Victoria’s Premier Denis Napthine has denied accusations that he struck a deal with independent MP Geoff Shaw to change aspects of the state’s taxi reform legislation.
Mr Shaw voiced concerns weeks back over the introduction of the reforms, specifically in relation to taxi operators in his electorate.
Mr Shaw, who holds the balance of power in the government, told state parliament on June 12 that the reforms were unnecessary in Frankston because the service there was the best in the state. Despite this, Mr Shaw voted for the legislation the following day.
The new laws were debated at a late-night sitting of the upper house on Tuesday, along with government amendments to raise the licence fee for outer-urban and regional areas to the level of the metro fee – from $17,000 to $22,000 a year, indexed at just less than the CPI.
Special boundary protection of zones around Frankston and Dandenong was also introduced. Both amendments were those championed by Mr Shaw earlier this month.
Two weeks ago Mr Shaw issued a statement calling on Public Transport Minister Terry Mulder to amend the laws, to include changing the zone boundaries around Frankston to give local operators protection from outsiders, as well as equalising licence fees between the metropolitan and outer-urban zones.
The Premier hit back at critics accusing him of a backroom deal, saying the amendments were a result of lobbying from Coalition MPs urging protection for their local industries.
“There were no assurances given to Geoff Shaw,” Dr Napthine said. “We don’t make promises or assurances, what we do do, is as a government listen to the community and respond to their concerns.”
Labor accused the government of bowing to Mr Shaw’s demands and moved its own amendments to give similar protection to other major urban and regional centres, such as Geelong, Bendigo and Ballarat, but when it came to the vote, the Opposition’s amendments were disregarded.
“The government has done a dirty deal with Geoff Shaw to secure his vote by offering preferential treatment to taxi operators in Dandenong, Frankston and Port Philip,” Acting Shadow Public Transport Minister Richard Wynne said following the vote.
Mr Wynne described the Napthine Government’s legislation as “haphazard” and that it had been rushed through both houses of Parliament.
“Mr Napthine has caved in to pressure from Mr Shaw and given privileged preferential treatment to operators in Mr Shaw’s electorate,” Mr Wynne said.
“Hard working operators and drivers in regional areas have been completely excluded.”
Mr Wynne added that the government had “failed to legislate for the benefit of all taxi drivers, owners and importantly customers”.
“By accepting Labor’s amendments the Napthine Government would have treated all of these zones equally, not give special treatment to some and not others.”
George Karayianidis, CEO of national taxi insurance provider Taxicare Australia, told Neos Kosmos that the passing of the laws confirmed that some licence – or ‘plate’ – holders as they’re known in the industry – would face hardship.
“This means plate prices will drop and outside investor confidence will take a long time before they can trust that their asset is worth the money they will pay.”
Speaking from interstate, Mr Karas said that in discussions with taxi operators outside Victoria, many were concerned that laws being introduced in Victoria will spread to other states.
“They are in two minds whether to sell their plate or not, before it depreciates,” he said.