Media release – SFF, 19 March 2024
TAXI OWNER PLATE BUYBACK
The Shooters Fishers and Farmers Party of Tasmania stands in solidarity with the Taxi Licence Owners Tasmania Association (TLOTAS) in expressing deep concerns over the dire financial situation faced by taxi plate owners in Tasmania. Since the implementation of the Tasmanian Reforms, including the introduction of rideshare services like Uber and the 2021 Owner-Operator Taxi Licence Reserve Price Reforms, taxi plate owners have endured significant financial distress.
The plummeting value of Tasmanian perpetual taxi licences, coupled with receiving unsustainable monthly lease fees payments, has left many taxi owners struggling to make ends meet. This situation is particularly devastating for those with bank mortgage repayments and retirees who relied on their superannuation and pensions invested in these licences for a secure future.
It is unjust that hardworking individuals, mum and dad owners should bear the brunt of ill-advised government decisions and suffer such adverse financial consequences. Therefore, we urgently seek support and intervention from the Tasmanian State Government through the establishment of a buyback program for perpetual taxi licences at their original purchase price.
We implore all political opponents and who ever forms government to consider the success of similar programs implemented in other states, such as the Northern Territory, New South Wales, Victoria, and Western Australia, which have provided much-needed relief to taxi plate owners.
The Shooters Fishers and Farmers Party of Tasmania believes that implementing a buyback program would not only alleviate the immediate financial burden but also restore justice and fairness to those severely affected by the devaluation of their assets.
Media release – Andrew Wilkie, independent MHR for Clark 14 March 2024
TAXI INDUSTRY CRYING OUT FOR HELP
“The oversupply of taxis and increasing competition from ride-sharing organisations, such as Uber, has meant many taxi owners and drivers are suffering,” Mr Wilkie said. “Indeed I continue to hear from people who paid tens of thousands for their taxi plate, but are now unable to rely on the resale of their plates to fund their retirement because the value of the plates has collapsed. Currently there are more than 30 licences that are not being used as renters or buyers cannot be found. One owner told me they paid $136,000 for their taxi licence in 2004, but it currently holds no value. While another told me they held two licences to help fund their retirement, but can’t sell them as they are now only worth $300 each a month compared to $1,200 each a month in 2006.
“Moreover as the value of their business has plummeted, at the same time that taxi patronage is declining, drivers are forced to work longer and longer in sometimes poorly maintained vehicles.
“New South Wales, Victoria, Western Australia and the Northern Territory have implemented taxi buy-back legislation, resulting in positive outcomes for taxi plate owners. Yet the Tasmanian Government has continued to kick the can down the road while plate owners and their drivers are being left high and dry and concerned about their ability to secure a stable financial future.
“While the moratorium on the annual release of new taxi licences provided some relief to taxi plate owners and their drivers, both major parties must consult with the industry to discuss the implementation of a taxi licence buy back scheme.”
Letter – Tasmanian Taxi Plate Owners Group, 5 July 2023
request buy back scheme for taxi plates
Tasmanian Transport Minister – Andrew Ferguson
Dear Honourable Minister,
Re: Urgent Request for Financial Assistance through Tasmania State Government Buyback of Perpetual Taxi Licences
I write to you as the Chairperson of the Tasmanian Taxi Plate Owners Group to express our deep concerns regarding the dire financial situation faced by taxi plate owners in Tasmania since the implementation of the Tasmanian Reforms. We urgently seek your support and intervention through the establishment of an Tasmanian State Government buyback program for perpetual taxi licences, providing much-needed financial relief to affected taxi plate owners.
The introduction of rideshare (Uber) and the 2021 Owner-Operator Taxi Licence Reserve Price Reforms (FINAL DETERMINATION – INVESTIGATION INTO THE RESERVE PRICES OF OWNER-OPERATOR TAXI LICENCES IN TASMANIA: 1 DECEMBER 2021 TO 31 DECEMBER 2025) has had a devastating impact on the financial stability of taxi plate owners in Hobart and surrounding areas. A significant consequence of these reforms has been the sharp decrease in the value of Tasmanian perpetual taxi leases, plummeting from over $20,000 to a mere $3,600 per annum. (side note :That is a mere $300 /month).
In addition, this reset of the taxi market has particularly affected owners of perpetual taxi licences, leading to a dramatic decline in their value from $160,000 (specifically Hobart) to a distressing $25,000. The severe devaluation of perpetual taxi licences has had far-reaching implications, especially for retirees who relied on their superannuation and pensions invested in these licences. These hardworking individuals envisioned a secure and stable future for themselves and their families, but the unexpected devaluation of their assets has shattered their financial security, leaving them in a state of distress and uncertainty. Many plate owners have resorted to working excessively long hours, to meet the exorbitant financial repayment obligations associated with their plates. It is deeply unjust that these dedicated individuals should bear the brunt of a government decision and suffer such adverse consequences.
Furthermore, the devaluation of perpetual taxi licences has resulted in vulnerable families losing their life savings, jeopardising their present circumstances and future prospects. The financial losses suffered by these families have caused immense hardship and instability, exacerbating their already precarious situations.
In light of these circumstances, we implore you to consider the establishment of a Tasmania State Government buyback program for perpetual taxi licences. We believe that such a program would not only alleviate the immediate financial burden faced by taxi plate owners but also restore a sense of justice and fairness to those who have been severely affected by the devaluation of their assets.
It is worth noting that other states in Australia, namely Northern Territory, New South Wales, Victoria, and Western Australia, have implemented taxi buyback legislation as part of their deregulation efforts. The success of these programs in alleviating the financial hardships faced by taxi plate owners cannot be understated. We strongly urge the Tasmanian State Government to follow suit and provide much-needed support to our local taxi industry.
We kindly request a meeting with you to further discuss this matter and explore the potential implementation of a Tasmanian State Government buyback program. We firmly believe that through collaborative efforts, we can find a solution that addresses the concerns of all stakeholders involved.
Thank you for your attention to this urgent matter. We eagerly await your response and stand ready to provide any additional information or support required.
Yours sincerely,
Endre Kovacs
2023-07-05
