ACT Chief Minister Andrew Barr has signalled deregulation in the taxi industry with the arrival of Uber, saying it would be crazy to put up barriers to the ride-sharing company.
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He also suggested "transition plans" to help the taxi industry adjust.
"It's the subject of legitimate community debate, I understand that," he said of the imminent arrival of Uber in Canberra and the advent of Air BnB in the accommodation sector.
"Perhaps, in the context of certain industries, what we need are some transition plans. We were able to successfully deregulate hire cars, for example, for the territory, so there's no reason to think that we can't reach an accommodation with demand-responsive transport."
Speaking at estimates hearings at the ACT Assembly, Mr Barr said it would not be fair to allow a totally deregulated Uber into Canberra given the tight regulation covering the taxi industry, with the government looking for a level playing field. Regulation would ensure public safety in areas such as vehicle insurance, background checks on drivers, and avenues for making complaints. But fares could be deregulated.
"So the answer is an increased level of regulation on Uber to reach a range of minimum standards that the community would want and expect, and a decrease in regulation in some sectors of the taxi industry.
"The government is going to have to evolve in its regulatory environment in order to respond. I just think it would be crazy to think that you can put up barriers and regulatory rules that will stop this sort of activity from happening. You can't, so you are better off working with these new businesses to ensure that the regulations that the community would expect – be that around public safety or minimum standards and the like – are there."
The government's focus was on consumers because "these industries don't exist for the producers, they exist for the consumers", Mr Barr said.
Uber held a session for potential drivers in Canberra this month, and has urged members of the public to push for the arrival of Uber in Canberra.
Uber is keen to set up shop in Canberra and the government has called for feedback on the future of the taxi industry, with submissions closing on June 29.
