Part D – Understanding and improving industry performance (PDF ...

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The policy to remove advertising on taxis was introduced
in the 1994 reforms mentioned above, with the aim of
promoting a clean, professional image for Victoria’s taxis. 124
Advertising was not completely phased out until 2005.
A number of operators have urged the inquiry to
recommend that some limited advertising be allowed on
their vehicles:
We as operators receive little benefit promoting credit
card companies and taxi networks. Taxi operators
have been discriminated against by not allowing the
operator the opportunity of receiving revenue from
media sources that could advertise on the taxi. All
other forms of public transport including trams and
buses are afforded the opportunity of advertising on
their vehicles. 125
[Reintroduction of advertising] will assist
operators with costs and diminish the need for
fare increases. 126
Again, this issue was raised in a number of country areas,
where operator viability is of major concern. The 2006
Country Taxi Review found that operators in small country
towns could earn approximately $1,000 per year in revenue
from advertising on taxi vehicles. The Department of
Infrastructure did not support the review’s recommendation
for a review of the advertising policy, citing the need to
maintain ‘a clean and professional image’.
The inquiry considers that the advertising restrictions are
costly for taxi operators. The costs (revenue foregone)
are not large. But there is scant evidence that there are
significant benefits from this regulation. Indeed, in the
two other cities with iconic taxis, New York and London,
both allow advertising in some form. Nor is it obvious why
there is a requirement for taxis not to carry advertising but
no such requirement placed on public transport.
Inquiry finding
è These regulations add cost to the industry and
reduce its competitiveness.
124 Correspondence from Ms Marnie Williams, Acting General Manager,
Victorian Taxi Directorate
125 Taxi-Link, Submission to the Taxi Industry Inquiry, SS254a, p.1
126 John Vlassopoulos, Submission to the Taxi Industry Inquiry, SS338, p. 3
Understanding industry performance CUSTOMERS FIRST 221