Taxi drivers to take 'knowledge' exam under sweeping reforms announced by the Victorian Government

Updated

Melbourne taxi drivers will be required to pass an independent knowledge exam before being accredited under reforms outlined by the Victorian Government.

Former ACCC chairman Graeme Samuel will be the new chairman of the Taxi Commission, with powers to improve regulation.

The Government says the majority of recommendations of the taxi inquiry, chaired by Professor Allan Fels, will be implemented.

His report called for sweeping changes to the industry which has been plagued with complaints.

Other changes include better conditions and pay for drivers, who would be guaranteed 55 per cent of the takings.

There will also be more services for people with a disability.

The licensing system will also be overhauled, including the introduction of annual prices and restrictions on pre-booked hire car services will be removed.

Premier Denis Napthine says he expects it will take 2 to 3 years to implement the changes, as the problems are so "deep rooted and long standing."

"Our reform package will deliver the biggest overhaul of the Victorian taxi industry since the demise of the horse drawn cab," he said.

"The reforms will ensure that taxi drivers are safe, knowledgeable, properly trained and fairly paid.

"The reforms fairly and squarely put customers first."

The driver exam will be in place by the end of this year and has been welcomed by David Samuel, the president of the Victorian Taxi Association.

"We think the knowledge test is a good idea and we support that whole-heartedly," he said.

Mr Samuel says the industry recognises the need for reform but is disappointed that the legislation is being introduced today without consultation with the industry.

"We are concerned that some of the recommendations have the capacity to have a detrimental impact on our industry, especially small taxi businesses and consumers," he said.

"These relate to the way taxi licences are released and valued and the removal of the requirement to affiliate to a taxi booking company."

Problem areas

The new taxi commission chairman, Graeme Samuel, says he sees customer service and Melbourne Airport services as the major areas of focus.

He says Melbourne's taxi industry compares very poorly with international services such as those in London and New York.

Mr Samuel says the taxi industry is one of the very few that has avoided competition regulations for many years.

Taxi license fees will now cost $22,000 a year plus indexation in metropolitan areas and Mr Samuel says he believes that figure strikes the right balance in meeting driver and license-holder interests.

The Government says the increased fee will provide a sense of security for licence holders.

Professor Fels says increased competition in the market will improve services.

"The key to getting success with the industry is to get more competition," he said.

"At the moment it is limited by a host of things including the licensing system."

Country taxi services

Transport Minister Terry Mulder also says the changes will be good news for country taxi users because services will be "more affordable and flexible."

"The inquiry found that the demand for services in regional areas far outweighs the supply of taxis and hire cars," he said.

"The supply of taxis will be improved in regional Victoria by making it more cost-effective and easier for approved people to get a taxi licence and there will be more choice for customers by allowing hire cars to compete with taxis in the pre-booked market."

Topics: state-parliament, states-and-territories, melbourne-3000

First posted