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www.oakvillebeaver.com The Oakville Beaver, Wednesday March 5, 2008 - 7 Get ready to dig deeper for cab fare next month Taxi licence fee increases prompt hike in fares By David Lea OAKVILLE BEAVER STAFF Don't Pay Retail! Factory Outlet Sale We Install Oakville taxi riders will need to shell out a bit more cash to get from point A to point B as a fare increase of roughly 6.08 per cent is set to come into effect on April 1. The increase was the byproduct of Monday night's Town Council meeting at which a proposed hike in fees, paid to the Town by taxicab owners and operators, was discussed along with a taxicab tariff increase. The proposed fee hikes would change the cost of renewing a taxicab owner's licence from $500 to $1,300 per year, the renewal cost of a taxicab driver's licence from $100 to $250 per year and the annual taxicab inspection fee from $100 to $200. Town staff noted that the proposed fee increases were brought forward because the taxicab industry does not currently operate on a cost-recovery basis. As a result, enforcement and administration costs not recovered through licensing fees are recovered from the public through the tax base. An increase in the taxicab tariff was also considered after taxicab operators and owners raised concerns that raising their fees without increasing the taxicab tariff would damage the industry. "If things stay the same, we don't need a tariff increase, but if these fees go up then we need it to compensate," said Surbrinder Sandhu, taxicab owner. "We can't absorb this much of a fee increase, so we do need some kind of tariff increase, as well. It won't offset all of the costs, but it will offset some of them." Other leaders in Oakville's taxi industry also came forward to voice their concerns with the proposed changes. "We ask you to please reconsider this rate increase that you are considering. It's unreasonable by any measure. A 150 per cent increase in fees is just crazy and it's going to really seriously impact our ability to perform properly," said Frank Martino, proprietor of Halton Taxi. "It's going to get to the point where you're instituting "We can't absorb this much of a fee increase, so we do need some kind of tariff increase, as well. It won't offset all of the costs, but it will offset some of them." Surbrinder Sandhu, taxicab owner a cancer into this industry that it will be very hard to recover from." Martino noted that many people enter the taxi industry at difficult times in their lives and are not in a position to deal with large fee increases. Martino also expressed concerns about what some cab drivers would do if driven to desperation. "They have to survive. They have to live. They have to eat, and if you're going to make it impossible for us to do it up front, who knows what will happen," he said. "They'll park the cars. They'll quit driving. They'll cheat people. People have to survive." Sandhu called on council to hold off on instituting the fee increases until at least next year, so that the taxi industry would have a chance to prepare for the blow. "I just don't understand how we can expect this important and vital service to be successful in this town, if we continue to do this." Ward 5 Councillor Jeff Knoll Ward 5 Councillor Jeff Knoll also voiced concerns on what the fee increases would do to Oakville's taxi industry, especially when the industry is dealing with rising fuel and insurance costs, as well as the fallout from a Town decision to increase the number of taxis in Oakville, a move that decreased the available revenue. "I just don't understand how we can expect this important and vital service to be successful in this town, if we continue to do this," said Knoll. "It's great to say that we want to have total cost recovery, but we don't have cost recovery on many of the services that we provide in this town, and there are those that we should probably focus on more because they are more high profit areas. But no, we're picking on the cab industry and the cab industry happens to be one of those industries that's truly about customer service and has the greatest impact on people who can least afford the alternative." In the end, Ward 3 Councillor Mary Chapin came up with a compromise that would see the fee increases phased in between now and 2010. Councillors on both sides of the proposed fee increase issue approved of the compromise and a motion was passed carrying it through. A tariff increase to accommodate the phasing in of the fees was also approved, which will result in the changing of taxi fares in Oakville from the current model of $3 for the initial 155 metres and .25 cents for each additional 155 metres to $3 for the initial 145 metres and .25 cents for each additional 145 metres. Oakville's taxi industry is not exactly jumping for joy at the compromise. "I'm not really happy," said Sandhu. "We wanted things to stay like they are right now, but if we have to put up with it we will. This is better than what they were proposing." Martino had a similar `it's better than nothing' attitude towards the evening's outcome. "It's better than getting the fee increase all at once, but we have been hit with a lot of increases and I was hoping to be able to avoid the fee increase. If we're going to have one this way is somewhat fair," he said. "Like the creative people that we are, we will figure out a way to deal with it and we'll prevail. I hope everybody just gives us a break for a while. We've had to swallow an awful lot in the last two years and they need to just pretend we don't exist. Just let us grow and work to make this a viable industry." Columns Wainscoting Over 70 Smooth or Patterned Profiles Visit our website or showrooms for prices, design ideas. In home design consultation available. 201 Millway Ave., Unit 6, 416-245-1115 (One light north of Hwy. 7 & Jane) Showroom Hours: Mon-Fri 9-5, Thurs until 7, Sat 10-3 Live your dream. ea Br EE uf FR st B a kf Your RRIF to a LP to your pocket, fet Date: Thursday, February 14th at 9:30 AM Location: Harbour Lighthouse Banquet and Conference Centre, Bronte RSVP: Space is limited. Call today to reserve your seating! Call 905-847-7777 Andrew Blanchard, MBA, CFP, CIM, FCSI, EPC Investment Advisor HEAR ANDREW'S TOP TEN BOTTOM PICKS FOR 2008! *Subject to financial planning assessment and minimum income requirements.