Submission to Taxi Industry Inquiry
Municipal Association of Victoria
24 June 2011
© Copyright Municipal Association of Victoria, 2011.
The Municipal Association of Victoria is the owner of the copyright in the publication
‘Submission to Taxi Industry Inquiry’
No part of this publication may be reproduced, stored or transmitted in any form or by any means
without the prior permission in writing from the Municipal Association of Victoria.
All requests to reproduce, store or transmit material contained in the publication should be
addressed to Clare Hargreaves Ph: 03 9667 5543
2
1. Introduction
As the peak body for local government in Victoria, the Municipal Association of Victoria (MAV)
welcomes the opportunity to contribute to the current inquiry into the VictorianTaxi Industry, and
to register our interest in having further discussion with the panel as the inquiry progresses.
The MAV requests that the inquiry panel note that, due to time constraints, this report has not
yet been endorsed by the MAV Board nor has our membership had the opportunity to provide
input.
Local government plays a critical role in providing and maintaining transport infrastructure at the
local level. Councils take a proactive approach in addressing transport challenges in their
municipal areas and as the managers of approximately 85 per cent of Victoria’s road network,
councils work to ensure local roads, bicycle paths and pedestrian paths are maintained to a
standard that is safe for their communities. While the State Government is responsible for the
provision of other transport infrastructure and for developing relevant policy and regulations,
councils have a significant responsibility to advocate for transport outcomes that meet the needs
of their communities. Many councils also provide and/or fund local community transport
services.
In 2008, the MAV, in consultation with councils, developed a position paper on the key
passenger and freight transport challenges confronting local government in Victoria. The seven
strategic objectives outlined below, present a high-level holistic view of transport issues. These
objectives reflect the sector’s preference for a long-term integrated and collaborative approach
to transport planning that facilitates the development of a transport system that is widely
accessible and environmentally and fiscally responsible.
1. Environment and climate change
Local government supports environmentally sustainable passenger and freight transport
networks that prioritise the reduction of transport related greenhouse gas emissions and
improves our local environment.
2. Modal shift
Local government supports a transport system that enables the movement of people and goods
in a way that reduces the number of private and commercial vehicles on Victorian roads.
3. Equity and access
Local government calls for a transport system that is inclusive of older people, people with
disabilities and Victorians who live in areas that are poorly serviced by public transport.
4. Recognition of cycling and walking
Local government calls for the acknowledgement of cycling and walking as distinct traffic
categories and supports the need for appropriate cycling and walking infrastructure.
5. Integrated long-term planning
Local government supports the integration of long-term transport and land use planning at the
local, state and national levels.
3
6. Economic efficiency
Local government recognises the importance of efficient freight and passenger transport
systems throughout Victoria to enable a healthy and thriving economy.
7. Ongoing public transport investment
Local government supports ongoing upgrades to existing public transport infrastructure and the
provision of new infrastructure to enable healthy and connected communities.
2. Current and potential role of taxis and other demand responsive
transport services in an integrated transport system
The following points from the MAV Transport Position paper are relevant to some of the terms of
reference being considered in the current inquiry into the taxi industry.
Connectivity of public transport services
Connectivity between transport modes, particularly in outer metropolitan, rural and regional
areas where services are less frequent, is important for reducing journey times and for providing
an efficient service that rivals the convenience of private cars.
Equity
All Victorians should have affordable transport options, irrespective of age, personal mobility or
place of residence.
Community transport
The community transport sector needs to be incorporated into State Government transport
policy and planning and include funding commitments that establish and sustain forms of locally
appropriate community transport (including taxis) across Victoria.
As the major funder and provider of local community transport services, local government would
like to see the role and provision of taxi services considered alongside and integrated with other
forms of community transport, particularly for those participants with additional mobility needs
and to ensure social inclusion and equity.
Community transport refers to the transport sector funded by councils, community and not-forprofit agencies to provide transport services for people who experience transport disadvantage
because they:
Live in areas where public transport and taxi services are unviable due to low population
density/isolation
Require door-to-door transport but are unable to access or afford taxis (that is, travel
frequently, and only short or long distances)
Have a physical disability
Have dementia or cognitive impairments
Speak a language other than English
Have extremely low disposable income such as people living in Supported
Residential Services
Have complex disabilities, especially barriers to communication or
behavioural issues
4
Are very frail and require physical assistance.1
Community transport is a significant social and financial challenge for local councils and
communities in Victoria. Community transport services have largely arisen in response to
local unmet transport needs. Rural and remote communities located outside the boundaries of
the regional rail network and distant from V/Line coach services rely on their community
transport network to access essential services such as health, educational and recreational
facilities.
The provision of community transport is under significant pressure with petrol price rises and a
lack of secure funding for the purchase, maintenance and accreditation of vehicles, as well as
appropriate insurance and liability cover. With approximately 1.3 million Victorians located in
regional, rural and remote areas, demand for community transport, particularly as the population
expands and ages, will continue to rise. To be viable, the community transport sector needs to
be incorporated into State Government transport policy and include funding commitments that
sustain and establish the most appropriate forms of community transport service (including
taxis) to meet local area needs across Victoria.
In 2009, MAV undertook a survey with councils to indentify and quantify their investment in
community transport and found that local government spends approximately $5.8 million per
annum on administering community transport programs throughout Victoria. This is a
conservative estimate which grows to approximately $21.3 million if the costs of vehicles and
contributions to other community transport services are added (although this figure doesn’t
include petrol and annual maintenance costs). While these figures are estimates, they highlight
the extent of demand that exists within Victorian communities for passenger transport systems
currently not provided by the State.
Based on the survey responses from councils the following key issues were identified:
1. Current capacity and sustainability
some smaller councils have not had the capacity to fund and provide a local service,
leaving a gap of service in those communities
many councils don’t have the capacity to increase and expand their commitment to
community transport, despite reported levels of unmet need.
many areas rely heavily on volunteers to provide the community transport, and with
increased petrol costs, are finding it more difficult to recruit
2. Victoria needs a community transport strategy and system that :
acknowledges the important role of community transport as part of an overall
transport strategy and system, particularly the objectives to ensure social inclusion
and enhanced mobility for the identified target groups
1
State Government of Victoria, Government Health Information, „Population ageing in
Victoria” www.health.vic.gov.au.
5
is planned and co-ordinated locally and linked to make the best use of other forms of
public transport
builds on shared knowledge of successful, cost effective and efficient community
transport models, internationally, interstate and within Victoria
provides resources for the essential capital and operating costs, regardless of
geographic location, or service type most appropriate to local conditions
develops a common data capturing and reporting system to ensure the strategy is
informed by common information of supply, utilisation, costs and demand
provides centralised resourcing and support to assist providers respond to
regulations and operate with and improve safety.
3.
Conclusion
In conclusion, the MAV is responding to the inquiry’s terms of reference in relation to community
needs and is most concerned with that part of the taxi market used by rural and regional
passengers and those with mobility disadvantages. Taxis form part of a locally appropriate
transport network but need to be safe, reliable and affordable. There are limitations in both the
level and location of current provision and the affordability. Elderly people are at times
disadvantaged if reliant on taxis to go to shops or local health appointments where there is
reluctance from drivers to take short trip fares. Although there are subsidies available to those
eligible for the Multi–Purpose Taxi Program, even half price fares can still be too expensive for
those with a regular need to use taxis, or travel longer distances. Local government community
transport schemes report that they are often providing a service to people to complement or
substitute for the lack of, or affordability of a local taxi service. This is simply not sustainable for
the local government sector.
Taxis need to be planned in conjunction with local community needs and integrated with public
and community transport .There are good examples of taxis playing an important role in
community transport for those with more limited mobility or where there is no appropriate
public transport e.g. centre based program bookings to bring clients to and from the service
and appointments.
The MAV would appreciate the opportunity to consult further with councils on the Taxi Inquiry’s
terms of reference and to have discussions with the panel as the work progresses.
.
6