Bula Vinaka Ladies and Gentleman,
Amongst the many positive incentives announced in the 2021-2022 National Budget, the Land Transport incentives focuses on improving the service delivery and easing the financial burden on individuals and business operators in the transport sector.
I want to outline some of the initiatives, especially the Land Transport (Budget Amendment) Act 2021, which was passed by the Parliament on 30 July 2021.
The ‘new normal’ in Fiji, has brought about many inevitable changes. The National Budget and the Act passed ensured that our fellow Fijians were at advantage.
A key amendment in the Act is the establishment of the Open Taxi Rank System. This new concept has brought about different views within the Fiji Taxi Associations in relation to operations and payable fees.
The “Open Rank System” is targeted to ensure service efficiency and reliability whilst giving the Taxi operator and driver greater opportunity with relation to their operations.
For clarity on this concept, the Open Taxi Ranks enable taxis to operate from any rank within their designated areas of operation on a first-in first-out basis or “Rotational Basis”. To date, we have more than 7,000 taxis, all over Fiji, who will benefit from this concept.
In fact, the framework gives opportunity for all taxi operators to operate in unity whilst reducing illegal operations. Particularly, private vehicles operating as PSV. The framework also provides flexibility for taxi operators/ drivers to operate as and when they want to operate.
The removal of base and stands will also remove the monthly fees associated with base/stand. This will be replaced with an annual PSV levy, which will be paid by all PSV permit holders except rental permit holders at the time of annual vehicle registration. This simply means that each month the PSV operators will not have to worry about setting aside monthly fees from their income.
I want to reassure the taxi operators and drivers that all fees paid in advance to the respective Municipal Councils for the base and stand, will be credited to the motor vehicle registration levies. Which means when a taxi operator goes for renewal of registration, the cost credited will be utilised to offset total cost for renewal of registration, and the balance will only be paid. The Annual PSV Levy for Taxis will range depending on rural or urban taxis.
In addition, Private Taxi Bases are a commercial arrangement between the taxi operators and the base owners, therefore, these private taxi bases are not included in the Open Rank System.
It is important to note that the date of commencement for the Open Rank System will be announced within the next 2 months, after appropriate coordination with Fiji Roads Authority and the Ministry of Local Government together with the Municipal Council for the marking and establishment of open taxi ranks.
Whilst this work is underway, the Government will continue to pay for the base and stand fees, as announced in the budget.
Taxi Operators must note that the Open Taxi Ranks will only benefit them with relation to operations and income generation.
I wish to also stress that all existing laws still apply. Hence, all taxi operators are to comply with their respective PSV Permit conditions.
The Ministry has received an overwhelming response from the general public towards the 2021-2022 National Budget, specifically for the transport sector related initiatives. As the Minister, responsible for Transport, I take this opportunity to thank all transport stakeholders for their support of the 2021-2022 National Budget initiatives and look forward to continued cooperation. Whilst we acknowledge the importance of the stakeholder contribution, we also would like to work closely with each one of you to improve the transport sector whilst helping the Government achieve its goals and also help each individual operator to earn a living and be accessible to government services.
Thank you.