AUSTRALIAN

TAXI

FEDERATION

SUBMISSION

2015

List of acronyms

ACCC Australian Competition and Consumer Commission

ACT Australian Capital Territory

ATO Australian Taxation Office

CBS centralised booking service

CIE Centre for International Economics

CMTEDD Chief Minister, Treasury and Economic Development Directorate, ACT

Government

CTIA Canberra Taxi Industry Association

CTP Compulsory Third Party [insurance]

DRT demand responsive transportation

DSAPT Disability Standards for Accessible Public Transport 2002 (Cth)

GST Goods and Services Tax

HOTS high occupancy taxis

IPART Independent Pricing and Regulatory Tribunal, New South Wales

ITOP Independent Taxi Operator Pilot

JACSD Justice and Community Safety Directorate, ACT Government

LTA Land Transport Authority, Singapore

NICTA National Information Communications Technology Australia

NSW New South Wales

RBA Reserve Bank of Australia

RRT Regulatory Reform Team, CMTEDD, ACT Government

RTA Road Transport Authority, Access Canberra, ACT Government

RTO Registered Training Organisation

TAMS Territory and Municipal Services Directorate, ACT Government

TCCI taxi cost calculator index

TNC transportation Network Company

TSS Taxi Subsidy Scheme

WAT wheelchair accessible taxi

WCBS Wheelchair Accessible Taxi Centralised Booking Service

List of terms

App Application – a digital product that can be downloaded onto asmart phone, tablet or other electronic device.1

Dynamic pricing(also known as surge pricing)

Pricing that changes and is formed around the current demandfor and supply of a particular type of on-demand transportation,such as ridesharing.

Hire car A vehicle (other than a bus, taxi or demand responsive servicevehicle) that:

(a) Is used, or is intended to be used, for the transport ofpassengers under a contract; and

(b) Does not stand or ply for hire for the transport of passengersalong a road or road- related area.2

On-demand public transport Unscheduled, point-to-point passenger transport provided for afee or charge.

Ridesharing the providing of passenger transport for profit or reward using aprivate vehicle and an app-based booking service.

Sharing economy An economic model in which individuals are able to borrow orrent assets owned by someone else.3

Taxi A vehicle (other than a bus or demand responsive service vehicle)that stands or plies for hire for the transport of passengers along a road or road-related area.4

Standard taxi that is not designed specifically to accommodate passengersin wheelchairs.

Wheelchair accessible taxi

(WAT)Taxi that is designed specifically to accommodate passengers inwheelchairs.

EXECUTIVE SUMMARY

At no time does the executive think that ridesharing apps continue to operate unregulated thus causing a uneven playing field between taxis and ridesharing app drivers.

HISTORY OF REFORMS IN AUSTRALIA AND WORLD WIDE

Many countries and Australian jurisdictions have tried to reform the heavily regulated taxi industry and all have failed.

  • NT tried to but it caused chaos and the change of government saw all reforms rolled back and compensation offered to all those affected but the human tragedy of suicide rates amongst the taxi community could not.
  • Victoria with theoretical economist Prof Alan Fels and Prof David Cousins has again caused chaos to the taxi community with little return and the incoming government winding back reforms and offering compensation.

Fels promised to the public cheaper fares but delivered dearer fares, he offered shorter wait times but delivered longer wait times, he offered increased income for drivers and delivered less overall income. He offered gypsy taxis and delivered to the detriment of the industry and the travelling public.

  • New Zealand deregulated the industry offering cheaper fares, less wait times through more taxis on the road but now has the highest taxi fares and wait times in the western world.
  • Ireland deregulated offering the same as in New Zealand and ended with the same results and now has the highest fares in the Europe community and the highest suicide rates in the taxi community.
  • Most countries that have toyed with de-regulation has re-regulated

FLAWED RESEARCH

IPART and other agencies rely heavily on research and surveys by agencies like Taverner Research but their own research tells them that up to 64% of respondents give false and misleading answers and this was confirmed in a research paper by Taverner Research for the ACMA inquiry.

How can we accept any research done by these research agencies when 64% of the information could be wrong.

IPART and the ACT government are relying heavily on information that could well be 67% wrong. So what should the ACT government and IPART do? Go back to the drawing board as the variables are unacceptable in the scientific community as a scientific study.

From research conducted by Taverner Research

"Some Australians respond to unwelcome demands for online information by going to another service. But a significant number (47 per cent)—rising to 64 per cent of those aged 18 to 24—adopt a digital disguise by providing inaccurate or misleading information about themselves, effectively relying on anonymity and pseudonymity for protection".

Prof Alan Fels used flawed research when considering his report thus making his report easily distrusted.

SUBMISSION 2015 ACT TAXI INQUIRY

FARE SETTING

Stakeholders do not want review after review and fare increases should be based on CPI increases and increase accordingly. The outdated and ineffective Taxi fare cost index is not relevant in the fluidity and volatile nature of our industry and therefore we should rely more on CPI to work out fare increases.

DISTRIBUTION AND NO OF PLATES

The outdated models being used around the country to gauge whether there should be more plates put out should be replaced with a consultation process with stakeholders including drivers and rely on whether their earnings are going up or down and this must be based on evidence provided and then a public perception test with real evidence collected by persons in the field then we work out whether we are best serviced by issuing more plates.

At present no new plates should be issued until we find out real answers.

UNREGULATED APPS / RIDESHARING

All ridesharing apps (eg, uber) should be bought under the regulated framework of the industry and made to comply with the current legislation and regulations.

  • Legislation enacted to make all uber drivers have a DA or taxi licence
  • Legislation enacted that all uber cars go through the same requirements as taxis and have safety checks on cars.
  • If uber car is under finance uber drivers must ensure the loan provider has a copy of commercial passenger vehicle insurance note
  • All uber drivers must present to government a commercial insurance cover note
  • All uber drivers must present to government a copy of their ABN
  • All uber drivers must present to government a copy of police background checks
  • If a uber driver is to carry children a blue card or child safety card must be presented
  • Once all of the above a ridesharing license to be issued
  • All uber cars must be properly identified
  • Price gouging to be legislated against
  • Prices to be made identifiable in cars

Enforcement:

First offence: Any driver found use unregulated app should have an automatic 6 point deduction from his license and $10,000 fine.

Second offence: Automatic suspension of licence and impoundment of car, $100,000 fine and issuing of notice of intent to crush vehicle with 30 days to appeal.

Unregulated app promotors like uber should have records seized and audited by teams of regulators including ATO to ensure full compliance with rules and regulations of our land.

BOOKING COMPANIES AND DISPATCH COMPANIES

  1. Made to divest in any ownership of taxi plates.
  2. All affiliation fees made to reflect user pays principles. Eg no of completed jobs dispatched to taxi a dollar value is given no other fees apply.
  3. No compulsory affiliation to dispatch company should be made.
  4. Ownership of equipment is owners or operators and no fees applied.
  5. No compulsory use of equipment be allowed eg eftpos machines.

OWNERS AND OPERATORS

  1. All drivers must be provided with copies of insurance notes.
  2. Set payin or contract conditions regulated
  3. All contract agreements to be agreed by both parties and witnessed by third party.
  4. That the Minimum contract Terms include: a. 50% of gross fares earned go to the driver; The owner/operator be responsible for 100% of fuel costs; and A minimum renewable term of agreement of 12 months for all but irregular drivers used to cover unforseen shortfalls in available drivers
  5. That the Legislation be amended to provide for an independent tribunal capable of economically and quickly dealing with matters in dispute in the taxi industry.
  6. That in respect of such independent tribunal:

a. The tribunal be empowered to act in a manner similar to that followedby the Queensland Industrial Relation Commission (QIRC), that is, toconciliate all disputed matters in the first instance and to arbitrate atthe request of a party where conciliation has failed;

b. The tribunal be empowered to issue enforceable orders;

c. Provision be made for an appropriate appeals mechanism;

d. The scope of the work of the tribunal should include disputes betweenbailees and bailors, bailees and taxi booking companies as well asbetween bailors (operators) and taxi booking companies;

e. Representation of parties at conciliation should exclude legallyqualified persons; and

f. Representation of parties by legally qualified persons at hearings beonly by leave of the presiding Tribunal member having regard to thecircumstances.

  1. That the Government create a regulatory requirement that all work, to theextent possible, be allocated equitably by taxi booking companies and thatdata be kept and provided to the Department of Transport and Main Roads ona periodic basis that would enable not only monitoring but the ability toinvestigate allegations of unfair practices in the distribution of work.Operators and drivers should also have access to this data on request.
  2. That the government review all statutory and other costs met by operatorsover which the government has control with a view to minimising costs andstreamlining the manner in which the administrative charges are applied.
  3. That the practice of subleasing of taxi licences should end.
  4. That at midnight on 31 December 2015 all current sublease be deemed to be

leases directly between the licence owner and current sublessee.

GOVERNMENT

  1. All new plates issued by government should remain in government hands and leased out at market value and reviewed annually.
  2. That Local Governments review the number of wheelchair and mobility scooter access points in kerbing for city streets in consultation with appropriate representatives of users of mobility scooters and wheelchairs.
  3. Insurance costs forced down by allowing and forcing providers to put taxis in same pool as police, buses, emergency vehicles.
  4. Regulating premiums to within 10% of normal car and no refusals.
  5. That Local Governments consider running public education campaigns, including increased focus on issuing fines, so to ensure bays set aside for the set down of passengers using wheelchairs and mobility scooters are utilised only for their intended purpose.
  6. That the fare evasion “infringement notice” fine be increased to $600.00 out of which the driver is compensated for the loss of the fare up to $200.00. In the alternative, should the government not wish to increase the fine, that 50% of the current fine be paid to the driver as compensation? (Note where the driver is a bailee, the amount paid to the driver would be shared with the operator in accordance with their bailment arrangements.)
  7. All police put through mandatory refresher courses on legislation pertaining to taxi drivers and emphasis put on following up and prosecuting fare evaders.
  8. Legislation enacted for mandatory sentencing of perpetrators of attacks on taxi drivers.

DRIVER TRAINING

  1. Audit for suitability the content of all courses used by entities currentlyproviding training to applicants for a Hire Driver Authority
  2. Compliance done on personal hygiene and knowledge.
  3. Compliance done on cleanliness of taxis and removal from road for continuing non-compliance.
  4. Review for suitability and approve if appropriate any test currently used to assess competence of applicants for a Hire Driver Authority
  5. That as soon as possible, transfer responsibility for Driver Authority competence testing from private entities to the Department of Transport and Main Roads Driver licence testing body.
  6. That the Department of Transport and Main Roads Driver licence testing body be equipped with the means, authority and resources to test for appropriate driving skill, locality knowledge, route knowledge and language skills as part of the assessment of competence for the procurement of a Driver Authority.
  7. That the successful completion of Department of Transport and Main Roads tests should be a prerequisite element of attaining Driver Authorisation.
  8. That in areas where there is no government driver licence testing centre, the Department of Transport and Main Roads establish a panel of entities (possibly commercial Driver Training Schools or the police) capable of testing potential taxi drivers for driving skills. In such cases the locality knowledge, route knowledge and language skills testing should continue to be conducted by the Department of transport and Main Roads officer handling the application for the issuing of the Driver Authorisation.

Anne Turner

President ATF, NSWTOADA

Alister Smith

V/P ATF, President QUHDA

Dennis Julian

Secretary ATF, QUHDA

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