HORSHAM and Dimboola’s taxi services were left with little idea how their businesses could be affected after the state government announced an industry shake-up on Tuesday.
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The government wants to introduce flexible fares and a $2-per-trip levy for all commercial passenger vehicles, whether they be traditional taxis or ‘ride sharing’ smartphone apps.
Passengers will not pay the levy directly, but Wimmera taxi owners were unable to say if they would be forced to pass the costs on.
Horsham Taxi Service owner Russel Carter said he had yet to receive any information about the changes and could not comment on specific details.
“We did have had one bloke ring up and say he doesn’t want to pay $2 extra per trip in the country, and I agree with him,” Mr Carter said.
Mr Carter said he was also believed that the move to legalise ride-sharing services like Uber and Lyft in Victoria would leave their passengers without proper insurance cover.
“Taxis pay a lot for insurance but Uber drivers use their own personal cover,” Mr Carter said.
“The first time an Uber driver gets into a major accident, their insurance provider won’t pay the claim.”
Uber’s website stated that it has its own insurance policy that will pay out on bodily injury to third parties and property damage to road users if the driver’s policy does not cover damages.
Dimboola Taxi Service owner Clay Abbott said he was also unaware of the proposed changes and could not comment on them.
He said the entire taxi industry might not survive the current and previous state governments’ push towards regulation.
Premier Daniel Andrews said the new system would be simpler and fairer.
“This is a comprehensive and fair transformation of taxi and hire car services, which responds to new technology that is changing the way people travel,” he said.
“We’re levelling the playing field for the whole industry while ensuring consumers have safe and reliable access to transport services.”
The long-standing licence system, which saw taxi operators purchase the right to run a single taxi from the previous owner, will be phased out.
Because of their limited number, taxi licences were worth up to $500,000 each a few years ago and many owners considered them an investment for retirement.
Under the proposed changes, $378 million will made available for the transition to the new legislative framework including compensation payments to licence owners.
The $2 levy will also help to pay for greater transport access for people with a disability.
Member for Lowan Emma Kealy said the proposed surcharge was unfair on country areas as they were being asked to pay for the introduction of services they wouldn’t get.
“I don’t see how country taxi companies will have much choice but to pass on this new tax,” she said.
“A pensioner will have to pay $2 extra to go to the doctor and $2 more to go home. $4 is a significant extra cost for that person.
“The Melbourne Labor government is leeching money from rural areas to pay for the introduction of Uber in Melbourne when some people have no option to use the bus or train and have to take a taxi.”
Ms Kealy said the changes were ill-thought out and were designed appease Melbourne taxi companies.
Member for Western Victoria Simon Ramsay said the new levy was a tax and said the compensation for taxi owners was inadequate.
“Mr Andrews is adding this excessive $2 charge to each taxi and Uber trip, breaking one of his key election promises not to introduce any new taxes,” he said.
“This is double the levy imposed on trips in New South Wales, making Victoria the most expensive state to take an Uber.
“We wanted a legal framework to regulate Uber, but I'm yet to see anything that has been set up to address the unique challenges Uber will bring to regional Victorian communities.”