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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2016-04-12 Daily Xml
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Taxi and Chauffeur Vehicle Industry Review

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (14:18): I seek leave to make a ministerial statement.

Leave granted.

The Hon. S.C. MULLIGHAN: Our government understands the importance of the taxi and chauffeur vehicle industry in the South Australian economy, and also as an integral part of our public transport network. In recent years, the emergence of new technologies, such as smart-phone apps to book, track, and pay for services, and new business models, such as so-called 'rideshare' services, present fresh business opportunities for new and existing operators of personalised or point-to-point transport.

Of course, no industry is immune to competition. Competition can drive innovation and efficiency, improve service delivery, and provide better outcomes for consumers. Our government has long believed that competition is imperative. This is true in small bars legislation, the food truck debate and also third-party insurance, where the government has moved quickly to explore the benefits for consumers. However, competition also presents challenges, particularly where existing business models are dictated by and subject to the heavy regulation of government.

Our government wants to foster innovation, support growth in the taxi and chauffeur vehicle industry, and facilitate fair competition, while preserving the safety and security of both passengers and drivers. That is why in June last year we established an independent review into South Australia's taxi and chauffeur vehicle industry to consider how best to achieve these outcomes, which puts the needs of customers first, while balancing the interests of drivers, operators and the industry.

I was pleased to note that by August, some two months later, the opposition recognised this as an issue and expressed some support for reform. Of course, we could have taken their approach to simply deregulate the industry and move legislation in favour of one company, but we know that genuine reform, that addresses the needs of consumers as well as all industry participants, requires more than such a one-dimensional and shallow approach. The future of this industry requires us to carefully consider complex areas of reform.

Today the government released the final report of the review panel. The report contains 58 recommendations aimed at supporting growth through innovation and new entrants while ensuring the best—

Members interjecting:

The SPEAKER: Could the minister be seated for a minute. The opposition gave leave to the minister to make a ministerial statement. If the opposition is not happy with the tone or the content of the minister's ministerial statement, it may withdraw leave, but what it may not do is interject. So I call to order the members for Kavel, Davenport, Stuart, Morialta, Adelaide and Mount Gambier and the Treasurer, I warn the member for Kavel and the member for Chaffey, and I warn the member for Chaffey a second and final time. The minister.

The Hon. S.C. MULLIGHAN: Thank you, Mr Speaker. In response to the report, the government has announced that it will:

move to regulate the introduction of the on-demand transport operators, such as UberX, and provide consumers with greater choice and flexibility;

ensure the industry grows and facilitates fair competition by requiring new participants to comply with robust regulatory requirements;

deliver better customer service and improve safety standards through new driver, operator and vehicle requirements for all industry participants;

provide existing operators with an industry support package to assist them in transitioning through increases in competitive pressures, including the preservation of key segments of existing market share and compensation;

address the need to provide better services to people with a disability; and

reduce red tape and fees across the board to drive innovation, promote efficiencies and support growth in the industry.

Our government believes the taxi and chauffeur vehicle industry has a bright future, one which embraces competition, fosters innovation, drives economic growth and improves outcomes for consumers. We remain committed to working in partnership with this industry as we implement these reforms and as the industry grapples with the opportunities and the challenges the future presents.

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