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Fair and equitable compensation for taxi plate owners.

NSW State Government out of step and ill advised

bad choice by NSW State GovtThe disintegration of the New South Wales taxi industry. 


Addressed to all NSW State Parliamentarians

Over the last eighteen months severe hardship and strain has been imposed on so many New South Wales hard working tax paying citizens. These individuals are owners of taxi plates, who, as investors or drivers had relied on the good will of government to maintain the value and structure of an industry that has served New South Wales for many decades. In turn the New South Wales (NSW) Government has had the benefit of substantial revenues from the sale of taxi plates and related stamp duty proceeds which have been a parental winfall for the NSW State Government. The recent compensation proposal has not adequately compensated taxi plate owners. The destruction of the value of taxi plates has demonstrated that the solution has not reflected the market value of the plates. This same market has supported the NSW Government’s ability, to its benefit, to enable the sale of taxi plates over many decades through various releases of new taxi plates as well as associated duties. In turn individuals held faith in these assets and placed their lifetime savings and investment in these assets. Some individuals have also borrowed and leveraged their homes to acquire these assets, their current state of despair and hardship is evident. Meanwhile owners and drivers have continued to provide taxis as an important amenity for New South Wales.

For decades taxis have served the State of New South Wales as a reliable, safe, insured, form of transport, available to meet the needs of citizens, tourists and business travellers. Taxis are considered a constant stable form of transport, required for the proper functioning of any first world country, alongside other transport modes such as buses, trains and ferries, albeit not owned by government. Taxis have for a long time been considered an important asset and in fact were provided as rewards for returned servicemen, as a reward for national duty after the Second World War, these taxi plates have remained as important assets to those families.

Unfortunately the regulation imposed by the NSW Government over the industry has imposed costs on the industry, not limited to CTP insurances, and 24 hour availability requirement. Such insurances are not required by more recent and until recently unregulated entrants in the market. The cost of taxi plates have been the largest cost burden, at a cost to owners and to the benefit of the NSW Government.

Termination for convenience is a well recognised regime used by government in public private partnerships (PPPs). Often government is required to compensate to the full value of an equity investment when government choses to terminate, cancel or change the principles of a transaction or project. In PPPs government involvement or support can provide revenue and benefit to the government, by way of a service or revenue. This is similar to the revenues received by the New South Wales Government by way of sale of taxi plates, in turn taxi plate owners held faith the NSW Government would maintain the integrity of the plate market and the industry. The diminishment of the value of taxi plates in recent months, to almost nothing, has shown that the market considers this event a virtual termination of the plate market placing the industry in jeopardy. Evidently the compensation provided by government did not equate to the market value of taxi plates, and as mentioned earlier the same value and market that the NSW Government had been able to benefit from for many decades.

Taxi owners feel an obligation to the citizens of New South Wales and want to ensure proper dialogue to find a solution with the NSW Government to avoid disintegration of the industry. Of course there are many possible solutions that could include larger compensation payments, termination of the plate regime, involving outlays by the NSW Government, however it is understood that a large initial outlay or ongoing liability may not be a preferred option for the NSW Government. In any case the New South Wales Taxi Plate Owners are willing to table  and consider various options and scenarios with the NSW Government. Options are available that could limit NSW Government liability but similarly provide equity for taxi plate owners, such an option could include the imposition of a small charge to all fares that could be used towards a fund that could eventually flow to compensate plate owners, at no cost to the NSW State Government.

Following further consultation between all parties, the New South Wales Taxi Plate Owners are hoping to come to an equitable solution with the NSW Government to ensure the long term sustainability of this important service and continue to ensure Taxis remain, without disruptions, available as an important, constant safe and essential mode of transport for the benefit of New South Wales.

Sincerely,

New South Wales Taxi Plate Owners

 

SITEMAP

VISIT the SITEMAP LINK which represents the interests of all taxi plate owners and operators and drivers.

Goal

We are representing the interests of all taxi plate owners in response to financial losses in income and asset value forced upon us by the NSW Mike Baird Liberal State Government and other NSW parliamentarians.

DISCLAIMER

Please visit the Taxiowners Disclaimer which states it position on taxi matters in Australia.