Victoria's taxi buy-out scheme is unfair and the money offered to licence-holders is too little recompense, a multi-party parliamentary committee has told the Andrews government.
The committee, which includes three government MPs, investigated laws before parliament to set up a levy on taxi, Uber and other commercial passenger vehicles, with the money to be used for an industry transition fund.
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Under Labor's proposed reforms taxi licence holders would receive up to $100,000 for their first licence and $50,000 for their second, third and fourth licences. These payouts are being funded by the levy.
Committee chair and Liberal MP Bernie Finn said the bill before parliament required amending to "reflect the reality of the plight of taxi licence holders in Victoria and the compensation that is owed to them."
![A protest against the buyback scheme outside State Parliament in February.](http://web.archive.org./web/20170609014706im_/https://www.fairfaxstatic.com.au/content/dam/images/g/u/m/1/z/r/image.related.articleLeadwide.620x349.gwnalo.png/1496919774638.jpg)
"Effectively licences that were purchased at a high price from government as a capital asset the government proposes to reduce in value to zero," Mr Finn said.
"This is devastating for many working men and women who have dedicated their lives to the commercial passenger vehicle industry."
Taxi licence owner protests against the compensation scheme and changes to the industry have included an attempt to storm parliament.
Victorian taxi families' spokeswoman Linda De Melis said the report was very positive in particular recommendation to fairly value licences.
![Taxi drivers are seen remonstrating with police during a protest outside State Parliament](http://web.archive.org./web/20170609014706im_/https://www.fairfaxstatic.com.au/content/dam/images/g/u/m/5/2/n/image.related.articleLeadwide.620x349.gwnalo.png/1496919774638.jpg)
The committee called for compensation be given through an "independent and clearly articulated, transparent, equitable and non-arbitrary model".
"We hope that the valuations are free from undue influence of illegal operations," Ms De Melis said.
Transport Minister Jacinta Allan said the recommendations would be considered in coming weeks.
"The committee's recommendations broadly support the Government's approach to regulate ridesharing, reduce fares and provide assistance for the existing industry," Ms Allan said.
The multi-party committee also recommended that the $2 levy be decreased in country areas and set up a sunset clause for the levy's operation.
And access for concessions so that disabled people, many who rely on taxis to get around, can get access to multiple services should be extended, the committee recommended.
A spokesman for Uber called the recommendations sensible.
"We trust the Victorian Parliament can work together to pass these important reforms and open up increased choice and competition for the benefit of the travelling public."
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