hkskyline
June 2nd, 2005, 06:05 AM
Call to end Shenzhen taxi cartel
Chow Chung-yan in Shenzhen
2 June 2005
South China Morning Post
An outspoken Shenzhen lawmaker has urged the government to end the monopoly of taxi companies and allow individual drivers to set up businesses.
The city's taxi trade is now in the hands of a few government-sanctioned operators, which share complicated financial relations with the authorities. Cab drivers have to pay hefty rent each month to the operators for a licence.
Yang Jianchang , a veteran Shenzhen People's Congress member, blasted the practice, which he said had bred corruption and placed a heavy burden on both drivers and consumers.
"The current policy has created opportunities for taxi companies to make unreasonable profits. It also makes it easy for certain officials to take bribes," said Mr Yang during a meeting of the congress session.
He said each operator could pocket hundreds of millions of yuan a year through the monopoly, while the officials in charge were reportedly receiving up to 70,000 yuan in "tea money" for each new licence they issued.
"Our taxi drivers have become the modern rickshaw coolies. They have to buy the car, pay the tea money and hand back a large share of their earnings to the operator everyday. Some taxi drivers have to work 84 hours a week to eke out a living," he said.
Residents have complained that taxi fares are too high, but drivers are not optimistic that things will change. Zhang Cai , said: "I don't believe the government will do anything. They are making millions out of it. Why would they want to change things?"
Chow Chung-yan in Shenzhen
2 June 2005
South China Morning Post
An outspoken Shenzhen lawmaker has urged the government to end the monopoly of taxi companies and allow individual drivers to set up businesses.
The city's taxi trade is now in the hands of a few government-sanctioned operators, which share complicated financial relations with the authorities. Cab drivers have to pay hefty rent each month to the operators for a licence.
Yang Jianchang , a veteran Shenzhen People's Congress member, blasted the practice, which he said had bred corruption and placed a heavy burden on both drivers and consumers.
"The current policy has created opportunities for taxi companies to make unreasonable profits. It also makes it easy for certain officials to take bribes," said Mr Yang during a meeting of the congress session.
He said each operator could pocket hundreds of millions of yuan a year through the monopoly, while the officials in charge were reportedly receiving up to 70,000 yuan in "tea money" for each new licence they issued.
"Our taxi drivers have become the modern rickshaw coolies. They have to buy the car, pay the tea money and hand back a large share of their earnings to the operator everyday. Some taxi drivers have to work 84 hours a week to eke out a living," he said.
Residents have complained that taxi fares are too high, but drivers are not optimistic that things will change. Zhang Cai , said: "I don't believe the government will do anything. They are making millions out of it. Why would they want to change things?"