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Category: Road Transport / Industry / Business, Economics and Finance / States and Territories

No new Tasmanian taxi licences will be issued ahead of Uber introduction

Sunday, 11 Sep 2016 09:40:20

The Government wants to alleviate taxi industry concerns as Uber enters the market. (Liz Hobday: ABC)

The Tasmanian Government will suspend the release of new taxi licences over the next three years to allay industry concerns there are too many taxis on the road.

No new licences will be granted as Tasmania prepares for the introduction of ride-booking service Uber later this year.

Infrastructure Minister Rene Hidding said he acknowledged concerns of the taxi industry in relation to the legislated annual release of taxi licences, and its dampening effect on the value of taxi licences.

"To alleviate these concerns, I am pleased to announce the Government will suspend the annual release of new taxi licences across the state for three years," he said.

"This will provide the Government with a sufficient amount of time to allow us to observe any impact on the taxi industry from the introduction of ride-sharing services in Tasmania, and demonstrates our commitment to work with the taxi industry as we embrace the numerous opportunities the sharing economy offers."

Mr Hidding said Uber had advised the Government it would begin operations in Tasmania later this year.

"[This] will allow Tasmanians more consumer choice, competition and productivity benefits, as well as potentially providing hundreds of Tasmanians with job opportunities in a new and exciting market," Mr Hidding said.

Last month, legislation passed to enable Uber to operate in the state.

The new laws will see the company treated similar to hire cars, and impose medical and police checks on drivers.

The head of the Taxi Council, Roger Burdon, said he had accepted the imminent arrival of Uber into the market with a "heavy heart".

AustraliaPlus


 

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