Department of the Legislative Assembly, Northern Territory Government

Dr LIM - 1998-04-23

My question concerns the freeze he authorised in March last year on the issuing of private hire car plates and the numbers of minibus licences to ply for hire. In fact, I wrote to the minister last year, following representation by members of the industry in Alice Springs. I know this freeze has been in place to allow for a thorough review of the taxi, hire car and minibus industry. When will this review be completed and the new regime for the public instituted?

ANSWER

Madam Speaker, I acknowledge the member's interest in this issue. Feuding has continued for many years, during the terms in office of at least 5 transport ministers, in the taxi industry, the private hire car industry and, more recently, the minibus industry. There is no question that there is bias in the industry. A minibus plate can be purchased for $500, a private hire car plate can be purchased for $10 000 and a taxi plate can be purchased for between $240 000 and $270 000. The overheads vary in each case and, therefore, the way in which members of the industry conduct themselves should be varied also.

It is interesting to note that, until I brought in the freeze on private hire and minibuses, while private hire car plates were selling across the counter for $10 000, you could pick them up in the industry for $8000. There was not much interest in them. However, when I introduced the freeze, people took the risk that maybe we would sort out some of the anomalies that have existed in the industry for some time, and plates would be worth purchasing.

Mr Otto Alder was selected to undertake the review. He has done considerable work for the Northern Territory government over many years in his capacity as Under Treasurer and as Secretary of the former Department of Industries and Development. More recently, honourable members would be aware of some of the reports that he worked on for this parliament. The report of the Committee on Interactive Television Gaming was one of them. We have extended the time frame for submissions from the industry until next Monday. I was contacted by the Taxi Council earlier this week. It asked for an extension of time. It has just engaged a consultant. We have given it until Monday to make its submission.

Today, I will be releasing to the industry some of Otto Alder's findings to allow it to understand where he is coming from. I expect to be in a position to resolve this issue within the next month or so at the very latest. Together with Treasury, the department has been heavily involved in trying to find a resolution to these problems. Honourable members would be aware that it comes under the competition policy guidelines which are being examined. There is the issue of the total deregulation of the taxi industry. One option is to buy back the plates. It could cost a great deal of money for more than 100 taxis at $250 000 each. However, that option is being considered.

As I said in response to the member for Wanguri's question earlier this week, I do not intend that this taxi issue should continue as a running sore while I am the minister responsible. I want it resolved. It will not make everybody in the industry happy, but I believe it will be fair and it will be good for all Territorians.

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Last updated: 09 Aug 2016