Editorial: A reality check for deregulation

DEREGULATING the taxicab and limousine industries sounds simple and seems sensible.

After all, why shouldn't anyone who owns a car be able to start his own business and ferry passengers around Las Vegas, a tourist mecca? Advocates also promote the idea that competition should, in turn, lead to lower costs for consumers. It sounds like everyone wins, right?

But what supporters of deregulation conveniently omit from the discussion is the terrible consequences this policy can have on safety. A special report in Tuesday's USA Today should serve as a reminder of why regulation of taxicabs and limousines still is important. The newspaper found there has been an alarming increase in accidents involving taxicabs in major cities and tourist destinations.

In New York, while the city's overall accident rate fell by 8 percent from 1990 to 1996, cab accidents increased 41 percent during the same period. Closer to home, critics say deregulation was a major contributor to Phoenix's 48 percent surge in taxicab accidents from 1990 to 1996.

What's especially frightening is what little is required to be a taxi driver in Phoenix. According to USA Today, all someone needs is a car, a painted sign on the door with a phone number, and automobile insurance. The minimum driver age is 16, but beyond that there are no requirements to pass a driving test and undergo a criminal background check first.

Compared to other cities, Las Vegas' taxis did well, registering just a 12 percent increase in accidents from 1990 to 1996 even though the number of taxis increased 137 percent during the same time. Much of the credit can go to sound regulation. Taxi drivers here must pass a driving test and pass a criminal background check.

Despite the perils of deregulation, expect a push during the 1999 Nevada Legislature to rid transportation industries of all regulation. The value of any regulation that has the effect of blocking legitimate and safe businesses from entering the market should be re-examined.

But state legislators should never compromise on requiring tough safety regulation. Besides, a cheaper fare because of deregulation isn't going to do a passenger much good if it means an accident will prevent him from ever making it to his destination.

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