Taxi Industry Inquiry - Interim Report

September 2004

Table of Contents
Options for Reform to the Taxi Industry..............................................................9 Overview of the Current Key ............................................................................15 Industry Relationships.......................................................................................15 Peak Representative Bodies...........................................................................................15 Taxi Licences on issue...................................................................................................15 Driver Representative Bodies........................................................................................15 A Re ulatory !ramewor" for the ......................................................................1# Taxi Industry......................................................................................................1# $ntry and %arti&ipation in a ..............................................................................'9 Co(Re ulatory !ramewor"................................................................................'9 The )tate of the Industry * Thrivin + )urvivin or ,oin -nder. ..................../# !inan&ial )tru&ture of the Taxi Industry ...........................................................50 in 1ew )outh 2ales..........................................................................................50 1o 3estinations Trial * .....................................................................................54 The ri ht solution to the pro5lem......................................................................54 2here to from 6ere..........................................................................................74 Con&lusion.........................................................................................................#1 A%%$13IC$)...................................................................................................#/ )u5missions re&eived8......................................................................................#/ 1999 I%ART Report on Taxis 9 6ire Cars * )tatus of Implementation of Re&ommendations............................................................................................#:

Foreword
!or most people+ taxis are not a re ular pu5li& transport servi&e. ;ut they are an important+ fast+ individualised ad<un&t to 5uses and trains and provide essential transport for people with mo5ility pro5lems. As =pu5li& use> vehi&les+ they redu&e the need for =private use> vehi&les and therefore have an important role to play in redu&in the safety and environmental ris"s asso&iated with ever(in&reasin private &ar use. 6owever+ it is &lear that in 1ew )outh 2ales at the moment+ they are not deliverin the servi&e they need to. The In?uiry ta"es the view that for de&ades now 1)2 state overnments of all &olours have ta"en the wron re ulatory approa&h to the taxi industry. This is parti&ularly the &ase iven that taxis are private 5usinesses and do not attra&t the su5sidies that other transport providers operatin in the pu5li& se&tor re&eive. Over a very lon time the re ulatory framewor" has 5e&ome distorted. It has prote&ted the interests of esta5lished industry players while 5e&omin punitive and ineffe&tual in mana in &ustomer servi&e. It is not an effe&tive stru&ture for proper &onsumer prote&tion+ surety for investors and wor"for&e or 5usiness innovation and rowth. The results have undou5tedly impeded the development of the industry and strained relationships 5etween the Re ulator and the operators. The essential aim of this In?uiry is to identify impediments to the development of a thrivin + hi h ?uality+ servi&e fo&ussed taxi industry in 1ew )outh 2ales. This Interim Report &anvasses some strate ies for &onsideration 5y ,overnment and 5y industry parti&ipants+ whi&h may provide a 5lueprint for future. There is a stron desire and an a&tive &ommitment on the part of drivers+ networ"s+ owners and operators in the industry to wor" to ether to improve the availa5ility+ relia5ility and ?uality of taxi servi&es. In order for this to happen+ a new approa&h to re ulation is re?uired+ one that is 5ased on the ,overnment settin a&&epta5le a&&ess and performan&e standards and the industry then 5ein allowed to et on with the <o5. This approa&h is 5ased on a different style of &olla5oration 5etween industry and ,overnment.

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The experien&e of re ulation+ and improvin servi&e in other <urisdi&tions has 5een examined 5y the In?uiry and we 5elieve that there are models &urrently in operation elsewhere that are worthy of appli&ation in a 1ew )outh 2ales &ontext. The existin arran ements have evolved in an ad ho& way and althou h the In?uiry has presented a somewhat harsh pi&ture of the &urrent limitations+ it has done so only to ma"e the point that the &urrent approa&hes are outdated and must 5e restru&tured. The &urrent re ulatory framewor" must &han e to refle&t more self( determination for the industry. Industry must pay reater attention to esta5lishin + monitorin and a&hievin minimum &ustomer servi&e standards. The overnment must step 5a&" from operational issues and fo&us on 5asi& re ulatory hurdles li"e safety+ trainin and servi&e 5en&hmar"in . A &o(re ulatory approa&h means some previous de&isions su&h as the ad ho& issue and variation of li&en&es will need to 5e addressed. A &o(re ulatory framewor" will also re?uire further wor" to identify "ey areas of &han e. This will in&lude not restri&tin new opportunities for &ompetition on the delivery of industry servi&es in&ludin dispat&h. It also in&ludes not restri&tin innovative servi&es in&ludin @trun"A or private networ"s+ provided they operate within any performan&e and a&&ess standards a reed with the ,overnment. 3is&ussion+ development and implementation of these initiatives will 5e the first part of industry and overnment 5uildin a new relationship. This must involve drivers and will re?uire the Binistry to reform its poli&y and &onsultation a&tivities. All se&tors of the industry will have to 5e in&luded in this pro&ess for the Binistry to have real &redi5ility in its new role. It is time to move forward In &onsiderin the 5est way to fa&ilitate the ne&essary &han e+ the In?uiry proposes that an independent Tas" !or&e 5e esta5lished. The Tas" !or&e will provide the impetus for a new poli&y dire&tion to 5e esta5lished and for solutions to issues relatin to trainin + driver retention and the operation of networ"s and dispat&h servi&es to 5e developed in a &olla5orative and impartial way. The purpose of the Interim Report is to su est some options for future reform and to propose that permanent improvement in the operation of the taxi industry in new )outh 2ales is really only a&hieva5le within a &o(re ulatory framewor" in whi&h the ,overnment monitors performan&e rather than supervises or dire&ts 5usiness operations.

It provides a platform for further &onsultation and options development and the strate ies it proposes will 5e further resear&hed and tested over the &omin months. )u5se?uently+ the options set out in the Interim Report will 5e further developed with le islative and other solutions &onsolidated in the !inal Report. In the next phase of the In?uiry+ an Issues %aper will 5e prepared for &ir&ulation amon st all sta"eholders. !urther &onsultations will ta"e pla&e 5efore the preparation of a final report 5y the end of the year.

!xe"utive Summary
The In?uiry has re&eived over one hundred and sixty su5missions and has underta"en many interviews. !rom this input+ a num5er of issues have emer ed from many sta"eholders a&ross the industry8 There is concern about the capacity of the Ministry to deliver on policy and manage positive directions for the taxi industry under the current regulatory regime Customer demand is creating new services but the regulation is not keeping pace, nor has the Ministry demonstrated the capacity to develop policy to respond to obvious needs The no destinations trial will not improve taxi services to the public It will not lead to performance standards improvements in the industry in the long term rivers are increasingly disenfranchised and leaving the industry at an alarming rate, thus compromising the ability to deliver services The industry needs leadership, transparency and participative decision! making if it is to move forward and create an ongoing culture of customer service, innovation and improvement"

The In?uiry 5elieves the future role of ,overnment+ throu h the Binistry for Transport+ is to wor" with the Industry to esta5lish and evaluate the a&hievement of minimum performan&e standards. 2hile the Binistry has a role to play in fa&ilitatin improvements in the industry+ it should not 5e fo&ussed on imposin onerous and detailed &onditions on how the standards are met+ as these are 5usiness de&isions for industry parti&ipants. Therefore+ the Binistry>s "ey role is to wor" in partnership with the Industry to esta5lish effe&tive monitorin of the minimum standards set and to ensure that all industry parti&ipants are wor"in to ether to meet them. !or its part+ the Industry+ throu h the various 1etwor"s+ should develop its own poli&ies+ pro&edures and 5usiness strate ies to suit their own o5<e&tives &onsistent with the on oin a&hievement of the set minimum standards. Industry needs to ta"e a primary role in ensurin standards a&ross the entire industry are met. minimum performan&e

# "o-re$ulatory approa"%& between 'overnment and Industry& is t%e optimum result

There are divisions that &urrently exist 5etween the ,overnment re ulator+ the industry pea" 5ody and the various owner+ driver+ lessee and other interest roups within the industry. This is &ertainly not a new phenomenon. As one taxi networ" noted in its su5mission8 #$nfortunately lack of communication between the Ministry and the Industry has resulted in a breakdown culminating in this In%uiry# There are a num5er of &omplex and lon (outstandin issues+ whi&h have &ontri5uted to this unprodu&tive relationship 5etween the Binistry of Transport and the Industry at lar e. )ome examples of these issues are as follows8 There are no formal network performance standards in place" In &''(, the former epartment of Transport established Interim standards but despite several iterations and revisions to the regulation, these )which have been widely criticised as being irrelevant and impractical* have never been formally adopted" Conversely, the +egulations enacted in ,--& are predominantly focused on drivers and operators and are directed towards punitive measures rather than providing a positive customer service focus"

There are per&eptions within the various Taxi 1etwor"s that the Re ulator tends to 5e&ome too involved in issues that should 5e left to the Industry to mana e. 3ire&tions 5y the Re ulator to attempt to restri&t the operation of trun" networ"s and impose a twelve(month trial of a @1o 3estinationsA poli&y in the networ"s> radio 5oo"in servi&es are two re&ent examples. There has 5een media and industry spe&ulation that one of the primary motivators for the 1o destinations trial was the desire of some networ"s in )ydney to eliminate the &ompetitive threat posed 5y trun" radio networ"s+ who are esta5lishin themselves as providers of alternative hi h ?uality servi&e for lu&rative &orporate and elite &lients. This approa&h to re ulation+ in respe&t of the trun" radio issues+ 5e s the ?uestion * why would the overnment want to prohi5it the operation of a servi&e that appears to 5e thrivin in response to &ustomer demand and dire&t the networ"s in the operation of their day to day 5usiness. !urther+ one mi ht as" whether 5annin the &ommuni&ation devi&es is oin to have any real effe&t and how does tellin the networ"s how to run a 5oo"in servi&e improve &ustomer servi&e standards when no su&h standards are mandated. !rom the ,overnment>s perspe&tive+ the real dan er of the &urrent operation of trun" servi&es would appear to 5e the fa&t that they operate outside of the 7

re ulatory framewor" and therefore are not su5<e&t to safety and reportin standards+ in the same way that the ma<or networ"s are. This is not only a potential safety ris"+ 5ut also &reates a &ost distortion in the mar"et pla&e+ in that they are a5le to run what is a parallel 5usiness to the ma<or networ"s without havin to 5ear any of the additional asso&iated &osts. At the most 5asi& level+ a re ulation whi&h &entres on re ulatin the use of radios in a world where third eneration mo5ile phones are 5ein superseded is already redundant. In respe&t of the 1o 3estinations trial+ this in?uiry has re&ommended the immediate &essation of the trial and proposes a suite of a&tions to implement servi&e standards+ revise the re ulatory provision re ardin private or =Trun"> networ"s and introdu&e premium servi&es. ;eyond the operation of the trial+ the in?uiry has fo&ussed on a num5er of other "ey issues that are of a &on&ern for the industry. At present+ there are serious and systemi& pro5lems &urrently 5ein en&ountered in the re&ruitment and retention of taxi drivers. This is an area of si nifi&ant &on&ern throu hout the whole industry that must 5e addressed ur ently. 2hilst it is a&"nowled ed that in a period of low unemployment+ diffi&ulties &an 5e expe&ted in re&ruitin drivers to the taxi industry+ the &urrent situation is unsustaina5le with an in&reasin num5er of taxis layin idle+ parti&ularly durin the wee" as ownerCoperators and 5ailors &annot attra&t or retain drivers. There are a num5er of identifia5le fa&tors &ontri5utin shortfall in&ludin 8 The high cost and time involved in undertaking training" The uni%ue re%uirement for taxi drivers to be registered for ./T purposes" The very poor financial returns for the long hours involved" The re%uirement for the driver to accept the total revenue risk under the current I+C01ailor01ailee arrangements" The almost complete lack of access to any reasonable employee leave entitlements" The absence of any career path and0or opportunity for drivers to aspire to some form of promotion or recognition within the industry" The cessation of the former taxi driver seniority system, which enabled drivers with extended and satisfactory service to %ualify under certain conditions for the issue of a taxi licence plate" towards the driver

The in?uiry has put forward a num5er of options that will en&oura e the development of a taxi(drivin vo&ation+ to "eep &ommitted ?uality drivers in the industry for lon er. In&reasin the num5ers of drivers will not matter unless the whole of the industry is a5le to wor" to ether towards the development of a &ulture of servi&e delivery. This will not happen with top down di&tums from networ"s or even the Re ulator. -nless all se&tors of the industry &an play a more a&tive role in de&ision ma"in on &ore servi&e delivery issues su&h as safety standards and performan&e measures+ nothin will &han e and &ustomers will &ontinue to see" alternative transport options. %arti&ipative de&ision ma"in reform. is an essential prere?uisite to innovation and

3rivers and ownerCdrivers need reater representation and room needs to 5e made for reater &ompetition within servi&e delivery in "ey areas of the industry. The in?uiry has su ested that driver representation 5e in&luded in the mem5ership of the pea" &onsultative 5ody+ the Taxi Advisory Committee and re&o nition of driver asso&iations for other &onsultation pro&esses. The in?uiry has also identified a ran e of issues that will re?uire further analysis and &onsultation+ &on&ernin the stru&ture and finan&ial via5ility of the industry+ as well as entry &onditions and trainin . Our views on possi5ilities for the future are in&luded in the followin &hapters. It has 5e&ome &lear durin this preliminary wor" that in order to drive reform in the industry over the next two years poli&y and re ulatory dire&tions should 5e esta5lished throu h the operation of an independent industry tas" for&e+ wor"in &losely with industry+ throu h TAC and other &onsultative forums as re?uired. In the last three months+ the in?uiry team has sou ht to un&over and review issues that have 5een restri&tin the rowth and servi&e ?uality of the industry for more then a de&ade. (e believe t%ere is a way forward& but t%ere is a lon$ way to $o

)ptions for Reform to t%e Taxi Industry

1. Examine the role of taxi companies, co-operatives and networks and their impact on customer service standards.
Core Issues2 $sta5lish an Industry Reform Tas" !or&e to lead &han e over the next two years. Re ulation versus de(re ulation for the Taxi Industry. A &o(re ulatory approa&h is the preferred option for 1)2.

3ptions for reform2 An independent Industry Reform Tas" !or&e should 5e esta5lished to fa&ilitate re ulatory reform and 5usiness innovation in the Industry alon the lines set out 5elow. The Industry Reform Tas" !or&e should 5e mandated to esta5lish appropriate relationships with all industry parti&ipants and drive re ulatory+ poli&y and pro&edural reform in the taxi industry+ with the aim of institutin a re ulatory and administrative framewor" that supports improved &ustomer servi&e. The Industry Reform Tas" !or&e should operate for two years and durin its life+ TAC would serve as the prin&ipal industry advisory 5ody+ reportin to the Chair of the Tas" !or&e. Revenues &urrently &olle&ted from the Operator Devy should 5e used to fund pro<e&ts and a&tivities identified 5y the Tas" !or&e. The Tas" !or&e should develop options for developin an industry vo&ation+ 5ased on improved trainin and testin arran ements. The re ulatory framewor" for the taxi industry in 1ew )outh 2ales should 5e &onfirmed as a &o(re ulatory one+ 5etween the Binistry of Transport and the Industry+ with an emphasis on minimum performan&e standards as the primary measure of &omplian&e. Appropriate resour&es should 5e identified to ensure monitorin + ro5ust analysis and pu5li& reportin &an ta"e pla&e. Commensurate with the a5ove+ the re ulation should 5e reviewed to ensure that it supports the intent and effe&t of the minimum performan&e standards and &onfirms a &o(re ulatory framewor" for industry parti&ipation and operation. The Binister should &onsider as"in I%ART for assistan&e in identifyin what data re?uirements would 5e ne&essary to in&lude in the performan&e standards to ensure that it will 5e possi5le in the future to develop an a&&urate and impartial industry &ost and revenue model.

2. Review the cost structure of network arrangements and their impact on customer service levels and industry competitiveness.
Core Issues2 The finan&ial profile of the industry8 what is the &ost and revenue model. Outstandin mar"et. issues &on&ernin li&ense issues and their effe&t on the

Are there ways to streamline li&ense issue and ease entry into the mar"et.

3ptions for reform2 I%ART should 5e formally re?uested to <oin with the proposed Industry Reform Tas"for&e to underta"e a &omprehensive review of the &ost and revenue &omponents of the Taxi !are Bodel in&ludin a spe&ifi& analysis of &urrent radioCdispat&h servi&e &osts. The finan&ial impli&ations involved in the issue+ sale+ transfer and valuation of 1exus %lates should 5e further reviewed. An analysis should 5e underta"en of &urrent insuran&e &osts in liaison with the taxi and insuran&e industries with the o5<e&tive of redu&in premiums+ if possi5le. The issue of 1exus %lates should 5e referred to an independent 5ody for review of the pro5ity of the issue+ variation and transfer of the li&en&es. Re&ommendations should 5e developed re ardin the &ontinuation of the paired li&en&e s&heme and any operatin &onditions that should 5e reviewed in relation to affe&ted 2AT and 1exus Di&en&es. Options for a streamlined li&ensin system should 5e developed usin standardised li&ensin &onditions. A new system should 5e ready for implementation 5y /1 3e&em5er '004. ;usiness rules for evaluatin any proposed variation to &onditions on&e a li&en&e is issued should 5e developed and implemented+ to ensure that any &han es to li&en&es are only made if they are in the pu5li& interest+ and that any &han es are &onsistent within the li&ensin framewor".

3. Explore options for alternative network structures that could provide etter customer service. !his would include analysis of the current unauthorised trunk services.
Core Issues2 2hat is the optimum approa&h to mana in trun" networ"s in order to ensure &ustomer preferen&e is met and a level playin field is maintained.

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3ptions for reform2 De islative provisions re ardin the prohi5ition on private 5oo"in servi&es Eusually referred to as trun" networ"sF should 5e revised ur ently. All 5oo"in servi&es have to operate in a level playin field+ with a reed performan&e+ reportin and safety standards adhered to 5y all. Chan es should 5e made with the primary o5<e&tive of 5etter definin the fun&tions of a networ" and &learly separatin it from a taxi dispat&h servi&eG mandatin the re istration of all dispat&h servi&es and imposin reportin and performan&e standards on their operation. 2hile mandatory &onne&tion to a networ" should 5e maintained+ the le islative framewor" should allow for &ompetition in relation to dispat&h servi&es and ne otiation on the fee stru&ture imposed 5y networ"s. $ffe&tive &omplian&e pro&edures should 5e developed and applied It is a5solutely essential that there 5e no offloadin of taxi servi&es into hire &ars or to other servi&e providers. An a5solute prohi5ition with strin ent penalties for non(&omplian&e is to 5e imposed as a li&ense and a&&reditation &ondition+ effe&tive immediately. -ntil new provisions are drafted+ a moratorium on a&tion a ainst Trun" 1etwor"s should remain in for&e and the &urrent re ulations prohi5itin the use of &ertain &ommuni&ation devises should 5e withdrawn.

". Review the practice of networks referring ookings to other networks #$offloads%&.
Core Issues2 Customer )ervi&e improvement and mana in offloads. 3evelop options for universal offloads within the industry to improve waitin times.

3ptions for reform2 $nsure that the re ulation does not unreasona5ly restri&t the implementation of premium servi&es and allows for inter(networ" taxi offloads. In draftin any &han es+ full &onsultation with the industry should ta"e pla&e.

'. (onsider the introduction of a premium service within the taxi industry.
Core Issues2 Customer )ervi&e improvement8 provide &ompetitive premium servi&es.

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Customer )ervi&e improvement8 &ontrol offloads out of the industry 5y immediately introdu&in new authority and a&&reditation &onditions.

3ptions for reform2 The Taxi Industry should 5e en&oura ed to introdu&e &ompetitive premium servi&es+ with offloads to 5e mana ed within the taxi industry. The 1etwor"s should demonstrate a &apa&ity to operate these servi&es while still providin ade?uate support for the operation of eneral servi&es. 1one of these servi&es should operate at the expense of providin eneral taxi servi&es and performan&e standards for 5oth servi&es should 5e &olle&ted and monitored separately. 1etwor"s may 5e su5<e&t to penalty if it appears that eneral servi&es have de&lined. A varia5le 5oo"in fee should 5e esta5lished to allow for premium servi&es to &har e a hi her fee for a 5etter ?uality+ more personalised servi&e. A maximum 5oo"in fee for premium servi&es should 5e determined as part of the next round of I%ART fare determinations.

). Examine the impact of proposed service improvements, including the no-destinations trial, on current customer service levels.
Core Issues2 1o destinations trial8 an inappropriate poli&y that should 5e terminated.

3ptions for reform2 The @1o destinationsA trials in )ydney and on the Central Coast should 5e terminated immediately.

*. Review network waiting times.

ooking procedures to shorten customer

Core Issues2 - %rimarily a 5usiness de&ision for networ"sG however+ re ulation will need to 5e flexi5le enou h to allow innovations 3ptions for reform2 The Industry Reform Tas" !or&e should &onsult with sta"eholders+ in&ludin driver representatives+ to a ree on performan&e measures and indi&ators.

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+. Review driver training on network ooking procedures.

Core Issues2 Other 3river issues of reater si nifi&an&e were identified 5y the In?uiry+ in&ludin Trainin + )eniority+ )afety+ $ntitlements and Representation.

3ptions for reform2 Options for ensurin that drivers are a5le to a&&ess their entitlements should 5e &onsidered+ in&ludin penalties for operators who attempt to withhold entitlements. Options for the esta5lishment of a seniority s&heme should 5e developed. All taxi drivers should 5e &ompelled to wear seat5elts. A Taxi 3river )afety Committee should 5e re(esta5lished !ati ue mana ement provisions should 5e investi ated+ with a view to introdu&in mandatory provisions into the Re ulation as soon as possi5le. Devels of driver parti&ipation and representation in poli&y ma"in forums should 5e enhan&ed.

,. -etermine ways to improve the industry focus on customer service.

Core Issues8 A reater fo&us on en&oura in innovation and enhan&in servi&e delivery rather than imposin &onstraints on 5usiness

3ptions for reform2 The Binistry should wor" with the Taxi Industry on poli&y development and loo" at options for si nifi&ant improvements.

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(onsider any other significant customer service issues

Core Issues2 The availa5ility of 2heel&hair A&&essi5le Taxis E2AT)F. C;3 taxi issues+ in&ludin + )upply and Traffi& mana ement. 3evelop an improved industry operated vehi&le inspe&tion re ime as part of the &o(re ulatory approa&h.

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Options for reform8 The 2heel Chair A&&essi5le Taxi Tas"for&e should further investi ate the followin issues8 AlternativeCadditional fundin sour&es to provide further finan&ial in&entives to 2AT ownerCdrivers 1ew mar"et areas for 2AT vehi&les The level of 5oo"in fee for 2ATs and whether a lift fee is appropriate to finan&ially in&entivise drivers to ta"e 2AT 5oo"in sG 2hether a Taxi 1etwor" should have a pres&ri5ed per&enta e of 2ATs operatin within its networ" Ee 10HF 2hether the Binistry of Transport should provide lo&alised 2AT tar ets for metropolitan and &ountry re ions a&ross 1)2G The appli&a5ility of a universally desi ned &a5 whi&h would 5e for 5oth wheel&hair and a5le 5odied passen ersG and The Binistry of Transport should wor" &losely with the Taxi Coun&il and Taxi 1etwor"s to ensure waitin times for 2ATs are &ompara5le to those of re ular taxi servi&es.

The In?uiry re&ommends a forum 5e &onvened to identify the pro5lems asso&iated with supplyin an a&&epta5le taxi servi&e within the C;3 areas of )ydney and 1orth )ydney and provide a&&epta5le solutions. Bore spe&ifi&ally to address the issues of set down and pi&" up areas+ the lo&ation and num5er of taxi ran"s 5ut also to in&lude other identified issues. The Binistry liaises with the 1)2 Taxi Coun&il in formulatin a strate y and vehi&le inspe&tion re ime where the Binistry ta"es a less =hands on> role allowin a shift of responsi5ility from the Binistry to the Industry. Binistry &omplian&e staff should assume a reater monitorin role as re&ommended 5y I%ART. In re ard to taxi presentation+ this should involve ATI) audits with removal of authorisation for ATI) non(&omplian&e.

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)verview of t%e Current *ey Industry Relations%ips

Taxi Industry Structure 1
!axi /etworks or (ooperatives
%ydney 11 'e(cast e 1 )o ongong 1 *ountry 1 per area

%ea" Representative ;odies

'%) Taxi *ounci "'et(orks$ '%) Taxi 1ndustry Association "o(ners and operators on industria #atters$ *ountry Taxi 2perators Association "country operators$

,etwor-s.Co)ps providin$ boo-in$ servi"es

%ydney 'e(cast e )o ongong *ountry & 1 1 1 per area

Re ulators
Ministry of Transport via Passenger Transport Act and associated Regu ations Roads and Traffic Aut!ority "so#e ve!ic e standards$

A&&redited Operators
(Networks may also be operators) (Operators may also be drivers)

Taxi Di&en&es on issue

%ydney )o ongong 'e(cast e *ountry &,50 10& 15. .-1

%tate(ide

5+,&

Authorised drivers
(Drivers may also be operators) %ydney 1--.& 'e(cast e /+)o ongong 5&/ *ountry 0-/5

3river Representative ;odies

Transport )orkers 3nion Taxi Action 4roup '%) *a55ie )e fare Association

*ey +arti"ipants
1

!i ures provided 5y Binistry of Transport as at 9 Au '004

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/i"en"e )wners Ealso &ommonly "nown as =plate> ownersF

Di&en&e owners may 5e simply investors who lease out their plates and have no other interest in the taxi industry. They may own one or a num5er of li&en&es. Di&en&e holders enerally shoulder few responsi5ilities. 6owever+ many li&en&e holders operate and drive their own taxis Eit is estimated approximately 45H of li&en&e holders drive their own taxis on a re ular 5asisF. Taxi ,etwor-s

Taxi networ"s were ori inally esta5lished as &ooperatives of taxi owners. Althou h the ma<ority remain &ooperatives+ the two ma<or )ydney networ"s and the Central Coast networ" are now stru&tured as &ompanies. Taxi networ"s offer a num5er of servi&es to taxi operators and drivers+ however+ the prime purpose of a networ" is to re&eive 5oo"in s from intendin passen ers and dispat&h those 5oo"in s to taxis atta&hed to the networ". 1etwor"s are authorised 5y the Binistry of Transport. All taxis must 5e atta&hed to an authorised taxi networ" Eif networ" availa5leF. Taxi )perators

Operators are responsi5le for the day to day mana ement and &ontrol of taxis. They must have &ompleted the approved operator trainin &ourse+ hold the appropriate a&&reditation issued 5y the Binistry of Transport and &omply with the re?uired standards. They are responsi5le for ensurin all drivers hold the re?uired authorisation and are also responsi5le for vehi&le and driver presentation. Taxi Operators pay a monthly fee to a networ" to ena5le drivers of their taxis a&&ess to radio 5oo"in s. Taxi 0rivers

All taxi drivers must &omplete an approved trainin &ourse and hold an Authority to drive a taxi issued 5y the Binistry of Transport. In )ydney+ drivers enerally wor" under the =5aileeC5ailor> system payin a set fee to hire the taxi for a =shift> E enerally 1' hoursF. 3rivers earnin s are made up of the total fares ta"en less the =pay(in>+ &ost of fuel+ and in some &ases+ &leanin of the taxi. In areas other than )ydney+ drivers enerally wor" on a &ommission 5asis where a per&enta e of the total fares is "ept 5y the driver with the rest oin to the operator who pays for the &ar wash and fuel. +ea- Representative 1odies

17

The 1)2 Taxi Coun&il is the pea" industry 5ody representin 79 taxi networ"s+ in&ludin 5: in &ountry 1)2. The Coun&il liaises with various a en&ies on 5ehalf of the industry and addresses su&h matters as ran" lo&ations+ fare in&reases+ driver and operator trainin and re ulatory issues. The Country Taxi Operators Asso&iation addresses similar issues on 5ehalf of &ountry operators. The 1)2 Taxi Industry Asso&iation is the re istered -nion under the 1)2 Industrial Relations A&t for li&en&e owners and operators. The Transport 2or"ers -nion is the only re&o nised union representin taxi drivers on industrial matters+ however+ union mem5ership levels are very low Earound 1H of authorised driversF. 3espite this+ there are a num5er of driver roups a&ross the metropolitan area+ in&ludin the Ca55ie 2elfare Asso&iation and the Taxi A&tion ,roup. These are 5e&omin in&reasin ly a&tive. There are several driver we5sites with well( patronised &hat rooms atta&hed. In the past few months+ a num5er of the smaller roups have sou ht to amal amate into a more formal driver>s asso&iation. 1o formal announ&ement on the name and stru&ture of the new or anisation has yet 5een made. In addition to the eneral driver>s roups+ asso&iations of drivers who are interested in supportin the operation of trun" networ"s are also emer in + &ommensurate with the rowth in this se&tor of the taxi mar"et. Re$ulators

The taxi industry in 1)2 is re ulated 5y the Binistry of Transport pursuant to the %assen er Transport A&t 1990 and the Transport ETaxi(&a5 )ervi&esF Re ulation '001. The A&t and Re ulations determine the roles of the various industry parti&ipants and set out the &onditions and standards appli&a5le to ea&h roup+ namely+ the networ"s+ operators and drivers. To a mu&h smaller de ree+ the Roads and Traffi& Authority determines standards re ardin vehi&le &ondition.

1:

# Re$ulatory Framewor- for t%e Taxi Industry

2hilst some o5servers see re ulation and &ompetition in opposin &orners of the arena+ the reality in a mixed e&onomy is usually a 5lend of 5oth. In Australia+ for example+ imperfe&t mar"ets are often re ulated 5y the ACCC to ensure that &ompetitive out&omes are a&hieved or at least emulated. In the taxi industry+ a re ulatory model is one where they are stri&t limits on entry into the mar"et and &onditions pla&ed on operation+ as well as a mandated fare stru&ture. A &ompletely dere ulated model pla&es no restri&tions on entry and allows passen er demand to determine all servi&e delivery standards+ in&ludin the fare to 5e &har ed. Althou h de5ate has ra ed over the last de&ade with re ard to the effe&t of re ulation on &ompetition+ the in&reasin trend towards dere ulation has had mixed results. The experien&e in 1ew Iealand+ the -nited )tates and the -nited Kin dom has 5een that the removal of entry restri&tions initially in&reased the siJe of the fleet+ however+ this meant that there were more taxis operatin in areas already well servi&ed and servi&es in other areas de&lined. It also meant that while some fares went down+ trips outside main traffi& areas de&reased dramati&ally and there was a mu&h hi her rate of failed trips. Three of the six &ities in the -nited )tates that dere ulated mar"et entry and fares have re(re ulated on &onsumer a&&ess and prote&tion rounds Eand in response to pu5li& demandF. Overall+ profita5ility in the industry de&lined and so did &ustomer satisfa&tion. In the -nited Kin dom+ fares in&reased and there was a serious de&line in servi&e standards. After 9 years+ ?uality 5ased 5arriers to the ran" and hail mar"ets were introdu&ed to en&oura e self(enfor&ement of servi&e standards+ whi&h have made it unprofita5le for anyone 5ut owner(drivers to wor" this part of the mar"et. The telephone mar"et has 5e&ome a separate mar"et se&tor+ with different parti&ipants and different li&ensin &onditions. ;oth nationally and internationally+ the su&&ess of taxi dere ulation appears to 5e dependent on a num5er of mar"et fa&tors. There is eviden&e to su est that the &ost of re ulation is 5orne 5y the &onsumer and may also have a dampenin effe&t on servi&e improvement. 1#

6owever+ this needs to 5e wei hed a ainst the eviden&e that many of those who have the reatest need to use the servi&e+ namely the a ed+ the disa5led or those that live away from dire&t traffi& routes re&eive a poorer+ more expensive servi&e in a dere ulated mar"et * or no servi&e at all. , I45+T has observed that2 In a deregulated market, conditions in the rank and hail markets make it difficult for passengers to select higher %uality or cheaper taxis" This situation allows poor %uality or expensive taxis to remain in business" Maintaining minimum standards and some control over fares benefits passengers directly and benefits /ydney6s tourist industry and business community indirectly" / As was noted in the Independent Competition and Re ulatory Commission>s EICRCF review of the ACT Taxi and 6ire Car Industry+ many <urisdi&tions that dere ulated durin the 1990s+ have now moved to re(re ulate all or part of the operation of these servi&es. In its review of the Ki&torian Industry+ the Ki&torian ,overnment noted that8 5mong the alternatives investigated by the .overnment was industry deregulation" This option was discounted after examining other systems around the world where wholesale deregulation already exists and discovering that this approach, for the most part, failed" 7 All <urisdi&tions that de(re ulated have re(introdu&ed &ontrols over a&&ess to airports and servi&e standards. Bost <urisdi&tions have also maintained or re( introdu&ed pri&in framewor"s. 2hile none of the overseas models examined have mandated maximum fares+ 1ew Iealand has imposed &onditions on the settin and advertisin of fares+ whi&h allow &ustomers to ma"e a &hoi&e a5out the servi&e 5efore they enter the vehi&le. 3ere ulation of the taxi and hire &ar industry in the 1orthern Territory resulted in si nifi&ant &ompensation &osts for the ,overnment. 1ew )outh 2ales> own experien&e where &ompensation to hire &ar operators was paid in the form of free taxi plates+ &reated further distortions in the mar"et. The additional li&enses issued have driven down the lease value+ materially affe&ted the in&ome of many ownerCoperators and ultimately lowered

'

!or a more detailed dis&ussion of the overseas experien&e+ see the !inal Report of the Review of the future dire&tion of the ACT taxi and hire &ar industry and pri&e dire&tion for taxi servi&es ELune '00'F+ prepared 5y the Independent Competition and Re ulatory Commission EICRCF+ pp19('4.
/ 4

I%ART Review of the Taxi and 6ire Car Industries * Interim Report 1999. Taxi and 6ire Car Reform %a&"a e in Ki&toria * p/ The &ase a ainst dere ulation.

19

the potential &urrent sale pri&e of taxi plates. !or many ownerCoperators+ their taxi plate is their superannuation. Any attempts to fully dere ulate the 1)2 industry is &ertain to result in stron demands for si nifi&ant &ompensation. 1ew )outh 2ales and other <urisdi&tions have pro ressively removed many of the 5arriers to entry into the industry+ while ensurin 5asi& standards of safety and &ustomer servi&e and the fares to 5e &har ed are re ulated. This is essential to ensure e?uity of a&&ess for the travellin pu5li&. There are no &aps on the num5ers of li&en&es in the )ydney Betropolitan Transport 3istri&t+ whi&h are availa5le for pur&hase from the mar"et or the Binistry. 2hile taxis do not neatly fit the &ommon understandin of a pu5li& transport servi&e+ in that they are not pu5li&ly owned+ operated or dire&tly su5sidised+ taxi servi&es in parti&ular play an essential part in the matrix of passen er transport servi&es availa5le to the pu5li&. They provide an ad<un&t servi&e to primary pu5li& transport servi&es+ supplementin trains and 5uses to provide @door to doorA transport options for those that re?uire them. They are a time and &ost(effe&tive option for travel 5etween destinations not &ommonly servi&ed 5y primary pu5li& transport and for those passen ers that re?uire a more &ustomised servi&e than would 5e availa5le usin mass transport options. As pu5li&(use vehi&les+ they redu&e the need for private use vehi&les and therefore have an important role to play in redu&in the safety and environmental ris"s asso&iated with ever(in&reasin private &ar use. )ome re ulation of the industry is essential to ensure the ?uality and availa5ility of taxis. The mar"et is &urrently a poor re ulator of servi&e ?uality in this respe&t. $xperien&e overseas and in other <urisdi&tions around Australia+ espe&ially in %erth+ has proven that the most effe&tive method of re ulation is in fa&t &o( re ulation. %arti&ipants self re ulate in relation to most aspe&ts of servi&e delivery and are therefore en&oura ed to &ompete to provide 5etter servi&e with reater effi&ien&y+ while the ,overnment esta5lishes and monitors 2 1asic safety and vehicle re%uirements Maximum taxi fares publicly reported performance outcomes 8ntry standards, such as training and licensing re%uirements Industry participation conditions, which clearly specify the responsibilities of all participants in the industry in relation to the provision of customer service" '0

The last of these+ the settin of standards for servi&e+ is an essential element of a proper+ wor"a5le framewor"+ to ensure that &ustomers are a5le to &onsistently re&eive a hi h level of servi&e. )atisfied &ustomers are &riti&al to the maintenan&e of a via5le industry. -ltimately+ in&reasin &onsumer &onfiden&e is the only way to sustain the industry. The I45+T +eview of the Taxi and 9ire Car Industries : Interim +eport &''' made a num5er of re&ommendations &on&ernin the removal of entry restri&tions into the industry in 1ew )outh 2ales+ whi&h have 5een implemented with limited su&&ess. Chan es to the %assen er Transport A&t in '000 and to the Taxi and 6ire Car Re ulation in '001 have paved the way for a &o(re ulatory model to exist in 1ew )outh 2ales. 6owever+ this has not pro ressed. 3espite I%ART>s re&ommendations+ 1etwor" standards have not 5een implemented and no reportin framewor" or resour&in exists to support their implementation. In the meantime+ the existin re ulatory provisions impose a distorted emphasis on dire&tly &ontrollin driver 5ehaviour and operator &onditions+ whi&h restri&t any real self(re ulation. They indire&tly support punitive &ontra&tual arran ements whi&h may &ontri5ute to &osts and de&rease the via5ility of independent operators and are lar ely silent re ardin the responsi5ilities of the taxi networ"s to improve &ustomer servi&e. 2hile restri&tions on livery and uniforms are a&tively pursued+ real &ustomer servi&e issues are lar ely i nored. 2ithout &ustomer servi&e standards and a proper system of monitorin and reportin + the &urrent re ulatory framewor" &annot fun&tion effe&tively. The ma<ority of su5missions re&eived were frustrated at the la&" of a&tion on implementin and enfor&in performan&e standards * even those su5missions from networ"s and operators to whom the standards would most dire&tly apply. The amount of time spent by the Ministry on moving to review interim /tandards over a ten!year period leaves the Industry aghast" Com5ined Communi&ation 1etwor" The Ministry of Transport imposed service standards on Taxi ;etworks" 5 draft set of standards was released, by the Ministry during March ,--, with the intention of replacing the interim standards, which have been in place for more than &, years" The Taxi Council believes that service standards only need to be defined where competitive forces do not provide efficient market regards to service providers" <here they are set, they should parallel service standards provided in other deregulated markets# 1)2 Taxi Coun&il '1

The &''( Interim ;etwork /tandards, which were never enforced in any event, were to be replaced by /ervice /tandards for Taxi Cab ;etworks under the ,--- 5mendments to the 4T5" If they exist at all they languish in draft form" Taxi A&tion ,roup The Tribunal recommends that current network performance standards be regarded as benchmarks and that the epartment of Transport prepare a public report every six months comparing the performance of each /ydney Taxi Company and co!operative against these benchmarks" The Tribunal favours a regulatory framework which re%uires taxi companies and co!operatives to be directly responsible for driver and vehicle standards, while oT monitors and enforces service standards maintained by the companies or co!operatives" I%ART E1999 ReportF I45+T chairman Thomas 4arry examined ways of improving service and made recommendations to that end" 9e specifically mentioned benchmark reporting standards for all taxi coops and companies to produce a = monthly report detailing performance between networks" id this happen> Lohn 2at"ins E3riverF ;ot until these ;etwork and 3perator /tandards are in place will any real progress be ensured" It must surely be the first task of this In%uiry to have these standards determined" Bi&hael Lools E3riverF The Ministry gave the ;/< 3mbudsman an undertaking in late ,--, to introduce a set of uniform by!laws for networks by the first %uarter of ,--(, nothing has been done to date" The uniform network by!laws should compliment Ministry service standards" There needs to be a %uantum shift in the role of networks" ;etworks would still be re%uired to comply with the Ministry of Transport service standards, and to achieve those standards the networks should be competing for both the operator6s business as well as the travelling public6s custom" )ue )immonds EOperatorF The In?uiry 5elieves that the role of overnment+ throu h the Binistry for Transport and in partnership with the industry+ is to set and monitor minimum performan&e standards in the industry. 2hile the ,overnment has a poli&y role to play in fa&ilitatin servi&e ?uality improvements in the industry+ it should not 5e fo&ussed on imposin &onditions on how the standards are met+ as that is a 5usiness de&ision for industry parti&ipants su5<e&t to the &onsistent a&hievement of the set minimum standards.

''

The Industry throu h the various 1etwor"s should develop their own poli&ies+ pro&edures and 5usiness strate ies to suit their parti&ular o5<e&tives. The ,overnment>s "ey role is to esta5lish+ with industry+ a monitorin re ime to ensure that the minimum standards are met and to ensure that all industry parti&ipants are wor"in to ether. The draft interim standards were first developed in 199/ and were su5<e&t to several revisions 5ut have not yet 5een formally implemented. At the most 5asi& level+ not all responsi5ilities+ tar ets and methods of measurement are &learly defined and &ould therefore 5e open to su5<e&tive interpretation and reportin * underminin the very &on&ept of a performan&e measure or 5en&hmar". !or example+ servi&e safety levels are enerally des&ri5ed+ while measurement and responsi5ilities are enerally only implied as a networ" responsi5ility+ and not expli&itly stated. Boreover+ the standards Eli"e the re ulationF are defined in punitive terms+ referrin predominantly to what penalties will apply when the ill(defined standards are 5rea&hed+ rather than referrin to tar ets or oals to 5e a&hieved. !or two "ey &ustomer servi&e indi&ators+ phone 5oo"in time and passen er waitin time+ tar ets are set without differentiatin 5etween pea" and off pea" demand+ pre(5oo"ed and ur ent <o5s. The measures to 5e used are not spe&ifi&ally stated and althou h the networ" is nominated as havin responsi5ility+ no pro&ess map is spe&ified+ indi&atin a reportin format or a performan&e 5en&hmar" a ainst whi&h a&hievement &an 5e &ompared. 1or is the information to 5e &olle&ted presented or analysed in a useful &ontext * the num5er of drivers lo ed on to the systemCin Jone will impa&t on the servi&e times a&hieva5le+ as will the mean of trip len th for pi&"(ups. The speed at whi&h offloads &an 5e passed throu h+ espe&ially at pea" hour is also relevant information that &ontri5utes to a pi&ture of servi&e delivery+ rather than the &olle&tion of amorphous statisti&s. 3o&umentation provided 5y the Binistry su ests that wor" on finalisin the standards has not pro&eeded 5e&ause of the a5sen&e of data lin"s to the ma<or networ"s 5ein esta5lished. 6owever+ the performan&e measures to support the standards have never 5een properly defined. It is hard to see what differen&e havin data lin"s would have made as there is no indi&ation of what data should 5e &olle&ted or of what analysis would ta"e pla&e on&e any data was provided to the Binistry.

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Settin$ standards 2 *ey +rin"iples

,iven the flaws in the &urrent standards appear to 5e si nifi&ant+ the In?uiry feels it may 5e timely to o 5a&" to 5asi&s and revise the approa&h+ 5ased on a &learer understandin of what performan&e standards are for and what they should try to a&hieve. Customer /ervice /tandards should be based on the needs and expectations of customers" 4ursuing the standards should generate continuous improvement" /tandards should be measurable and achievable and based on accurate information" /tandards should add to the knowledge base of and about the industry" +ewards and sanctions can be applied based on adherence to the standards" /tandards form the backbone of a robust regulatory framework and a vibrant industry"

Indeed the Industry>s %ea" ;ody and a num5er of 1etwor"s support these prin&iples with the 1)2 Taxi Coun&il statin inter alia8 #;etworks should be held accountable for performance but should be given the freedom to compete with a framework of standards that avoids ambiguity and loss of true accountability" 1)2 Taxi Coun&il +egulated service standards are of the utmost importance" The best ways to accomplish and exceed those standards is to leave the networks to design and appraise the procedural structures that are necessary to attain service excellence" /uch a process leads the way forward and provides the stimulus for real competition between the networks" Bany 2arrin ah Ca5s Often standards are developed su&h that applyin them andCor reportin on them 5e&omes an onerous and autonomous tas"G a&tivity for a&tivity>s sa"e. The fo&us is then on avoidan&e+ 5e&ause they are not addin value to 5usiness pro&esses or &ontri5utin to ?uality out&omes. Ar5itrary standards are diffi&ult to monitor and the measurements involved ultimately &ontri5ute nothin to any "nowled e of industry trends or &ustomer servi&e and are therefore una5le to &ontri5ute to drivin improvement or &han e. Relia5le information+ derived from relevant measures+ re ularly reported and promptly analysed+ is the primary means of identifyin issues and pro5lems in servi&e delivery. The most useful standards are those that &an 5e identified in terms of the servi&e level tar ets set for ea&h standard. '4

The measurement of the servi&e level a&hieved in a defined time period and where there are &lear a&&ounta5ilities * who performs the tas"+ who measures the tas"+ who reports the tas" and who evaluates the out&omes. )tandards developed usin this framewor" will produ&e a &lear set of 5en&hmar"s that &an 5e applied fairly a&ross the industry and will easily show8 The performance of one network or service sector relative to others Trends in the industry over time /easonal variations? and Industry achievements and areas for service improvement"

A&hievements &an 5e a&"nowled ed pu5li&ly+ whi&h will assist in developin pu5li& trust and in&reasin &ustomer demand. 2hen standards are not met+ the ,overnment &an provide reasona5le support and uidan&e and if ne&essary a&t to penalise industry parti&ipants who do not &omply. ,overnment reportin of improvin performan&e will serve as a pu5li& endorsement of those networ"s+ operators and drivers who deliver a ood servi&e. 3ow does t%is "ompare wit% t%e "urrent framewor-4 The &urrent re ulation sets out spe&ifi& re?uirements with re ard to authorisation and a&&reditation to 5e a driver+ operator or taxi networ". It &overs livery+ driver uniforms+ meter spe&ifi&ations+ and eneral provisions for hirin and trainin . ;eyond a eneral re?uirement to provide a &opy of networ" rules+ it imposes no meanin ful reportin framewor". The thrust of the re ulation is to pres&ri5e driver &ondu&t+ with little or no provision for oversi ht of or 5y operators or networ"s+ ex&ept in relation to vehi&le e?uipment standards. 1o eneral servi&e standards are set and there is no provision for monitorin &omplian&e with the spe&ifi& standards that are set out+ su&h as $TAs for wheel&hair 5oo"in s. There is a stron pu5li& information imperative for this "ind of reportin + as pu5lished data will 5e&ome a primary motivator for enhan&ed performan&e. This was re&o nised in a num5er of the su5missions re&eived8 ;C3// supports public reporting for taxi performance against established performance standards" @urther, given the anecdotal evidence available of the poor performance of <5T services, there is a strong case for enhanced public reporting of the performance of <5Ts" Coun&il of )o&ial )ervi&e of 1)2 A reportin system to mana e &omplaints does already exist+ pointin the way to how the industry and the Binistry &an wor" &olla5oratively to improve wor" pro&esses and ensure a&&ounta5ility to the pu5li& in relation to "ey performan&e indi&ators.

'5

In '00'+ the Industry entered into a voluntary a reement with the Binistry to use a &entralised &omplaints mana ement system "nown as the C!B) * Customer !eed5a&" Bana ement )ystem. Owned and 5uilt 5y the Binistry+ the system has the &apa&ity to &omprehensive reportin 5ased on feed5a&" from &ustomers. enerate

The system has reatly improved &omplaints mana ement 5y all the networ"s+ who use the system to mana e investi ations and ensure timely &ustomer response. $x&ept where a matter is of a very serious nature+ or involves repeat offen&es+ Ewhere the re ulator or the poli&e need to 5e involvedF the system allows networ"s to ta"e responsi5ility for investi ations and response to &ustomers and to implement a ran e of dis&iplinary measures a ainst drivers and operators+ as appropriate. The Binistry is a5le to monitor &omplaint mana ement at arm>s len th+ intervene only when ne&essary and esta5lish trends in servi&e and intera&tion on the 5asis of true and uniformly presented data. 6owever+ this reportin &apa&ity is not &urrently utilised entirely+ nor are ade?uate resour&es allo&ated 5y the Binistry to ensure follow(up of these reports with networ"s and operators. )pe&ifi& &omplaints a5out driver 5ehaviour are mana ed with &omplian&e audit pro&esses" The 1)2 Taxi Coun&il su5mitted8 #Clearly the benefits of a centralised system where information is shared between the Ministry and the ;etworks are not being realised" /tructural changes within the Ministry have to date meant that the desired levels of management and ongoing development of the C@M/ have not been achieved" The full potential benefits of the system have not yet been realised# 1)2 Taxi Coun&il It would appear that there is very little ex&ept the ?uality of the standards themselves to prevent immediate implementation of a servi&e standards approa&h. Indeed+ the le islative me&hanism 5y whi&h standards &an 5e 5rou ht into effe&t already exists. The %assen er Transport A&t allows for the implementation of networ" standards+ whi&h may serve to address the 5alan&e 5etween the spe&ifi&ity of the re ulation with re ard to driver and operator entry and &ondu&t and the relative silen&e on the eneral &ondu&t of networ"s.

'7

#re t%ere examples of t%e servi"e standards approa"% in existen"e4 In Au ust '001+ the 2estern Australian ,overnment implemented servi&e standards for the taxi industry+ 5ased on an extensive yearlon developmental pro&ess &ondu&ted 5y The ;oshe ,roupCColmar ;runton 2A and 5ased on re&ommendations from the ACCC. These servi&e standards+ whi&h have 5een in operation in %erth for two years now+ have 5een widely &ir&ulated within the Taxi Industry Australia(wide+ and are enerally held to 5e a wor"a5le framewor" for ensurin &ontinuous improvement in &ustomer servi&e. Their operation is &urrently 5ein evaluated+ as part of the 2estern Australian ,overnment>s on oin industry monitorin pro&ess. In summary+ the 2A model follows the standard(settin prin&iples outlined a5ove+ and reports on all of the standards set out+ usin a three tier approa&h * reen+ am5er and red+ to report levels of a&hievement a ainst industry a reed K%Is in ea&h area. The 5ul" of the data is o5tained from networ" reports. Raywood+ the primary supplier of &ommuni&ation e?uipment within the taxi industry+ advise that all systems on the Australian mar"et are &apa5le of produ&in reports re ardin 5oo"in data+ pi&"(up+ off(load and failed pi&"(up rates. 3ata &on&ernin ran"s+ driver 5ehaviour and &ustomer &onta&t+ are measured via annual survey and via re ular monitorin of &ustomer &omplaints. 1etwor"s also provide &ustomer &omplaint handlin data. Batters pertainin to 3river performan&e and 3river safety Ein&ludin data on &osts of operationF are &olle&ted via re ular reports of finan&ial and other data from operators and drivers. These are measured 5y the overnment a ainst a @5alan&ed s&ore&ardA+ usin A;) private motorin index data as a 5en&hmar". This parti&ular servi&e standard is still under development as responsi5ility is split a&ross a num5er of industry parti&ipants and there is a stron in&entive in some ?uarters to hide or distort &osts and shift ris". 1onetheless+ it demonstrates a possi5le model that may resolve one of the on oin dilemmas when I%ART underta"es it annual fare determination+ namely the development of an a&&urate &ost model whi&h will ena5le a more e?uita5le apportionin of &osts 5etween drivers and operators. In Mueensland+ options are under &onsideration to provide for the implementation of similar servi&e standards via a servi&e &ontra&t 5etween the ,overnment and 1etwor"s.

':

2hether the me&hanism used is a &ontra&t or a re ulation+ the essential elements are that8 /tandards are clearly defined There is regular, public reporting on achievements 4oor performance is monitored and addressed Industry and government are clear about their areas of responsibility and work collaboratively to ensure customer needs are met and that the industry is able to thrive" ;etworks assume accountability0responsibility for achieving standards and determine their business decisions to achieve standards without .overnment intervention"

)ptions for Reform 0 co-regulatory approach to the operation of the !axi 1ndustry in /23 e confirmed. -rafting of and consultation on performance standards take place, with a view to ga4ettal and implementation of a service standard framework within ) months of the final report. 5urther research e done on the applica ility of the 3estern 0ustralian 2ervice 2tandards model and the 6ueensland service contract model to /ew 2outh 3ales, particularly metropolitan 2ydney. 0ppropriate resources e identified to ensure monitoring, ro ust analysis and pu lic reporting can take place. (ommensurate with the a ove, the regulation e reviewed to ensure that it supports the intent and effect of the performance standards and confirms a co-regulatory framework for industry participation and operation. !he 7inister consider asking 180R! for assistance in identifying what data re9uirements would e necessary to include in the performance standards to ensure that it will e possi le in the future to develop an accurate and impartial industry cost and revenue model.

'#

!ntry and +arti"ipation in a Co-Re$ulatory FrameworThere are two other "ey aspe&ts to the effe&tive operation of a &o(re ulatory framewor" that re?uire further development * how to mana e entry into the industry and what terms and &onditions E5eyond the appli&ation of safety and performan&e standardsF should 5e 5ased on parti&ipation. 6istori&ally in 1)2+ in order to respond to spe&ifi& needs at different times+ new li&en&e types and &onditions have 5een &reated and then sometimes varied with no &lear or &ontinuous poli&y rationale. Offi&ially there are eleven types of li&en&es and an almost infinite num5er of &ondition variations imposed upon them. )implifyin the system would appear to 5e a lon (overdue measure+ whi&h &an only improve the operation of the industry. The &urrent re ulatory framewor" allows for li&en&es to 5e issued with as few or as many &onditions as the 3ire&tor ,eneral of the Binistry of Transport sees fit. The in&entive to ma"e these as simple and strai ht forward as possi5le appears to have 5een missed in favour of imposin many &onditions+ some of whi&h are ostensi5ly intended to ensure that appropriate levels of &ustomer servi&e are maintained. 6owever+ enfor&in these &onditions has always 5een diffi&ult. Boreover+ at various times durin the last 10 years+ re?uests to vary li&en&e &onditions su&h as hours of operation have 5een ranted on an ad ho& 5asis+ with and sometimes without a fee 5ein &har ed. %oli&y dire&tion in relation to li&ensin does not appear to have 5een &onsistent. In the past various types of restri&ted li&en&es have 5een issued to address the issue of supply durin pea" demand periods. @%ea" availa5ilityA or li&enses with time limits on their operation is a &on&ept used around the world to meet demand without &reatin a lut of taxis in the mar"et pla&e durin times when limited servi&es are re?uired. 6owever+ over time many of these li&enses have had the restri&tion of their operatin hours removed+ thus in&reasin the eneral pool of taxis 5ut not ensurin that the maximum num5er of availa5le taxis is deployed durin pea" times. The seemin ly ar5itrary &onversion of these li&en&es has in some instan&es &reated a windfall ain for the owners of the plates+ often without any fee or transfer tax 5ein &olle&ted 5y the ,overnment. This ad ho& approa&h may have lead to some instan&es of poor pro&ess that may re?uire redress and should 5e avoided in future.

'9

,exus +lates
In examinin the li&ensin re ime in operation and assessin its impa&t in the mar"et+ the in?uiry was advised of the existen&e of a further su5set of li&enses+ issued 5etween 19#' and 1990+ and su5se?uently transferred or extended. These li&en&es were ori inally &reated as spe&ial temporary ni ht li&en&es to operate within spe&ifi&ally desi nated areas as a transition measure followin the introdu&tion of random 5reath testin . Dater they were made permanent restri&ted li&en&es+ issued to networ"s to offset part of the &osts of operatin 2heel&hair A&&essi5le Taxis E2ATF. The idea was that the li&en&es would 5e paired with a 2AT plate as a means of &reatin an in&entive to 5uild up the 2AT fleet. They were su5se?uently up raded to fully unrestri&ted li&en&es 5y the networ"s+ desi nated as @series 9000A li&en&es or @nexusA li&en&es. 6owever over time the &on&ept of the nexus plate as lin"ed to or paired with a 2AT has 5een lost. Althou h the 1exus and the 2AT paired li&en&e were not transfera5le+ the Binistry has apparently allowed individual transfers and further it appears that li&en&e &onditions for some of the li&en&es were &han ed. Althou h the li&en&es were due to expire in 199/+ it appears that at least 94 of the li&en&es are still in use 5y all of the networ"s and that the in&ome from these plates is no lon er lin"ed to supportin a 2AT vehi&le. !or example+ althou h the nexus plates were supposed to provide a revenue stream to support the operation of 2ATs the in?uiry notes that there were a num5er of su5missions re ardin the la&" of availa5le 2ATs in 1ew&astle. This is despite 1ew&astle Taxi CoOp havin 5 nexus plates in their fleet. The paired 2ATs &ould not 5e identified as 5ein in operation. The re&ords relatin to de&ision(ma"in on the nexus plates appears to 5e very poor and there is no &lear indi&ation if the &hain of approval to vary any li&en&e &onditions or extend the term of li&en&es or to allow them to 5e transferred. It is &lear that all these thin s have happened+ and that the networ"s appear to have re&eived a &olle&tive asset windfall ain of around N'9 million. The Binistry estimates that the plates have &olle&tively enerated around N1 million per annum in revenue for the networ"s. 1o annual li&en&e fees or transfer taxes appear to have ever 5een paid for these li&en&es. There appears to 5e a need for an examination of the pro5ity of the issue and variations in the &onditions pertainin to the nexus plates. The la&" of a&&urate re&ords within the Binistry su ests that there may also 5e a need for a /0

&omplete audit of these li&en&es re&ommendations to 5e made on8

5y

an

independent

5ody+

with

The probity of transfers and variations to the license conditions" The continuation of the scheme" 5ny compensation or back fees and taxes owing" <hat conditions need to be imposed if the continued operation of the licences is deemed appropriate"

)ptions !he issue of /exus 8lates e referred to an independent ody for review of the pro ity of the issue, variation and transfer of the licences since 1,+2 !hat recommendations e developed regarding the continuation of the paired licence scheme and any operating conditions that should e reviewed in relation to affected 30! and /exus :icences.

# 5odel for t%e future 2 Streamlined /i"ensin$ #rran$ements

2ithout any &han es to the existin re ulatory framewor"+ it is possi5le to implement a more streamlined system of li&ensin + 5ased on standardised &onditions. Options to redu&e the num5er of li&en&e &ate ories and to ensure &onditions are &onsistently applied within li&en&e types should 5e explored. %erhaps of e?ual importan&e is the development of 5usiness rules relatin to the issue and variation of any li&en&e+ to ensure that any &han es that are re?uested are evaluated a ainst set &riteria. The In?uiry has dis&ussed with the Binistry the need to have a moratorium on any &urrent li&en&e and renewals while this development wor" ta"es pla&e. It understands that no li&en&es will 5e issued or renewed+ ex&ept on a temporary 5asis+ until a &omprehensive li&ensin plan+ alon the lines outlined a5ove has 5een developed. )u&h a plan will not ta"e lon to develop+ so a 5rief moratorium should have no impa&t on li&en&e values+ nor should it &reate any un&ertainty in the industry. Indeed+ the development of streamlined li&ensin and effe&tive 5usiness rules+ as indi&ated earlier+ &an do nothin 5ut enhan&e industry performan&e. ;ptions ;ptions for a streamlined licensing system e developed using standardised licensing conditions. 0 new system should e ready for implementation y 31 -ecem er 2..". 1n addition, usiness rules for evaluating any proposed variation to conditions once a licence is issued should e developed and /1

implemented, to ensure that any changes to licences are only made if they are in the pu lic interest, and that any changes are consistent within the licensing framework.

T%e )peration of ,etwor-s and 0ispat"% Systems

)ydney is unusual in Australia and indeed in the world+ in that a si nifi&antly lar er portion of taxi trips are enerated 5y ran" and hail 5usiness rather than 5y prior 5oo"in s . Oet the re ulatory framewor" is eared around &ompulsory &onne&tion to a networ" whi&h is also a 5oo"in servi&e. ;e&ause of the mandatory &onne&tion provision+ drivers and operators are o5li ed to pay hi h radio &onne&tion fees+ for a servi&e that many do not fully utilise. It is a &ondition of authorisationCa&&reditation that drivers and operators 5e &onne&ted and the networ"s have instituted &ontra&tual arran ements 5ased on this re ulatory authority whi&h insist that the &ondition of proof of &onne&tion is the payment of a non(ne otia5le+ all(in fee. Bandatory &onne&tion to a networ" is one me&hanism 5y whi&h the ,overnment may ensure that 5asi& safety re?uirements for vehi&le operation are met. It is the taxi networ"s that are responsi5le for providin that only vehi&les that meet the safety standards are deployed in the a&tive fleet. 5aintainin$ t%is "ompulsion is essential to ensure t%e enfor"eability of t%e safety provisions& and any ot%er standards to be imposed The in?uiry has re&eived a lar e num5er of su5missions and representations at various meetin s ?ueryin the imposition of the onerous fee for 1etwor" &onne&tion. Bany drivers and operators have indi&ated that radio dispat&hed 5oo"in s represents a very small part of their 5usinessG there is a stron view that they do not re&eive value for money for the servi&e. In&reasin ly+ the networ" operated dispat&h servi&es are su5<e&t to &ompetition from private dispat&h servi&es+ usually &alled trun" networ"s. These private servi&es are usually operated throu h semi formal asso&iations of authorised drivers and operate on an honour system to mana e private 5oo"in s from re ular &lients. These &lients are often &orporate travellers who prefer to use the same driverEsF and are prepared to pay for a personalised servi&e that is usually of a hi her ?uality * an experien&ed driver with a stron &ustomer servi&e fo&us+ who operates a &leaner+ hi her standard vehi&le. These servi&es have operated for more than 10 years with the &omplete "nowled e of 5oth the industry and the Re ulator. 3emand for them &ontinues to row * a demand that is driven entirely 5y &ustomers+ who do not feel that they are re&eivin a relia5le ?uality servi&e from the existin networ" 5oo"in servi&es. These servi&es are ille al under the &urrent re ulation+ 5e&ause none of the dispat&h servi&es are authorised networ"s and in the &urrent framewor" only an authorised networ" may operate a dispat&h servi&e. 3espite this they /'

&ontinue to flourish+ not only 5e&ause of &ustomer demand 5ut also 5e&ause the &urrent re ulatory provisions do not appear to 5e enfor&ea5le. 1ew provisions re&ently proposed+ ostensi5ly to stren then the prohi5ition a ainst the operation of the dispat&h servi&es a ain fo&us * as do the existin provisions * on prohi5itin the use of a parti&ular &ommuni&ations method+ namely a trun" radio+ rather than addressin the operation of the servi&e itself. As indi&ated in the $xe&utive )ummary+ this approa&h to re ulation 5e s the ?uestion * why would the overnment want to prohi5it the operation of a servi&e that appears to 5e thrivin in response to &ustomer demand and is 5annin the ma&hinery oin to have any real effe&t. The potential dan er of the &urrent operation of these servi&es would appear to 5e the fa&t that they operate outside of the re ulatory framewor" and therefore are not su5<e&t to safety and reportin standards+ in the same way that the ma<or networ"s are. This is not only a potential safety ris"+ 5ut also &reates a &ost distortion in the mar"et pla&e+ as they are a5le to run what is a parallel 5usiness to the ma<or networ"s without havin to 5ear any of the additional asso&iated &osts. The Binistry has &ommented that8 It is the strong position of the Ministry that the main focus of addressing trunk groups is in its ability as a regulator to effectively regulate the taxi industry in terms of service reliability and safety" Binistry of Transport All states in Australia ex&ept Tasmania and the 1orthern Territory maintain mandatory &onne&tion to a networ"+ for the reasons outlined a5oveG however+ there is a &learer delineation 5etween the operation of a networ" and the operation of a taxi dispat&h servi&e. This distin&tion does not really exist in the 1ew )outh 2ales le islation. In 2estern Australia+ the re ulation des&ri5es a 5oo"in servi&e and pres&ri5es reportin and performan&e standards a&&ordin ly. Rather than a fo&us on the &ommuni&ation method+ the re ulatory framewor" more appropriately fo&uses on the fun&tion of a networ". If we were to &onsider su&h an approa&h in 1ew )outh 2ales+ it would have the advanta e of ensurin that trun" and other networ"s would 5e o5li ed to &ompete fairly whatever their &ommuni&ation method Eradio+ telephone or &omputerF and 5e o5li ed to meet the same standards for safety and a&&ounta5ility. It would also &reate 5usiness opportunities for existin networ"s to ne otiate servi&eC administration pa&"a es for a suita5le fee for driver roups who may operate private 5oo"in servi&es. It would allow the development of preferred driver s&hemes in allian&e with the ma<or radio(5ased networ"s and fa&ilitate the development of 5roader offload systems and premium servi&es.

//

These would ensure a lar er pool of taxis and an emphasis on &ompetition on the 5asis of servi&e ?uality+ whi&h &an only improve &ustomer servi&e overall. If we use t%e re$ulation as an enablin$ tool rat%er t%an an instrument of pro%ibition& "ustomer demand will %ave a better "%an"e of determinin$ w%i"% servi"es are available in t%e mar-et The &urrent definitions &ould 5e amended to define a taxi dispat&h servi&e as a distin&t fun&tion separate from the operation of a networ"+ and impose reportin re?uirements on dispat&h servi&es. The opportunity would then exist to ensure that all existin private 5oo"in servi&es &ould 5e su5<e&t to reportin and performan&e standards. Competition for 5oo"in Cdispat&h servi&es would 5e allowed+ provided spe&ifi& offload provisions were o5served. A su ested definition of a Taxi 3ispat&h )ervi&e mi ht 5e8

5 service which provides a booking and dispatch service by whatever means 5nd0or controls and coordinates administrative and other services to taxis for the purposes of arranging a person who re%uests a taxi to be provided with one" %rovision &ould then 5e made within the re ulation alon the followin lines. All taxi dispat&h servi&es8 must be registered with the Ministry? must provide reporting against customer service and other performance standards? may operate in affiliation with a maAor network as part of a preferred driver or premium service? must negotiate suitable service fees for the delivery of administrative services including regulatory re%uirements and radio connection )if re%uired*? and may not use or offload to vehicles other than authorised and accredited taxis and taxi drivers"

Any driver or operator of a taxi or a dispat&h servi&e parti&ipatin in an unre istered servi&e or offloadin or usin an unauthorisedC not a&&redited vehi&le would fa&e suspension or &an&ellation of their li&en&e and a&&reditation. An approa&h of this sort would address 4 identified needs8 It will ensure that customers will continue to be able to access a service that they obviously want"

/4

It will re%uire for any dispatch service, irrespective of its broadcast0communication mechanism to be subAect to necessary regulatory provision" It will encourage competition on a more level playing field in relation to dispatch services, including in relation to the radio fees charged to operators who may prefer to restructure their network affiliation to maintain compulsory services relating to safety and administration, but not operate using the radio booking service" It will create the opportunity for the networks themselves to develop business alliances with drivers and operators and establish premium or preferred driver services"

5aintainin$ "ompulsory networ- "onne"tion but fosterin$ "ompetition in t%e area of dispat"%ed servi"es would appear to "reate options for t%e industry to develop innovative approa"%es to servi"e& and to drive te"%nolo$i"al en%an"ement in relation to delivery me"%anisms ;ptions :egislative provisions regarding the prohi ition on private ooking services #usually referred to as trunk networks& e revised with the primary o <ective of etter defining the functions of a network and clearly separating it from a taxi dispatch service= mandating the registration of all dispatch services and imposing reporting and performance standards on their operation. 3hile 7andatory connection to a network should remain, the legislative framework should allow for competition in relation to dispatch services and negotiation on the fees structure imposed y networks. 0ny re-evaluation ensures that the regulation does not unreasona ly restrict the implementation of premium services and inter-network taxi offloads. 1n drafting any changes, full consultation with the industry should take place.

# +remium Fee for a +remium Servi"e4

One of the terms of referen&e set down for this In?uiry was to invite su5missions and &onsult with the pu5li& and the taxi industry a5out premium taxi servi&es+ and in parti&ular+ the implementation of an additional 5oo"in fee for premium taxi servi&es. One of the o5<e&tions raised a5out private dispat&h servi&es in the propensity for these servi&es to operate outside the mandated fare stru&ture. A num5er of

/5

su5missions &ommented that some premium taxis are &har in re ulated fees+ =load> the fareB or do not en a e the meter=.

hi her than

2hile re isterin the dispat&h servi&es as dis&ussed a5ove will mean that standard fares &an 5e enfor&ed+ the ?uestion remains * should we. ,iven that a premium servi&e &osts more to run+ and if &ustomers are willin to pay more for a personalised servi&e+ why shouldn>t they 5e a5le to do so. The ma<ority of industry parti&ipants> support the introdu&tion of a two(tier fee approa&h that re&o nises a hi her 5oo"in fee for premium taxis 5ased on &ertain &onditions.C These &onditions &an enerally 5e summarised as in&ludin 8 that the premium service is provided by way of reduced waiting times, call backs and standard of vehicle0driver D? a regulated charge is conditional on a standard service time for the Aob plus an experienced driver'? the fee should only apply when the re%uest is made through an authorised taxi network that operates a distinct 4remium service fleet &-? and customers are aware of any extra hiring charge and fleet choices available with full disclosure at the time the customer makes a booking with the ;etwork 11.

In support of an additional premium &har e+ the Taxi Coun&il noted the followin 5enefits in its su5mission to this In?uiry8 The introduction of a regulated luxury surcharge would allow a fairer allocation of work to all drivers, and help offset the extra costs of providing a much more expensive vehicle" It will improve the %uality of service for the luxury passengers by increasing the likelihood that a luxury taxi will accept their booking" More importantly in terms of service goals, it will create an incentive for operators and drivers to upgrade the fleet" 1)2 Taxi Coun&il A further advanta e of the two(tier fee stru&ture &ould 5e in&reased earnin s for drivers throu h the appli&ation of the fee. This initiative &ould provide an
5 7

Banly(2arrin ah Ca5s su5mission 3 Bus rave su5mission : 1ote that the Coun&il of )o&ial )ervi&es 1)2 opposes a premium rate on the 5asis that it will &reate a =dual &lass> taxi industry+ su estin instead that resour&es 5e applied to improve the ?uality of existin servi&es # B Lools of the Taxi A&tion ,roup su5mission 9 Banly2arrin ah Ca5s su5mission 10 %remier Ca5s su5mission 11 CC1 su5mission

/7

in&entive for drivers to remain in the industry and provide an enti&ement to those <oinin the industry. A premium servi&e may 5e an ad<un&t to the re(introdu&tion of a seniority re ister s&heme dis&ussed in a later &hapter. Career advan&ement for drivers within the industry via a @promotionA to a premium servi&e and the opportunity to 5uild a &lient 5ase as a preferred driver may 5e&ome an important in&entive to drivers. ;oth Ki&toria and Mueensland &urrently apply a telephone 5oo"in fee for premium servi&es+ where Mueensland &har es an unre ulated amount of N11+ with a re ulated 5oo"in fee of N11 applyin in Ki&toria. 6owever+ an additional fee does not apply to premium taxis that are hailed or hired from a ran". Customers around Australia and around the world have demonstrated that they are more than willin to pay more where a hi her level of servi&e is uaranteed. This In?uiry supports a review of the 5oo"in fees+ in&ludin an examination of options for a two(tier or varia5le 5oo"in fee. ;ptions !he !axi 1ndustry, e encouraged to introduce competitive premium services, with offloads to e managed within the taxi industry. !he /etworks demonstrate a capacity to operate these services while, still providing ade9uate support for the operation of general services. /one of these services should operate at the expense of providing general taxi services and performance standards for oth services will e collected and monitored separately. /etworks may e su <ect to penalty if it appears that general services have declined. 0 varia le ooking fee e esta lished, to allow for premium services to charge a higher fee for a etter 9uality, more personalised service. 0 maximum ooking fee for premium services e determined as part of the next round of 180R! fare determinations #noting that this was a previous recommendation from 180R!, not acted upon y the 7inistry&.

/:

T%e State of t%e Industry 2 T%rivin$& Survivin$ or 'oin$ 6nder4

Taxi drivers 2 an endan$ered spe"ies4 The taxi industry in ;ew /outh <ales and particularly in /ydney struggles with poor public image" +ecent national and state surveys indicate an impression of poor service standards, with taxis seen as dirty, drivers as rude, ignorant and lacking in 8nglish skills and overall service as unreliable" &, 5dding to this public perception of lacklustre performance )perhaps contributing to it>* is widespread discontent amongst drivers, many of whom are now leaving the industry, creating even more pressure on service through an increasing driver shortage" 5ll of the submissions received from drivers spoke passionately about the need for reforms to ensure2 .reater reward for effort .uaranteed entitlements 5 realistic and achievable career path"

The Ministry of Transport figures indicates that there are approximately ,,,B-authorised taxi drivers in ;ew /outh <ales" &C,CB, taxi drivers are located in /ydney, BD' in ;ewcastle, B,& in <ollongong and (,=7& in other locations" &( Taxi drivers are a diverse group of people" They are from many ethnic, religious and social backgrounds, for many 8nglish is their second language" Many have overseas %ualifications not recognised in 5ustralia and taxi driving is seen as a Ebridging6 occupation" 5lthough some are long term career drivers who own their own taxi licence, many drivers are unskilled and taxi driving is a EAob of last resort6" There are also a large number of casual drivers who drive taxis to supplement other incomes" This belies the obvious levels of personal commitment to providing good customer service and advancing the taxi industry that was clearly in evidence throughout all the contact the in%uiry team had with drivers" Many drivers leave the industry within the first year of obtaining their authority to drive taxis" 5necdotal evidence suggests lack of earnings is one of the maAor factors, caused by inexperience"
1'

C!B) reports on &ustomer &omplaints indi&ate that these are the most &ommon &omplaint types Eex&ludin fare disputesF 1/ fi ures supplied 5y Binistry of Transport

/#

<hile the taxi industry has always experienced pressure on driver numbers in periods of high employment, participation rates in the industry appear to be experiencing significant decline at present, due in no small part to the increasing sense of disenfranchisement that drivers reportedly feel . 5t least in part, it seems that this sense of disenfranchisement is enforced by legislation" The compulsion to be connected to a radio network, even though only ,-F of taxi work in /ydney is derived from bookings dispatched from network call centres, means that drivers feel they are vulnerable to exploitation by the networks" This compulsory radio connection network was introduced in &''- as a condition of authorisation0accreditation" The ,--& +egulation confirmed this compulsion for both operators and drivers and specified that the networks could impose conditions via a contract" !irst amon these &onditions was the imposition of a networ" &onne&tion fee. Also of note are provisions in every networ" &ontra&t mandatin the use of Ca5&har e fa&ilities and spe&ifyin insuran&e &overa e. The networ"s &laim a servi&e fee for use of Ca5&har e and re&eive an a ent>s fee for the provision of insuran&e. ;y default+ the re ulation has 5e&ome the means 5y whi&h networ"s are allowed to impose lar e fees and earn extra revenue+ without &ontesta5ility outside of the existin 1etwor" stru&ture+ in relation to their &ontra&ts with no sharin Cdistri5ution of this extra revenue to drivers. On the other hand+ the &ompulsory &onne&tion to a networ" imposes essential responsi5ilities on the networ"s re ardin safety+ vehi&le standards+ and provision of lost property and &ustomer feed5a&" mana ement. It is fair to say however, that over time the division of responsibility has become unbalanced and both cost and risk have been shifted towards the driver and away from networks, investors, owners and operators" The costs associated with the operation of a taxi in ;ew /outh <ales and the radio fees charged by the ;etworks are the subAect of discussion in another section of the Interim +eport" There are two main areas of finan&ial transa&tion 5etween industry parti&ipants * the pay(ins and the networ" &onne&tion &ontra&ts. All of the finan&ial arran ements within the industry 5eyond the ori inal pur&hase or lease of a plate+ vehi&le e?uipment et& &as&ade from these. 1ew )outh 2ales is different to other states in its relian&e on 5ailment &ontra&ts made under %art 7 of the Industrial Relations A&t for drivers and operators in the metropolitan area. )ydney is the only &ity in Australia that &ontinues to have 5ailment arran ements in preferen&e to profit sharin or &ommission arran ements.

/9

%rofit sharin is the preferred pra&ti&e in the non(metropolitan areas and re ional 1ew )outh 2ales. The Taxi Industry EContra&t 3riversF Contra&t 3etermination Award overns a metropolitan taxi driver>s method of in&ome. The Offi&e of Industrial Relations administers this award. 1o determination exists outside the Betropolitan Transport 3istri&t E)ydneyF. The 5ailment &ontra&t ne otiated under the award ives a driver the &hoi&e of two a reements "nown as Bethod 1 and Bethod '. 7ethod 1 gives the driver 7BF of all takings )fares* during the first year and B-F of takings thereafter, plus the associated sick pay, holiday pay and long service leave entitlements based on the chargeable fares during the period of engagement" 7ethod 2 the driver pays the operator a set pay!in ranging from G&,B"&D to G&'-"== depending on time and day of the week" The driver is also entitled to holiday pay, long service leave and sick leave, amongst other things, depending on the fre%uency and duration of the period of engagement" !ew if any+ )ydney drivers wor" on Bethod 1. Operators are loath to employ drivers on this method and many drivers are nervous re ardin Bethod 1 as Eperhaps erroneouslyF they see this system as su5<e&t to hi her taxation. 5lthough drivers should receive certain entitlements, in reality very few drivers receive their legal entitlements" 3nly a handful of taxi operators have been successfully prosecuted for non!compliance with the award" uring consultation with the In%uiry, the Transport <orkers $nion has stated very few operators comply and pay drivers the re%uired entitlements" 5lthough the +egulations state that a taxi operator must have in place an insurance policy that fully indemnifies all drivers, in practice many operators insist that drivers pay the GB-- excess fee when involved in a collision" It appears that few drivers are fully aware of their rights and many are intimidated into foregoing their entitlements" espite the T<$ being the only recognised taxi driver representative in industrial matters, membership is very low )estimated to be less than ,-members or &F of all taxi drivers*" This may be because of the transient workforce and the relatively short period of time many drivers stay in the industry" In the past, the transport regulator has sought to be granted interested party status in the context of negotiating bailment agreements however this has not proven possible" There are serious concerns about whether it is appropriate for the regulator to become involved in employment and contractual matters"

40

It may not be appropriate for the regulator to be directly involved in these negotiations or in monitoring adherence to the agreements once negotiated, as these are employment matters outside the purview of taxi regulation" There does appear to be a need to establish some general principles concerning the determination of the %uantum of the pay!in rates and payment of driver entitlements )which are included in these rates* that are linked to authorisation0accreditation" 3ne option may be to consider setting maximum pay!in rates as part of the fare determination" The need to encourage a better %uality of driver to Aoin the industry is fre%uently touted by networks and by the regulator in ;ew /outh <ales, however, very little is done to encourage, reward or even keep the professional drivers already at work" There is some evidence to suggest that the brunt of cost and risk in the industry is increasingly borne by the driver" They also bear the brunt of customer behaviour and attitudes" <hile the current driver shortage appears to be shifting the balance somewhat for a very few, being a taxi drivers is becoming a less and less attractive occupation" <hen determining fare increases, I45+T takes into account driver entitlements as costs borne by the operator" 9owever, very few drivers receive entitlements" This directly affects the set amounts a driver must pay in to the taxi operator" 5necdotal evidence suggests some operators deliberately restrict shifts or employ casual drivers to avoid paying entitlements" This is a recognised practice by the industry and is mentioned in the ;/< Taxi Council submission to the In%uiry.&7 It has been suggested that in some situations where more than one taxi operator is located in the same taxi base, drivers are rotated in different taxis )technically operated by different operators* to avoid the need to pay entitlements" rivers are often unaware they may be driving for more than the one operator and therefore will never be able to %uantify their leave entitlements" In this regard, many of the submissions to the In%uiry indicate drivers are not receiving their entitlements" Consideration should be given to the most appropriate way to address this issue" I45+T also uses the Enotional wage6 for taxi drivers of G=7,7'= per annum" This e%uates to approximately G&,-- per week or G,7- per day )B!day week* or G,- per hour )&,!hour day*" &B These amounts seem to be at odds with the contract determination which allows G=-=",C per week holiday pay and G&,&"=D per day sick leave"
14 15

)u5mission re&eived from the 1ew )outh 2ales Taxi Coun&il Dtd. I%ART Review of !ares for Taxis in 1)2 in '004 report to the 1)2 Binister for Transport )ervi&es.

41

It is extremely difficult to determine the average earnings of a taxi driver" The In%uiry has been %uoted earnings of less than GB per hour by some drivers" 9owever, examining the submissions received and from conversations with a variety of drivers, earnings of G&-"-- per hour are considered a fair estimated average hourly income" rivers with some years of experience can usually earn more, and conversely some new drivers will earn less" 4erhaps it is time for the industry to consider whether the current financial arrangements are the best way of ensuring the ongoing participation of %ualified drivers" 5ll of the network submissions and that of the ;/< Taxi Council were clear about the increasing cost pressures on the industry" espite this, there is little acknowledgment that whatever fare adAustments are made because of the fixed price pay!in arrangements, it is the driver6s income that declines in greater proportion than that of operators or networks" <ithout the perceived and actual opportunity to maximise their earnings, few drivers will want to stay in the industry" @ew will be able to afford to" 'ST 7 1#S Taxi drivers are re%uired to have a personal 5ustralian 1usiness ;umber )51;* and to be registered for ./T" Taxi rivers are the only small businesses re%uired to register for ./T regardless of their income" The onerous re%uirements of ./T compliance and reporting acts as a strong disincentive for drivers to enter or stay in the industry" The Taxi Council believes the ./T is directly responsible for a reduction in the number of part!time drivers willing to work a few shifts per week"&= The 5asis of this ATO rulin should 5e ?uestioned. Creatin$ a Culture of Continuous Improvement Bany of the su5missions re&eived referred to the need to provide drivers with the opportunity to &reate a &areer path. This would in&lude different options for entry trainin + in&ludin the possi5ility for apprenti&eships and pro5ationary learnin + with part(time study" ;oth networ"s and drivers have re&o nised a need for refresher trainin and also for opportunities to enhan&e &ustomer servi&e s"ills. $ven options su&h as payment to attend tourist information sessions and improve the eneral and lo&al "nowled e of the drivers servi&in tourist &ustomers were su ested as a means of en&oura in drivers to &ontinue to improve their servi&e delivery. Currently there is no re?uirement for drivers to underta"e any refresher trainin on&e they have 5een authorised. A num5er of other <urisdi&tions are movin
17

)u5mission from the 1ew )outh 2ales Taxi Coun&il.

4'

towards a system of &ompulsory retrainin + to ensure their awareness of the re ulatory framewor" and their operatin environment remains &urrent+ as well as to provide an opportunity to update their &ustomer servi&e s"ills. T%e quality of "urrent entry trainin$ Trainin issues were raised in a num5er of su5missions+ whi&h pointed out that the &urrent trainin as delivered 5y private providers produ&ed a poor ?uality out&ome+ often at prohi5itive expense. The &ost of the re?uired trainin to o5tain a taxi driver authority is approximately N1'00. This is made up of8 trainin s&hool fees of around N1000G overnment appli&ation fee of N100G and fees for Adult Bi rant $du&ation )ervi&e EAB$)F $n lish lan ua e test+ medi&al examination and photo raphs.

Althou h some students &an &omplete the re?uired trainin in a5out /(4 wee"s+ enerally the avera e trainee ta"es a5out 5(7 wee"s to &omplete the trainin &ourse. In addition+ on&e authorised+ the new taxi driver must return to &omplete further trainin after 9 months on(road experien&e at a &ost of N'50 5efore the authority is renewed. It appears that the trainin of taxi drivers &ould 5e very mu&h simplified and thus the &osts &ould 5e redu&ed si nifi&antly. ;asi&ally a taxi driver+ in addition to possessin the appropriate driver s"ills and authorisation status+ has to have these ma<or areas of "nowled e8 &" ," (" 7" B" .eographical knowledge? Hnowledge of relevant regulations? Hnowledge of radio e%uipment and procedures? Customer /ervice? and 39I/"

The first two re?uirements &ould 5e made availa5le for self(pa&ed learnin to ena5le an intendin driver to learn at home at hisCher leisure or &onvenien&e. Consideration should 5e iven to who has responsi5ility for the third re?uirement. )hould the employerC5usiness owner have the responsi5ility for trainin persons in the use their e?uipment. Other avenues for trainin Esu&h as TA!$ or any other a&&redited trainerF should 5e examined. These alternative trainers &ould tailor &ourses that meet national standards with spe&ifi& trainin provided 5y the networ"s. The need for taxi networ"s or taxi operators to 5ear the &ost of some+ if not all+ of the trainin &osts should 5e explored.

4/

The &urrent re?uirement for &ompulsory additional trainin after 9 months experien&e Eat a &ost of N'50F should 5e &arefully &onsidered. 3$CA+ a trainin provider in Bel5ourne offers ,overnment funded taxi driver &ourses for N115 per person. One su5mission states8 #the curriculum in place and exorbitant charges that these taxi schools have in place is purely in the best interests of generating revenue for taxi schools and not in the best interest of the drivers or pupils" &C Consideration needs to 5e iven to the &osts involved in the development+ li&ensin and delivery of trainin and whether the &urrent trainin framewor" is really delivery a ?uality+ &ost(effe&tive out&ome. 2hile a late su5mission from the Taxi Coun&il to this In?uiry has raised issues a5out the ?uality of alternative trainin in&ludin the &urrent K$TA; approved trainin modules+ their proposals for &han e &entre around entren&hin their ex&lusive &ontrol over the &urri&ulum and extendin their role further into assessment. It is not &lear that their proposal will lead to redu&ed &osts for drivers and improved out&omes on &ourse delivery and their proposal will re?uire further &areful &onsideration. There would seem to 5e a need for open de5ate a5out whether the industry should set its own trainin re?uirements and &ontrol delivery and assessment me&hanisms and whether the overnment should play any role in &ompellin trainin usin one parti&ular &ourse or another. !or instan&e+ is it appropriate that the 1)2 Taxi Coun&il owns the &opyri ht to the trainin sylla5us and as a &onse?uen&e of their &ourse 5ein pres&ri5ed+ re&eives a fee estimated at 5etween N100 9 N'00 per pupil. Is there room for &ompetition on the sylla5us or on &ourse delivery and what me&hanisms for review and &ourse evaluation exist+ to ensure that trainin will ade?uately refle&t the performan&e standards to 5e introdu&ed. A num5er of su5missions have mentioned that some =on the <o5> trainin usin =<o&"ey> drivers would 5e 5enefi&ial to new drivers. One su5mission states8 8very taxi driver trainee should sit next to an experienced driver for at least five shifts and have experienced drivers sit next to him0her for five shifts" ;ot only would the trainee learn the basics, but they may learn how to make money too" &D If su&h an approa&h was &onsidered a valua5le tool to assist in driver trainin and retention+ the Taxi Coun&il &ould &onsider &ontri5utin to the &osts involved from the monies re&eived from its Trainin Copyri ht revenues+ perhaps throu h esta5lishin a &adet driver pro ram.

1: 1#

su5mission re&eived from Br !lavio !uentes su5mission re&eived from Br Ross 1elson

44

It should 5e emphasised that trainin in safety e?uipment and emer en&y pro&edures should 5e &ontinued and enhan&ed+ with re ular =refresher> trainin made &ompulsory Eprefera5ly with no &har e to driverF. At intervals to 5e determined+ it should 5e mandatory for drivers to demonstrate familiarisation with safety pro&edures. As mentioned a5ove+ the 1)2 Taxi Coun&il owns the &urri&ulum for driver trainin and distri5uted under li&en&e to private trainin s&hools+ whi&h operate as li&ensed trainin providers. 3river testin is underta"en 5y the Binistry of Transport to ensure independen&e of testin results. 3espite fier&e &ompetition 5etween the s&hools in the )ydney area+ the &ost of trainin &urrently serves as a 5arrier to entry into the industry. This alle ed &ompetition is not however refle&ted in the trainin &ourse fee stru&ture with the two E'F lar est s&hools in )ydney &har in identi&al fees. Ane&dotal eviden&e su ests there may 5e some serious mana ement issues &on&ernin the operation of the s&hools and the fees &har ed * and ultimately with the results produ&ed. One &onstant &riti&ism of the industry is the poor level of $n lish demonstrated 5y drivers. 6owever+ an $n lish test is &ompulsory under the %assen er Transport A&t. Currently+ every &andidate for a taxi driver>s authority must sit an $n lish test administered 5y AB$). In some instan&es the provision for &ompulsory testin appears redundant in that even drivers+ who &an demonstrate &ompeten&y in $n lish+ in&ludin s&hoolin in an $n lish(spea"in &ountry+ must su5mit to examination. It seems therefore that we test many people who don>t need testin + and yet fail to provide an ade?uate out&ome with re ard to a &onsistent level of &ompeten&y. $ven if an appli&ant was 5orn and edu&ated in Australia and holds professional ?ualifi&ations+ they are still re?uired to ta"e and pay N#0 for the &ompulsory test. 3rivers must pay for the test and fa&e a waitin period of up to three months if they fail it and must resit the test. In its su5mission on trainin the Taxi Coun&il ma"es some valid o5servations a5out the timin and &ondu&t of the $n lish Testin not &urrently &ontri5utin to a positive out&ome * that is+ providin an a&&urate measure of a potential driver>s a5ility to &ommuni&ate effe&tively with a passen er+ navi ate and follow dire&tions. 3espite these flaws+ it seems that the Binistry may 5e further entren&hin this re ime without measura5le 5enefit to the &ustomer 5ein a uaranteed out&ome. One su5mission from a person who is a ?ualified trainer and holds ?ualifi&ations in lin uisti&s informed the In?uiry8 45

I believe that at a recent meeting )between the Ministry I ;/< 5M8/* it was decided, without consultation with other players, to re%uire any applicant who had previously passed the ET5JI +IK8+ C3MM$;IC5TI3; 5//8//M8;T6 more than ( years ago to resit the 8nglish Test"&' 1o eviden&e has &ome to li ht that indi&ates that resittin the test a&hieves any servi&e improvement o5<e&tiveG moreover+ it does not appear that the Binistry &urrently a&ts with re ard to drivers who do not pass the resit. AB$) earns a fee for these additional tests. As with other issues+ it appears that the re ulation is 5ein used to enshrine indire&t monopoly arran ements+ whi&h do not ne&essarily produ&e a ?uality out&ome for the &ustomer+ the driver or for the industry as a whole. ;ption 1n consultation with all relevant parties, the !ask 5orce develops options for developing an industry vocation, ased on improved training and testing arrangements. ;ptions for ensuring that drivers are a le to access their entitlements are considered, including penalties for operators who attempt to withhold entitlements.

Re"o$nition of performan"e and seniority

%reviously a seniority s&heme existed in the industry+ where the Binistry would rant a taxi plate to drivers who &ould demonstrate 15 years a&tive parti&ipation as a driver. After 10 years+ drivers &ould nominate to 5e on a waitin list for plate issue. The s&heme was readily a5used and withdrawn. 6owever+ the prin&iple of a reward for a&tive and meritorious parti&ipation is a worthy one. ;ased on proof of a&tive and &ontinuous parti&ipation over more than 10 years and demonstrated performan&e of a hi h order+ drivers mi ht 5e offered a li&ense Epossi5ly unrestri&ted+ restri&ted or 2ATF with the opportunity to a&&ess an interest(free loan to pur&hase a vehi&le in the &ase of a 2ATs li&en&e. ;ption ;ptions for the esta lishment of a seniority scheme e developed.

19

Detter from Br A 1i&holas ;.Ad.$d Bana in 3ire&tor the )ydney Taxi )&hool %ty Dtd.

47

0river safety
;y its very nature+ drivin a taxi &an 5e a dan erous o&&upation. Ro55ery and assaults are not unusual. 3rivers who wor" the ni ht shift are parti&ularly vulnera5le to untoward 5ehaviour 5y passen ers. 3rivers &an 5e dire&ted to isolated or ?uiet areas pla&in them in dan erous situations. 3rivers are also su5<e&t to a5use from intoxi&ated passen ers and most drivers at some time experien&e in&idents of fare evasion. In re&ent years+ mandatory re?uirements have reatly assisted driver safety+ in&ludin ,%) tra&"in + se&urity &ameras or safety s&reens+ emer en&y 5oot releases et&. 6owever+ in relation to se&urity &ameras+ few drivers "now the &orre&t pro&edures in re ard to downloadin ima es in the event of an assault or other in&ident. 1or are these pro&edures widely "nown or followed 5y other relevant personnel. A su5mission re&eived from a taxi driver ,- relates how after 5ein assaulted 5y a passen erG he reported the in&ident to the %oli&e who then apprehended and interviewed the persons responsi5le. 6owever+ he was informed that it was ne&essary to view the se&urity &amera ima es 5efore &onsideration would 5e iven to &har in anyone. The taxi driver was su5se?uently ?uoted a &ost of 5etween N''0 and N440 Eat N110 per hourF to have the ima es downloaded 5y the &amera &ompany a ent. The driver was expe&ted to 5ear this &ost personally and &ould not afford the ?uoted fee. 6e ele&ted not to pro&eed with the matter. It would appear that &har es made for downloads at wee"ends are mu&h dearer than the &har es made on wee"days Eapproximately EN#0 to N100F. An edu&ation pro ram is re?uired re ardin se&urity &amera ima e downloads. The &osts asso&iated with the ima e downloads appear to 5e unreasona5le. )hould there 5e any &har e at all to the driver if a enuine emer en&y or threatenin situation has o&&urred. In some situations+ taxi drivers may deli5erately <eopardise their own safety. )u&h is the &ase with seat 5elts. Taxi drivers in 1)2 are exempt from wearin seat 5elts. Bany ta"e the option of not wearin seat5eltsP The <ustifi&ation for the exemption has 5een the ar ument that drivers &ould 5e restrained from 5ehind durin an assault if they are wearin a seat5elt. A num5er of su5missions ar ue that a driver is more lia5le to 5e in<ured as a dire&t result of not wearin a seat5elt durin an a&&ident than 5ein in<ured durin an assault while wearin a seat5elt.
'0

)u5mission from %hilip )tanfield

4:

In his su5mission a ainst the seat 5elt exemption+ a taxi driver of many years experien&e states8 Taxi drivers should wear seat belts" 5irbags are meant to be used in combination with seat belts" There is not good reason for drivers not to wear seatbelts" ,& r Michael 9enderson,,, an expert &onsultant in traffi& in<uries+ su5mitted a detailed paper with a &ompellin ar ument for removin the seat5elt exemption. 6e outlines how drivers not wearin seat5elts endan er not only themselves+ 5ut also their passen ers and other road users. )ome taxi drivers endan er not only themselves 5ut also other road users and mem5ers of the pu5li& 5y drivin extremely lon hours. 3rivers wor" an avera e of 1' hours per shift+ usually 5etween /.00am and /.00pm and /.00pm to /.00am. Bany drivers wor" five shifts per wee" and it is not un&ommon for some drivers to ta"e the taxi out for the whole wee"end+ su5se?uently maximisin their earnin s 5y ex&eedin the 1'(hour shifts. Of parti&ular &on&ern is the wor"pla&e fati ue experien&ed as a dire&t result of the num5er of hours wor"ed 5y taxi drivers. Resear&h shows a person awa"e for 17 hours has an attention span e?uivalent to a person with a ;lood Al&ohol Content of .05.,( There are no re ulations in pla&e to limit the num5er of hours a taxi driver may wor". Taxi networ"s and taxi operators have the a5ility to monitor the num5er of hours wor"ed 5y taxi drivers. 6owever+ there is little eviden&e to su est this happens. Taxi 1etwor"s and the Binistry of Transport are aware that many drivers do not lo onto the networ" radio dispat&h system and therefore &annot 5e ade?uately monitored. )e&tion # E1FE&F of the 1)2 O&&upational 6ealth 9 )afety A&t '000 re?uires an employer to ta"e all reasona5le pre&autions to safe uard a ainst wor"pla&e in<ury. ;y not monitorin drivin hours and the "nown asso&iated fati ue+ as well as en&oura in unsafe wor" pra&ti&es+ networ"s and operators may 5e leavin themselves open to a&tion 5y 2or"Cover. The previous 3epartment of Transport administered a Taxi 3river )afety Committee with representation from8
'1 ''

epartment of Transport? ;/< Taxi Council? ;/< <orkCover?

)u5mission from Br Ross 1elson 3r 6enderson has spent over /0 years in the area of road safety. 6e has extensive experien&e in the areas of motor a&&ident in<ury and trauma. '/ 3r Ann 2illiamson+ 1)2 In<ury Ris" Bana ement Resear&h Centre+ -1)2.

4#

+oads and Traffic 5uthority? ;/< 4olice /ervice? and Taxi driver representation"

This &ommittee was dis5anded and no lon er exists. Consideration should now 5e iven to the reintrodu&tion of a similar forum to address the numerous safety issues asso&iated with drivin a taxi. ;ption 0ll taxi drivers e compelled to wear seat elts. 0 !axi -river 2afety (ommittee e re-esta lished. 5atigue management provisions e investigated, with a view to introducing mandatory provisions into the Regulation as soon as possi le.

49

Finan"ial Stru"ture of t%e Taxi Industry in ,ew Sout% (ales

Taxi 1etwor"s in the )ydney+ 2ollon on and 1ew&astle areas were traditionally esta5lished as &ooperatives+ with seven networ"s still operatin under that mana ement stru&ture. The two lar est 1etwor"s in )ydney and the 1etwor" in ,osford have now 5een transitioned to &ompany stru&tures. 2hile the finan&ial o5<e&tives of the &ompany stru&ture 1etwor"s are profit oriented due to the expe&tations of shareholders+ the &ooperatives reportedly strive for only relatively minor profita5ility and in some &ases a @5rea" evenA out&ome. The ma<or sour&es of in&ome for the 1etwor"s are from radio fees &har ed to Operators+ taxi li&en&e plate lease fees+ &ommissions re&eived from Ca5Char e for the administration of fares throu h the Ca5Char e fare payment system+ Ca5Char e share dividends+ insuran&e &ommissions and other mis&ellaneous in&ome. )ervi&es provided 5y the 1etwor"s to their mem5ers in&lude taxi radio and &ommuni&ations servi&es+ various administration and support servi&es in&ludin lost property and &omplaints handlin + the mana ement of taxi plates and li&en&es+ a en&ies for taxi insuran&es+ pro&essors of payments via the Ca5Char e fare fa&ilities and other related a&tivities. The networ"s were enerally &o(operative in providin finan&ial information to the In?uiry Team and this assistan&e is a&"nowled ed. ;ut it should 5e noted that audited finan&ial statements for '00/C04 were not as yet availa5le for all 1etwor"s and in the &ase of one 1etwor" the Team>s re?uest for spe&ifi& finan&ial information was denied. The radio fees &olle&ted 5y the smaller 1etwor"s do not enerally meet the &osts in&urred in providin the radio and &ommuni&ations servi&es+ with the other revenue sour&es ena5lin some 1etwor"s to "eep their radio fees to a minimum. Radio fees &har ed 5y the 1etwor"s ran e from N/#' Eplus ,)TF to N#75 per month Eplus ,)TF. In respe&t of the smaller &ooperative 5ased 1etwor"s+ the In?uiry team has &on&erns re ardin the disparity in the amount of fees paid for what appear to 5e similar servi&es. 6owever+ 5ased on the limited finan&ial information provided it was not possi5le to determine the reasons for the disparity and whether mem5ers are re&eivin value for money. !urther wor" in this area &ould provide a sound 5asis for 5en&hmar"in the &osts and revenues of the 1etwor"s+ there5y providin useful and relevant information for operators.

50

In &ontrast to the &o(operatives+ the two lar est networ"s &har e almost identi&al radio fees and provide similar servi&es to mem5ers despite a lar e differen&e in the num5er of mem5ers they servi&e. It was noted that 5oth these networ"s &laimed that they were not ma"in profits from radio fees+ 5ut did advise that they earned si nifi&ant additional revenue from other servi&es provided. The In?uiry Team is however &on&erned that potential e&onomies are not 5ein realised and that in a period of de&reasin tele&ommuni&ations &osts this does not appear to 5e the &ase in the taxi industry. 2hilst some 1etwor"s do not operate their own radio rooms+ the smaller 1etwor"s that do indi&ated that they have made a 5usiness de&ision to provide a hi h level of personalised &ustomer servi&e in full "nowled e that they will not a&hieve the e&onomies of s&ale that mi ht 5e availa5le. 2hilst a&"nowled in su&h a de&ision+ the In?uiry Team has noted that in &omparin the )ydney Taxi Bar"et whi&h has four radio rooms as a ainst ;ris5ane whi&h has two radio rooms+ there appears at least a prima fa&ie ar ument that some rationalisation should o&&ur. 6owever+ the In?uiry Team 5elieves that any de&ision in this re ard is a 5usiness de&ision for individual 1etwor"s to determine. 3espite the modest profit motive of the &ooperatives+ preliminary indi&ations are that the taxi 1etwor"s were in most &ases a5le to a&hieve profita5le results in '00/C04. One 1etwor" however has re&orded losses in ea&h of the last four years+ with little prospe&t of reversin that trend in '004C05. It should also 5e noted that the a5sen&e of non(radio fee revenues+ su&h as Ca5Char e &ommissions+ would see some of the profita5le 1etwor"s also re&ordin operatin losses. )ome networ"s have 5een a&tively pursuin overnment and &orporate &lients in an attempt to 5oost their revenue. Another sour&e of revenue is in&ome from 1exus %lates+ with a total num5er of some 94 %lates distri5uted a&ross 1etwor"s. It is understood that whilst these %lates were initially issued 5y the ,overnment at no &har e a num5er of the %lates have su5se?uently 5een sold 5etween the 1etwor"s. As a result+ the plates have in most &ases 5een assi ned a value and re&o nised on the 1etwor"s> ;alan&e )heets. The valuation of the 1exus %lates has however 5een dealt with differently 5y the 1etwor"s+ whi&h raises some &on&ern. In view of the in&onsisten&y in the approa&hes to the ori inal issue+ sale and valuation of a num5er of the 1exus %lates+ it is &onsidered that it would 5e appropriate to 5e further review the 1exus %lates enerally and there5y 5etter understand the reasons 5ehind the different valuation methodolo ies. The hi h &ost of taxi insuran&es in 1)2 was also a ma<or &on&ern of the 1etwor"s. 2hilst 1etwor"s &ould a&&ept that taxis are a hi her ris" than most 51

other vehi&les+ they are frustrated 5e&ause relevant data and do&umentation has not 5een provided 5y the insuran&e industry. It is therefore diffi&ult for the taxi industry to implement internal strate ies to address this issue. A num5er of the 1etwor"s have dis&losed solid asset 5ases+ with land and 5uildin s 5ein a ma<or asset in many &ases. 1otwithstandin this+ the a5ility of some of the 1etwor"s to meet their &urrent &ash &ommitments is &onsidered to 5e poor and in one &ase in re&ent years+ very poor. As identified a5ove+ the review of the finan&ial arran ements+ performan&e and stru&ture of the taxi industry has un&overed a num5er of issues. It is &onsidered that it would 5e most 5enefi&ial to further review and analyse the finan&ial stru&ture of the industry. To fa&ilitate this review pro&ess+ it is su ested that the In?uiry Team re?uest assistan&e from I%ART to underta"e a &omprehensive review to determine the most appropriate finan&ial and stru&tural out&omes for the taxi industry into the future. )u&h a review should fo&us not only on the &ost &omponents of the Taxi !are Bodel+ 5ut should also analyse the revenue &omponent. In addition+ a detailed analysis of spe&ifi& &osts in&urred in providin radioCdispat&h servi&es should 5e underta"en &on&urrently. The In?uiry is also aware the ACCC is &urrently reviewin the authorisation ranted to the taxi industry in relation to provision 5y the 1etwor"s of radio 5oo"in servi&es to taxi operators on the &ondition they a&&ept the Ca5Char e A&&ountin )ystem and display the de&als of that a&&ount system. The In?uiry understands the exemption may no lon er 5e warranted and &onsiders that the out&ome of the review will impa&t on further wor" underta"en 5y the In?uiry. 2e will 5e interested in the out&ome of the ACCC review in that re ard. 3urin the &ourse of the In?uiry a num5er of the 1etwor"s expressed &on&erns a5out the level of re ulation in the Industry and were &riti&al of the Binistry of Transport+ and its prede&essors+ per&eived la&" of plannin and ina&tion re ardin on oin issues Ei.e. !rin e %latesF whi&h have a finan&ial impa&t on the 1etwor"s. ;ptions 180R! e formally re9uested to <oin with the proposed 1ndustry Reform !askforce to undertake a comprehensive review of the cost and revenue components of the !axi 5are 7odel including a specific analysis of current radio>dispatch service costs.

5'

!he financial implications involved in the issue, sale, transfer and valuation of /exus 8lates e further reviewed. 0n analysis e undertaken of current insurance costs in liaison with the taxi and insurance industries with the o <ective of reducing premiums, if possi le.

5/

,o 0estinations Trial 2 T%e ri$%t solution to t%e problem4

It is easy in retrospe&t to find that even the most well(intentioned initiatives may not produ&e desired out&omes. 6owever+ in the &ase of the @no destinationsA trial+ it is hard to &on&lude that it has 5een anythin other than a poli&y and pra&ti&al failure. ;ased on misinterpreted and in&on&lusive data+ senior mana ement and the Binister were mislead into 5elievin that a trial of revised 5oo"in 5road&ast arran ements would lead to improved &ustomer servi&e standards. ;ased on unsu5stantiated presumptions a5out driver attitudes+ 5ehaviours and data+ senior mana ement in the Binistry and the Binister were lead to 5elieve a measured and su&&essful trial was already underway on the Central Coast and that this &onfirmed that su&h a trial in )ydney would improve fleet utilisation+ improve responsiveness 5y drivers and lead to more e?uita5le &overa e of servi&e a&ross the )ydney 5asin. The Binister may not have 5een advised that su&h a trial had previously 5een underta"en and was not su&&essful. Boreover+ it does not appear from do&umentary eviden&e provided 5y the Binistry that the Binister was told that I%ART had re&ommended a ainst the implementation of @no destinationsA as a mandated provision for networ" 5oo"in . Althou h some other <urisdi&tions+ nota5ly ;ris5ane+ do not provide drivers with destinations when they are operatin within their nominated wor" areas or Jones+ the system operates entirely at networ" dis&retion and is not imposed 5y the re ulator. The fundamental assumption underpinnin the trial is that supplyin destinations to drivers is a disin&entive to drivers &onsiderin a&&eptin radio <o5s. As one driver pointed out in his su5mission8 The policy of hiding all destinations only serves to make all radio Aob offers e%ually unattractive but does not serve to make any Aobs more attractive than alternatives such as waiting at a rank or cruising a likely area for a hail,7" This is re&o nised in the Re ulation itself. In order to en&oura e drivers to &ontinue to ta"e radio 5oo"in s durin pea" hour and at &han eover+ the Re ulation provides that destinations must 5e provided to the driver. This provision has not 5een suspended durin the operation of the trial.

'4

)u5mission from $rnie Bollenhauer+p.'

54

In its 1999 Report on the Taxi and 6ire Car Industry+ I%ART &on&luded8 That the purpose of not broadcasting destinations would be to ensure that minimum service standards were met#" The Tribunal is of the view that the best way of ensuring that minimum service standards are met is to monitor and enforce these standards, while allowing individual networks to determine how best they can be met" @or this reason the Tribunal does not recommend that networks be prohibited from broadcasting destinations to drivers" The Tri5unal also noted that previous trials of no destinations @have met with limited su&&essA. I%ART indi&ated that the primary &on&erns with @no destinationsA &ould 5e summarised as8 5 ban on broadcasting destinations would cause drivers to refuse bookings near changeover times rivers would not be able to plan their route on the way to a Aob rivers would concentrate on rank and hail work and avoid phone bookings, especially in areas where there are problems with regard to driver safety and fare evasion"

These &on&lusions were not refle&ted in statements made 5y Binistry staff that the trial would address @&herry(pi&"in A 5y drivers and for&e them to ta"e on more and a reater variety of <o5s+ as well as improve fleet utilisation. 1o relia5le data has 5een produ&ed to support these presumptions and in the &ontext of this In?uiry+ more than 90H of the su5missions reviewed and interviews underta"en have &ommented that @no destinationsA &reates a stron disin&entive for drivers to underta"e more telephone 5oo"in s. That su&&ess of the trial was dependent upon driver satisfa&tion with the &on&ept and implementation of @no destinationsA arran ements was re&o nised 5y the lar est networ" operatin in )ydney. CC1 o5served in its su5mission that8 It is important for the In%uiry to recognise however that whilst the 4assenger Transport 5ct and its +egulations ensure that the 5uthorised Taxi ;etworks are focused on customer service because their continued operations depend on it these ;etworks have no control over drivers who bear the impact of such trials" It makes no difference to an 5uthorised ;etwork whether they must provide the destination when they dispatch a booking" It does however impact on drivers6 attitudes in general and as is true in any Industry better service will be provided if the providers of that service are satisfied" CC; of course supports the trial however the outcome can only properly be evaluated by determining driver satisfaction, which will reflect in the end in service level improvement if the system is right" +ecent demonstrations by a

55

small group of drivers in protest of the trial appears to be an indicator that there is a level of driver dissatisfaction evident" There has 5een no measure in&luded in the trial to &onfirm driver parti&ipation and satisfa&tion rates Ealthou h demonstrations 5y a small roup of drivers in protest of the trial is not in itself &on&lusive of overall driver satisfa&tionF. The evidentiary 5asis for the need for the trial and the promotion of it as a wor"in solution to improvin driver responsiveness would appear to have 5een flawed. In a letter to the Binistry in !e5ruary '004+ the 1)2 Taxi Coun&il advised inter alia8 There are concerns amongst the maAority of /ydney Metropolitan Taxi ;etworks )/MT;* that it is possible that the introduction of the ;o estinations Trial may2 +educe customer service, especially in outlying areas of low density population? Limit opportunities to introduce innovative customer services +estrict opportunities for /MT; and drivers to provide the most efficient service, ie multiple hire? drivers ability to plan0research route prior to pick up? $ndermine the basic fabric of financial viability by limiting the ability of the Taxi Industry to compete effectively with deregulated competitor transport providers? Create a decrease in taxi vehicles available for hire through the exacerbation of the current critical taxi driver shortage 4lace additional barriers to a taxi drivers6 risk management process? and +educe a network6s ability to exercise discretional duty of care to the taxi driver"

There is no eviden&e that any &lear out&omes for the trial were ever identified prior to its &ommen&ement. 2hile a variety of reasons have 5een offered post ho& as explanations for why it was ne&essary+ these explanations themselves have not 5een arti&ulated in terms of what would &onstitute a solution or a su&&ess. Impa"t on t%e delivery of taxi servi"es for t%e disabled If the trial itself was 5ein proffered as a solution+ it is a &ure that may 5e harmin the patient. The impa&t of the trial on the delivery of 2heel&hair A&&essi5le servi&es does not appear to have 5een ta"en into a&&ount. Althou h 2AT 5oo"in s were formally exempted from the trial+ the Taxi Coun&il>s su5mission noted that the trial8

57

is likely to have an adverse impact on drivers of wheelchair accessible vehicles and there are signs that it is having an adverse impact on the services provided to wheelchair users#The no destinations trial makes it virtually impossible for drivers to accept work off the radio without running the risk that the Aob will take them to a destination that prevents them being able to honour an existing booking" There are emerging signs that drivers are ceasing to drive <5T/ as a result" ,B Implementation of t%e Trial The Trial was initiated after only &ursory dis&ussion with the industry. The Binister announ&ed that there would 5e a trial on '/ 1ovem5er '00/+ yet the first formally re&orded dis&ussion of the trial with industry too" pla&e at a Taxi Advisory Committee QTACR meetin some wee"s later. Binutes of the TAC meetin of 17 3e&em5er '00/ indi&ate that the prospe&t of a trial was put forward and that the Taxi Coun&il representative indi&ated that there were other issues+ in&ludin the operation of trun" networ"s that were a 5i er priority in terms of resolvin &ustomer servi&e issues. 6e also stated that there would 5e a ma<or stri"e 5y drivers if the ,overnment were to pro&eed. 1o resolution was re&orded+ althou h in later do&umentation+ this dis&ussion has 5een presented as endorsement of the proposal 5y the industry althou h no networ"s were formally present at the meetin . ;oth the Taxi Coun&il and the T2- Eas a mem5er of TACF have pu5li&ly indi&ated that the trial is solely the initiative of the Binistry Eand+ in the &ase of the T2-+ was formally opposedF. At the point at whi&h the trial formally &ommen&ed E'1 AprilF no 5en&hmar"s had 5een a reed+ no survey or evaluation methodolo y had 5een esta5lished and the &ommuni&ation with the pu5li& was limited to the Binisterial press release to announ&e that the trial was underway. It does not appear that &onsideration was iven to the potential &ost of the trial+ either for the Binistry or for the industry. The Taxi Coun&il has indi&ated that there were si nifi&ant &osts in&urred 5y the industry in esta5lishin the trial+ in&ludin software development to ensure &omplian&e with data reportin re?uirements imposed and revised 5y the Binistry. They also foreshadow ad<ustment &osts for the future+ as @some drivers are li"ely to leave the industry due to &han es imposed.A,= 6as the trial resulted in an appre&ia5le in&rease in servi&e delivery to &ustomers.
'5 '7

Taxi Coun&il )u5mission+ p/1 Taxi Coun&il )u5mission p./0

5:

)u5missions re&eived indi&ate that sin&e the trial &ommen&ed8 <aiting times have not experienced any significant improvement and in some instances, appear to have increased? @leet utilisation has decreased, with a considerable Aump in empty runs, particularly to the 5irport? rivers are abandoning Aobs booked through the networks, choosing to work off ranks rather than log in at all? The amount of dead time has increased and @leet utilisation decreased, as drivers will not risk taking calls off the radio in case they interfere with pre!booked commitments or personal trips )such as collecting the children from school, attending medicals or business appointments*? and The critical shortage of taxi drivers has further deteriorated with a number of networks advising of decreasing fleet utilisation" De ion Ca5s noted that sin&e the introdu&tion of the Trial their statisti&s8 #demonstrate that there has been no significant change in pick!up times or no!Aobs covered",C Banly Ca5s &ommented that the Trial8 #has caused a collapse to efficient fleet dispersal and impinged upon the ability of drivers to safely service the maximum number of customers in the shortest possible time .,D The followin is a sample of other feed5a&" re&eived8 There has been ample scope for all networks to have tried or initiated no destinations prior to ; T" ;o destinations calling has been tried in the past and failed" It is respectfully suggested that it would be instructive to in%uire why no network did take that action" Banly 2arrin ah Ca5s /urely you must be aware that such a system was tried by the Liberals back in the '-s and it was a complete and total failure, creating more problems than it attempted to solve" Andrew 3emas E3riverF The ;o estination trial is proving impractical in some areas and is posing significant difficulties for <5T/ drivers" 1)2 Taxi Coun&il +ather than having E;o estination6, the allocation of Aobs to taxicabs via .4/ would be a better mode of Aob allocation, importing more efficiency into the Aob allocation process#The introduction of a Eglobal offload6 of Aobs to any network provided that it is the nearest car to the pick!up point is advocated strongly in this submission" !lavio !uentes E3riverF
': '#

De ion Ca5s )u5mission p.10 Banly Ca5s )u5mission p.10

5#

;o estinations is a populist and simplistic approach that does not address the real problems of the taxi industry which are no consultation and the cooption of the industry to vested interests" )ydney Betropolitan Taxi Asso&iation The ;o estination policy has had the opposite of the desired effect by seeing an increased number of taxis abandoned with no!one prepared to drive them under the prevailing conditions#The most significant side effect of this policy )no destinations* is the reduction in driver earnings leading to an exodus out of the industry of those drivers capable of winning alternative employment" The last thing the general public wants is a reduction in the availability of taxis or competence of drivers" $rnie Bollenhauer E3riverF I have lost , full time drivers and , casuals in the last month" 4ut Edestos6 back, it didn6t work &- years ago and is still no good" True ;lue Taxis In the frenMy to remove Edestinations6 there has been no account taken of the dynamics of taxi!cab driving" 8xperience has shown that many drivers prefer to work close to home" These are the drivers who are happy to do small fares, rank work, groceries, women with young children and the elderly" It seems the whole argument about Edestinations6 is nothing more than bureaucratic stupidity" ). )immonds EOperatorF

Trial implementation issues %revious trials+ in&ludin the on oin trial on Central Coast had not indi&ated any demonstra5le improvement in &ustomer servi&e out&omes. It is not &lear that the Binister or senior mana ement were ever fully advised of the in&on&lusive results of the Central Coast Trial until after this In?uiry had &ommen&ed. All the industry su5missions and other do&umentary eviden&e provided 5y the Binistry demonstrate that there was limited &onsultation with 1etwor"s+ Operators or 3rivers 5efore the approval of the trial. There was inade?uate &onsideration of any options for trial parameters or of whether mandatin what is in essen&e an internal 5usiness rule for the networ"s was an appropriate a&tion for the Binistry to 5e&ome involved in+ let alone initiate. 1o other <urisdi&tion re ulates @no destinationsA. This is a 5usiness de&ision for individual networ"s. It is+ in reality+ a part time trial+ that does not operate at the "ey servi&e pro5lem times. The Trial does not operate at shift &han eover. This may to defeat the 59

purpose+ if the purpose was to improve pi&"(up rates and mana e availa5ility of taxis+ espe&ially at times of hi h demand and potentially limited servi&e supply. The pres&ription of the &han eover times when the trial does not operate may undermine previous measures to provide improved &ustomer servi&e as su ested in the followin su5mission8 @or years different Ministers have told us to stagger the changeover times away from ( o6clock, which I did" ;ow that has to finish because of no destos these early changeovers are impossible" Bi&hael Bartin E3riverF There is ane&dotal eviden&e to su est that there has 5een an in&rease in the num5er of drivers usin ran"s and not lo in on to the radio networ"s. The trial is not measurin this and is therefore una5le to rea&h any valid &on&lusions a5out the 5ehaviour modifi&ation effe&t of the trial on driver>s wor" preferen&es. There is no system in pla&e to mana e @B/As Eno showsF and reportin on whether there has 5een an in&rease in these sin&e the trial started+ is not &onsistent. 3rivers &an travel up to 1/ "m to pi&" up+ refusin hails+ only to find the fare is not there+ either 5e&ause there was a dou5le 5oo"in on the radio system or the passen er has left. The ATO &ounts these "ilometres as earnin s and even thou h the driver has earned no in&ome+ he or she has a&&rued a loss. $ven if the passen er is waitin + if the fare is only a short distan&e+ the driver may not earn enou h to offset the &osts involved in the dead runnin . Boreover+ some radio networ"s pla&e the driver at the 5ottom of the ?ueue for another 5oo"in + irrespe&tive of whether the fare was pi&"ed up or whether it was a short 5oo"in after dead runnin for a lon distan&e. This is a serious draw5a&" to a @no destinationsA system. -nless <o5s &an 5e allo&ated usin a ,%) tra&"in system+ to ensure that the nearest driver re&eives the 5oo"in and where there are proto&ols a reed where5y the driver returns to the top of the ?ueue in the event of an @B/A. In its response to ?uestions from the In?uiry+ the Binistry stated8 @The need for a uniform approa&h to the mana ement of radio 5oo"in s was &onsidered to 5e essential if any trial a&ross the whole metropolitan area+ and therefore all taxi networ"s+ was to 5e su&&essful.A It is not &lear that the networ"s fully &omplied with this provision+ as to do so would have meant relin?uishin their differin dispat&h methodolo ies and ma"in ad<ustments to the various te&hnolo ies deployed. In the event that the dispat&h systems were not a5solutely the same+ the trial may have 5een further &ompromised. 70

2ith the ex&eption of %remier+ all other networ"s and the Taxi Coun&il have expressed &on&erns a5out the implementation and the &ondu&t of the trial. ;eyond the existin relian&e on rudimentary reports from the C!B)+ there does not appear to 5e a framewor" for monitorin &ustomer feed5a&". The pu5li& is pro5a5ly unaware of the existen&e of the trial. Boreover+ this is &learly refle&ted in the latest reports from the Binistry>s C!B) data5ase+ whi&h indi&ate that almost no feed5a&" has 5een re&eived sin&e 17 Bay. 3ata re?uirements for the trial have &han ed several times sin&e the implementation of the trial. The &urrent re?uirements appear to primarily measure &all &entre effi&ien&y and only o5li?uely address &ustomer servi&e improvements throu h reportin on time waitin . The data 5ein &olle&ted may not &apture the true siJe of the a&tive fleet on any iven day and therefore does not provide a meanin ful indi&ator of servi&e effi&ien&ies or fleet utilisation. 6owever+ the waitin time data is not 5ein &ompared to any a&tive &ustomer feed5a&"+ so it is diffi&ult to form any &on&lusion a5out whether &ustomers themselves feel they are re&eivin a 5etter servi&e 5e&ause of the trial. Althou h over the &ourse of the trial so far no &ommon data re?uirements and measures have 5een developed+ the trial has not sou ht to standardise or evaluate the different <o5 allo&ation systems used 5y the four networ"s+ ea&h of whi&h uses a different method. The method of <o5 allo&ation impa&ts on the driver>s in&entive to a&&ept or re<e&t a radio <o5. Three of the four systems automati&ally allo&ate the <o5 in the first instan&e to the taxi with the lon est waitin time in the ?ueue with only one allo&atin on the 5asis of two varia5les Elon est ?ueued and nearest taxiF. These preferen&e allo&ations potentially exa&er5ate the dead runnin that may 5e asso&iated with =no destinations> 5oo"in s Eand in theory in&rease passen er waitin timesF. Three of the four systems penalise a driver who re<e&ts a 5oo"in 5y pla&in them at the 5ottom of the ?ueue. The effe&t of differen&es in the <o5 allo&ation systems on driver 5ehaviour and their intera&tion with the =no destinations> edi&t is not 5ein measured in the trial. %erhaps most alarmin ly of all+ at the outset of the Trial+ the Binistry &han ed two si nifi&ant varia5les * the 5oo"in fee was in&reased at the same time as the @no destinationsA rule was applied. It is statisti&ally impossi5le to measure the effe&t of either &han es+ in terms of measurin the in&entive or disin&entive impa&t. )u5se?uent to the introdu&tion of the Trial a moratorium on the re ulatory provision on trun"s was announ&ed. It is not &lear what the impa&t of this &han e on the trial will 5e or how the Binistry intends to enfor&e these almost unenfor&ea5le provisions. They will almost &ertainly 5e su5<e&t to le al &hallen e. 71

In addition+ it is possi5le that the end of the moratorium will &ause a further de&line in the num5er of drivers lo in onto the radio networ"+ should =no destinations> remain. Interstate "omparisons As mentioned previously+ there may 5e some ar ument as to whether ;ris5ane really is an example of @no destinationsA at wor". 6owever there are two reasons why it may not 5e a valid &omparison or <ustifi&ation for the trial here. !irst+ implementation of a =no destinations> re ime is not re ulated. It was a 5usiness de&ision made 5y the networ"s+ in &onsultation with their fleet of operators and drivers+ with the aim of en&oura in reater ta"e up of phone 5oo"in s rather than a relian&e on ran" and hail in the su5ur5an areas. ;e&ause of the Jone lo in system for drivers+ =no destinations> applies within the driver>s lo in preferen&e area. )e&ond+ in ;ris5ane drivers and operators wor" on a 50(50 split of ta"in s. ;oth drivers and operators share the ris" and appre&iate the 5enefits of ea&h and every shift+ so =no destinations> 5e&omes less of a potential ris" to the driver>s livelihood. In &ontrast+ 5e&ause of the 5ailment arran ements whi&h dominate the )ydney mar"et+ the driver ma"es a fixed pay(in. Operators have little in&entive to support =no destinations> as a &on&ept as their share of the ta"in s is not li"ely to in&rease+ 5ut the driver fa&es in&reased finan&ial ris". In short+ the stru&ture of the )ydney industry does not support the operation of the =no destinations> model. If any networ" felt that the appli&ation of the rule would offer them a &ompetitive advanta e in the mar"etpla&e+ there is nothin in the existin re ulation to prevent them from puttin it in pla&e. In Bel5ourne+ =no destinations> is a ain an issue of networ" preferen&e not re ulatory &ompulsion. In the Bel5ourne mar"et there is a very hi h dependen&e on phone 5oo"in s as ran" and hail wor" is not &ommon in the C;3+ 5e&ause of the traffi& &on estion and movement of trams. In its '00/ taxi fare determination+ I%ART noted that in the last seven years in )ydney+ radio 5oo"in s as a proportion of total taxi hirin >s have redu&ed from /7H to '9H. In the most re&ent BOT Taxi &ustomer user survey this fi ure had redu&ed further to '0H. In its '004 !are 3etermination+ I%ART noted that the ratio of radio to total trips loo"s no hi her than one in five for ur5an taxis. ,'

'9

I%ART '004 !are 3etermination p.9 %assen er trips are dis&ussed in footnote /.

7'

The Binistry has not provided enou h data or ar uments to <ustify the implementation and &ondu&t of the Trial and it is diffi&ult to &on&lude than that a =no destinations> poli&y is appropriate+ at least in the )ydney metropolitan area. ;ption !he ?/o destinations@ trials in 2ydney and on the (entral (oast should e terminated. In its pla&e+ immediate steps should 5e ta"en to introdu&e &ustomer servi&e standards relatin to 5oo"in s+ in&ludin the development of proto&ols for universal offloads. A &onsultative pro&ess should 5e esta5lished+ en&ompassin the a&tive parti&ipation of driver representatives+ to a ree on minimum performan&e measures and indi&ators. The standards should 5e phased in over / months+ with monthly reportin a ainst es&alatin tar ets and monitored for a further / months+ 5efore 5ein su5<e&t to a review+ whi&h would in&lude a &ustomer survey. There are a num5er of models Eas dis&ussed in Chapter oneF for the &olle&tion of data to measure a&hievement a ainst a reed K%I>s. These should 5e evaluated ur ently+ and assessed to appli&a5ility to the 1)2 taxi industry+ ta"in into a&&ount the in&entive effe&ts and &ost apportionment that o&&urs under a 5ailment system. 1n addition, the 7inistry should comprehensively modernise its policy making with regard to the taxi industry and look at options for significant improvement in the 9uality the advice it provides the Executive, the -irector Aeneral and the 7inister. 0 consultation process should e esta lished to discuss service innovations to e developed y the industry.

7/

(%ere to from 3ere4

It should 5e noted that the In?uiry has had only three months to identify and develop solutions to pro5lems fa&in the industry+ some of whi&h have 5een pro ressively &ripplin its operation for more than a de&ade. In this interim report we have not offered final solutions * it would 5e arro ant to do so. 2e 5elieve there is a way ahead and this report serves as an indi&ation of areas for further development. The In?uiry has underta"en a &omprehensive &onsultative pro ram with the industry sta"eholders and the eneral &ommunity. This approa&h has produ&ed a wealth of material. The In?uiry has identified the followin "ey areas for reform 5ased on four ma<or approa&hes8 1uild a new relationship between .overnment and the industry, based on co!regulation and a strong voice for direct participation and consultation? evelop options for improved customer service, especially for dispatched services, based on transparent, publicly reported standards with clear and consistent performance measures? 8stablish an industry vocation for drivers, that encourages the development of a culture of continuous improvement? and Implement plan for change and for growth that focuses on the progressive elimination of restrictive and anti!competitive practice and confirms policy making in the public interest"

1uild a new relations%ip

The relationship 5etween the Binistry and the industry has 5een sufferin for de&ades as a result of poor re ulatory approa&hes 5y overnments of all persuasions. %oor re ulation enerates poor 5ehaviour of the part of 5oth the industry and the Binistry. Bistrust and la&" of openness on 5oth sides is the result. In relation to the &ondu&t of the @no destinationsA trial+ the Binistry provided answers to spe&ifi& ?uestions as"ed of it in Lune on 9 Au ust. The material provided 5y the Binistry fo&uses primarily on the past history of the taxi poli&y and &omplian&e fun&tion and the la&" of sta5ility and resour&in it experien&ed under previous administrative arran ements. This la&" of sta5ility has 5een the su5<e&t of previous &ommentary 5y the 1ew )outh 2ales Om5udsman. The 199# report made a num5er of o5servations. A la&" of &onfiden&e in the 3epartment is due to8 The constant change in senior officers and staff in recent years, The apparent lack of continuity, commitment and follow through on issues agreed for consideration and0or action between the associations, operators and officers of the epartment in the past# 74

The Om5udsman further notedS The maAority of industry participants do not have confidence in and impartial administrator" 3T as a fair

These fa&tors have &ontri5uted to a histori&al la&" of &onfiden&e that is still in eviden&e in su5missions re&eived 5y this In?uiry+ some six E7F years later. The &ontinuin la&" of &onfiden&e in the Binistry is &learly evident in the followin extra&ts+ from a num5er of In?uiry su5missions. Com5ined Communi&ations 1etwor" mentions in its su5mission 2 CC; welcomes the Ministerial In%uiry because the Industry has been concerned about the lack of communication and consultation with the Ministry" The su5mission oes on to say8 Throughout the D-6s the oT in consultation with Industry representatives developed a comprehensive policy for the future direction of the taxi industry" #$nfortunately lack of communication between the Ministry and the Industry has resulted in a breakdown culminating in this In%uiry" %remier Ca5s is &riti&al of the Binistry in its su5mission to the In?uiry. Muoted from the su5mission8 4olicy decisions and changes by MoT in recent years have lacked foresight into the ramifications that flow from the decision" /ome decisions have been reactive and implemented without thought of the long term result and whether there will be applicability if there are changes in the marketplace" The 1)2 Taxi Coun&il states in a letter to the In?uiry dated # Luly '004 re ardin statisti&s used 5y the Binistry8 <e believe that the lack of rigour and reliance on real facts and data in decision making processes within the Ministry of Transport poses a significant issue for the taxi industry and would re%uest that you include a consideration of this problem during the in%uiry process" De ion Ca5s+ in its su5mission to the In?uiry+ notes the la&" of &onsultation with the taxi industry and oes on to say8 <e trust that out of this in%uiry, there is a commitment by the regulators to consult, work with, and understand the industry to achieve positive outcomes for all"

75

The &urrent in?uiry has determined that it is now imperative that 5etter &ommuni&ation 5e pursued as a matter of ur en&y.

# (ay Forward 2 wor-in$ "ollaboratively on real solutions

It is time for a &han e of fo&us and a &ommitment to developin poli&y expertise and effe&tive &ommuni&ation in relation to the taxi industry+ with the same de ree of ri our and professionalism that has 5een re&ently demonstrated in relation to 5us reform. In order to ensure that the inte rity and pa&e of reform ne&essary to a&hieve real &han e is &reated+ there is a need for an independent Tas" !or&e to 5e esta5lished+ to uide 5oth the Binistry and the industry over the next two years. The role of the Tas" !or&e will 5e to &onfirm a &o(re ulatory framewor"+ 5ased on reportin of performan&e a&ross the whole of the industry+ esta5lish &olla5orative intera&tion 5etween all se&tors of the industry and play a fa&ilitative role in industry development. )u5missions to the In?uiry in&luded a ran e of alternative options to improve &ustomer servi&e and improve 5oo"in effi&ien&y. Bany of these options are worthy of &onsideration in the &ontext of developin and implementin &ustomer servi&e standards for networ"sG however+ their implementation should and will 5e a 5usiness de&ision for individual networ"s+ provided that performan&e standards are met.

T%ere are many voi"es to be %eard

The sin le most &ommon issue raised 5y drivers Ein&ludin ownerCdriversF durin the &ourse of this in?uiry is the la&" of representation and parti&ipation of drivers in poli&y and re ulatory de&ision ma"in . 3espite the presen&e of a Transport 2or"ers -nion representative on the Taxi Advisory Committee ETACF+ drivers Eonly around 1H of whom are union mem5ersF do not feel that they have a voi&e that is heard 5y ,overnment or 5y the networ"s. %redominantly mem5ership of the primary &onsultative 5ody+ the 1)2 Taxi Coun&il+ is made up of operators and networ"s. Althou h the T2- and the Da5our Coun&il notionally represent driver interests+ this does not refle&t the ma"e up of the driver &ommunity within the industry. A num5er of informal ownerCoperator and driver or anisations have 5een esta5lished in re&ent years and their interests should re&eive e?ual attention. Currently within the rules of the TAC+ o5servers are invited to attend and yet &urrently drivers roups are not invited or even advised of meetin s.

77

Be&hanisms for allowin more fre?uent and 5roader driver representation at TAC meetin s should 5e &onsidered. Communi&ation 5a&" to the driver &ommunity is e?ually important and the produ&tion of a simple newsletter+ in the style of that produ&ed 5y the 1ew Oor" Taxi Commission would ensure reater 5ipartisan information ex&han e &ould re ularly o&&ur. The newsletter &ould report on the out&omes of TAC to the taxi &ommunity+ and serve as an advisory of up&omin meetin s. A re&ent review of the operation of TAC made a num5er of re&ommendations &on&ernin the overnan&e of the Committee and the need to properly a&&ount for expenditure funded 5y the operator levy. The review &onfirmed that TAC is well pla&ed to provide advi&e to the 3ire&tor ,eneral &on&ernin pro<e&ts and on oin initiatives that mi ht draw fundin from the levy revenues+ provided uidelines for su5mittin + evaluatin and monitorin pro<e&ts were implemented. 3urin the life of the Industry Reform Tas" !or&e+ it is su ested that TAC serve as the prin&ipal industry advisory 5ody+ reportin to the Chair of the Tas" !or&e. Revenues &urrently &olle&ted from the Operator Devy &ould 5e used to fund pro<e&ts and a&tivities identified 5y the Tas" !or&e. Current fundin for Binistry fun&tions should 5e reviewed.

)ptions for improved "ustomer servi"e

Currently+ the Re ulator sets and maintains the standards. The industry runs its 5usinesses. The In?uiry has identified an ur ent need to introdu&e minimum performan&e standards and reportin measures that &onfirm the &ustomer servi&e expe&ted of all industry parti&ipants * networ"s+ operators and drivers. -ltimately+ the systems ea&h networ" &hooses to adopt are a 5usiness de&ision for the networ". The ,overnment>s role is+ in partnership with the industry+ to esta5lish minimum servi&e standards and provide support to all players in the industry to ensure they &an 5e delivered. 3evelopin "ey performan&e indi&ators and reportin methodolo ies is a matter of ur en&y and is the first priority for a&tivity after this report. In ma"in 5usiness de&isions a5out the most effe&tive means to deliver the expe&ted standards+ all industry parti&ipants have a ri ht to expe&t a level playin field within their servi&e delivery se&tor and that overnment poli&y will 5e developed and administered in a non(partisan way. !or example+ in the &ase of trun" radio networ"s+ a more lo i&al approa&h to re ulatin their operation mi ht have 5een to a&"nowled e that they exist E5e&ause they do and are a rowth area of 5usiness due solely to &ustomer demandF and to insist that they 5e re&o nised and re?uired to provide an appropriate level of a&&ounta5ility+ &ommensurate with the servi&e they deliver. 7:

In 2estern Australia+ the re ulation des&ri5es a 5oo"in servi&e and pres&ri5es reportin and performan&e standards a&&ordin ly. Rather than a fo&us on the &ommuni&ation method+ the re ulatory framewor" more appropriately fo&uses on the fun&tion of a networ". If we were to &onsider su&h an approa&h in 1ew )outh 2ales+ it would have the advanta e of ensurin that trun" and other networ"s would 5e o5li ed to &ompete fairly whatever their &ommuni&ation method Eradio+ telephone or &omputerF and 5e o5li ed to meet the same standards for safety and a&&ounta5ility. It would also &reate 5usiness opportunities for existin networ"s to ne otiate servi&eCadministration pa&"a es for a suita5le fee for driver roups who may operate private 5oo"in servi&es. It would allow the development of preferred driver s&hemes in allian&e with the ma<or radio(5ased networ"s and fa&ilitate the development of 5roader offload systems and premium servi&es. These would ensure a lar er pool of taxis and an emphasis on &ompetition on the 5asis of servi&e ?uality+ whi&h &an only improve &ustomer servi&e overall. If we use the re ulation as an ena5lin tool rather than an instrument of prohi5ition+ &ustomer demand rather than vested interest will have a 5etter &han&e of determinin whi&h servi&es are availa5le in the mar"et.

T%e servi"es t%at "ustomers "reated

%rivate 5oo"in servi&es already exist. They do so 5e&ause &ustomers want them. The industry re&o nises that these are a rowth se&tor within the 5usiness+ and wants to expand in this dire&tion. In fa&t+ the very networ"s that now &omplain so 5itterly a5out the existen&e of trun" networ"s+ were in part responsi5le for their &reation+ as at least one networ" installed the trun" radios in taxis in the first pla&e. The 5elated &ries for enfor&ement now &ome at a time when drivers and operators who have wor"ed hard to deliver a hi her level of servi&e are potentially eatin into the potential profits of the ma<or networ"s. 2hile &on&erns a5out a level playin field have some le itima&y+ iven that &ompulsory networ" fees &urrently remain+ it does seem somewhat disin enuous for the networ"s to see" to use the Re ulator to eliminate potential &ompetitors. %erhaps it is time to &onsider &han in the re ulation in response to &onsumer demand and rather than ta"e an ostri&h li"e approa&h+ thin" a5out what we are really tryin to a&hieve 5y re ulatin these servi&es in the first pla&e. In the earlier dis&ussion on trun" or private networ"s+ we identified that the pro5lem with this a&tivity from a re ulatory point of view is the distortion in 5usiness &osts &reated 5y allowin these operators to es&ape reportin and safety mana ement responsi5ilities. Options for addressin these &on&erns while en&oura in servi&e &ompetition have 5een dis&ussed in Chapter Two. 7#

It is also the &ase that the re ulatory framewor" &an no lon er 5e seen as the enfor&ement tool of the few+ who wish to use the overnment as an indire&t means of uaranteein them &ommer&ial advanta e or monopoly arran ements+ at the expense of others. The further point to 5e made here is that without improvements and servi&e expansion alon these lines+ &ompetition from hire &ar roups and tourist vehi&le operators will &ause serious harm to the taxi industry+ whi&h may lead to a servi&e de&line and redu&ed availa5ility in taxi servi&es overall. !or as lon as we restri&t the operation of premium servi&es we effe&tively redu&e the a5ility of the taxi industry to &ompete in lu&rative ni&he mar"ets. Contrary to the lon (held Eand mythi&alF view that en&oura in premium servi&es will drive the pri&e of 5asi& servi&es up+ the experien&e in other mar"ets indi&ates the existen&e of &ompetitive premium servi&es en&oura es servi&e improvement overall+ and also provides an in&ome stream that assists in "eepin dispat&h servi&es via5le. !undamentally+ if &ustomers are prepared to pay more for a servi&e they want+ is it not 5etter for 5usiness to en&oura e opportunities to develop this in&ome stream+ rather than have them ta"e their 5usiness out of the se&tor alto ether. In this Interim Report one approa&h has 5een su ested. 2e are sure that this will 5e one of many areas of further de5ate and &omment in the future. ;ptions 0n 1ndustry Reform !ask 5orce e esta lished to operate independently of the existing operational policy area of the 7inistry. !he !ask 5orce will e mandated to uild appropriate relationships with all industry participants and drive regulatory, policy and procedural reform in the taxi industry, with the aim of instituting a regulatory and administrative framework which supports improved customer service. !he !ask 5orce operate for two years. :evels of driver participation and representation in policy-making forums including the peak ody, the !axi 0dvisory (ommittee e enhanced. -uring the life of the 1ndustry Reform !ask 5orce, !0( serves as the principal industry advisory ody, reporting to the (hair of the !ask 5orce. !hat revenues currently collected from the ;perator :evy fund pro<ects and activities identified y the !ask 5orce. e used to

79

)t%er issues
Throu hout the &ourse of the In?uiry a num5er of pra&ti&al issues impa&tin on the operation of the taxi industry in eneral and spe&ifi& terms were raised. These are dealt with individually 5elow.

(%eel"%air #""essible Taxis 8(#Ts9

Bany su5missions have ar ued that the Binistry of Transport and the Taxi Industry has not done enou h to lift the provision and standard of 2AT servi&es to ma"e them &ompara5le with servi&es offered 5y re ular taxis. 2hile the Binistry of Transport has attempted to introdu&e a num5er of measures to en&oura e the ta"e(up of 2AT li&enses+ their pro ress has 5een disappointin . !or their part+ the Taxi Industry has ar ued that the &osts asso&iated with operators ta"in up 2AT li&enses Evehi&le+ e?uipment+ et&F are prohi5itive+ a 5arrier to entry+ and it therefore affe&ts their a5ility to improve overall servi&e standards. In loo"in at the issue of 2AT servi&es+ the In?uiry notes that the Binister for Transport )ervi&es has formed a Tas"for&e to spe&ifi&ally investi ate the provision of 2ATs in 1)2. 2hile this In?uiry does not wish to pre(empt this pro&ess and its re&ommendations+ it does 5elieve that 2AT servi&es are of su&h a &on&ern to the &ommunity that the issues need to 5e dis&ussed. As of Luly '004+ there were approximately 7100 taxi li&enses on issue in 1)2. Of this num5er+ 45# or :.5H of taxi li&enses were wheel&hair a&&essi5le /0. The a&tual num5er of 2AT li&enses on issue needs to 5e &larified as there are &urrently only 4/5 2ATs in physi&al operation a&ross 1)2+ as '/ of the 2AT li&enses on issue have not yet 5een pla&ed on vehi&les 5y the Taxi 1etwor"s due to taxi availa5ility. In addition to these li&enses+ there are reportedly a num5er of 2AT =nexus plates> that were issued in the 19#0>s in an attempt to en&oura e taxi operators to improve 2AT servi&es. The issue of =nexus plates> will 5e dis&ussed in another se&tion. 6owever+ it is understood that these additional li&enses have not 5een utilised 5y operators for their intended purpose. At present+ the 4/5 2ATs in 1)2 are lo&ated in the followin areas (&2
/0 /1

/ydney Metro : ,DB ;ewcastle : 7 <ollongong : D .osford 0 <yong L.5 : ,Country ;/< ! &&D
Information provided 5y the Binistry of Transport * Luly '004 fi ures. Information provided 5y the Binistry of Transport * Luly '004 fi ures.

:0

In terms of the &ost of a 2AT li&en&e+ the Binistry of Transport &urrently issues 2AT li&en&es in metropolitan areas(, on a short(term 5asis for N1+000 per annum. In &omparison a perpetual re ular taxi li&en&e in a metropolitan area is presently valued at approximately N'/#+500 ((. In Country 1)2+ 2AT li&en&es are offered free of &har e. In the )ydney metropolitan areas+ 2ATs are a&&essed via the @Iero '00A 5oo"in servi&e. In )ydney+ this servi&e is owned and operated 5y the Com5ined Communi&ations 1etwor". In 1ew&astle+ 2ollon on and &ountry 1)2+ 2ATs &an 5e 5oo"ed throu h lo&al taxi &ompanies. There is no re ulated time for how ?ui&"ly 2AT 5oo"in s are to 5e ta"en(up. 6owever+ se&tion 5/ E5F of the %assen er Transport ETaxi(&a5 )ervi&esF Re ulation '001 states that8 The authorised taxi!cab network provider must ensure that every person who books a wheelchair accessible taxi!cab through the network is advised, within a reasonable time, of the time at which it is estimated that the taxi!cab will arrive at the nominated collection point" To further ensure that 2AT 5oo"in s are ta"en 5y drivers+ se&tion 57 E1F of the %assen er Transport ETaxi(&a5 )ervi&esF Re ulation '001 states that the8 The driver of a wheelchair accessible taxi!cab that is available for hire must accept a hiring offered by a person using a wheelchair in preference to a hiring offered by a person not using a wheelchair" In terms of the trainin to 5e&ome an a&&redited 2AT driver in 1)2+ prospe&tive drivers are re?uired to underta"e a two(day &ourse+ whi&h &osts N'4'. The trainin primarily entails the appropriate &are that must 5e met when transportin persons with physi&al disa5ilities. In the do&ument A&&essi5le Transport %lan for 1)2 A en&ies+ the 1)2 ,overnment has re&ently finalised its A&tion %lan for implementin the Commonwealth 3isa5ility )tandards and has outlined the "ey reforms a en&ies will need to implement to &omply with the )tandards. In terms of 2ATs+ they fo&us on8 increasing the number of <5Ts? considering strategies to reduce the cost of owning0operating a <5T? developing improved measurement of <5T performance standards? training more drivers to operate <5Ts? and developing initiatives to promote the use of <5Ts"

/' //

)ydney+ 2ollon on + 1ew&astle 9 Central Coast Information provided 5y the Binistry of Transport * Luly '004 fi ures.

:1

Community issues wit% t%e performan"e of (#Ts A variety of issues in relation to 2AT servi&e standards were drawn to the attention of the In?uiry. In summary+ however+ the universal theme presented 5y the &ommunity was their 5asi& dissatisfa&tion with the differen&es in servi&e standards 5etween a 2AT and a re ular taxi servi&e. Bany individuals and or anisations were also dismayed with what they viewed to 5e a la&" of understandin of the needs of wheel&hair 5ound and physi&ally disa5led people. The "ey &on&erns raised 5y the &ommunity were8 The general lack of provision of <5Ts by taxi networks? The issues in booking and high waiting times for <5T services? The lack of training of <5T drivers? and The impact of the no!destination trial on existing <5T services"

Interestin ly+ the overwhelmin ma<ority of su5missions the In?uiry re&eived &ame from individuals and or anisations in the 1ew&astleC6unter re ion re ardin 2AT servi&es in their area. The views expressed 5y this roup are indi&ative of the a5ove issues identified as fa&in all users of 2ATs in 1)2. )pe&ifi&ally8 On the issue of a la&" of 2AT servi&e provision+ ,rant 1i&"el+ 6unter Re ional Offi&er+ of the )pinal Cords In<uries Australia stated8 There are only B <5Ts servicing a region in excess of a %uarter of a million people that stretches over a large geographical area" Bi&hael $arp+ Chair of the 1ew&astle Allian&e &ommented that8 The ;ewcastle City Council has health services and shopping and recreational activities which would be accessible to disabled people? however, they are not able to access the city by taxi" On the issue of 5oo"in and waitin times in the 1ew&astleC6unter re ion+ Ri&hard Cusi&" stated8 <heelchair users are expected to make bookings weeks in advance to have the best chance of securing a cab" Baryanne Ireland+ Community )upport Offi&er+ %ara?uad 1ew&astle supported this view 5y statin 8 .enerally to book a <5T for a specific time re%uires & week notice for a weekday booking, , weeks notice for a weekend booking, and as much as ( weeks notice for booking on significant days, e"g" Mother6s ay, Christmas ay" :'

In relation to appropriate trainin A&tion 1etwor" states that8

for 2AT drivers+ Kalerie )hevels+ Carers

/ervices complain that either drivers are not being trained appropriately in dealing with passengers with a disability or drivers are ignoring their training" /ometimes accidents have occurred as a result of inappropriate assistance with straps or with ramps" As to the no(destination trial+ %eople with 3isa5ilities noted that it8 +ecognises the significant use of unauthorised networks by drivers, and passengers" It is estimated that over =-F of <5T use is outside of the official networks6#6There is currently some confusion amongst <5T drivers" /ome 4< members report experiences where <5T drivers are also not being given destinations" This can inconvenience passengers6. In addition to the a5ove+ there was a eneral view expressed to the In?uiry that+ iven we have an in&reasin ly a ein population+ there is oin to 5e a reater need for 2AT servi&es in the future. Conse?uently+ there is a need for de&ision(ma"ers to a&t now to implement the ne&essary &han es re?uired to promote the ta"e(up of 2ATs in 1)2. Taxi industry "on"erns wit% (#T servi"es A num5er of the su5missions did dis&uss the pro5lems the taxi industry fa&es in providin an a&&epta5le level of 2AT servi&es. %rin&ipally+ the "ey issues raised were8 The prohibitive costs of entry to become a <5T operator and driver? <5T bookings are not lucrative due to the time incurred by drivers in carrying out each booking? and isabled people are %uite often difficult to deal with and made for unpleasant working conditions, thus making it hard to attract new drivers"

In a reein that the a5ove were the "ey issues for the industry+ CC1 also noted that a pro5lem was that Taxi 1etwor"s have no statutory power to re?uire operators to operate 2ATs. )o while they &an en&oura e operators to ta"e(up 2AT li&en&es+ CC1 ar ued that at the end of the day+ without an a5ility to dire&t operators towards 2AT li&en&es it will always &ome down to operators ma"in a &ommer&ial de&ision on servi&es they provide. The =&ommer&ial de&ision> view is one that is not restri&ted to operators 5ut is also shared 5y taxi drivers. Taxi driver+ Chris $dwards+ states that8 The <5T driver tends, therefore, to shy away from non profitable wheel chair Aob offers by either not logging on or not logging on to a particular suburb where it is known that there are wheel chair Aobs on offer or not responding to the radio call" That driver can then go back to the 5irport or City ranks and get ordinary profitable fares" :/

2hile the taxi industry notes there are finan&ial issues in attra&tin operators and drivers to provide 2AT servi&es+ the Industry does re&o nise improvements &an 5e made. In their !e5ruary '004 Review of @ares for Taxis in ;/< ! Issues 4aper+ I%ART hi hli hted that the Taxi Coun&il had stated in its '00/ su5mission that it was determined to lift 2AT servi&e levels so that 5y '005+ the waitin times for 2ATs would 5e &ompara5le to those of re ular taxi>s. In an attempt to promote 2AT provision and servi&e levels+ the Binistry of Transport has+ over the last de&ade+ introdu&ed a num5er of measures to en&oura e the ta"e(up of 2AT li&enses a&ross 1)2. These in&entives have in&luded8 4roviding short term G&---pa licenses for metro regions and free licenses for country regions? +eimbursing drivers for the cost of <5T training? 4roviding interest free loans )max G(-,--- or half the price of a vehicle* to country operators for the purchase of or conversion of <5Ts" 8xtending the regulated standard life of a <5T to &- years )standard taxis in metro are = years while country taxis are D years* Kan type <5Ts are able to charge higher rates when carrying = or more passengers"

The fa&t that these in&entives have not 5een very su&&essful means that there now needs to 5e more dire&t a&tion ta"en 5y the Binistry of Transport and the Taxi Industry to in&rease the ta"e(up of 2AT li&en&es. ;ptions !he 1n9uiry elieves the following options should e su <ect to further investigation and referral to the 30! !askforce, as a means to improve 30! servicesB 0lternative>additional funding sources e developed to provide further financial incentives to 30! owner>drivers= :iaise with !axi 1ndustry and Aovernment to identify potential new market areas for 30! vehicles= 1ncrease the ooking fee for 30!s, or introduce a lift fee, so drivers are financially incentivised to take 30! ookings= 2u <ect to independent review and analysis, nominate that a !axi /etwork has a prescri ed percentage of 30!s operating within its network #eg 1.C&= Dased on population and demographic characteristics, the 7inistry of !ransport should provide localised 30! targets for metropolitan and country regions across /23= :4

8romote the development and ac9uisition of a universally designed ca which would e for oth wheelchair and a le odied passengers= and !he 7inistry of !ransport should work closely with the !axi (ouncil and !axi /etworks to ensure waiting times for 30!s are compara le to those of regular taxi services.

Sydney C10 2 Restri"tions on Taxis Settin$ 0own.+i"-in$ 6p

The issue of the restri&tions on taxi drivers settin down and pi&"in up passen ers within the )ydney C;3 area has 5een an on( oin issue for a num5er of years. In 3e&em5er 1999+ 1ew )outh 2ales adopted the national Australian Road Rules. This resulted in &han es to "er5(side traffi& si na e in many areas within the C;3 and the introdu&tion of numerous =1o %ar"in > and =1o )toppin > si ns. The &han es made it ille al to drop off or stop to a&&ept fares in many C;3 areas. The situation in the 1orth )ydney C;3 area is &onsidered even worse for taxi drivers. The taxi ran" in Biller )treet has 5een removed and stoppin is ille al on the %a&ifi& 6i hway. In order to &omply with passen er>s re?uests+ many drivers are re?uired to i nore the traffi& si ns and ris" si nifi&ant fines. Br %eter Ramshaw+ Assistant $xe&utive Offi&er+ 1)2 Taxi Coun&il informed the In?uiry that8 <e )and the networks* receive complaints virtually daily from taxi drivers who consider they have been unfairly booked for simply trying to meet the needs of their passengers" In a number of cases they have been physically threatened or assaulted by passengers if they do not stop where the passengers want top get out" (7 Br Ramshaw also supplied a map of the )ydney C;3 area indi&atin si nifi&ant areas within the C;3 where it is ille al to pi&" up or set down passen ers. The pro5lems &aused 5y the restri&tions have 5een re&o nised 5y the industry+ ,overnment a en&ies+ and City of )ydney Coun&il for some time. City of )ydney Coun&il stated in )eptem5er '00'8 3f concern to the City, are informal indications from the +oads and Traffic 5uthority that ;o stopping restrictions will soon be re%uired to replace existing ;o 4arking restrictions on all non!signalised intersections" /uch restrictions would be inappropriate or unnecessary in many instances in Central /ydney, and if implemented, would reduce the legal options for taxis to pick!up and set down passengers" (B
/4 /5

$(mail from Br Ramshaw to the In?uiry headed =C;3 Taxi 1o )toppin map. Detter to Transport 1)2 from City of )ydney Coun&il dated 4 )eptem5er '00'.

:5

The In?uiry re&o nises that there are &ertain areas where taxis &an le ally set down passen ers+ su&h as loadin Jones+ motor 5i"e par"in Jones+ taxi Jones+ wor"s Jones+ et&. 6owever+ the reality is that it is impra&ti&al+ if not impossi5le to utilise many of these areas. The In?uiry is also aware that some taxi drivers &ontinually ran" ille ally in &ertain parts of the C;3 where par"in restri&tions apply. Muite &orre&tly infrin ement noti&es are issued when ille al ran"in is dete&ted. 2hether this situation is a result of too few or in&orre&tly pla&ed taxi ran"s needs to 5e addressed. In a letter dated 1 Luly '00/+ the 1)2 Taxi Coun&il advised the Dord Bayor8 The lack of available space where taxis can legally pick!up and drop!off passengers in the C1 is a continuing source of frustration for drivers and is a source of complaints and feelings of ill will from passengers" The matter has come to a head as a result of significantly increased enforcement and the subse%uent increased incidences of drivers being fined" Clearly drivers cannot afford to risk the cost of fines so unless they are allowed to legally do what their passengers re%uire, then drivers will tend to avoid the city and services will be diminished as a result" Taxis add significantly to the functioning and general milieu of the C1 , we consider that the efficiency and effectiveness of taxi transport in the city should be an important consideration for your Council" (= 1umerous attempts have 5een made to address the re&o nised pro5lems fa&in taxi drivers operatin within the C;3. 6owever+ to date the issues have not 5een resolved. In a newspaper arti&le in Luly '004 for the Taxi A&tion ,roup+ ar ued8
(C

taxi driver Bi&hael Lools+ a spo"esman

There aren6t enough taxi ranks around the city, which means the drivers who can afford to turn down a fare will drive past people who are standing in Eno stopping6 Mones trying to hail a cab" Br Lools said some drivers were prepared to ris" a fine rather than lose a fare+ or have a &omplaint lod ed a ainst them with the Binistry of Transport. Attempts have 5een made to address spe&ifi& streets or areas within the C;3 identified as presentin pro5lems for taxi drivers. Rather than attempt ad ho& solutions+ this In?uiry 5elieves representatives of the Binistry of Transport+ RTA+ City of )ydney Coun&il+ 1)2 Taxi Coun&il+ 1)2 %oli&e and drivers should attend a forum to identify the ade?ua&y of taxi fa&ilities within the C;3>s of )ydney and 1orth )ydney and identify the steps needed to provide a pra&ti&al solution for all parties.
/7 /:

Detter dated 1 Luly '00/ from 1)2 Taxi Coun&il to the Dord Bayor+ City of )ydney Coun&il. )ydney Bornin 6erald 10 Luly '004 arti&le 5y Alexandra )mith titled =Risin taxi ran&our as fines row.

:7

Considerin the la&" of su&&ess to date+ it may 5e appropriate that parties are dire&ted from a ministerial level. ;ption !he 1n9uiry recommends a forum e convened to identify the pro lems associated with supplying an accepta le taxi service within the (Dareas of 2ydney and /orth 2ydney and provide accepta le solutions. 7ore specifically to address the issues of set down and pick up areas, the location and num er of taxi ranks ut also to include other identified issues.

#ut%orised Taxi Inspe"tion Stations

Taxis in 1ew )outh 2ales are re?uired to under o inspe&tion for &omplian&e with the Roads and Traffi& Authority>s ERTAF vehi&le =)afety Che&"> standards under the Rules for Authorised Inspe&tion )tations. In addition+ taxis are re?uired to &omply with pres&ri5ed standards 5y means of the Banual of Inspe&tion )tandards for TaxiC&a5s+ produ&ed 5y the Binistry of Transport. Re ulations and standards address the &ondition and &leanliness of taxis in&ludin interior and exterior fixtures and fittin s. Taxis must also meet re?uirements in re ard to safety e?uipment su&h as ,%) tra&"in + se&urity &ameras or se&urity s&reens and other driver prote&tion e?uipment. To ensure taxis meet all re?uirements+ they must under o re ular inspe&tions at an Authorised Taxi Inspe&tion )tation EATI)F. An ATI) is a RTA Authorised Inspe&tion )tation EAI)F staffed 5y ?ualified inspe&torCs who are authorised 5y the Binistry of Transport to inspe&t taxis. All ATI) inspe&tors are re?uired to under o additional spe&ifi& trainin on taxi standards. This additional trainin is arran ed and administered 5y the 1)2 Taxi Coun&il. To ensure on( oin &omplian&e with vehi&le standards+ Binistry &omplian&e staff underta"es daily on(road taxi vehi&le inspe&tions. Approximately 1000 taxis are inspe&ted ea&h month. Taxis dete&ted with defe&ts are issued with =1on Complian&e 1oti&es> E1C1sF. The &urrent on(road inspe&tion re ime is a hu e drain on Binistry staff resour&es.

::

I%ART in its report on the Review of the Taxi Ca5 and 6ire Car Industries states8 The Tribunal favours a regulatory framework which re%uires taxi companies and co!operatives to be directly responsible for driver and vehicle standards, while oT monitors and enforces service standards maintained by the company or co!operative# (D The Tribunal recommends that taxi companies and co!operatives be made directly responsible for driver performance and vehicle standards"
('

This In?uiry a rees with I%ART>s re&ommendations and 5elieves Binistry staff resour&es &ould 5e 5etter utilised in a servi&e monitorin &apa&ity. In '00/+ the 1)2 Taxi Coun&il trialed an initiative to improve taxi vehi&le and driver presentation standards. The Taxi Council trained and engaged Nuality Liaison 3fficers )NL3s* to conduct random vehicle inspections throughout the metropolitan area" NL3s are rostered on ( to 7 days per week on a C!day, ,7!hour roster" 5ny breaches of standards are reported back to the Taxi Council and relevant Taxi ;etwork. The Taxi Coun&il monitors the inspe&tions and any re?uired follow up 5y the networ". It should 5e noted previous attempts at =&o(re ulation> in relation to on(road monitorin of vehi&leCdriver presentation were terminated followin instan&es of =sele&tive a&tion> 5ein ta"en. 3rivers atta&hed to Individual taxi networ"s were authorised 5y 3oT to ta"e a&tion a ainst other taxi drivers found to 5e 5rea&hin re ulationsCstandards. 3oT 5e&ame aware that some authorised drivers were only ta"in a&tion a ainst taxi drivers atta&hed to networ"s other than their own. 3oT su5se?uently withdrew all industry &omplian&e authorisations. 6owever+ the &urrent MDO trial is not fa&ed with the dilemma of dis&riminatory a&tion 5ein ta"en+ as the MDOs are not atta&hed to any taxi networ" and are &ontra&ted only to the 1)2 Taxi Coun&il. A ri ht of appeal should 5e in&luded in any a reement made with the Taxi &oun&il re ardin MDO and vehi&le inspe&tions. The system of appeal would 5e alon the lines of the &urrent ATI) appeal me&hanism+ su ested format8 The recipient of any disputed action contacts their network and advises details of dispute, The network arranges an independent inspection of the taxi" If this supports first inspection, the operator must comply,
%a e IK Overview and summary of re&ommendations * I%ART !inal Report. %a e #0 I%ART !inal Report Review of the Taxi Ca5 and 6ire Car Industries.

/# /9

:#

If action taken by NL3 was found not to have been Austified, the matter is then reported to Taxi Council for appropriate action and resolution"

3eli5erate misuse or ne le&t of responsi5ilities 5y any MDO would result in the withdrawal of any authorisation. In its su5mission to the In?uiry+ the Taxi Coun&il stated8 /ignificant improvements have been achieved since the trial commenced in late ,--("#The proportion of vehicles and drivers found to be offending has decreased by about D-F since the commencement of the trial"7T%is Inquiry believes t%at t%e 5inistry s%ould liaise wit% t%e ,S( Taxi Coun"il in re$ard to t%e expansion of t%e :/) trial and eventual transfer of responsibility re$ardin$ ve%i"le and driver presentation "omplian"e from t%e 5inistry to t%e Industry The Binistry should still 5e involved in vehi&le ?uality &ontrol. This would involve random or tar eted audits of ATI) re&ords and in parti&ular re&ent ATI) vehi&le inspe&tions+ 5ased on intelli en&e o5tained from the Taxi Coun&il+ Taxi 1etwor"s and also from the &omplaints data5ase. ;ption !he 7inistry liaises with the /23 !axi (ouncil in formulating a strategy and vehicle inspection regime where the 7inistry takes on a less ?hands on@ role allowing a shift of responsi ility from the 7inistry to the 1ndustry. 7inistry compliance staff should assume a greater monitoring role as recommended y 180R!. 1n regard to taxi presentation, this should involve 0!12 audits with removal of authorisation for 0!12 noncompliance.

! Ta$s
The In?uiry has not had time to ive full &onsideration to the issues surroundin the implementation of $ Ta s in this Interim Report. 6owever+ &ursory investi ation has made it &lear that $ Ta s are an essential innovation for Taxis and fully supports their implementation. The In?uiry notes with &on&ern that the taxi networ"s and industry 5odies seem &ommitted to imposin the &ost of the $ Ta on the 3river8 we do not 5elieve this is wor"a5le. Boreover+ &onsultation with Trans-r5an has su ested that their systems will provide the ne&essary a&&ounta5ility to ena5le operators to monitor use. The in?uiry 5elieves operators should 5e responsi5le for $ Ta su5s&ription and that this &ost should not 5e 5orne 5y drivers.
40

%a e '4 1)2 Taxi Coun&il )u5mission to the Binisterial In?uiry into the Taxi Industry.

:9

The In?uiry notes that there are plans to use the $(Ta system to &olle&t other tolls and &har es su&h as the proposed Airport Toll. This toll is li"ely to have a si nifi&ant impa&t on 5usiness travellers who travel fre?uently and may &reate a disin&entive to use taxis if the toll is added dire&tly to the metered fare. 6owever+ the In?uiry does not 5elieve that the toll &an or should 5e a5sor5ed 5y the driverCoperator and must therefore 5e passed on to the &ustomer. The toll may impa&t on the supply of Taxis to the airport. This is an issue for further &onsideration.

#0

Con"lusion
The o5<e&tive of this interim report has 5een to identify and address the issues that are &onstrainin servi&e improvement in the Taxi Industry in 1ew )outh 2ales. It does not and &annot pretend to solve all the pro5lems that have 5een noted in the Report. )ome options for dis&ussion have 5een su ested. These indi&ate the dire&tion in whi&h the in?uiry team 5elieves the ,overnment and the industry should now move forward. This report has 5een &riti&al of 5oth ,overnment and Industry with re ard to past performan&e. 6owever+ the Binistry and industry su5missions to the In?uiry have made it &lear that most parti&ipants realise that there is a need for &han e in the way the industry does 5usiness+ and that this &han e must happen ?ui&"ly. In su estin a forward a enda+ it is o5vious that the &urrent re ulatory framewor" must &han e to refle&t more self(determination on the part of the industry and a reater attention to esta5lishin + monitorin and a&hievin minimum &ustomer servi&e standards. It is not the role of ,overnment to pres&ri5e the operation of the industry+ only to ensure that it provides safe+ relia5le and ?uality servi&e to the travellin pu5li&. The overall impression ained from the su5missions+ the interviews and the other information athered durin the in?uiry is that for a very lon time the re ulatory framewor" has 5e&ome distorted towards prote&tin the interests of some industry players and in turn 5oth punitive or ineffe&tual in mana in others. It no lon er provides an effe&tive or appropriate stru&ture to support or en&oura e proper &onsumer prote&tion+ provide surety for industry investors and the wor"for&e or allow 5usiness innovation and rowth. In &reatin a &o(re ulatory approa&h+ some previous de&isions su&h as ad ho& issue and variations in li&ensin &onditions will need to 5e addressed. Creatin reater opportunities for &ompetition on the delivery of dispat&h servi&es will need to 5e de5ated and wor"a5le approa&hes to these issues+ and others+ in&ludin @trun"A or private networ"s+ will 5e implemented. 3is&ussion+ development and implementation of these poli&y and operational initiatives will 5e the first part of industry and overnment 5uildin a new reportin and wor"in relationship. This will involve ownerCdrivers and drivers and will re?uire the Binistry to modernise its poli&y and &onsultation a&tivities in relation to the taxi industry+ so that it &an enhan&e its &redi5ility as a sour&e of relia5le information and analysis. #1

Overall the Binistry for Transport has demonstrated in the last 1' months that it &an and does a&hieve innovative and su&&essful reform in other areas. Its re&ent wor" on the delivery of 5us servi&es in the )tate must serve as a positive example of what &an 5e a&hieved. In the next phase of the In?uiry+ an Issues paper will 5e prepared for &ir&ulation amon all sta"eholders. !urther &onsultations will also ta"e pla&e+ 5efore the preparation of a final report 5y the end of the year. The in?uiry team loo"s forward to explorin the ideas expressed in this report with all interested parties+ over the next three months.

#'

#++!,0IC!S Submissions re"eived;

)4ersons or organisations who have made a number of submissions using the same name have been listed only once"* ,#5! Adid6 Mo!a##ed A7dison6 *!ery A8ui ina6 9o!n A!#ed6 :aru8ue Anderson6 P : Anon Anon Anon Anon Anon Ar#strong6 ;on 1an Aston6 4regory Badgery6 :rank Bai ey6 Trevor Bai ey6 P!i ip Bau#garten6 Mic!ae Bea#er6 ;on Diane MP Bou#e !e#6 Tony Brad ey6 Trevor Bro(n6 Tricia Byrne6 9o!n Burre 6 *!ris *a#p5e 6 ;on David MP *a#p5e 6 Ma co # *!aud!ry6 Ra<endra *!esterton6 R!onda * ifford6 Pa#e a *oates6 4eoff *oe6 David *o e#an6 David *rittenden6 Pau MP *rofts6 David *usick6 Ric!ard Dea 6 Ant!ony De5#an6 Peter MP De#as6 Andre( Doy e6 %!aron )R'#,IS#TI),

T!e Li#ousine Line '%) *a55ie )e fare Assoc. 1nc.

Me#5er for Lac! an

Me#5er for Mu goa

A*3 3niversity 3ni*a5 Austra ia Pty Ltd Me#5er for 1 a(arra Transport )orkers 3nion of Austra ia Pre#ier *a5s Pty Ltd T)3 Representative 3nica5 Austra ia Me#5er for )yong *ity %trategy - 'e(cast e Me#5er for =auc use *a5c!arge Austra ia Ltd #/

>arp6 Mic!ae >d(ards6 *!ris > ias6 4eorge :a!oun6 Arof :ra?er6 David :renc!6 P!i ip :uentes6 : avio 4ooc!6 Astrid 4ood(ort!6 4eoff 4rove6 *o in 4ra!a#6 9enny ;ar#ata6 9o!n ;arrison6 ;o(ard ;ay e6 Ron ;a(tin6 )arren ;eaton6 A ;enderson6 Dr Mic!ae ;ed ey6 Ross ;inde6 Mic!e e ;irsc!6 T 9 ;itc!enson6 Mark ;oenig6 David ;ou i!an6 Pau ;unt6 Lisa 1re and6 Maryanne 9o!nson6 Anna 9oo s6 Mic!ae 9oo s @ Brad ey Bataka os6 Art!ur Be y6 Peter Bennedy6 Pau Bondic6 9a#es Lang6 P!i La(rence6 1an Lennon6 * iff Le(is6 =ivienne Lind!o dt6 Peer Luka5yo6 :red Lussick6 )a Mannion6 Patricia Martin6 Mic!ae Mars!a 6 *o Maunder6 Ray McAu y6 'ei McMa!on6 Les McP!erson6 9o!n McBen?ie6 9i# Mint?6 P!i ip Mo en!auer6 >rnie Moore6 B Moore6 * over MP

'e(cast e A iance

Peop e )it! Disa5i ities

%ydney Airport *orporation Ltd 'e(cast e *ity *ounci '%) Taxi *ounci Ltd %t 4eorge *a5s *o-op7 Ltd

*a#den *ounci Transur5an '%) @ ALD Para8uad 'e(cast e 2ffice of t!e '%) Privacy *o##issioner Taxi Action 4roup

*a55ie Maga?ine *o#5ined *o##unications 'et(ork Man y *a5s "Trading$ *o-op7 %oc7 Ltd True B ue Taxis

Legion *a5s "Trading$ *o-op7 %oc7 Ltd

Me#5er for B ig! #4

Moore6 4ary Moore6 Peter Musgrave6 David 'e son6 Ross 'evinson6 )ayne 'icke 6 4rant 'ic!o as6 Andre( 27*onor6 R 4 2rkopou os6 Mi ton MP Petition (it! 5+ signatures Po onski6 %ergio Potter6 :e ix Pou ton6 *!ris Ranford6 *raig Ratay6 Maureen Rid ey6 Mic!ae Rigas6 'ic!o as Ro5erts6 9enny Rofia 6 %o o#an Ro(e6 9a#es Russe 6 >rick Ryan6 ;on %usan %artor6 ;on :rank MP %c!#idt6 4ary %c!(aiger6 ;ein? %cifo6 4erard %cott6 Ti# %cu y6 ;on *ar MP %cru5y6 ;aro d %!eve s6 =a erie %id!u6 Di 5a! %i##onds6 %ue %istynine6 R!ino % ee6 Roger %#a 6 Peter %#it!6 9o!n %tanfie d6 P!i ip %te(art6 Laurie %tokoe6 Brian %trange6 Ric!ard %trat!#ore6 Mic!e e Tink6 Andre( MP Toug!er6 )i ia# 3tting6 Doug =ersteege6 Pau )a is6 Ray )atkins6 9o!n )a #s ey6 David )e don Brot!er )est MP6 4ra!a#e

*ounci of %ocia %ervice of '%)

%pina *ord 1n<uries T!e %ydney Taxi %c!oo Pty Ltd Me#5er for %(ansea

)es ey Mission %ydney Metropo itan Taxi Association R%L >x-%ervice#ens *a5s *o-op7 Ltd representing Perry6 Bar5ara MP6 Me#5er for Au5urn

Me#5er for Rockda e %c!#idt > ectronic La57 Pty Ltd Te stra Minister for Roads Pedestrian *ounci of Austra ia *arers Action 'et(ork

%out!ern ;ig! ands Taxi %ervice Ray(ood *o##unications Me#5er for >pping %pina *ord 1n<uries Austra ia

Me#5er for *a#p5e to(n #5

)i kins6 Brian )i ia#s6 > i?a5et! )i ia#s6 :aye )i ia#son6 Peter

*ountry Taxi 2perators Association Breta5ac Pty Ltd

#7

1999 IPART Report on Taxis & Hire Cars Status of Implementation of Recommendations
IPART REC !!E"TATI "
Recommendation 13 (Sect 9.2.2 in Report) The Tribunal recommends that the number of taxi licences in Sydney be increased by 5 percent per annum between 2000 and 2005, and that in 2003 the Government review outcomes of these and other measures arisin from the Tribunal!s recommendations Recommendation 1 (Sect 9.2.3 in Report) The Tribunal recommends that all new licences issued in Sydney between 2000 and 2005 be six-yearly, non-transferable licences" Recommendation 1! (Sect 9.2.! in Report) The Tribunal recommends that any additional licences to be issued be leased via a transparent tenderin process" Recommendation 1" (Sect 9.2.! in Report) The Tribunal recommends that all new licences issued between 2000 and 2005 re#uire that the licensed taxi be on the road between 2 and $ pm each wee%day" Recommendation 1 (Sect !." in Report) The Tribunal recommends that the &epartment of Transport develop and publish at six monthly intervals the results from the measurement of the demand for and supply of taxis services" These measures should include' waitin times at taxi ran%s for passen ers and taxis at the head of the #ueue ( measured by surveyin ran%s at six monthly intervals avera e waitin times for radio boo%in s ( measured by comparin audited statistics provided by taxi companies and cooperatives avera e numbers of radio boo%in s per vehicle ( measured by comparin audited statistics provided by taxi companies and cooperatives avera e number of hirin s per vehicle ( measured by sample recordin s of vehicle movements and hires usin G)S trac%in

REC !! AS " TE# $% #EPT

T!e nu#5er of %ydney taxi icences s!ou d 5e increased 5y 5C pa for five years

STAT&S
T!is (as esti#ated to !ave increased t!e nu#5er of %ydney taxis 5y 16+/, and (as not i#p e#ented. ;o(ever6 /D unrestricted s!ort-ter# icences (ere issued in +DDD6 )!ee c!air Accessi5 e Taxi ")AT$ restricted icences !ave 5een issued on re8uest for so#e ti#e and continue to 5e so issued. /D icences (ere issued 5y tender for / year ter#s 5ut did not re8uire t!e taxis to 5e on t!e road 5et(een +p# and &p#. ;o(ever6 regu ations no( re8uire )ATs to re#ain on road during driver c!angeover period.

A additiona icences issued s!ou d 5e / yr s!ort-ter# ones6 5e issued 5y tender6 and t!e taxis #ust 5e on t!e road every (eekday 5et(een +p# and &p#

T!e resu ts fro# t!e #easure#ent of t!e supp y and de#and for taxis 5e pu5 is!ed 5y t!e Depart#ent every / #ont!s

'ot i#p e#ented due to ack of funding and staff resources

#:

IPART REC !!E"TATI "

Recommendation 3 (Sect !.9.1 o# Report) The Tribunal recommends that the annual fee for a metropolitan wheelchair accessible taxi licence be reduced to *+000, the minimum operatin hours be reduced to +0 hours per day, and the Taxi Transport Subsidy Scheme be ad,usted to pay drivers an additional *5 collection fee for each hirin " Recommendation 11 (Sect $. .3 o# Report) The Tribunal recommends that current networ% performance standards be re arded as benchmar%s and that the &epartment of Transport prepare a public report every six months comparin the performance of each Sydney taxi company and co-operative a ainst these benchmar%s" Recommendation 12 (Sect $.! o# Report) The Tribunal recommends that taxi companies and co-operatives be made directly responsible for driver performance and vehicle standards" Recommendation ! ( Sect !.1%. o# Report) The Tribunal supports continued re ulation of complaints handlin , but recommends that the &epartment of Transport ta%e a more active role in investi atin complaints, ta%in disciplinary action where warranted, and reportin bac% to passen ers" Recommendation 19 (Sect 1%. .1 o# Report) The Tribunal recommends that the current restriction on the number of hire car licences be removed" -ire car licences should be issued to any person who can satisfy the #uality-based entry re#uirements" &ll 'ire car b(sinesses s'o(ld operate (nder t'e same licence conditions.

REC !! AS " TE# $% #EPT

%ydney )AT icence fees s!ou d 5e reduced to E16DDD pa6 #ini#u# operating !ours s!ou d 5e reduced to 1D a day and drivers s!ou d 5e paid an extra E5 for )AT <o5s

STAT&S
%etting of s!ort-ter# )AT icence fees at E16DDD pa i#p e#ented T!e re8uire#ent for a #ini#u# ti#e on t!e road !as no( 5een re#oved !aving origina y 5een D !ours6 t!en +D !ours6 t!en 1D !ours T!e cost of paying a fee for )AT <o5s (as considered pro!i5itive "esti#ated at E06DDD6DDD pa$ 'ot i#p e#ented due to ack of funding and staff resources

A pu5 ic report s!ou d 5e prepared #ont! y co#paring taxi net(ork perfor#ance

Taxi net(orks s!ou d 5e responsi5 e for driver perfor#ance and ve!ic e standards

T!e Depart#ent s!ou d take a #ore active ro e in co#p aints !and ing

3nder i#p e#entation. 'et(ork standards !ave 5een drafted and circu ated a#ong Taxi Advisory *o##ittee #e#5ers for co##ent. )!en t!eir co##ents are received t!ey (i 5e considered for incorporation 5efore circu ation of a ne( draft for pu5 ic co##ent. 1#p e#ented. An i#proved taxi co#p aints syste#s co##enced operation of t!e 1&t! Apri 6 +DD0

A !ire car 5usinesses s!ou d operate under t!e sa#e icence conditions

'ot i#p e#ented. 1t (as not considered appropriate t!at !ire cars restricted to sc!oo for#a s6 (eddings and funera s "for (!ic! driver aut!orisation and icences are not re8uired$6 s!ou d 5e a5 e to perfor# unrestricted !ire car (ork for (!ic! 5ot! a icence and a fee are re8uired6 p us driver aut!orisation

Recommendation 2% (Sect 1%. .1 o# Report) The Tribunal recommends that area-based restrictions on hire car

Area-5ased restrictions on !ire car icences s!ou d 5e re#oved

'ot i#p e#ented. Many country icensees "(!o !ave paid co#parative y s#a icence fees$ (ou d !ave 5een a5 e to

##

IPART REC !!E"TATI "

licences be removed Recommendation 21 (Sect 1%. .2 o# Report) The Tribunal recommends that hire car licence fees be reduced to an amount which reflects the administrative and compliance costs associated with the industry" Recommendation 23 (Sect 1%. . o# Report) The Tribunal recommends that re ulations overnin the mana ement of hire car businesses be removed unless necessary to address specific service #uality issues" Recommendation 2 (Sect 1%. .! o# Report) The Tribunal recommends that the current re ulation of hire car vehicle standards be maintained"

REC !! AS " TE# $% #EPT

;ire car icence fees "in %ydney$ s!ou d 5e reduced to an a#ount (!ic! ref ects t!e ad#inistrative and co#p iance costs associated (it! t!e industry Regu ations governing t!e #anage#ent of !ire car 5usinesses s!ou d 5e re#oved un ess necessary to address specific service 8ua ity issues To avoid deve oping a arge #ini-ca5 industry as in Britain6 t!e current regu ation of standards s!ou d 5e #aintained. 1n t!is contest 1PART says t!at t!e process of reducing regu ation #ust 5e gradua and t!at so#e regu ation s!ou d 5e #aintained over t!e next five years. T!e pro!i5ition preventing !ire cars fro# p ying for !ire and standing on ranks s!ou d continue.

STAT&S
co#pete unfair y (it! %ydney and 'ort! *oast operators (!o !ave paid #uc! #ore for t!eir icences. %ydney fees !ave 5een !a ved "to E,+05 pa$ 5ut o(ering fees to eve s reco##ended 5y 1PART "esti#ated 5et(een E1DD and E165DD$6 (as considered to !ave a#ounted to a #ost tota deregu ation overnig!t. T!e ne( %ydney fee is due for revie( after August6 +DD0 'ot i#p e#ented. :o o(ing pu5 ic consu tation on t!e draft ne( Regu ation in +DD1 t!ere (as no support for su5stantia y ess contro over standards6 service and safety issues covered in t!e Regu ation. Accepted and i#p e#ented. )!i e t!e standards !ave 5een #aintained6 #any unnecessary restrictions !ave 5een re#oved in ine (it! 1PART7s concerns. T!is !as resu ted in a #uc! greater c!oice of ve!ic e types and re#oved age i#its. Accepted and i#p e#ented. T!e pro!i5ition !as 5een specifica y spe t out in t!e ne( Regu ation as an offence.

Recommendation 2! (Sect 1%. .) o# Report) The Tribunal recommends that the prohibition preventin hire cars from plyin for hire throu h street hails and at taxi ran%s be maintained" Recommendation 22 (Section 1%. .2 o# Report) The Tribunal recommends that the &epartment of Transport investi ate whether hire car re ulation should be dele ated to local councils in rural and re ional areas in con,unction with the re ulation of taxis"

T!e Depart#ent s!ou d investigate (!et!er t!e regu ation of !ire cars in rura and regiona areas s!ou d 5e de egated to oca counci s.

As #entioned a5ove6 pu5 ic consu tation !as a ready confir#ed t!at t!ere is no support fro# any 8uarter for t!is in respect of taxis and t!ere is not dou5t t!at t!e situation (it! !ire cars (ou d 5e t!e sa#e.

Recommendation ) (Sec ).2.1 o# Report) The Tribunal recommends that the &epartment of Transport review the effectiveness of the current taxi driver trainin syllabus and testin procedures" The &epartment of Transport should set the curriculum and examine applicants on the course material" .ccreditation with the

Taxi drivers training and testing s!ou d 5e revie(ed6 training sc!oo s s!ou d no onger 5e approved and open earning 5y app icants s!ou d 5e acco##odated6

Accepted and i#p e#ented6 t!oug!t t!ere is sti so#e (ork to do 5efore fu open earning access is avai a5 e.

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IPART REC !!E"TATI "

&epartment of Transport should not be a pre-re#uisite for teachin the taxi drivin course" .pplicants should be permitted to sit the examination after completin a self study course if they choose not to attend a school" Recommendation 1$ (Sect 9.2.) o# Report) The Tribunal recommends that the &epartment of Transport in con,unction with industry and local councils, investi ate options for dele atin the re ulation of taxis in /S0 rural and re ional areas to local councils" Recommendation " (Sect ).2.2 o# Report) The Tribunal recommends that driver safety be a %ey ob,ective of re ulatin the taxi industry" 1nhanced driver safety will directly benefit drivers and passen ers as it will improve drivers! wor%in conditions and should increase the availability and #uality of taxi services" Recommendation $ (Sect ).2.2 o# Report) The Tribunal recommends that the &epartment of Transport audit operators! compliance with insurance re#uirements and educate drivers and operators about 2nsurance and 0or%3over re#uirements" Recommendation 9 (Sect ".3. o# Report) The Tribunal supports the continued re ulation of vehicle standards, but recommends that the maximum a e of taxis operatin in rural and re ional areas be increased to 4 years"

REC !! AS " TE# $% #EPT

STAT&S

1nvestigate options to de egate t!e regu ation or rura taxis to counci s

1#p e#ented. 1nvestigations6 inc uding extensive pu5 ic consu tation6 confir#ed t!at t!ere (as no support for suc! a proposa fro# any sector

Driver safety s!ou d 5e a key o5<ective of regu ating t!e taxi industry

1#p e#ented. >xa#p es inc ude re8uire#ents for ve!ic e tracking devices6 driver security ca#eras6 interna 5oot re eases and driver training on t!e avoidance and !and ing of t!reatening situations. Regu ar surveys are a so carried out in regard to taxi driver safety. Accepted and i#p e#ented6 invo ving #uc! tig!ter ne( ega re8uire#ents on operators.

T!e Depart#ent s!ou d audit operators7 co#p iance (it! insurance re8uire#ents.

T!e #axi#u# a o(a5 e age of rura taxis s!ou d 5e increased to , years

Accepted and i#p e#ented

Recommendation 1% (Sect ".3. o# Report) The Tribunal recommends that the &epartment of Transport institute a system to penalise authorised taxi inspection stations if they fail to inspect taxi vehicles properly" Recommendation 1) (Sect 9.2. o# Report) The Tribunal recommends that area-based operatin restrictions be removed from the 25 licences in Sydney which are limited to operatin to operatin in suburban and city frin e areas"

Aut!orised Taxi 1nspection %tations s!ou d 5e pena ised if t!ey fai to inspect taxis proper y Metropo itan fringe area taxis s!ou d 5e free to operate t!roug!out %ydney

1#p e#ented. 1f an aut!orised officer at an Aut!orised Taxi 1nspection %tation is found not to 5e satisfactory c!ecking t!e Fco#fort standards7 of taxis6 t!e aut!ority #ay 5e revoked. 'ot i#p e#ented. >xperience s!o(ed fringe area taxis tended to (ork in t!e #ore ucrative parts of %ydney6 at t!e expense of t!e fringe areas. :ringe area contracts are no( 5eing p!ased out and rep aced (it! ne( operating areas on

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IPART REC !!E"TATI "

REC !! AS " TE# $% #EPT

STAT&S
t!e country #ode 6 (it! icensees restricted to operations in suc! areas. T!is is expected to significant y i#prove services in %ydney7s fringe areas. T!ere !as never 5een a i#it on t!e nu#5er of s!ort-ter# !ire car icences avai a5 e to t!e pu5 ic

Recommendation 19 (Sect 1%. .1 o# Report) The Tribunal recommends that the current restriction on the number of hire car licences be removed" -ire car licences should be issued to any person who can satisfy the #uality-based entry re#uirements" .ll hire car businesses should operate under the same licence conditions" Recommendation 19 (Sect 1%. .1 o# Report) The Tribunal recommends that the current restriction on the number of hire car licences be removed" *ire car licences s'o(ld be iss(ed to any person w'o can satis#y t'e +(ality,based entry re+(irements" .ll hire car businesses should operate under the same licence conditions"

T!e current restriction on t!e nu#5er of "%ydney$ !ire car icences s!ou d 5e re#oved

;ire car icences s!ou d 5e issued to any person (!o can satisfy t!e 8ua ity-5ased entry re8uire#ents

T!ere are no criteria app ica5 e to icensees.

-'ese Recommendations not speci#ically picked (p by Dept

Recommendation 2 (Sect !.$.3 o# Report) The Tribunal recommends that the &epartment of Transport ad,ust fares from Sydney .irport by settin a minimum fare of *+0" Recommendation (sect !.9.1 o# Report) The Tribunal recommends that the &epartment of Transport amend taxi networ% standards to re#uire Sydney taxi networ%s to be responsible for the service standards provided to passen ers with disabilities and that the &epartment of Transport monitor and enforce these standards" Sydney taxi networ%s should be re#uired to have +0 per cent of their fleets as wheelchair accessible vehicles"

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