Point to Point Transport (Taxis and Hire Vehicles) Regulation 2017Public consultation themes & outcomes summary paper

Point to Point Transport Regulation 2017

August 2017

Public consultation

themes & outcomes

Summary paper

Table of Contents

1 Introduction

2 Safety of services

2.1 Safety standards

2.2 Identification and management of risks to health and safety

3 Vehicle standards

3.1 Wheelchair accessible taxi services

3.2 Digital displays prohibited

3.3 Driver identification – taxis

3.4 Fare calculation devices – taxis

3.5 Duress alarm systems, vehicle tracking systems, & approved security camera systems and safeguards for taxis

3.6 Signs and markings – hire vehicles

4 Insurance

4.1 Vehicle insurance

5 Drivers

5.1 Disqualifying offences and ineligible drivers

5.2 Driver of wheelchair accessible vehicle to be competent in loading and unloading wheelchair passengers

5.3 English language requirements – taxi drivers

6 Notifiable occurrences

6.1 Notifiable occurrences

7 Authorisation of providers of passenger and booking services

7.1 Authorisation conditions

7. 1.1 Booking service for wheelchair accessible taxis

7.1.2 Authorisation fees

8 Fares

8.1 Fare estimates, taxi fare structures, publication of taxi fares, pre-payment scheme for taxi fares & fare may exceed authorised fare if out of area service

9 Other obligations relating to passenger and booking services

9.1 Driver to remain with vehicle – Sydney Airport precinct and other airports

10 Miscellaneous

10.1 Bus operators

10.2 NSW Passenger Service Levy

11 Matters outside the Regulation

11.1 Hire cars, including phase out of ‘HC’ plates and access to special purpose lanes

11.2 Industrial relations and drivers, taxation

11.3 Accessibility of services, vehicles & booking apps

12 Next steps

1 Introduction

The Point to Point Transport (Taxis and Hire Vehicles) Regulation 2017 (the Regulation) is made under the Point to Point Transport (Taxis and Hire Vehicles) Act 2016 (the Act). The Regulation underpins the new regulatory framework for the point to point transport industry in NSW and sets out the new arrangements applying to passenger vehicles with 12 seats or less (including the driver), such as taxis and booked services like traditional hire cars and rideshare vehicles.

The Regulation delivers the new regulatory framework for point to point transport recommended in 2015 by the NSW Point to Point Transport Taskforce (the Taskforce), with a view to ensuring the industry’s long-term sustainability.

The proposed Regulation was out for public consultation from 11 April 2017 to 9 May 2017, during which time about 215 submissions were received from industry, government agencies and the general public. Transport for NSW also met with a number of industry and government stakeholders during the consultation process.

The final Regulation and the Act will come into effect on 1 November 2017 at the same time as the powers of the new regulator for the industry, the NSW Point to Point Transport Commissioner. One aspect of the new regulatory framework – the temporary $1 Passenger Service Levy – won’t commence until 1 February 2018 in order to give the industry time to initially focus on its new safety obligations and prepare its systems to account for the levy

Several key themes were raised during the consultation process, which are listed in the ‘Contents’ section on pages 2 and 3 of this document. This paper seeks to expand on those themes and describe how the matters arising were settled during drafting of the final Regulation.

2 Safety of services

2.1 Safety standards

The public consultation confirmed there was broad in-principle support from stakeholders for a new ‘general duties’ safety framework for the point to point transport industry. In short, the general duties outlined within the Regulation focus on the industry’s responsibility to take reasonable steps to eliminate – or minimise – risks associated with the delivery of services. This new safety framework set out by the Regulation represents a pivotal shift away from the previously prescriptive regulatory environment of the industry and instead provides flexibility for point to point transport service providers to determine how they will best meet theirnew safety obligations.

A key feature of the new regulatory framework is the creation of safety standards for the two categories of point to point transport entities recognised under the new laws: taxi service providers and booking service providers. Under the Act and Regulation, only authorised taxi service providers can provide ‘rank and hail’ services – that is to say, only taxis can pick up passengers from taxi ranks or can be waved down in the street by passengers. Customers must book – by means such as an app or over the phone – a hire vehicle. It is important to note that most taxis fall into the category of a booked service as well as the category of a taxi service as they can be booked as well as caught at a rank or hailed on the street.

In its submission to the Regulation, the Independent Pricing and Regulatory Tribunal (IPART) supported a uniform safety standard across providers, noting that the Regulation ensured the same standards for taxi and booking service providers with respect to safety, safety management systems, insurance, provision of information, driver eligibility and notifiable occurrences.

IPART also favoured the application of additional safety precautions where needed, noting:

“The differences contained in the proposed Regulation between taxis and hire vehicles regarding vehicle standards appear to reflect the additional risks created by rank and hail services. This is consistent with our view that rank and hail services are higher risk. We consider that these safety and security arrangements should be outcome-focused rather than prescriptive.”

Due to the anonymous nature of rank and hail trips, additional safety measures such as security cameras are needed for taxis but not for hire vehicles.

Importantly, in order to secure better safety outcomes, the Regulationsets out to ensure that the companies at the top of the tree have direct accountability for the safety of their services.

Given the scope of the changes, some stakeholders expressed concerns about the need for guidance and support for the industry as it adjusts to a regulatory environment that has fundamentally changed. Ensuring that industry has access to information and is supported during the transition to the new arrangements was also a recommendation of the Taskforce.

Recognising these concerns, a targeted education campaign is being implemented by the Point to Point Transport Commissioner to assist industry in understanding its obligations and taking the right steps to ensure Point to Point Transportlegislation is adhered to.

2.2 Identification and management of risks to health and safety

Under the new point to point transport regulatory framework, taxi service providers and booking service providers will have a primary duty of care to ensure ‘as far as reasonably practicable’, the safety of their services. ‘As far as reasonably practicable’ means taking actions and precautions that most people would consider reasonable to make sure their services are safe. Service providers will be required to take reasonable steps toput in place systems to identify,mitigate and eliminate risks.

To this end, the Regulation requires providers of passenger services to create and maintain a safety management system. This involves identification of reasonably foreseeable hazards that could give rise to risks to the health and safety of drivers, passengers and other persons in connection with the provision of the service.

The provisions in the Regulation relating to safety management systems and the safety of services reflects theTaskforce’srecommendation that industry participants take greater accountability for safety outcomes within an outcome-focused and risk-based regulatory framework. The Regulation also aims to regulate services uniformly and assigns clear accountabilities while still promoting competition and a level playing field for all point to point transport service providers.

A service provider will also be required toconduct and record regular consultation with other ‘duty holders’ (those who have a safety duty that relates to their service). The requirement to consult, co-operate and co-ordinate activities with other duty holders will help identify and address any gaps in managing safety risks.

Record keeping is an important part of the safety management system.Throughout the risk management process, the duty holder must document any hazards identified, risks assessed and the proposed control measures. Maintaining a safety management system will assist providers in managing the risks involved in carrying on a business of providing a taxi service or booking service and ultimately creates better safety outcomes for customers.

Several submissions raised concerns about the prescribed requirements for a safety management system in the proposed Regulation. For example, Uber’s public submission states:

“Given the broad drafting of these provisions, it would be beneficial if the Point to Point Transport Commissioner provided further guidance on this provision as part of industry education and consultation.”

The Point to Point Transport Commissioner has commenced working with industry to ensure the requirements of the legislation are understood.The Point to Point Transport Commission is implementing an extensive education campaign for the industry, involving a range of activities such as roadshows and workshops. Many of these activities began well in advance of the finalisation of the Regulation.

3 Vehicle standards

3.1 Wheelchair accessible taxi services

During the public consultation, stakeholders raised a number of matters associated with wheelchair accessible services.

Both the NSW Taxi Council and the NSW Country Taxi Operators Association sought clarification on when drivers of Wheelchair Accessible Taxis (WATs) were allowed to start and stop their fare calculation devices when transporting passengers in a wheelchair.

The proposed Regulation originally said that the driver of a wheelchair accessible vehicle must not start the fare calculation device before the taxi is ready to safely transport a passenger in a wheelchair.

As the NSW Taxi Council noted in its submission:

“[T]he current practice is for taxi drivers to first “set up” the vehicle ready to load the passenger and then to start the meter at the commencement of the passenger boarding the vehicle.”

Transport for NSW has now clarified in the final Regulation that a fare calculation device in a WAT may not be started until the passenger is safely loaded. This ensures passengers in wheelchairs are treated the same as other passengers. The Wheelchair Accessible Taxi Driver Incentive Payment which is paid when drivers carry a passenger in a wheelchair was increased from $7.70 (GST excl) to $15 (GST excl) on 1 July 2016 as part of the broader point to point transport reforms. This payment is designed to improve reliability and response times for passengers, and covers the time it takes for a WAT driver to ensure a passenger in a wheelchair is safely and securely assisted into the vehicle before the fare begins and assisted out of the vehicle at the end of the journey after the fare ends.

3.2 Digital displays prohibited

The Regulation originally proposed that point to point transport vehicles be prohibited from displaying any ‘digital or other moving image’. This was due to concerns that digital displays fitted to passenger vehicles could be a distraction for other drivers. Transport for NSW received feedback from a number of stakeholders that the provision as initially drafted required clarification. Further, it was suggested that digital displays with static images that can be updated periodically should be permitted on point to point transport vehicles in NSW. It was argued that displays such as these fitted to taxis are common internationally.

In its submission, CabMedia stated:

“We have seen improved advertising technologies such as Static Digital Displays being implemented in the OOH [Out-of-home] advertising industry by replacing traditional Static Print signages.”

According to CabMedia, there is a financial benefit for the point to point industry in allowing static digital displays. It suggested that:

“Injecting revenue into the PTP transport industry by generating additional revenue for operators and drivers of PTP transport services with no additional cost to the operators and drivers. This will be seen as a welcomed change to create financial sustainability particularly in the taxi industry given the proliferation of ridesharing in the past few years has resulted in decreased earning capacities to taxi operators and drivers.”

Other stakeholders also supported permitting digital displays on passenger vehicles including; Fare Media, MOOH, Ad Riders, Non-stop Media, as well as the NSW Taxi Council.

Transport for NSW notes that there are NSW Road Rules and vehicle standards in place that already regulate digital displays fitted to vehicles. According to NSW Road Rules 2014 rule 299:

(1) A driver must not drive a vehicle that has a television receiver or visual display unit in or on the vehicle operating while the vehicle is moving, or is stationary but not parked, if any part of the image on the screen:

a)is visible to the driver from the normal driving position, or

b)is likely to distract another driver.

Maximum penalty: 20 penalty units.

The NSW Road Rules 2014 rule 219 says:

A driver must not use, or allow to be used, any light fitted to or in the driver’s vehicle to dazzle, or in a way that is likely to dazzle, another road user.

Maximum penalty: 20 penalty units.

Furthermore, the vehicle standards outlined in Schedule 2 to the Road Transport (Vehicle Registration) Regulation 2007 prohibit vehicles from being fitted with or displaying certain coloured lights. Clause 124 (2) provides (with the exception of certain vehicles such as emergency vehicles, tow-trucks, oversize vehicles etc) that a vehicle must not display or be fitted with a light that flashes or rotates, shows a red light to the front, shows a white light to the rear, or shows a blue light.

These rules and standards imposing restrictions on the display and operation of digital displays vehicles have been in place for more than 25 years, long before a number of recent technological developments in this space.

In light of recent technological developments, as wellas the issues raised by stakeholders, the Centre for Road Safetyat Transport for NSWis conducting a review of current NSW laws relating to digital displays on vehicles.

The review is examining whether the current road rules and vehicle standards governing digital displays on vehicles in NSW are appropriate and whether they effectively manage safety and distraction risks to drivers and other road users.

The Centre for Road Safety will be actively seeking feedback from industry once it has finalised its proposed position on how to move forward on these matters.

If regulatory amendments are recommended as a result of this review, these will be progressed in the usual manner.

In the interim, all references to ‘Digital Display units’ have been removed from the final Point to Point Regulation. This means that while digital display units are not prohibited from being fitted on taxis and hire vehicles, they must still adhere to the relevant rules within the NSW Road Rules 2014 (219 and 299) and the vehicle standards in the Road Transport (Vehicle Registration) Regulation 2007.Any television receiver or visual display unit which operates when the vehicle is moving or stationary (but not parked) would be prohibited if visible to the driver in the normal driving position or likely to distract other drivers. This requirement applies to television receivers or visual display units either in or on the vehicle and is subject to fines. Similarly, the display of lights which show certain colours or which dazzle other road users would be prohibited and subject to fines.

Transport for NSW will contact relevant stakeholders to provide further information about the review of the regulation of digital displays on vehicles in NSW.

3.3 Driver identification – taxis

Under the new safety framework taxi service providers need to ensure that drivers of a taxi have identification, issued by the authorised taxi service provider which is displayed in a taxi. It is considered important that taxi drivers have some form of identification in the taxi because of the anonymous nature of rank and hail journeys. Identification may be required in the event a passenger needs to make a complaint about the conduct of the driver, or to assist in tracking down belongings left in a taxi.

The proposed Regulation originally prescribed that the driver of a taxi must be provided with a driver identity document in the form of a card or electronic document containing the following:

(a) a photograph of the driver

(b) an identification number provided by the provider of the taxi service

(c) the name and logo of the taxi service

Transport for NSW received submissions from the taxi industry that said this rule was too prescriptive. The NSW Taxi Council supported the requirement for drivers to have identification, but in its submission noted that its: