The final report of the Victorian Taxi Industry Inquiry was tabled in Parliament today. The Inquiry, looking into all aspects of the Victorian taxi industry, ran for 16 months and included extensive consultation with all members of the industry. The Inquiry received more than 1300 public submissions. Following release of a draft report in May 2012 and subsequent further consultation, a final report was handed to the state government at the end of September.

The final report included 139 recommendations. The most contentious recommendations were those reforming the current restricted licensing system. The Inquiry recommended partial deregulation of licences, through the implementation of a $20,000 per annum license (current rental fees for a taxi license are approximately $30,000 per annum). There would be no cap on the number of licenses available.

Additional recommendations focused on providing fairer driver terms and conditions, including a greater share of the fare box. Hire cars would also be more lightly regulated to make it simpler for new entrants to provide a hire car service.

The government has said it would seek further public consultation on the final report before releasing its reform package in early 2013.

Frontier (Australia) provided economic advice to the Inquiry, through the secondment of Warwick Davis, who led the economic analysis.

For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.

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