Deregulation

Over the past decade, the most significant threat to current and continued investment in the Taxi Industry has been the National Competition Council’s fascination with the prospect of deregulation.

The ATIA and its State Members have focused during this period on three core arguments in favour of stable Industry policy, viz.:

• The imposition of public transport regulations on Taxi operators across Australia, at private cost to those operators, is a powerful justification for the protection of historical and ongoing investment
• In the Taxi Industry, the only guarantee of improvement and maintenance of service standards is through reward for investment. Taking away the value of a licence takes away any incentive for the operator to protect that licence by meeting and exceeding expected standards
• Our Industry has responded strongly and positively to the main focus of various NCP reviews, which has been on standards and access. In particular, there have been substantial measurable increases in service standards in each State and Territory, while at the same time, the Industry has led and implemented the call for innovative demand solutions, including rank management, peak-time licences and prestige services

The past year has seen a watershed in our policy environment. In 2003, five jurisdictions (NSW, Qld, SA, ACT, NT) were included in pools against which State competition payments (Federal-State transfers) were suspended for inadequate reform.

In the National Competition Council’s 2004 Annual Report, it was recommended that for all of these, except South Australia, suspended payments should be returned, and no new payments associated with Taxi reform should be withheld.

This does not mean that the NCP battle is over, but it does provide breathing room for us to re-examine our options across the nation, and look at where we have successfully put our case, and where our activities have been less effective.

The ATIA, in concert with its members will continue to put investment protection at the forefront of our communications activities, and we are confident of long-term success.