Proposed changes will 'destroy the taxi industry,' says car leasing company
A Halifax car leasing company says some proposed changes to Halifax's taxi bylaws, especially a big increase in the number of licences issued, would be disastrous for the industry.
On Tuesday, Halifax regional council agreed to have staff prepare a long list of amendments to the taxi regulations, including one that would increase the number of operator licences, or roof lights, to 1,600 from 1,000.
But in a letter to councillors, the co-owner of Blue Line Car Leasing urged them not to make the move because it would make it difficult for drivers to make a living.
"They are panicking," wrote Billy Mastrapas, "Business is already slow and they wonder how they will make ends meet."
Mastrapas suggested the number be increased by 50 or 100 and then be reassessed in two years.
Coun. Steve Adams tried to limit the increase to 50, then agreed to 300, but the motion was defeated. HRM staff and other councillors argued that capping the operator licences at 1,600 is the only way to get more women into the industry and eliminate the practice of private leasing.
That involves an individual or company with either one or more roof lights leasing them to taxi drivers.
Halifax's fee for a roof light is $50. But drivers are being charged a lot more.
The consultant who reviewed the taxi industry interviewed drivers about those lease arrangements.
"We're talking about hundreds of leases here," said Coun. Shawn Cleary, noting drivers indicated they are paying up to $500 per month.
"If the leasing goes away it's fair, so the driver [is] not being taken advantage of," said Coun. Tony Mancini.
"We absolutely know leasing is an issue," said Sally Christie, manager of taxi licensing for the municipality. "And the only way to address that is to increase the [roof light] limitations."
Mastrapas agreed that type of practice should change, but does not believe his company falls into the same category.
He said for the past 40 years it has rented out cars, provided insurance, towing, repairs and backup vehicles while a taxi is out of commission.
"Many of our drivers prefer to rent [a car] rather than own," he said. "By renting, they have no headaches to deal with."
Safety concerns
Blue Line has 57 roof lights and charges $300 to $400 monthly for their use. It also rents vehicles for about $370 a week.
Mastrapas said that is different from individuals who charge an up-front fee of $5,000 a year for a roof light and provide no services.
He said if 600 new licences are added to the industry his car rental business may actually increase as drivers struggle with the cost of keeping a car on the road.
Mastrapas suggests giving roof lights to drivers who are currently in a lease arrangement is a better option.
He has an ominous prediction should the proposed changes go ahead.
"In the end, oversupply will lead to poorly maintained vehicles, financially distressed and fatigued taxi drivers, and safety concerns for both the driver and the customer," said Mastrapas.
Regional council has the option to hold a public hearing before a vote on the bylaw amendments.
