Montreal, March 20, 2019 – The MEI congratulates the Quebec government for having decided to reduce the regulatory burden and encourage innovation. Indeed, the bill to modernize the taxi industry, which has just been tabled by the Transport Department, proposes a series of measures that will benefit both consumers and the industry.
First and foremost, the bill will abolish any kind of permit connected to quotas, whose main effect up until now has been to create costly distortions for consumers, while preventing the industry from evolving.
“The value of permits represented a barrier to entry and affected the incomes of drivers. It made no sense from an economic point of view to have to purchase the right to produce or to work in a certain field,” explains Germain Belzile, Senior Associate Researcher at the MEI. “It’s also excellent news that taxi drivers will be allowed to work anywhere in the province.”
Moreover, required qualifications will be the same for all drivers, which will put all industry actors on equal footing and encourage entrepreneurship and innovation.
“The current regulation is moribund, and aimed above all at favouring the owners of taxi permits. The flexibility of the new framework for the industry will certainly provide consumers with more choice and better service, and perhaps better prices too,” concludes Mr. Belzile.
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For further details, see the Viewpoint entitled “How to Modernize the Taxi Industry,” prepared by Germain Belzile, Senior Associate Researcher at the MEI. This publication is available on our website.
The MEI is an independent public policy think tank. Through its publications and media appearances, the MEI stimulates debate on public policies in Quebec and across Canada by proposing reforms based on market principles and entrepreneurship.
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