The NSW Taxi Council welcomes the decision by Transport for NSW to not issue any new taxi licences within the Sydney area.
This is a sensible decision given the significant number of new licences that have been issued over the previous five years.
CEO of the NSW Taxi Council Roy Wakelin-King said that the decision is an appropriate measure in the current climate.
“This decision will help restore the balance between supply and demand which has been distorted by IPART’s recommendations that have unreasonably impacted upon the NSW Taxi Industry through an oversupply of taxis,” he said.
Mr Wakelin-King also expressed a cautionary note around the issue of fares.
“The NSW Taxi Industry only 12 months ago came out of a fare freeze and therefore has done a fair share of heavy lifting in terms of ensuring its cost competitiveness.
“Whilst we clearly recognise the need to be competitive, we must recover costs and make a reasonable return.”
“Unlike other forms of public transport, we don’t receive any government subsidies and therefore the only way we can make a reasonable return is through the fare box.
“The cost of owning and operating a taxi has increased by 7% in the last two years and to artificially hold down taxi revenue is untenable in the medium to long term.
“Contrary to the views of some, the cost of a taxi licence has not contributed to this increase in taxi expenses, as they have in fact declined by 22% in real terms over the last four years.”
“Despite these concerns, we recognise the importance of being competitively priced, particularly in response to unfair and unlawful competition,” Mr Wakelin-King said.
Mr Wakelin King also asked Transport for NSW to ensure that replacement licences only be issued for genuine need and do not become de facto new licences.
MORE ON IPART