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NSW Taxi Industry Reforms Continue
25 November 2004

New South Wales, Australia — Minister for Transport Services Michael Costa today announced the next stage of reforms for the State's taxi industry to improve customer service and promote competition.

This follows a four-month review of the taxi industry undertaken by Mr Allan Cook.

The Government's response to the review addresses minimum safety and service standards, training, driver availability, and decreased regulation of some aspects of the industry.

The reforms will include the development of premium taxi services and the immediate conclusion of the 'no destination' bookings trial.

Choice of dispatch system will be a matter for individual networks as the recent trial has shown there are a range of views on this initiative, and it should not be Government's role to mandate any particular dispatch system.

"Sydney is Australia's biggest taxi market with an estimated 1.6 million passenger journeys every week," Mr Costa said.

"While taxi drivers are working hard the industry hasn't been delivering the service customers expect.

"This is because the taxi industry is fragmented and no one group - drivers, operators or networks - has been directly responsible for delivering services to its customers.

"It's time the taxi industry took responsibility for running its business and the Government concentrated on the basics - passenger safety, vehicle standards and driver competence.

"That's why the NSW Government will set minimum standards for safety and reliability and remove those constraints which over the years have stifled competition and innovation.

"That's why we will allow the operation of innovative, customer-focussed small networks - previously operating as 'trunk radio groups'.

"And that's why we will allow the establishment of 'luxury' services operated by drivers of five years standing with no complaints recorded, driving a premium vehicle."

The Government's priorities for taxi reform include:

  • Allowing individual businesses to decide on whether to introduce a 'no destinations' booking system;
  • Reform of dispatch and network operations to increase competition and service innovation;
  • Development of premium taxi services, operating at the standard kilometre rate with the booking fee determined by the market and not by regulation; and
  • Reforming driver training to improve standards and remove impediments to new drivers entering the industry.

The report indicates 'nexus plates' are no longer serving their original purpose of subsidising wheelchair accessible taxis (WAT) and the issue will be referred to the Auditor General for advice.

The rules covering the issue and operation of 'nexus plates' have changed over time. This is a complex matter with significant financial, taxation and legal implications.

Mr Costa also announced the establishment of a Taxi Taskforce to oversee the reform process.

The Taskforce will be chaired by the Ministry of Transport and include the Taxi Council, the Country Operators Association, Transport Workers Union (representing the industrial interests of taxi drivers), a working taxi driver, the Chamber of Commerce, and Mr Cook.

Mr Cook will also chair two important working parties, one dealing with trunk network issues and the other examining reforms to driver workplace arrangements.

"While the Taxi Taskforce has more work ahead of it, these changes are a solid start to the improvements outlined in Mr Cook's report and I am pleased he will be continuing to contribute to the reform process," Mr Costa said.

The Taskforce will examine a number of issues, including training and occupational health and safety, traffic management in business districts, and WATs.

"I remain concerned about the availability of wheelchair accessible taxis," Mr Costa said.

"In the long term I see merit in universal wheelchair accessibility across the taxi fleet, but short term measures need to be introduced to encourage drivers to undertake this work."

The WAT Taskforce interim report provides the basis for a number of reforms, including:

  • A two-year trial of a 'set down' fee for WAT drivers undertaking wheelchair work, funded by the Government and commencing July 2005; and
  • Revamp of the incentive scheme for conversion of taxis or purchase of WAT vehicles.

Source Minister for Transport Services Press Release
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