Page 7 - drive a2b may 2020

would be more readily accepted the maximum fare would serve • This would ensure that both
overall. as a measured but positive step driver and consumer are
in rectifying the discrepancy protected from extreme price
• It would provide a timely and between driver earnings and deviations from what is both fair
much needed adjustment wage growth across the broader and reasonable for all parties,
given maximum fares have economy. It would also go without limiting consumer
remained unchanged since 2014 a long way to bolster those choice. It is possible to address
and would duly recognise the participating in the industry. the interests of the consumer
contribution made by drivers.
and the financial viability of the
• It may align with the CPI Recommendation 2 industry simultaneously.
increase in fares for public
transport services as set by The That any fare adjustment reflects the Recommendation 5
Department of Transport. average CPI from the period of the
last fare review through to December Removal of the option for metered
• It would roughly correspond 2019. time or distance tariffs and mandating
with the taxi cost index for which time and distance tariffs.
many of the components are Recommendation 3
influenced by CPI. Rationale...
Implementation of any change in fare
• It will incentivise stakeholders to rates to occur in the final quarter of TAA supports the removal of the tariff
continue operating to provide 2020. option for calculating fares by the
essential transport services ‘time OR distance’ model in favour of
throughout this crisis and will Recommendation 4 mandating the ‘time AND distance’
assist in attracting new labour to tariff. Only a very small percentage of
the sector to ensure these vital Radical changes to the approach older meters are still in use that are
services continue. for regulating fares by imposing a unable to be programmed for time
minimum regulated fare across all and distance and these are being
• It will serve to encourage a return industry sectors. phased out after 1st May as part of a
of drivers who have departed requirement that meters should now
the industry during the declared Rationale... be able to automatically compute
pandemic, ensuring that • The entire cost associated with toll charges and include them within
capacity ramps up quickly as the transportation of passengers the fare. This will provide greater
business activity returns. predictability for fares and facilitate
is borne by the driver and it comparisons between service
• For reasons explained below, is well-known that they earn offerings thereby giving passengers
driver remuneration is at an significantly below the minimum greater transparency when choosing
all-time low. A CPI increase in hourly wage.
a service provider.

Need AMS Business

LEGAL LAW Commercial

Conveyancing
assistance? Estate Planning

Family
AMS Litigation
IVANHOE LAWYERS Probate
176 Upper Heidelberg Rd, Ivanhoe Superannuation
E: amsr@amslaw.com.au Taxation
P: (03) 9497 2622 Serving the Taxi Industry for over 30 years

DRIVE A2B magazine · www.drivea2b.com.au · May 2020 7