Swipe me! - Taxi Talk Magazine

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A fair go for taxi drivers and operators David Samuel VTA Policy and Strategy The Victorian taxi fare rate sits around 25%-29% below that of NSW. The only justification for this could be that NSW costs are higher – they are not. In fact, VTA analysis demonstrates that the biggest cost to a taxi operator, the value of licence assignments, is significantly lower in NSW. Victoria’s taxi drivers bear the brunt of the costs associated with our State’s ailing licence assignment process. Operators pay the direct cost, but then like any business, pass that cost on. Drivers are unable to do the same given that the fare structure set by the State Government doesn’t reflect the true cost of the licence assignment, meaning they absorb the cost. In practical terms this scenario results in Victorian taxi drivers earning between $7 and $11 an hour. Australia’s current minimum wage is $14.31 per hour. So what can we do about this appalling situation? Well, the answer lies with the State Government. The VTA has made a series of submissions to the Minister for Public Transport, and has called on the Minister to: • Create the power for the Minister to introduce a cap on licence assignments in the Transport Act. • Create a single broker system to administer the licence process – the Department of Transport. • Fix anomalies in the mandated length of licence assignments. • Introduce a genuine mandatory written bailment agreement (the VTA do not support the mandate of the commercial elements of the agreement) created in consultation with the industry. • Introduce new legislative means to deal with sub-assignments. On top of this submission the VTA has made a specific submission regarding the issues associated with the current fare structure. This submission focuses on the concept of fair reward for effort, and ensuing that Victoria’s drivers are remunerated to at least the same level as their interstate counterparts. The submission also raised the issue of ensuring that the fare setting model maps the appropriate costs – once again like NSW, costs should be directly related to the taxi industry not broad economic indicators like the Consumer Price Index. The VTA has argued for the removal of the minus X factor in the current model (CIPI-X) which effectively penalizes drivers and operators for operating their business in a more productive and efficient manner. Surely this must be the most absurd feature of the current model. In the short term, the VTA is seeking a 25% - 29% fare increase to catch up to current licence assignment prices. The Essential Services Commission (ESC) covered this issue at length in its 2008 Review of Taxi Fares. In that review, the ESC urged the Government to introduce a cap on the price of licence assignments to stop what we are now seeing – the exponential increase in the value of licence assignments. The ESC pointed out that fares cannot be simply lifted to offset these price increases because this would merely lead to a problem of circular economic rent. While the VTA acknowledge the economic rationale behind the ESC’s work, it is not satisfied that the industry should absorb the costs generated by inappropriate regulatory settings. Given the taxi industry is funded by way of its fare revenue (as opposed to Government subsidised transport services) the VTA believe the price of the service must reflect the costs of providing that service. I look forward to bringing you more on these important issues. D 14 Taxi Talk - voice of the taxi industry SEPTEMBER 2010
Australia takes on the world Guests staying at the Regent Singapore will no longer need to fork out cash for their taxi rides. Instead, all they do is flash a card to the taxi driver and wait to receive the bill at the end of their hotel stay. Called the Hotel Cabcharge card, the new offering by Comfort- Delgro is a world’s first. Hotel guests are given the option of applying for the card when they check in. Guests then present it at the end of any Comfort or CityCab taxi trip and the fare details will be sent electronically to the hotel billing system. Guests then pay the taxi fares as part of the final hotel bill when they check out. Guests pay a 10% administration fee on top of the metered fare. This will be shared between ComfortDelgro and the hotel to defray operating costs. ComfortDelgro said it took about three months to integrate its Cabcharge card system to the Regent’s reservation and billing system.D PTY LTD WE HAVE MOVED TO BIGGER AND BETTER PREMISES Is your taxi licence assignment due for renewal? Contact Harry to discover the TaxiLink difference and our payment guarantee. If you are looking to drive for Melbourne’s largest and most professional taxi company ... Contact our Roster Managers to discover the TaxiLink difference. OUR NEW FACILITIES PROVIDE • 7 days a week mechanical repair centre • LPG installations • State-of-the-art panel beating facilities • Change-over automatic transmissions • Pirelli taxi tyres • Driver waiting room • Ample parking BUYING SELLING your taxi licence CONTACT OUR OFFICE TAXILINK PTY LTD HUNTINGDALE 1313-1315 NORTH ROAD (cnr Shafton Street) Mel Ref 69 K11 1300TAXILINK TAXILINK_0910 SEPTEMBER 2010 Taxi Talk - voice of the taxi industry 15
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