If we don't take up the first 30 the other 270 will be irrelevant.

Boycott the First 30,

Stop the 300.

This week the DoT invited applications for the first 30 ‘new’ lease plates.

If we refuse to take up these plates then half the battle is won.   He has released only 30 because that is all legislation allows at the moment.   He is attempting to introduce new legislation.

If those 30 aren’t taken up he’ll either abandon his attempts as a waste of Parliamentary time or he’ll release the plates to tender bids.  

Plates are presently being advertised at around $300 000.   If the market is flooded this will bring plate prices down substantially causing much pain for those who bought at the current price.   I believe that this may be a part of Mr Buswell’s strategy.   If plate values are forced down to $250 000 big investors will become interested (read Macquarie Bank).   If they take up the plates at this price and then lease to multiple car holders at $20 000 pa that is a 8% return.   The beauty of this approach for such an investor is that they don’t have to take all the plates at once.   The plates will be sitting there waiting for investors to buy as they see the market is ready.   The government must have a minimum acceptance price (otherwise small investors would make ridiculous bids).    What ever the value you can be assured that not many working Taxi drivers will be able to get suitable finance for $250 000.   Interest on a loan of $200 000 would probably be more than $20 000. Speculative high risk loans on businesses in industries with low turnovers attract high interest rates.

That of course means it is better for a driver to take on the government lease plates.   But the driver has to be able to find the finance for a suitable vehicle, buy a meter, radio and signage, cover rank fees, insurance (massive since the influx of ‘student’ drivers) and maintenance.   That’ll be about $750.00 per week.   You can offset that by sharing with a bailee (lessee) driver if you can find one who is reliable (one who doesn’t ignore that pesky beep from the dash as all the red lights start to flash).   An unreliable driver could mean blown motors at $3000 a pop.