Regulating taxi business could cost city an extra $500K

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This article was published 21/03/2017 (3094 days ago), so information in it may no longer be current.

Regulation of the taxi industry could cost city hall more than $500,000 a year.

Figures provided by the provincial government show the Manitoba Taxicab Board’s annual expenses exceeded revenues from licence applications and fees by more than $500,000 — an expense that will have to be picked up by the city next year.

“It’s too soon to know the impacts fully… We will be working hard to mitigate the financial impact on the City of Winnipeg,” said Coun. Scott Gillingham, chairman of council’s finance committee.

“I will be looking at the potential financial implications on the 2018 and future budgets.”

The provincial government announced Monday that it will be disbanding the Manitoba Taxicab Board — which regulates and monitors the taxi industry in Winnipeg — and assigning its responsibilities to the city. The deadline for the transfer is Feb. 28, 2018, but that could happen sooner if the city is ready.

Many observers are fixated on the provision of the legislation that will allow municipalities to determine the rules for ride-sharing services such as Uber and Lyft. Scant attention has been paid to the financial cost of monitoring and regulating the industry.

In the most recent fiscal year, covering 2015-16, the board incurred expenses of $754,000 and received $235,000 in revenue, leaving a shortfall of $519,000.

There was no suggestion in Monday’s announcement that the province will provide city hall with additional funding to govern the industry.

“I sure hope we can come out neutral in this,” said Coun. Janice Lukes, also a member of the finance committee, “because $500,000 for the city is a serious number.”

Lukes (South Winnipeg-St. Norbert) said the responsibilities of the taxicab board are complicated, adding the province is throwing a lot at the city and giving it less than a year to get ready.

“I am concerned about the timeline,” Lukes said. “It really is a short window.”

She said there’s a recognition that city administration struggles to produce seemingly simple administrative reports on time.

“We will have to hire staff, find space and all that has to happen within a year,” Lukes added. “It will be challenging.”

The taxi industry doesn’t seem to have any concern about city hall taking over, provided the same rules apply to all the players.

Winnipeg Taxi Alliance spokesman Michael Diamond said the industry wants to be treated fairly.

“Change is always a hard pill to swallow for any incumbent organization,” Diamond said.

“It’s not just a new regulator — and who knows what else that means? But at the end of the day, it’s not going to change for now our approach for either dealing with regulators or customer service.”

Mayor Brian Bowman said he is eager for the opportunity to write new rules that will allow ride-booking services to operate here. Diamond said the taxi industry expects whatever new rules city hall puts in place will apply to all.

Diamond said while a relaxation of some regulations would likely be received positively by the taxi industry, civic officials should be careful not to gut protections such as requirements for background checks.

“We believe it’s important to maintain safeguards for both passengers and drivers,” he said. “You shouldn’t be throwing out the baby with the bathwater simply in the name of innovation. There are certainly provisions that can be changed, amended or updated but the regulatory framework should be maintained.”

aldo.santin@freepress.mb.ca