A draft recommendation by the Independent Pricing and Regulatory Tribunal (IPART) found there wasn’t enough competition in some country towns and proposed releasing a “small” number of extra licences.

The first of three hearings was held in Sydney on Tuesday, with two more sessions to follow at Coffs Harbour on Thursday and Dubbo next Tuesday, January 6.

NSW Taxi Council Deputy CEO Nick Abrahim said taxi operators in communities such as Gundagai, Merimbula and Jindabyne had already shut down because the industry was struggling to adapt to a new era.

He said the same thing would happen in western NSW if the government agreed with IPART’s proposal. 

Mr Abrahim said operators were committed to offering a reasonably-priced and efficient service for regional customers, but said government regulation was making that tough.

“We would ask the government to just leave us alone and allow us to adjust to the last changes that were introduced,” he said.

“If IPART’s draft proposal is adopted, it will have potentially catastrophic impacts for the industry. The quality service that exists in both bigger centres like Bathurst, Orange and Dubbo or smaller towns like Mudgee, Young or Parkes may not exist.”

IPART’s report found that taxi licence values were high in some areas, suggesting an imbalance between licence supply and demand for services.

The report also found the supply of licences was growing at a slower rate than population increase.

The regulator has proposed services located outside of Sydney be divided into two categories, a designated zone that covers most areas, and an exempt zone to cover small towns where there is little business.

There are currently 1244 taxis in what would be the designated zone and 132 in the exempted zone. IPART has recommended a 10 per cent increase in both.

Mudgee is listed in the ‘designated zone’ with eight taxis operating.

Mr Abrahim said if more licences were made available, they would be most likely to be purchased by big corporations who would look to cherry pick major events rather than operating a full-time service.

“Your local taxi driver transports people with special needs, people who are looking to get home after a night at the pub, people who are getting to medical appointments,” he said.

“These operators will push out the little guy, will cherry pick when they operate and cover big events, but will then leave the local community without a service when they need it.”