OK, so because Victorian taxi licence holders are going to have to pay higher rents for the government-granted privilege of holding a licence, the value of taxi licences is going to diminish.
That makes sense: there’s less public taxi rent going to be capitalised by private individuals.
And, of course, seeing your potential capital gains disappearing before your eyes makes you exceedingly angry as a licence holder. You’re even likely to get in the faces of Victorian politicians on the steps of Parliament House.
None of us like losing privileges we didn’t really earn, but don’t taxi licence holders owe a market rent for this restricted product – a taxi licence?
Had the market rents for licences been captured by the State government in the first instance, licences would never have been transferring for the sort of astronomic figures they reached. A business would not have been created out of a private monopoly in public taxi rents.
But things got out of hand: bad practices had been allowed to develop, and get worse.
Very much like the nose-bleed heights to which our land prices have been allowed to ascend.
Maybe it’s beyond time the government began to capture our land rents, too, if young people are ever going to be able to afford a home?