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2021: Issues with Tasmanian reserve prices of Owner-Operator taxi Licences and its impact on perpetual plates

Impact of reserve prices of Tasmanian Owner-Operator taxi Licences

Dear Sir/Madam,

I am writing to you as the Tasmanian Economic Regulator to inform you that I will be conducting an investigation to determine reserve prices that apply to Owner-Operator Taxi Licence in all 24 taxi areas in Tasmania. 

This price investigation and determination is required under Division 5 of Part 3 of the Taxi and Hire Vehicle Industries Act 2008.  The terms of reference for this investigation are in section 66D(2) and (3)  of the Act.

The price investigation will commence on 1 July 2021 and the price determination will be made on or before 1 December 2021.

I will publish an Issues Paper by 22 July 2021 and the consultation period on the Issues Paper ends on 13 August 2021.

I will also publish a draft Reserve Price Determination by 17 September 2021 and the consultation period on the draft Reserve Price Determination ends on 8 October 2021.

Written submissions (preferably by email) can be made on the Issues Paper and draft Reserve Price Determination. I will be seeking submissions that address any matters or issues included in the Issues Paper and draft Reserve Price Determination and that provide further information relating to the investigation. 

The Issues Paper, the draft Reserve Price Determination and the final Reserve Price Determination will be available on the Economic Regulator’s website: www.economicregulator.tas.gov.au.

For further information regarding this notice please contact:

Mr Chris Lock

Director

Office of the Tasmanian Economic Regulator

Phone: (03) 6166 4422

Email: office@economicregulator.tas.gov.au

The Regulator will be seeking comments and submissions on the Regulator’s Issues Paper, due to be issued on 22 July 2021, and the Regulator’s draft reports, due to be issued in 17 September 2021.  These reports will be published on the Regulator’s website at: https://www.economicregulator.tas.gov.au/.

All comments and submissions to the Regulator’s Issues Paper and draft reports will be made public on the Regulator’s website unless the author of the comment or submission requests confidentiality in relation to the comments or the submission (or any particular comment or part of the submission).

The Office of the Tasmanian Economic Regulator has noted the contents of your email and will inform the Regulator of all comments as they are received.  However, as the consultation period on the Issues Paper has not yet commenced, your email will not be listed on the Regulator’s website.  You are encouraged to provide your comments and submissions on the Regulator’s Issues Paper and draft reports once they are released.

OUR RESPONSE AND YOU SHOULD EMAIL DIRECTLY TO office@economicregulator.tas.gov.au

 
Any future lowering of reserve prices of Owner-Operator taxi Licences in Tasmania especially Hobart will have a negative financial knock on effect on perpetual plate prices. This will undoubtedly make leasing many perpetual taxi plate in Hobart to a taxi operator even more less financially unviable. In addition, it is destroying the asset value of my perpetual taxi licences. 
 
Due to COVID and other government policy measures, actions taken to date by the Tasmanian Government on me as a  perpetual plate owner  is making life extremely financially difficult. Many have virtually lost more than 70% of their asset value and monthly leases are now below the poverty line. 
 
It is  requested that the current reserve price actually increase (with no CPI decrease) and and stay fixed for at least 10 years. We need a chance to recoup financial losses and with your assistance with this approach could be achieved.  I believe there are at least 300 perpetual plate owners current arrangement unsustainable.
 
We should also request  consider the Tasmanian Government implementing an optional buy back policy on perpetual plates (price for which the actual perpetual taxi licence plate was bought) as these plates are in direct competition with me and other perpetual plate owners and is unfair and un-Australian. 
 

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