A Bendigo taxi company says an Essential Services Commission proposal to increase for unbooked taxi fares is not a big enough step to cover the rise of inflation.
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The ESC has proposed to increase fares by 10.4 per cent for passengers hailing a taxi from the street or using a taxi rank to secure a ride.
Higher running costs and driver shortages were cited as reasons for the increase with a view to re-adjusting prices again in mid-2023.
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Bendigo Taxis depot manager Colin Wells said the increase is a great step but is not enough.
"The last time the ESC recommended a fare increase was 2014," he said.
"The period this goes is setting fares for next two years.
"So from 2014 to 2024, when this runs out, there will have been a 10 per cent increase - 1 per cent a year. I'm not sure what world the ESC lives in where we have only had 1 per cent inflation (over the last 10 years)."
Mr Wells said he would have liked to have seen a larger increase introduced more gradually over the 10 years.
"It's a great first step. The problem is they haven't done anything for eight years, so it hurts passengers because it's a big whack all at once," Mr Wells said.
"I don't understand why you wouldn't do small increases like everything else when do these reviews.
"Ten per cent is a lot in one go. It puts back to (where prices should have been in) 2017-18 but we're still long way shy of where we need to be for 2024.
"The problem is a 20 per cent increase would crucify the budgets of our regular passengers. We have people - many on the breadline - we take out every day to school, the doctors or for grocery runs.
"A big increase hurts too much. If it had snuck up, it wouldn't have been as savage."
Mr Wells said higher fuel prices and driver shortages was something Bendigo Taxis was facing.
"It really wasn't so long ago that petrol prices were at $1.30 or $1.40," he said. "Now it's north of $2 and about to go north of $2.25. That's a massive increase.
"This (proposal) is based on fuel prices as at May and June, there is no allowance for September when fuel goes up by 20 cents because the federal government takes off the excise support, which the prime minister has already announced."
"We have about 100 drivers. Ideally we need another 50 or so. There's cars vacant most hours of the day and a lot of our guys would happily drive at night if we could get more day time drivers."
Mr Wells said drivers are seeing an uptick in fares as the world looks to return to normal following the heights of the COVID-19 pandemic.
"We're not back to where we were but it's getting close," he said. "As people get used to idea (of going out again), they realise they can be hermits or go out. More and more are going out.
"Things like the Elvis exhibition is drawing massive numbers and with the airport open, people are flying from Sydney and not always wanting a hire car.
"But everywhere is the same. No industry in Bendigo not screaming for more workers. Restaurants, pubs - anywhere with services elements - wait times have blown out.
"We are lucky Bendigo people have been understanding and accepting."
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