Department of the Legislative Assembly, Northern Territory Government

Mr AH KIT - 2001-06-06

In 1998 when the CLP deregulated the taxi industry, the then minister for transport said, ‘I believe this bill will begin a new era for commercial passenger transport in the Northern Territory, and I know we will be watched with great interest by other jurisdictions’. This new era for commercial passenger transport now has many cabbies working 12 hour shifts for as little as $25 per shift. Taxi drivers and their families are struggling to make ends meet as a direct result of CLP policies.

Minister, having wrecked their livelihood, can you tell us why the CLP deserves another four years in power?

ANSWER

Mr Speaker, we deserve another four years in government because we are the best option the people of the Northern Territory have in terms of the good management, the honest and truthful management, of the Northern Territory. They have decided in the past and they will decide again in the future that the CLP represents the best for them.

In terms of the passenger transport industry and the taxi industry in particular, I meet regularly with the Taxi Council of the Northern Territory and the Chairman and I am aware that some taxi drivers indeed are suffering from low income and there is a need in the industry, I suppose, to address that. What we did do with the taxi industry, with the passenger transport industry, was to deregulate it and it is now open to any one who wishes to get into that industry and they can at a reasonable price. Previously the lease rates on taxi plates were in excess of $20 000 a year. As you would know, the lease rate for plates in the Northern Territory is about $16 000 a year.

There are now well over 120 taxi cabs operating in the Darwin area alone. Perhaps Darwin is over serviced in relation to taxis and perhaps there is not enough of the pie to go around. We are aware of that, however, it will take time for that industry to settle down and to settle down to a level where not only adequate service is provided, but those providing those services can get an adequate income from that industry.

One would think the force of supply and demand will eventually lead to an equilibrium in the industry. Not everybody who can opens a shop. Not everyone who can provides a service station. There are certain forces of supply and demand, not that I would expect the member for Arnhem to know about economics, indeed he does not know much about anything else ...

Mr Ah Kit: Better education than what you ever got!

Mr PALMER: The honourable member for Arnhem did indeed spend a long time at school. I don’t know if he is better educated than anybody else, he just spent a longer time there through force of necessity - he had to double pass exams to get out.

However, let me say in conclusion that I am in regular contact with the Taxi Council of Northern Territory. I should imagine I will be meeting them again this afternoon or this evening. I am aware and this government is aware of the problems within the industry and we are working with the Taxi Council to ensure those problems are addressed.
Last updated: 09 Aug 2016