Ballarat’s taxi fleet could shrink under the state government’s proposed buyback scheme for owner-operator licenses, Victorian Taxi Association president Stephen Armstrong said.
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The optional buyback would form a key plank of the government’s legislation to regulate the ride share industry. The bill was introduced to parliament on Wednesday.
The proposed legislation, which includes a $2 trip levy statewide, has been met with particular resistance by taxi operators outside of Melbourne and Geelong, the only areas in Victoria serviced by ride share company Uber.
The government would offer owner operators $100,000 for their first license and $50,000 for each license thereafter for up to three more.
But Mr Armstrong, who is also Ballarat Taxis chairman, said the government’s compensation could be less than a quarter of what the taxi driver bought in for. Ballarat Taxis has a fleet of 43 taxis, all owner-operated.
“Some of our operators bought licenses for about $450,000 and they’re left with outstanding debts and mortgages on their home it’s totally unfair, many have bought their licenses in good faith and all of a sudden that’s been stripped away from them, they won’t be self sufficient like many of them thought they’d be.”
The legislation is intended to replace the state’s existing licensing scheme and create standards across the board for ride share, hire car and taxi services.
About 75 per cent of the Ballarat Taxis fleet would be compromised by the level of compensation, Mr Armstrong said.
“What we’re unsure about is how many of our owner operators will say I’m out of here so we’re really not sure about our fleet size going forward. It’ll affect our service levels we’d have to look at what our operations were and I’m sure our board would consider purchasing permits ourselves.”
Mr Armstrong said there was a lot of “angst” regionally over the levy being passed onto taxi passengers outside of areas services by Uber.
Public Transport Minister Jacinta Allan said the legislation’s proposal to remove license fees would cancel out the levy.
"The levy will replace annual licence fees, paving the way for more competition and cheaper fares. It will also support the industry through these significant reforms, which will create a stronger industry and safer, more responsive services for passengers."