some licence holders (and their so-called agents) ripping off assignees.

Even Premier Brumby believes that something needs to be done about taxis. It was reported in the Herald Sun on 4 August that Mr Brumby said that the two worst things about Melbourne are a 42 degree day in February and the city’s taxis.

Perhaps the interest of Premier Brumby will provide an opportunity for the industry to move forward with improvement initiatives.

However, the opportunity for the government to show interest in and indicate the value of drivers and operators was somewhat put aside when the industry was awarded a fare increase of only 1.1% (actually smaller than this in some areas) just after NSW taxis were granted a 6% fare increase.

Talk about picking you up to help and then booting you further down the hill – the Victorian increase should have been at least 5%.

In reality, the reform agenda is not all that extensive because most drivers and operators do a magnificent job. Any reforms must recognise this and be particularly targeted at poor performers and those who suck the life blood from the industry for their own gains rather than for the benefit of the active industry participants and the user community.

The reform must also include a proper fare setting model that recognises that the taxi industry is very labour intensive and is a mature industry where most productivity gains have already been achieved.

Clearly, any new fare model must cater for and be responsive to a fair reward for effort (labour) and operator costs.

Licence assignment fees are an issue, but this must be addressed outside the fare model so that drivers and assignee operators are not penalised for the failings and distortions of the taxi licensing system.

And, I agree with the many taxi drivers who say that major improvements could be made quickly if there were many more “inspectors” out on the roads checking drivers and vehicles. I add the rider though that such “inspectors” need to be more like “quality improvers” rather than “ticket writers”.

Yes, indeed, interesting times.

Oh, and then there are the changes at the Taxi Directorate.

Neil Sach
VTA CEO