Chain of events ...Police are still piecing together the circumstances that led to both deaths. Credit:Penny Stephens The suspected knife-wielding passenger was seen leaving the victim lying on the road in Pinewood Drive in Mount Waverley and fled at high speed in the taxi, according to police. But the man lost control and smashed into the pole near the Victoria Police Academy in neighbouring Glen Waverley, which caused an inferno within the vehicle, just before 3am. Emergency crews had to use the jaws of life to extract the charred body from the stolen car. The body will be examined by forensic experts and police are confident of identifying the alleged killer through a post mortem examination and footage from the cab.

Tragedy ... Emergency workers at the scene of the stabbing in Mount Waverley. Credit:Penny Stephens Police have not yet recovered the knife but suspect it may be in the burnt out taxi. Meanwhile detectives are trying to contact the victim's next of kin. Premier Ted Baillieu said he was prepared to consider police advice on tougher measures to protect cab drivers. High speed crash ... The driver of the suspected stolen cab was incinerated after hitting a power pole at the intersection of Waverley and Gallaghers roads in Glen Waverley. Credit:Penny Stephens Police said the male taxi driver had been a veteran of the industry for the past 30 years and had been stabbed several times in the chest and died at the scene.

Stuart Overell, the chief operating officer for 13 Cabs, said the dead taxi driver was a long-term employee with his company and was very well known in the industry. Mr Overell said it was a "very sad day". "Early this morning we got notified that one of our drivers had been killed in an incident. We’re just working with the police at the moment to piece it all together," he told radio station 3AW. "We’ve had a number of drivers contact the contact centre. They’re very upset, worried about their friends. We all know it’s a tough gig being a cabbie. We’re telling everyone to keep it up and stay strong." He said the taxi was fitted with the latest security equipment, including a CCTV camera inside the vehicle and a external camera. The taxi was also fitted with a global positioning system allowing the company to track exactly where the vehicle had been.

"I know it’s got one of the latest spec security cameras in that cab so we’re hopeful that that will be ... downloaded by the police shortly," he said earlier today. "We’re very confident that [there is] footage of everything." He said it was unclear at this stage whether the stabbing was a result of a fare dispute or "something more sinister". Taxi drivers 'in the firing line' But he claimed a rise in drug and alcohol-fuelled abuse had made it more dangerous to work as a taxi driver in Melbourne.

"We’ve got all the safety and security up into the cabs these days but, with more and more people being drug and alcohol affected, it’s becoming a lot more unpredictable and tougher to be a cabbie," he said. He called for the introduction of harsher penalties for offenders who attack taxi drivers. Mr Baillieu said he would not hesitate to take a tougher line if it was recommended by Victoria Police. "What has occurred overnight in the eastern suburbs of Melbourne is shocking, this is an appalling tragedy," Mr Baillieu said this morning. "Today is a day to express our sympathies for the drivers’ family and his friends and we will take advice from Victoria Police for exactly what has happened and indeed anything that they recommend as a consequence of these tragic events.

"I wouldn’t hesitate to take any steps that Victorian Police recommends." Taxi Industry Stakeholders Victoria drivers’ representative David Brumby called on the state government to consider introducing harsher penalties for offenders - similar to those in force for offenders who attack emergency service workers - who attack taxi drivers. "Obviously the various stakeholders in the industry and the Victorian Taxi Association need to negotiate with the government, but that’s what we need now,’’ he said. "This city is violent of a night time and taxi drivers are in the firing line." As a 38-year veteran of the industry who drove in the Mount Waverley area at night, Mr Brumby said today’s violence had made him reconsider his career.

He also urged taxi drivers not to stage a protest following the driver’s death. "The last time there was the death of a driver there was a reaction [a protest in the city] and the city was gridlocked for days. So I urge drivers not to go down that line," he said. Homicide Squad Detective Senior Sergeant David Snare said the incident presented a "tragic set of circumstances". "We’ve got a taxi driver going about his lawful business and for whatever reason there has been some sort of confrontation and he is now deceased," Senior Sergeant Snare said. He said the the man who was stabbed was middle aged.

'A very quiet suburban area' Mount Waverley resident Rajeev Perara said he was still processing he shock of waking to discover the State Emergency Service had erected a tent across the road from his home to cover the taxi driver’s body. "I got up about 6.45am and noticed the lights flickering and wondered what was happening. I thought maybe a power line was down and the electrical guys were trying to repair it but then we saw the police," he said. "It seems I am a very heavy sleeper and didn't notice anything at all. That's the most unbelievable thing. It's just 50 yards from my bedroom and we didn't hear any noise. "I hope we find the motive and what's behind this incident because we expect Mount Waverley to be a safe environment. It's a fantastic neighbourhood."

Another resident, Tecla Spina, said she had lived in the area for 40 years and had never seen anything on the scale of what happened overnight. "I wouldn't dream of anything like this happening. It's a very quiet suburban area," Mrs Spina said. She said taxi drivers often had morning tea at the nearby Pinewood Shopping Centre. "Taxi drivers do tend to park around here as their break. It's a safe area." - with Craig Butt, Tom Arup