THE taxi industry realises it has to be cost competitive, an independent regulator has heard.
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Representatives from the Independent Pricing and Regulatory Tribunal (IPART) also heard about the need to make a reasonable return through taxi fares in an environment of escalating costs, government regulation and competition from other providers.
Taxi representatives from Port Macquarie, Wauchope, Coffs Harbour, Kempsey and Nambucca attended a roundtable in Port Macquarie on Tuesday as IPART gathered information for its review of taxi fares outside of Sydney.
The NSW Taxi Council, the peak body for the state’s taxi industry, was also represented. IPART is seeking feedback about a draft recommendation to freeze taxi fares in areas outside Sydney at current levels for 12 months from July.
Tribunal member Ed Willett said IPART had done a more comprehensive review of taxi fares outside of Sydney than in the past.
He said the cost of a taxi licence in many areas outside of Sydney was very high and the cost must be recouped by fare revenue. IPART believes the price of a new licence can prohibit new operators entering the market.
The independent regulator’s draft report recommends reform of the way taxis are licensed outside Sydney to address an undersupply of taxis in some regional areas.
NSW Taxi Council chief executive officer Roy Wakelin-King said taxis provided a convenient point-to-point service to all members of the public and some of the most disadvantaged members of the community.
“Country taxis are closely linked to their community and they are innovative,” he said.
Owner operators make up the majority of the taxi industry in regional and rural NSW.
Mr Wakelin-King said the industry faced increasing competitive forces, in particular from community transport, courtesy transport and hire car operators.
“We welcome competition as long as it is fair and equitable,” he said.
IPART chairman Peter Boxall said the public forum in Port Macquarie was a valuable input into IPART’s deliberations on how to best match the supply of taxis with demand for their services.
“In our draft report, we formed the view that increasing taxi fares in regional areas would only make taxis less competitive against other forms of point-to-point transport such as hire cars, and would not help drivers struggling with low earnings,” Dr Boxall said.
People have until May 15 to make submissions to the independent regulator before its recommendations are finalised and provided to Transport for NSW in June.