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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-10-14 Daily Xml
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Matters of Interest

Taxi Industry

The Hon. T.T. NGO (15:25): I would like to draw the council's attention to my concerns about the potential of UberX operating in South Australia. Let me outline just some of the costs currently imposed on the taxi industry. A CCTV surveillance camera costs $3,300; leasing taxi plates, $500 per week or $400,000-plus to own it outright; taxi driver accreditation five-day training course, $1,600 and, if you fail, it costs another $1,600 to sit it again; annual registration fee, about $6,000; comprehensive and public liability insurance, $5,000; cost of a new car, $35,000.

In comparison, what are the costs of setting up UberX? Zero! That is right, a big fat zero. It is really disappointing that the opposition leader, Mr Steven Marshall, and his Liberal team have come out in support of UberX. The Liberals want a trial which is merely a code word for allowing UberX to operate freely. Uber Technology is the parent company of UberX. It recently raised $2 billion. The company is worth $50 billion. Uber Technology also received funding from two of the biggest internet search engines in the world in Google and Baidu.

This is a classic example of the Liberal Party yet again coming out to bat for their big end of town mates. An online ABC News article, dated 23 September 2015, was entitled 'Making UberX legal will create jobs, South Australia's Opposition says'. In the article Mr Marshall says that by allowing UberX to operate freely it will create 5,000 jobs. I think Mr Marshall confused the 5,000 likes on Uber Facebook for 5,000 new jobs.

Why are the Liberals trying to destroy the taxi industry when it is currently employing over 4,500 drivers and at least 20,000 indirect jobs. Many of these drivers and operators are students and migrants who are not afraid of hard work and not averse to competition. Many have put in long hours, 70-plus hours a week, to put food on the table. Why attack an industry that has served our community well for over half a century and has paid its fair share of taxes and charges?

How can we expect these people who have to pay all these government costs to then compete with one of the biggest companies in the world which refuses to pay anything? Let's have an equal, regulated playing field. Let's make UberX pay for CCTV surveillance cameras, leasing plates, registration fees, comprehensive and public liability insurance, etc. Make UberX pay for these costs and then let them both compete. Let's have a fair fight. I'll be backing these hardworking Australians. However, under Mr Marshall's plan as premier, there will not be a fair fight. UberX will be allowed to operate freely.

The WA Liberal government is also advocating for UberX. In an article dated 18 August 2015 by Andrew O'Connor, a taxi driver and owner was demanding the WA government compensate him $338,000 for the cost of setting up a taxi business. It is only fair that taxi drivers, operators and owners are compensated if Mr Marshall does not want to make UberX pay for the associated costs and allow them to operate freely.

I have written to minister Mullighan and am working on a submission to the Taxi Review Panel about my concerns with UberX on behalf of the taxi industry and the Indian community. I will continue to fight for them to ensure a fair, level playing field.

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