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Latest CEO Editorial
Latest CEO Editorial
NOW WE KNOW
It took a while, but now we know how and when the 530 additional
conventional and WAT licences will be issued into the greater
Melbourne area.
By the time this edition of Taxi Talk hits the streets
applications for the 200 conventional licences will have
closed.
People will soon be invited to apply for the WAT licences.
Applicants need to be very careful and meticulous, and need to at
least triple check that they understand what their bids are. The
process is not straight forward, particularly if the Bid Schedule
is used.
Likewise, the ranking and allocation process is complicated and
not straight forward. This is particularly so as the bids as ranked
approach the quantity threshold.
Then there are the possible quirky outcomes. An example is in
respect to the licences for the outer-suburban taxi zone. On the
surface up to 7 conventional licences and a maximum of 20 licences
(conventional plus WAT) could be allocated into this zone, but
there could be as few as none issued - it all depends on the bid
amount being competitive with the metropolitan zone bids for the
licence type.
I continue to urge prospective applicants to seek advice from
their accountant/financial advisor and take advantage of the Taxi
Directorate's on-line, telephone and over the counter advisory
assistance. The Taxi Directorate must not advise you on your bid
amount because it's a competitive process, they are not financial
advisors, and collusion is a big no no.
Likewise you must not collude with any other applicant in
deciding on your bid amount(s).
Applicants are not permitted to make any comment to the media or
in public about the release of the licences.
Importantly, when deciding on your bid amount please consider
that the driver of the taxi has to make a living out of it.
As I have stated before and elsewhere it is essential that taxi
fares immediately increase by at least 15.5% to cover the existing
situation and allow a return to the 50/50 arrangement, but the
increase needs to be more like 20% to provide for the shock impact
of the additional taxis.
We know what the Government and the public says it wants from
the taxi industry, but this can only happen if both operators and
drivers are adequately rewarded.
Public transport minister Martin Pakula has expressed interest
in driver remuneration and the well being of the industry, so if he
is really fair dinkum about business and labour fairness then he
will significantly increase taxi fares and ensure that his
spokespersons and bureaucrats don't talk down the taxi industry in
public, in business forums, and with the media.
Neil Sach
VTA CEO