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Legislative Assembly for the ACT: 1996 Week 4 Hansard (18 April) . . Page.. 1108 ..

MR DE (continuing):

The overall aim of the changes is to provide better value for money in the provision of passenger transport. This will be achieved by defining the role of government in regulating the taxi and hire car sector; introducing systems of plate release which respond to market signals; and ensuring that private operators of public passenger transport services have the flexibility to respond quickly to changing community demand. In achieving these aims the Government's proposals ensure that high-quality standards of service are maintained. These are to be achieved through performance-based contracting and the introduction of owner accreditation and driver authorisation that will extend the benefits of the system of performance-based contracts to the operation of taxi radio networks.

The Government will introduce any legislation necessary to set the enabling mechanisms in place. The role of government subsequently will be to monitor service delivery and to encourage industry itself to maintain the high level of quality that is expected. Should it not be forthcoming, mechanisms will be included enabling the Government to intervene to the extent necessary to correct the situation.

Mr Speaker, I think it is interesting to look at the existing situation. I would like to stress at this point that, by and large, Canberrans have taxi and hire car services that compare favourably with those of other cities. However, the present regulatory environment requires a judgment every year about the number of additional taxi plates that are needed. No hire car plates have been released for over 20 years. An appropriate mechanism is required for introducing competitiveness, flexibility and responsiveness in providing service to the ACT community. At the same time, we must sustain the ability of the industry to continue to function commercially whilst providing an overall high standard of passenger service.

I would like to say something about deregulation too, Mr Speaker, because the Government is not taking up the option of full deregulation. The Government accepts that it has an obligation to ensure vehicle safety. Further, we will continue to regulate maximum prices charged for taxi services, to protect those in the community whose bargaining power is relatively weak. Finally, New South Wales has said that it will not deregulate taxis or hire cars. For the ACT to do so would create difficult cross-border issues.

However, we should not confuse deregulation with competition. There are many ways in which competition can be expanded without resorting to overall industry deregulation, and competition can be effective in a regulated environment. For instance, we propose to create conditions for easier entry to the hire car industry, subject to meeting requirements associated with operator accreditation, driver authorisation and plate leasing or purchase costs. We propose to issue a contract with any taxi radio network that wishes to establish in the ACT. This will provide for a guaranteed level of quality of service. Where these requirements are not satisfactorily met, contracts will be terminated and the respective services put to open tender, or other measures may be taken such as the release of additional licences to enable required service standards to be met.

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