Page 4074 - Week 14 - Wednesday, 24 October 1990
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MRS NOLAN (3.59): I, too, am pleased to rise today to support this Bill to amend the Motor Traffic Act 1936 which will allow taxi licences to be sold at auction as well as to be leased. This Bill will increase the options open to government by allowing future plates to be either sold at auction or sold for a determined fee. It is now over four years since the last release of plates, and the value of plates has altered considerably in that time. Auctioning these taxi plates with a reserve price will allow the market to determine the current value of the plates. The reserve will ensure the Government receives a full return, and a very useful one, and it will be set at a level which will ensure that the value of existing plates is not affected.
Removal of the prohibition of leasing will promote greater interest in the forthcoming auction of plates. Investors who do not wish to be involved in the actual day-to-day operations of a taxi business can now lease. I think that that really is a very important point. This measure will also allow access to the industry by others who want to operate a taxi but lack the capital to invest in a taxi plate.
Longer term advantages arise when people entering into leasing arrangements do so with the knowledge that they need to work the business efficiently to make money. The incentive involved in greater efficiency flows on to the general community by way of a better service. I am confident that this, in turn, will benefit the industry by generating more demand for taxi services.
I feel sure that there are taxis and hire car licence holders who are not at present operating their vehicle around the clock. Rather, they may be more interested in the capital investment that that plate offers. As a small business owner, I believe that they really do have that right to determine which option is for them. Having the opportunity to lease the plate to another more committed operator will provide them with a regular return on their investment as well as freeing up the time to engage in other employment if desired with, again, these benefits being passed on to the community in improved taxi or hire car services as an end result of that.
Overall, I feel that this initiative will provide better opportunities, both for the industry and to the general community, and it is for this reason that I support the Bill. While the two changes may appear minor, they are - as was said when the Bill was introduced - very important in helping to develop a more vibrant client service orientated public vehicle industry. The new and existing operators will now have the potential to earn higher returns on their investment, and the travelling public, including people visiting our city, will benefit. That is vital, I believe, for our tourism industry.
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