Italian taxi drivers remain on the war path

| Wed, 07/05/2006 - 05:11

Italian taxi drivers battling government plans to increase the country's small fleet of taxis continued to stage wildcat strikes on Tuesday, causing renewed chaos in cities up and down the country.

Rome, Milan, Turin, Genoa, Florence and Naples were the worst-hit cities as drivers blocked airports, stations, key roads and central squares. Some snarled traffic by taking part in 'go slow' drives while taxi service phone lines in several cities were only accepting emergency calls.

The protests caused havoc for travellers, who were left stranded at airports, stations and taxi ranks. A parliamentary committee tasked with ensuring that Italy's strike laws are obeyed again warned the drivers that they faced hefty fines unless they returned to work. Stressing that wildcat stoppages were illegal, the committee said that drivers could be fined 500 euros or more and taxi union up to 50,000 euros.

"They cannot disrupt our cities like this - it's illegal," the committee said.

Culture Minister Francesco Rutelli, who heads the big centre-left Daisy party, said that "taxi services don't work and improving them is in the drivers' own interests... We are open to constructive proposals but street revolts are unacceptable".

The drivers are up in arms over a surprise decree unveiled by new centre-left Premier Romano Prodi on Friday which would liberalise taxi licensing and break the virtual monopoly status of local taxi federations. The decree would allow municipal administrations to increase the number of taxi licences issued and give out temporary permits during predictably busy periods.

Private firms would also be allowed to enter the public transport sector, including taxi transportation. They would be allowed to acquire licences and then hire their own drivers. The government said the measures would improve Italian
taxi services, bring down fares and boost competitiveness in the transport sector to the benefit of the consumer.

It stressed that Italy's 40,000-strong fleet of taxis was the smallest in Europe and insufficient to meet demand.

According to official statistics, there are 2.1 taxis per thousand inhabitants in Rome and 1.6 in Milan compared to 8.3 in London and 9.9 in Barcellona. The number of taxis operating in Rome is 5,820, compared to more than 61,000 in London, almost 43,000 in New York and 17,000 in Paris.

Complaints from residents and tourists over the difficulties in finding taxis during peak hours and at night have shot up in recent years, with taxi drivers accused of deliberately restricting the number of cars available in order to safeguard their earnings. But taxi unions have angrily rejected such arguments, insisting there are more than enough taxis in circulation and blaming heavy traffic for any problems with services.

They say that deregulating the sector will drastically cut their earnings and make taxi services less safe. Many drivers stress they have invested their entire savings in buying a licence, a grey market in which the cost of a permit can reach as high as 200,000 euros with drivers selling on their licences when they retire. Drivers fear the investment will be worthless if the sector is deregulated.

Taxi unions have also blasted the government for announcing the decree out of the blue without first consulting them and listening to their objections. A small delegation of representatives will meet with government officials on Tuesday to discuss their grievances. In the meantime, unions have announced a nationwide taxi drivers' strike on July 11 while a general meeting will be held in central Rome on Wednesday with more than 6,000 expected to attend.

Many members of the opposition coalition headed by former premier Silvio Berlusconi have expressed support for the taxi drivers, accusing the government of "targeting" and "punishing" part of their traditional voter base. Former foreign minister Gianfranco Fini, leader of the rightist National Alliance (AN), said on Tuesday that "this was an act of arrogance by the government which is now causing serious disruption for citizens".

But Prodi, who narrowly won Italy's April general election, stood firm, saying on Monday that the measures were "in the general interest". "I think parliament and public opinion both realise that it's time for change... These measures are not designed to target anyone and certainly not categories considered close to the previous government," he added.

The decree, drawn up by Economic Development Minister Pierluigi Bersani, contains reforms designed to increase competitiveness and benefit the consumer in a number of sectors. Among other things, it breaks chemists' monopoly of
drugs sales by allowing non-prescription medicines to be sold in supermarkets; simplifies the sale of second-hand cars, boats and motorcycles by eliminating the costly involvement of a notary; and abolishes the minimum fee regime adopted by lawyers, meaning that no-win-no-fee practices could be introduced. Banks will also be prevented from charging clients who close their accounts.

Prodi said the decree would allow Italy to "lose 10 kilos of fat and gain 5 kilos of muscle". It was applauded by consumer rights' associations, who said it would save Italian families up to 1,000 euros a year.

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