Minister of Transport and Logistics, Frank Tayali has said calls by taxi operators for government to regulate online taxi fares is unattainable.
Mr Tayali said Government can only level the business playing field by providing policy direction as opposed to regulating online taxi fares.
The Minister added that Government cannot interfere in market competition and that those who register operate online taxis do so at their own free will.
Mr Tayali, however, said the Ministry of Justice is in the process of formulating a Statutory Instrument (SI) to regulate online hailing taxis and until that is done, his ministry is not mandated to do anything. “Government has no business in doing business, Government’s responsibility is to create a level playing field to bring about policy, to bring about regulation that will bring harmony to the industry.
“What our colleagues are asking to step in and begin to direct those that are operating these online taxes the rates they must use is quite unattainable, it is not within my powers to be able to do that.
“For instance, in the cement industry, an existing company called Chilanga cement then you get competitors such as Dangote, Zambezi they are all trading in one product or others in an effort to attract the market may end up reducing the price of their commodity, they may achieve that perhaps by internally generating their own energy that is able to produce this cement and therefore they develop a comparative advantage of others. It will not be government’s responsibility to go and direct those to actually reduce,” he said.
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