Legislative Council - Fifty-Third Parliament, First Session (53-1)
2014-09-23 Daily Xml

Contents

Uber Transport Booking Service

The Hon. M.C. PARNELL (14:57): I seek leave to make a brief explanation before asking the Minister for Employment, Higher Education and Skills, representing the Minister for Transport and Infrastructure, a question about Uber online transport booking services.

Leave granted.

The Hon. M.C. PARNELL: There is an interesting piece in InDaily today from David Washington, where he says:

The State Government has started legal action against six drivers and five hire car operators who have been taking bookings from the taxi competitor Uber, InDaily can reveal. The 11 South Australian-based Uber partners have received legal 'please explain' letters from the Government's Accreditation and Licensing Centre for the taxi and hire car industry. A government spokesman told InDaily the drivers and operators had been asked to 'provide detailed information ahead of referral to the Passenger Transport Standards Committee for investigation'. The spokesperson said the drivers and operators could then face penalties for breaches of the Passenger Transport Act.

In a feat of brilliant timing, this news has come to light the day after a federal review of competition has been released. This federal competition review recommends a loosening of restrictions in the taxi industry, which it claims are increasing costs for consumers. Again, from David Washington's article this morning:

A draft report by Ian Harper, who is undertaking the biggest review of competition policy in two decades, concluded that regulations limiting the number of taxi licences and preventing other services from competing with taxis had raised costs for consumers and hindered new transport services from emerging.

'States and territories should remove regulations that restrict competition in the taxi industry including from services that compete with taxis except where it would not be in the public interest,' the report said.

My questions of the minister are:

1. What steps has the government taken to formalise or regularise alternatives to taxi services in South Australia prior to launching the current investigations with a view to prosecution of Uber partners?

2. Does the minister accept the findings of the Australian competition review that current taxi regulations restrict competition to the disadvantage of consumers?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (15:00): I thank the honourable member for his most important questions and will refer them to the relevant minister in another place and bring back a response.