Council’s response to Temora Taxi’s proposal
Published on 22 February 2024
Council’s response to Temora Taxi’s proposal
In late 2023 the owners of the Temora Taxi Service met with the General Manager of Temora Shire Council, Ms. Melissa Boxall, suggesting that Council take on a component of the operation of the taxi service following their retirement.
“The General Manager advised them that whilst the taxi service is a valued and important service to the community the operation of a taxi service is not a core function of Council and that Council’s financial sustainability would be a key consideration in the decision,” explained Mayor Rick Firman.
At the time the extent the sale of the business had been promoted appeared to have been limited, and Ms. Boxall recommended that the owners increase their advertising, including an article in the Temora Independent; as well as engage a specialised broker.
In late January 2024, the owners approached Mayor Firman, who arranged for them to put their case to Council. A meeting was held on 1st February and in attendance were five Councillors and the Director of Administration & Finance, Mrs. Elizabeth Smith.
According to the owner the key obstacle to the sale of the business is the long hours involved in providing the service and bookkeeping/reporting obligations. The Temora Taxi currently operates seven days a week from 8am until 10pm Sunday through to Wednesday, from 8am until 11pm on Thursday, and 8am until approximately 12pm Friday and Saturday.
On 6 February, Council received correspondence from the Temora Taxi Service proposing Council to acquire and operate one vehicle. The proposal included an Income Statement in a confidential memo.
“Analysis was challenging for Council in the short timeframe we had to get it to Council, before the current owners intend to hang up their boots. The information provided included the entire operations of the current taxi service, of multiple vehicles; as well as income and expenditure from sections of the business which wasn’t part of the proposal to Council, contracts the current owners intend to retain – which is their right,” explained Mayor Firman.
“Preliminary advice from Council’s Industrial representative at LGNSW indicated that Council would likely be obligated to pay taxi staff under the Local Government State Award. Council estimated (to operate one taxi at the current hours) that wages alone would be more than $292,000 per year.”
Other costs, at the point of the report to the February Council meeting, were unknown, such as insurance, licencing, vehicle running and maintenance.
Last Thursday 15 February evening, during Temora Shire Council’s February meeting, the proposal for Council to consider the request for Council to purchase the Temora Taxi Service’s taxi was discussed and decided on. Whilst it was acknowledged that the Temora Taxi Service is an important and valuable service provided to our community, and after much discussion Councillors unanimously resolved to decline the request on the motion of Cr Belinda Bushell and seconded by Cr Jason Goode.
“Whilst we all deemed it an essential service, we were also in agreeance that Council should not be in the taxi business. If we were to acquire a taxi service, what other essential services would we be asked to take on?,” commented Mayor Firman.
“I feel for those that rely on the service, it is really going to make things hard,” empathised Deputy Mayor Graham Sinclair during the discussion.
As suggested by Cr Anthony Irvine, it was agreed that council staff should continue to be available to support the owners in the sale of the business by providing advice in line with Council policies and their responsibilities as officers.
“That way we can confidently say we tried everything” said Cr Irvine.
“The General Manager and I rang the owners after the Council meeting to inform them of our decision.”
“Council thank Mr. and Mrs. Krause for reaching out to Council, and the manner in which they conducted themselves.” Mayor Firman concluded.
For Council meeting minutes and recording of the conversation {44:10} visit: Council Meetings Temora Shire Council (nsw.gov.au)