By LIA SPENCER
A TAXI driver in Casey fears he may struggle to retire in the next few years if a State Government proposal is passed next week.
Tony Rotunno, who has been driving a taxi for 37 years and owned one for 33 years, said the reforms could put added financial pressure on drivers.
The State Government announced its proposed reforms to the taxi industry last month following the Taxi Industry Inquiry, and it could be passed in the upper house next week.
The reforms to licencing include the removal of restrictions around the number of new licences issued and the issuing of new licences for a fraction of the existing cost.
Under the current system, taxi licences are valued at around $500,000 and the government controls the number of new licences available so that supply matches demand.
The reforms would allow new entrants to the taxi industry to buy a metropolitan licence plate for $22,000 a year, indexed to inflation, dropping the value of current licences with no compensation offered to operators.
South Eastern Metropolitan Region MP Inga Peulich said the taxi reforms announced were a win for people right across South East Melbourne as it would will allow greater competition in our area, allowing more taxis when people need them.
But Mr Rotunno said he was not happy with the proposed changes.
“Taxi licences have been a major asset which we expected to help fund our retirement, but the government has changed the rules and failed us as small business owners,” he said.
“We can only earn so much a week, but (expenses) are going up all the time, and so we are taking home less and less. I had plans to retire in the next couple of years, but may have to stick it out for another 10 years.”
Mr Rotunna said he hoped the State Government would “come to their senses” and not pass the reforms next week.
Narre Warren North MP Luke Donnellan said the reforms, without compensation to current operators, threatened the livelihood of many small business operators in the local community.
“Thousands of Victorian Taxi Licence owners could be bankrupted by the sudden devaluation of their primary assets, with many in danger of losing their family homes and retirement nest eggs,” Mr Donnellan said.
“Open entry to the taxi market and the drastic drop in the cost of a licence will significantly reduce the value of existing licences.
“If the Government was determined to push ahead with these reforms, it should at least be providing compensation for the thousands of hardworking Victorians who will have their lifesavings wiped out.”
Mr Donnellan said customers would also feel pain, with several of the reforms likely to place upward pressure on cab fares. He said fares during peak times would increase by up to 20 per cent and a flat fee would apply for the booking of high occupancy vehicles, instead of a variable charge based on the fare.
