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The bill regulating the taxi industry must be altered to promote healthy competition

Montréal, May 12, 2016 – The Board of Trade of Metropolitan Montreal acknowledges the planned bill to modify various legislative provisions regarding taxi transportation services and supports the government’s intention to implement regulations to make the system more fair and collect applicable taxes. That being said, in its current form, the bill does not meet the expectations of Montréal’s business community regarding the adoption of a system that promotes fair competition while complying with tax laws.

“In a context where new business models have begun to emerge, the system that regulates the taxi industry should be modified to eliminate the varying interpretations of what constitutes paid transportation services for passengers. The bill that was tabled does clarify the operating conditions for the taxi industry but it does not go far enough,” said Michel Leblanc President and CEO of the Board of Trade of Metropolitan Montreal.

“The Board of Trade deplores the fact that the bill does not offer any long-term solution to break with the quota system currently in force. This system is the main reason for the inertia that has come to be associated with the taxi industry, it has created frustration for passengers and an excessive rise in the cost of permits. The bill should explicitly outline measures to repurchase valid permits or conversely, allow the issuance of a higher number of permits in order to reflect the realities of new business models,” added Mr. Leblanc.

“The most powerful force for innovation remains competition, as exemplified by the industry’s rapid evolution over the past few months. The bill seems to impose a single model but innovation occurs when several different models are in play. The bill should be modified to allow for more than one model and should even open the door for emerging ones. In an era where the self-driving car is in a testing phase in certain places in North America, we can already foresee the next revolutionary change that will affect ride-sharing and the taxi industry,” said Michel Leblanc.

“We hope the parliamentary committee’s discussions will give elected officials the opportunity to review certain aspects of the bill presented today in order to provide a regulatory framework that will promote competition while sending a message that we welcome innovation and creativity. We also hope for a future devoid of the tensions that we experienced in the past few months,” concluded Mr. Leblanc.

The brief tabled by the Board of Trade during previous consultations can be viewed here.

 

About the Board of Trade of Metropolitan Montreal
The Board of Trade of Metropolitan Montreal is made up of over 7,000 members. Its mission is to be the voice of Montréal’s business community and to promote the city’s prosperity. It is involved in key areas of economic development, advocating a philosophy of action based on engagement, credibility, proactivity, collaboration, and innovation. The Board of Trade also offers a range of specialized services to individuals and to businesses of all sizes to support them in their growth at home and abroad.

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Source: 
Guillaume Bérubé
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Phone: 514 871-4000, extension 4042
gberube@ccmm.qc.ca

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