South West MLC Steve Thomas raised a disallowance motion in parliament on Tuesday to reverse the state government's compensation package for metro taxis.
The motion was raised to spur the state government into negotiations with regional taxi operators, who have taken a hit after ride sharing companies such as Uber started operating in regional WA.
The metro compensation package was introduced in late 2018 prior to Uber operating in the regions.
The state government scheme allowed eligible metro plate owners the opportunity to voluntarily trade in their plates and receive compensation. That compensation was funded from a 10 per cent levy, slumped on metro operators.
Dr Thomas said he had been contacted by a number of taxi companies in the South West, Great Southern and Kalgoorlie who all had experienced issues.
"It circulates around the whole Uber debate, there was a levy applied that would go to the metro area to payback taxi plate owners because Uber was only in the metro areas," he said.
"A deal was struck so the taxi levy would not go on regional taxis, which precluded them from any compensation.
"I will be lobbying the Upper House members on the cross bench to support the disallowance and I will ask the government to negotiate in good faith with regional taxi drivers."
The impact of ride sharing has been felt by Busselton Taxis, with Jeff Devenny telling the Mail last year they were down 40 to 50 jobs on Friday and Saturday nights after Uber started.
Without a regulated taxi service, regional towns like Busselton risk losing a 24/7 service and wheelchair vehicles.
Busselton Taxi operator Janet Devenny said on Christmas Day alone they had transported around 40 people who required a taxi with wheelchair access to their families.
"Ride sharers do not have to be there to do that, but we do, and we pride ourselves on that."
Busselton resident Kaye Boletti uses Busselton Taxis daily because she requires a wheelchair vehicle to take her everywhere.
Ms Boletti said if there was no taxi service with wheelchair access available to her she would be left stranded.
"I rely on Busselton Taxis because there is nowhere else I can go with a wheelchair to do my duties, there are many people in wheelchairs who rely on these vehicles to get them from A to B," she said.
Transport Minister Rita Safiotti did not respond to questions in time for publication.
Vasse MLA Libby Mettam raised the issue in parliament last month.
