Page 35 - drive a2b march 2020 web

has been overwritten in order to transport industry has been than a removal of red tape there has
allow these new competitors to undertaken, there has been much been yet another layer added which
operate legally and with some discussion about how red tape adds administration and other
management in regards to strangles small business. This is costs. And this is happening at a
passenger safety. evidenced by reports such as the time when they have to compete
Institute of Public Affairs (IPA) who with new entrants that are allowed
The taxi industry has historically note that "Small businesses are to undertake predatory pricing
been heavily regulated by the lifeblood of local communities, tactics.
governments in order to ensure strengthen communal bonds and
passenger safety, provision of provide opportunity for social If small taxi operators are to survive,
service as well as maintaining a mobility". state governments must recognise
viable industry. the important role they play and
The decline of small business the vital service they provide in
For decades taxi operators had has coincided with an increase in their local communities. These
managed their businesses within red tape. This issue has hit small small businesses need support to
these regulations, which have regional taxi operators hard. continue to provide services as
admittedly in some cases been to well as assistance with the ever
the detriment of passenger service. It is much harder for small and increasing layers of complex red
micro businesses to manage more tape and the minefield of potentially
Governments are responsible for complex regulations and administer
making and managing the law red tape, as they do not have costly litigation they could face if
and should take responsibility access to the same resources as they are not compliant.
for the lack of sensible reform. large corporations. Whilst they do The Australian public has been
Governments regulated the taxi their best to compete, the loss of mourning the loss of iconic Holden.
industry to the point it became expensive assets (taxi plate licences) Sadly, although not as recognised,
expensive, inflexible and not has seen many left with large legacy we are also losing many small
always adaptable to changes in the debts as well. regional taxi services that have been
demands of consumers. Industry serving their communities loyally
and government have had a difficult Not all regulation is well designed since the 1940s.
time balancing sensible legislation and often industry has not been
with consumer requirements. consulted so as to understand the As the saying goes; you don't know
impacts or costs. what you've got till it's gone.
At the same time as this re-
regulation of the on demand For many in the taxi industry, rather

DRIVE A2B magazine · March 2020 35