National Competition Policy and the Australian Taxi Industry

Abstract

This article outlines the Australian Taxi Industry Association's (ATIA) perspective on the development of the National Competition Policy (NCP). The ATIA has been actively involved in the issue since the establishment of the Hilmer Inquiry into National Competition Policy in 1992.The Australian taxi industry is regulated by state and territory governments. Taxi industry regulations are designed to facilitate the provision of high‐quality and comprehensive taxi services to the community and disadvantaged groups. One element of this regulatory structure involves the sale, or lease, of taxi plates by state and territory governments as a revenue‐raising measure.This revenue‐raising by governments produces two different effects. On the one hand taxi plate owners having purchased taxi plates from the government (or leased) have an interest in the value of the plate, as well as in continuing to provide quality services. On the other hand some observers see taxi plate values as inherently unacceptable and needing to be reduced, or abolished, by allowing unrestricted access to the taxi industry.These competing views have provided much of the impetus for the debate associated with the taxi industry and the NCP. The industry believes that NCP has the potential to impact adversely on taxi ‘markets’ and consumer interests.