Economic Regulation Authority recommends reform of WA taxis to cut fares and improve service

Updated

The Economic Regulation Authority has recommended sweeping reform of the Western Australian taxi industry, saying current regulations are causing high fares, longer waiting times and unreliable services.

In a report released yesterday, the ERA recommended that restrictions on the number of taxi plates be lifted and that rules preventing small charter operators from competing with taxis be removed.

The biggest winners from such changes would be passengers. The ERA estimates that customers would be up to $70 million better off from reductions in fares and waiting times.

The losers would be the owners of taxi plates, which are currently valued at around $300,000 and generate annual revenue of around $18,000 for the owners from leasing plates to drivers.

ERA chairman Lyndon Rowe told 720 ABC Perth that reform in the taxi industry was inevitable.

"Technology is going to overtake the taxi industry and there will be changes.

"In that environment, it is important that the government always reviews its legislation and regulation to make sure it's not getting in the way of good innovative change that is of benefit to consumers."

Last week the charter service Uber launched in Perth, which allows customers to use a smartphone app to book private charter vehicles after providing personal information, including credit card details.

Current laws require charter services to charge minimum $60 fee, but the ERA recommends this be dropped.

Taxi industry acknowledges need to improve

Steven Gill, CEO of the Taxi Council of WA, said he agreed that services need to improve but said the council strongly opposed the deregulation of the taxi industry.

720 ABC Perth was flooded with complaints about the standard of taxi services in response to this story.

Cassandra: The last four times I've called for a taxi the call has not even been picked up. When I catch one at a taxi rank, the driver has no clue where to go, how to get there and spends the entire time talking to someone else on his phone. Back to the old days please.

Darlene: We have used private vehicles for years and it can be equivalent in price but the service and reliability is beyond anything you could possibly wish for from our taxi industry.

Ian: Drivers complain they don't make money. One reason given is that they have to pay a fee to the taxi owner for each shift. If the government was to deregulate the industry and allow genuine owner operators to buy a taxi plate license at a realistic price rather than the currently overpriced cost due to investors or non drivers holding these plates so as to produce their income then maybe vehicle condition, driver standards, reliability and availability would improve.

Steven Gill agreed the industry had struggled with the booming economy and population growth in the west over the past eight years, but said the industry had made substantial changes in recent months.

"The industry has dramatically improved over the last 3-6 months and I'd encourage people to give the taxi industry another go," Mr Gill said.

"There is only a limited pool of drivers and that has been our constant challenge.

"There are now a lot more people going through the taxi driving schools."

Taxi driver Keith contacted the station to say he did not believe the Taxi Council represents drivers' interests.

"I have been driving for seven years but the last three have been on Friday and Saturday nights," he told Geoff Hutchison.

"My take has gone down to the point where I intend to get out of the industry. It's hard to make enough money to justify working Friday and Saturday nights.

"People complain about drivers not speaking English or not knowing where they are going. That is because they are recently arrived in Australia and looking for work.

"They are the only people they can get to drive taxis. Do you think people really are queuing up to do that job?"

Topics: consumer-protection, regulation, road-transport, perth-6000

First posted