By NICOLE WILLIAMS
THE closure of a Springvale taxi company has been blamed on cheap fares and rising petrol prices.
But Minister for Roads and Public Transport Terry Mulder says customers won’t be affected.
Royal Taxis was placed in administration last week and the Victorian Taxi Association (VTA) CEO David Samuel said it was frustrating for the industry.
“While we are disappointed that Royal Taxis is entering administration, the sad reality is, this news can hardly be described as surprising,” Mr Samuel said.
“Unsustainably low taxi fares, which have remained unchanged since 2008 and are now 10 per cent lower than CPI and 30 per cent behind comparable Australian states, have had a significant impact on the continuing viability of taxi businesses. Similarly LPG prices continue to rise.”
Mr Mulder said Royal Taxis held 79 taxi licences, which he believed were to be taken over by other operators.
“We wouldn’t expect it to impact on services,” he said.
“Drivers will have no problem getting other jobs – there is a shortage at this point in time.”
However, Mr Samuel also predicted that more operators would close if something didn’t change.
“The industry has continually warned the Victorian Government about the serious effect challenges such as low fares and high input costs are having on small taxi businesses. Unfortunately commentators, who know little about the practicalities of taxi businesses, repeatedly have their views put ahead of sensible outcomes.
“If these issues continue to be left unchecked then we can expect more operators to close their doors with damaging consequences for taxi businesses, taxi drivers and the travelling public,” Mr Samuel said.
Royal Taxis management was unavailable for comment.
