This paper discusses the regulation, performance and reform of the taxi industry in Sydney. Numerous regulations govern entry, industry structure, service quality and prices for the Sydney taxi industry (as in other large Australian cities). The paper finds few efficiency or social reasons for these regulations and taxi performance is poor. On plausible assumptions, the net benefits from unrestricted entry into the Sydney taxi industry are in the order of $265 million per annum. The productivity and service benefits would be greater if accompanied by reform of other restrictions on taxi services especially the anti-competitive control of the taxi radio networks over all taxi operators. The paper also discusses why governments are so resistant to reforming the taxi industry. The main reasons seem to be a lack of understanding of the benefits of market operations, a preference for out-sourcing monitoring of regulations to a few industry players and a concern about the social costs and claims for compensation (although there is no legal basis for compensation). The paper shows that there are a variety of strategies to achieve reform and minimise compensation costs. 

On the 3^th of December Stephen Halmarick discussed the outlook for the Australian and the global economy in 2011.

Stephen Halmarick is Head of Investment Markets Research with Colonial First State Global Asset Management. He works closely with the company’s analysts and portfolio managers on economic and market developments. Prior to joining CFSGAM in early 2009, Stephen was a Managing Director and Co-head of economic and market analysis at Citigroup Australia, where he worked for nearly 15 years. Stephen is also chairman of the Australian Business Economists and has strong relationships in government and in the superannuation industry.