DEPARTMENT OF TRANSPORT Come along for the ride! COMMERCIAL PASSENGER VEHICLE INDUSTRY REVIEW REPORT February 2016 DEPARTMENT OF TRANSPORT 1 MESSAGE FROM THE MINISTER FOR TRANSPORT ‘A new direction will be a focus on quality service and holds the customers as the primary driver.’ I am confident that this regulatory reform package will provide the basis for a competitive and sustainable commercial passenger vehicle (CPV) model, which allows for industry growth and development, is responsive to population growth pressure, has a focus on quality service and holds the needs of customers as its primary driver. This reform package forms part of the Department of Transport’s Roadmap for future Integrated Transport Planning and Investment which provides a long term, over-arching plan for delivering transport infrastructure and services to drive economic and social growth for all Territorians. In addition, this package also delivers on Government’s commitment to reducing red tape without compromising safety. The Northern Territory Government has listened to all stakeholders in the CPV industry, from those who drive a vehicle, to owning and operating a business, and most importantly passengers. The Territory Government considers the approved regulatory reforms are an acceptable balance between the interest of the CPV industry and the interest of consumers, and gives the industry every opportunity to take action to improve performance, increase service availability and attract and retain good drivers. Plan, through the Prosperous Economy objectives, by making the CPV industry more competitive and responsive to customer needs. This reform package will move the current CPV industry into a position where it will be able to meet the future growth of the Territory by providing better quality services to consumers, having increased access to key transport services, providing a co-regulatory relationship between Government and industry and moving towards an innovative and demand response environment. These are exciting times for the Northern Territory. The Hon Peter Chandler Minister for Transport February 2016 This package forms a key element of the Northern Territory Government’s Framing the Future Strategic DEPARTMENT OF TRANSPORT 3 CONTENTS Message from the Minister for Transport 3 Executive Summary 1.1 The Need for Change 6 6 1.2 Consultation 6 1.3 Industry Reform Package 7 1.4 Summary 7 1.5 Government Decisions 8 1. Overview of the Report 9 2. Review Process 2.1 Policy Context 10 10 2.2 Consultation Undertaken 3. Quality Service and Quality People 3.1 Issues Raised in the Review Position Paper 11 11 3.2 Results of the Consultation Process 11 3.3 Government Decisions 14 4. Safety 4.1 Issues Raised in the Review Position Paper 17 17 4.2 Results of the Consultation Process 17 4.3 Government Decisions 18 5. Quality Infrastructure 5.1 Issues Raised in the Review Position Paper 19 19 5.2 Results of the Consultation Process 19 5.3 Government Decisions 20 6. Industry Engagement 6.1 Issues Raised in the Review Position Paper 21 21 6.2 Results of the Consultation Process 21 6.3 Government Decisions 21 7. Open and Competitive Industry 7.1 Introduction 22 22 7.2 Issues Raised in the Review Position Paper 22 7.3 Results of the Consultation Process 22 7.4 Options for Reform 24 7.5 Government Decisions 27 8. Regulatory Complexity 8.1 Issues Raised in the Review Position Paper 28 28 8.2 Results of the Consultation Process 28 8.3 Government Decisions 29 9. Resourcing CPV Reform (Fares and Fees) 9.1 Issues Raised in the Review Position Paper 4 10 30 30 9.2 9.3 Results of the Consultation Process Government Decisions 30 31 10. Additional Recommendations 10.1 Introduction 32 32 10.2 Additional Issues Raised 32 10.3 Government Decisions 33 11. Implementing the Reform Package 34 12. Appendices Appendix A – Consultation Participants 35 35 Appendix B – Key Performance Indicators 37 Appendix C – Glossary 40 TABLES Table 1 - Key Performance Indicators for the Taxi Industry 37 FIGURES Figure 1 – CPV Industry Meeting Safety and Service Standards for the Past 12 Months 11 Figure 2 – Satisfaction with Networks Managing Complaints 12 Figure 3 – Satisfaction Rating for Customer Service, Presentation of the Driver and Condition of the Vehicle 12 Figure 4 – Training Requirements for all New Taxi, Minibus and Private Hire Drivers 12 Figure 5 – Industry – Driver Protection Screens 17 Figure 6 – Passengers – Driver Protection Screens 18 Figure 7 – Infrastructure at Ranks 19 Figure 8 – Own and Operate Taxi and or Increase their Taxi Fleet 22 Figure 9 – Removal of the Taxi Cap 23 Figure 10 – Use of Services if more Taxis were Available 23 Figure 11 – Proposed New CPV Categories 28 Figure 12 – Similar Market Access and Annual Fees for Licence Categories 29 Figure 13 – Simplifying Legislation 29 Figure 14 – Survey Results on Proposed Prepaid Taxi Fares Options 31 Figure 15 – NT CPV Consultation Period – Survey Responses – January 2015 35 Figure 16 – Gender of Participants – NT Survey 35 Figure 17 – Age Range of Respondents – NT Survey 36 Figure 18 – Disabled Respondents – NT Survey 36 Figure 19 – Regional Breakdown – NT Survey 36 DEPARTMENT OF TRANSPORT 5 EXECUTIVE SUMMARY The Northern Territory Government commenced a Review of the Commercial Passenger Vehicle (CPV) industry. The intention of the Review was to create a modern, safe, innovative CPV industry that meets the needs of a growing, diverse population and offers opportunities for drivers and operators to achieve growth in the industry within a competitive market environment. This Report provides a summary of the Review process, an overview and analysis of comments received during the consultation process, and the Government plan to put customers at the centre of the Review and achieve improvements in the CPV industry. 1.1 The Need for Change A Review Position Paper, ‘Come Along for the Ride!’, released in November 2014, highlighted a range of issues which had identified the need for change. These issues included: ■ the need for a reliable and professional customerfocused service; ■ improved services for people living with disabilities; ■ addressing practices that result in poor customer service; ■ improved safety for drivers and passengers; ■ addressing the service gap between demand and supply; ■ addressing service reliability; ■ taxi driver ability to enter the industry in their own right; and ■ addressing the illegal sub-leasing of taxi licences. Throughout the consultation process community members consistently commented on poor taxi service and availability. There has also been growing concern within Government, and industry, about operators who are illegally sub-leasing taxis to drivers. These arrangements have a negative impact on both the industry and customer service. Extensive consultation with the taxi industry confirmed the fact that industry representatives are keen to improve the reliability and quality of services. Industry representatives identified the following barriers to achieving this goal: ■ the perceived lack of enforcement of regulations by Government. The general view of taxi industry experts, and of Government, is that over-regulation results in: ■ industry stagnation; ■ a lack of incentive to promote service quality; ■ a lack of capacity to meet increasing demand; ■ late night service shortages; and ■ increases in allegations of illegal taxi licence subleasing. These concerns confirm the need for flexibility in the provision of passenger transport services to meet community needs and expectations. 1.2 Consultation A comprehensive consultation process was undertaken following the release of the Review Position Paper. Briefings were held throughout the Northern Territory including 20 information sessions with industry representatives and other key stakeholders in November and December 2014. A public survey was also conducted to ascertain the views of consumers, industry representatives and other stakeholders. There was a significant response to the consultation process with 138 submissions received along with 396 responses to the survey. The following is a summary of that response. Of the 25 recommendations, 20 received clear support. These related to: ■ addressing service quality for people living with disabilities; ■ the application of one license fee to those having similar market access; ■ improving the standards of operators within the industry; ■ having no real authority to discipline poor performers; ■ ■ individuals not being held accountable for their actions; addressing the issue of unacceptable behaviour of some customers; ■ taxi driver ability to enter the industry in their own right; improving infrastructure at ranks and safety systems within vehicles; ■ the attitudes of some drivers regarding the provision of quality customer service; and use of the Australian Consumer Price Index (CPI) to set taxi fares; ■ improving consultation with industry and the travelling public; and ■ ■ 6 ■ specific arrangements for the application of prepayment of taxi fares. Several recommendations received support and opposition equally. These related to: ■ the potential use of point-to-point ridesharing services; ■ creating an unrestricted taxi industry; ■ combining taxis and minibuses into the same CPV category; and ■ deregulating the Courtesy Vehicle Category. The issue of the potential removal of the cap on taxi licence numbers elicited polarised views from within the taxi industry. Drivers support the removal of the cap and operators do not. The recommended 2-yearly review of taxi fares was not supported. An annual review, using the CPI as a benchmark, was preferred. The consultation process resulted in an additional 136 recommendations submitted for consideration. Of these, 65 recommendations complemented the original recommendations, suggested changes to operational requirements, or raised questions that were worthy of further examination in the Review. The remaining recommendations were not further considered for one or more of the following reasons. must be undertaken in conjunction with the necessary legislative and regulatory changes. Reforms that do not require legislative change can be implemented in a logical and strategic order. Where relevant, further discussion with industry and consumer representatives will finalise operational and administrative processes in delivering the reforms. Physical and human capital improvements are required to move towards a modern, safe and innovative CPV industry. Adequate resourcing of reform implementation is required for effective and sustainable reform. 1.4 Summary The need for regulatory reform within the CPV industry in the Northern Territory is widely accepted. Research and consultation overwhelmingly supports the conclusion that the CPV industry in the Northern Territory is over-regulated, restrictive, and insufficiently customerfocussed. Creating a culture of customer-focus in the CPV industry remains the key challenge for the future. The decisions presented within this Report focus on achieving this objective. The safety of all passengers, particularly those who are more vulnerable, and drivers, was fundamental to the Review process. The decisions presented within this Report have a clear safety focus. Strategies include: ■ The recommendation did not represent a majority view. ■ public education campaigns; The suggested process would increase red tape and/ or be anti-competitive. ■ improving infrastructure within vehicles and at ranks; ■ ■ strengthened entry and retention criteria for industry; ■ The scope of the recommendation was outside the scope of the Review and the Department of Transport’s responsibilities. ■ an improved complaint management system; and ■ clear statements of rights and obligations and service delivery standards for the industry. ■ The recommendation may result in unsafe practices. ■ The issue was adequately addressed by the original recommendations. ■ The recommended direction would provide an unnecessarily complex regulatory model. Education will be a significant part of enforcement and will assist industry to better understand both its obligations and the potential consequences of noncompliance or poor service quality. Passengers also need to understand the consequences of unacceptable behaviour. This will be addressed by a ‘Respect your Driver’ education campaign. 1.3 Industry Reform Package The reforms outlined in this Report have been developed as an overall package with a number of key elements. As a package, the success of each element is dependent on the success of other key elements. The reforms require legislative amendments and policy, systems and administrative changes. The reform package will result in long-term benefits to the community, the CPV industry and other stakeholders. A number of reforms will be delivered in the near future with the remaining reforms phased in over time. Successful implementation of the reform package requires that system, administrative and policy changes Government decisions presented in this Report will deliver the Review goals of a high quality, safe and responsive CPV industry. This will be achieved by providing a contemporary regulatory approach, supporting industry investment and growth, imposing minimal regulatory burden and recognising the priority and needs of passengers by: ■ having customer service as the primary focus; ■ enhancing the safety of both passengers and drivers; ■ encouraging an industry in which quality people provide quality services; ■ minimising red tape where safety is not compromised; DEPARTMENT OF TRANSPORT 7 ■ adopting a co-regulatory approach in which industry takes a more active role in self-regulation; ■ providing a rigorous standards-based accreditation framework that includes key performance indicators (KPIs); and ■ providing a credible enforcement presence. Regulatory Complexity ■ Amend the Commercial Passenger (Road) Transport Act to replace the current 9 categories of licence with 5 categories, namely Bus, Taxi, Minibus, Private Hire and Charter. ■ Regulate that vehicles within each category will have similar market access and will pay the same annual licence fee. ■ 1.5 Government Decisions Amend regulations to reflect the fact that Courtesy Vehicles will no longer be regulated as a CPV category. Drivers will be required to hold a current CPV identification card. ■ An overview of the Northern Territory Government’s decisions is provided below. Develop a single body of regulations to simplify the current complex system. Resourcing CPV Reform (Fares and Fees) Quality Service and Quality People ■ Adopt a new taxi fare setting methodology based on the Australian Consumer Price Index. ■ Review taxi fares annually. ■ Mandatory prepaid taxi fares will be introduced at selected locations, between 10 pm and 5 am Friday and Saturday nights. Airport pickups are excluded. This strategy will be supported by appropriate infrastructure including signage and a public education campaign. Achieving improvements in the CPV industry will require adopting the comprehensive and integrated package of measures detailed in this Report and dedicating the required resources, both physical and financial, over a sustained period. ■ Develop an enhanced and expanded Code of Conduct ■ Enhance training for taxi and minibus drivers and introduce mandatory operator training ■ Regulate for mandatory taxi network membership ■ Increase powers and responsibilities of networks, operators and drivers ■ Introduce an annual mystery shopper program Additional Recommendations ■ Introduce a Territory-wide driver award program ■ Expand the on-line payment system to include additional CPV transactions ■ Expand the Lift Incentive Scheme to all Territory residents permanently reliant on a wheelchair or mobility ■ Reduce electronic payment surcharges to a maximum of 5% (inclusive of GST) Safety ■ Improve in-car security cameras ■ Introduce an annual education campaign such as ‘Respect your Driver’ ■ Investigate options on providing a security presence at high use ranks when required and work with industry on investigating options for marshals at high use ranks such as the airport and city. Quality Infrastructure ■ Upgrade taxi and minibus rank infrastructure ■ Introduce network and fleet livery standardisation Industry Engagement ■ Remove the requirement for the CPV Board ■ Continue and expand industry forums Open and Competitive Industry ■ Maintain the cap on taxi licences in Darwin and Alice Springs for the next 12 months with a view to increasing or removing the cap in the future ■ Release 13 standard taxi licences in Darwin on hold since the commencement of the CPV review through a ballot ■ No taxi cap will be introduced in regional areas 8 1. OVERVIEW OF THE REPORT The following were the core principles underpinning the considerations of CPV industry reform. SIMPLICITY Reduce regulatory burden and administrative red tape for industry stakeholders. CLARITY Ensure that reform options, recommendations and key information are clearly communicated. TARGETED Reform consistent with the objectives that drove the need for change. Chapter 2 of this Report provides an overview of the Review process. It provides the policy context and outcomes of the consultation process. Chapter 3 has a focus on improving services and the standard of behaviour of all stakeholders in the CPV industry, including passengers. Chapter 4 focuses on driver and passenger safety and includes a number of decisions to improve standards. Chapter 5 addresses infrastructure measures that will improve safety and standards in the CPV industry and for transport service consumers. Chapter 6 discusses industry engagement strategies including the removal of the statutory requirement for a CPV Board and the development of a consultation strategy. Chapter 7 addresses the current structure of the Taxi Category and proposed options to move to a less regulated and restrictive market. Chapter 8 focuses on reducing red tape by refining the CPV licence categories based on feedback received from industry, key stakeholders and the travelling public. Chapter 9 addresses the taxi fare setting methodology and the introduction of prepaid taxi fares. Chapter 10 addresses additional recommendations arising from the consultation process. Chapter 11 provides an overview of implementation of the reform package. The reforms outlined in this Report has been developed as an overall package with a number of key elements. DEPARTMENT OF TRANSPORT 9 2. REVIEW PROCESS On 20 November 2014, the Northern Territory Government commenced a Review of the CPV industry with a view to creating a modern, safe, innovative industry that will meet the needs of a growing, diverse population. The Review also sought to offer opportunities for drivers and operators to achieve growth in the industry within a competitive market environment. The reforms proposed in the Review Position Paper focussed on quality service and the needs of customers as its primary drivers. 2.1 Policy Context The Review linked into the following. ■ Northern Territory Government’s Framing the Future Strategic Plan through the Prosperous Economy objectives by making the CPV industry more competitive and creating jobs and business opportunities. ■ Department of Transport’s roadmap for future Integrated Transport Planning and Investment. This document provides a long term, over-arching plan for delivering transport infrastructure and services to drive economic and social growth for all Territorians. ■ Department of Business’s Red Tape Reduction Strategy, which aims to balance the approach to regulation, providing incentives for investment and innovation and supporting productivity by businesses and the community. ■ NT Government’s Improving Public Services Review Program, which identified Government services and business activities requiring improvement. established. The Working Group was comprised of 8 representatives of the taxi industry and 4 representatives of the Department of Transport. Taxi industry representatives consisted of 2 from the Taxi Council of the NT, 2 operators, 2 drivers, and 2 taxi communications and dispatch networks, one from Darwin and one from Alice Springs. Meetings were also held with taxi driver delegates who reported that they represented approximately 90 drivers in Darwin and that they did not believe their views were represented by any segment of the taxi industry currently engaging with Government. This Report provides the decisions taken by Government following consideration of the consultation process, the research undertaken by the Department of Transport and reflections on the direction that will serve the best interest of all Territorians. Darwin 2.2 Consultation Undertaken Nhulunbuy Katherine There was a significant response to the consultation process from key stakeholders. Over the 2 month consultation phase (20 November 2014 to 25 January 2015) 138 written submissions were received and there were 396 responses to the public survey 1. A list of key stakeholder organisations that provided written submissions is provided in Appendix A – Consultation Participants. NORTHERN TERRITORY Tennant Creek A total of 534 people participated in the Review process. The Department of Transport held 20 information sessions throughout the Northern Territory with a wide range of industry representatives, industry participants and community groups. Alice Springs Following the release of the Draft Report on 20 November 2014 the Department held further consultations, analysed submissions, re-considered critical issues and considered potential responses to issues raised. Government held meetings with the Taxi Council of the NT, individual taxi operators and taxi drivers. A CPV Taxi Category Working Group (CPVTC) was also 10 Uluru (Ayers Rock) It should be noted that survey questions were optional enabling respondents to select questions to which they would respond. As a result response numbers to particular questions vary. 1 3. QUALITY SERVICE AND QUALITY PEOPLE 3.1 Issues Raised in the Review Position Paper The Review Position Paper acknowledged that, in the rapidly changing environment of the Northern Territory, all industries and businesses need to constantly reconsider their structure, processes and approach to service delivery in order to maintain responsiveness, currency and the highest quality services. The CPV industry was no exception. The Review process has recognised a changing population, changing demand and the need for a changing industry. The Review Position Paper stated that it is well established that both the CPV industry and passenger experience will suffer if low standards are tolerated. In these circumstances the market is likely to be dominated by those who seek easy returns and do not provide the services the community both deserves and expects. The existing national training modules for taxi, minibus and private hire drivers do not always appear to be achieving the desired result of quality drivers providing high quality services. In addition, changes within the CPV industry provide an imperative to ensure high quality, safe services to consumers. Establishing service delivery standards and operating obligations for drivers, operators and networks will promote quality service and people within the industry. These obligations should include: ■ A range of discriminative actions against women and the disabled ■ An apparent lack of route knowledge ■ Poor language and communication skills ■ Poor levels of vehicle and driver cleanliness ■ Inconsistent service reliability ■ Questions relating to driver honesty ■ Unnecessarily lengthy routes taken ■ Fare refusal practices 3.2 Results of the Consultation Process 3.2.1 Code of Conduct and Customer Service Through the public survey, 95% (311 of 326) of respondents supported the development of a Code of Conduct that provides clear statements of rights and obligations, including service delivery standards for drivers. A variety of questions sought the views of passengers about the extent to which the industry met their expectations of safety and service standards. Figure 1 – CPV Industry Meeting Safety and Service Standards for the Past 12 Months ■ requirements to undertake appropriate training; ■ requirements to operate at times determined by passenger needs; 100% ■ delivery of a satisfactory level of service; 80% ■ complaint management; and 70% ■ provision of monthly reports to the Department of Transport to allow continued accreditation based on performance. 60% 50% 40% These obligations should be supported by: ■ a Code of Conduct for industry and passengers; ■ the introduction of an annual mystery shopper program to evaluate the quality of services provided by industry; and ■ a Territory-wide driver award program to recognise superior service provision. Issues raised in the Review Position Paper reflected feedback to the Department in recent years and included the following. ■ A lack of safe driving practices ■ A lack of courtesy and politeness ■ Inadequate assistance provided to aged passengers or those with disabilities Respondents 90% 30% YES NO 20% 10% 0% Figure 1 illustrates that 67%, or 114 of 171, of passengers responded to the question regarding their experience in the last 12 months by advising they were not receiving a satisfactory service and their safety had been compromised. DEPARTMENT OF TRANSPORT 11 Figure 2 - Satisfaction with Networks Managing Complaints condition of the vehicle in which they travelled was above average, fifty three (32%) rated it average and forty two (25%) rated it below average. 90% There were also a small number of positive comments. 80% ■ “Speaking as a frequent customer, every taxi ride I have had in the last 12 months has been at a very satisfactory level of service. A lot of the taxi drivers are happy, great to talk to and get me to my destination without any hassles.” ■ “I have seen all networks, you can’t say everyone follow the rules but comparatively overall its good. Sometimes safety of driver is at risk.” 70% 60% NO 50% 40% 30% 20% 10% YES 0% Figure 2 demonstrates that of the passengers who had lodged a complaint to a taxi or minibus network only 16% were satisfied with the outcome of their complaint. Figure 3 - Satisfaction Rating for Customer Service, Presentation of the Driver and Condition of the Vehicle 140 Respondents 120 60 safety and service standards for passengers; ■ safety and service standards for drivers; ■ community perceptions; and ■ the responsibilities of each party. Driver Training A total of 313 survey respondents, or 89%, reported a view that all new taxi, minibus and private hire drivers should complete the national training program and English assessment. Figure 4 below demonstrates strong support for this recommendation. 160 80 ■ 3.2.2 180 100 The consultations indicated that 95% of respondents wanted to see an improvement in the conduct of all parties and that current Codes of Conduct could be enhanced to take into account best practice in relation to customer charters regarding: Figure 4 – Training Requirements for all New Taxi, Minibus and Private Hire Drivers 40 20 16 Passenger 173 0 The customer service you have received The presentation of your driver The condition of the vehicle 23 Industry 140  Not applicable  Below average  Average  Good  Very good  Excellent Figure3 illustrates responses to a 3 part customer service question. ■ Customer Service – A total of 167 passengers responded. Sixty five (39%) rated customer service above average, Forty four (26%) rated it average and fifty eight (35%) rated the service below average. ■ Driver Presentation – A total of 167 passengers responded. Seventy (42%) advised their driver’s presentation was above average, fifty nine (35%) rated it average and 38 (23%) rated their driver’s presentation as below average. ■ Vehicle Condition – A total of 168 passengers responded. Seventy three (43%) advised that the 12 0 50 100 150 200 Respondents  Not Supported  Supported While this recommendation had the support of the Taxi Council, the CPVTC Working Group and Tourism NT, it was also reported that training alone will not guarantee quality drivers providing high quality service. New drivers, it was suggested, need to be supported and encouraged by operators and networks to utilise the skills and information learned from their training. The CPVTC Working Group supported this recommendation and suggested consideration be given to including further training modules that are Northern Territory specific. The CPVTC Working Group also recommended that the cost of training be minimised to avoid it constituting a barrier to new industry entrants. 3.2.3 Remaining in the Industry The survey gathered views about driver and operator compliance as a requirement for remaining in the industry. A total of 119, or 80%, supported a requirement of satisfactory compliance over the previous 5 years. Some industry representatives reported that this would promote high quality service delivery and customers’ confidence in the industry. The CPVTC Working Group also supported this recommendation and added the need for refresher courses or assessments as road rules are consistently updated. The CPVTC Working Group supported the implementation of KPIs for the taxi industry and industry performance improvement resulting from enhanced accountability. The CPVTC Working Group have agreed on the proposed KPIs that should be implemented Territory wide. Appendix B – Key Performance Indicators summaries the agreed KPIs. 3.2.5 Powers and Responsibilities There was broad support for networks, operators and drivers to assume more responsibility for providing highquality customer-focused services. ■ A total of 249, or 72%, of respondents agreed that networks should be provided with increased regulatory powers to deal with complaints and enforce standards. ■ Respondents also supported increased regulatory powers for operators to enable them to manage complaints and enforce overall standards. ■ “MPT vehicles are not being made to do wheelchair jobs”; and ■ “the operators do not care about the safety and service standard. They just want to pay less on maintenance”. Operator Training A total of 126 industry representatives responded to a survey question regarding training in establishing and managing businesses for new operators. There was overwhelming support from 79% (99 respondents) and the CPVTC Working Group. This training would provide operators with the tools necessary to manage a successful business. 3.2.4 ■ All respondents agreed that drivers should adhere to the Code of Conduct, be professional and courteous, drive safely and defensively in all weather and traffic conditions and comply with all relevant legislation. In the survey, industry representatives were asked whether they believed the company, operator or network for which they worked was meeting appropriate safety and service standards, including managing complaints. Most responded positively although 31% did not believe these criteria were being met, reporting that: ■ “companies are not acting on complaints, especially drivers in company owned vehicles”; ■ “rules and regulations are not being enforced”; The Taxi Council supported increased powers and responsibilities for networks to ensure standards and safety are maintained. This could be achieved through mechanisms such as KPIs, an operator and driver sanctions system, a new complaints management and compliance system, increased enforcement and data reporting. The Taxi Council proposed an appeals committee be established. The Taxi Council recommended compulsory membership of a taxi network. The Taxi Council also recommended that in the event of an operator being expelled from a network, they not be permitted to join another network. Implementing a co-regulatory approach with industry along with strengthen regulations will assist in ensuring that those MPT drivers which may not be providing the expected level of service to the disabled community are dealt with accordingly. Data Collection Data collection will assist in ensuring CPV operators provide best practice services and encourage networks and operators to offer more than transport for a fee. Services would include: ■ maintaining the highest possible safety standards for passengers and drivers; ■ reporting and resolving complaints; and ■ keeping good management records and vehicle maintenance logs. It is intended to enhance the data collected from networks, operators and meters to allow on-going performance-based accreditation and to facilitate greater understanding of industry operating parameters. This will allow the Department to monitor compliance and ensure the industry is meeting the KPIs in relation to service standards and availability. Complaint Management Systems Complaints about service delivery should primarily be the responsibility of service providers. Mechanisms to deal with complaints should be readily accessible. A Departmental database would also achieve the following: ■ improved service standards; ■ improved customer relations; and ■ meeting Australian Standard requirements. The system would allow consumers to enter complaints on the Department’s website. DEPARTMENT OF TRANSPORT 13 3.2.6 Point-to-Point Ridesharing Services A number of Australian jurisdictions where commercial point-to-point ridesharing transport services such as Uber, is currently operating illegally, are reviewing the impacts of ridesharing in their State. Additionally, Transport Ministers agreed in 2015 to share learnings of the future challenges and work towards harmonising standards and regulations, to ensure that Australia is well positioned to adopt new technologies.The NT Government considers it prudent to wait until this work is undertaken before any decisions regarding the future of ridesharing transport services in the Territory are taken. The Northern Territory is a small market and the reforms that have been announced will have a fundamental impact on the industry and will take some time to bed down before further reforms would be appropriate. 3.2.7 Mystery Shopper Program A total of 340 people responded to the recommendation regarding the introduction of an annual mystery shopper program across the NT for all CPV categories. There was overwhelming support, 84% or 287 respondents, for this recommendation. The mystery shopper program would provide consumer feedback on CPV services including; waiting times, presentation of the vehicle and driver, fares charged, customer services and the overall experience. Results would assist Government and industry to recognise superior customer service, potential improvements and address compliance issues. 3.2.8 Territory-wide Driver Award Program A total of 335 people responded to a question regarding a CPV driver award program with 74% supporting this strategy to encourage drivers to provide better services. 3.3 Government Decisions QS1: Develop a Code of Conduct providing clear statements of rights and obligations, including service delivery standards, for each of the following. QS3: Strengthen licence retention criteria for drivers and operators for each licence category by requiring applicants to demonstrate a satisfactory history of compliance over the previous 5 years. QS4: Regulate for mandatory taxi communications and dispatch network membership. QS5: Provide regulations for operating standards for networks, operators and drivers including the following. a) Networks will have increased regulatory power and responsibility to: - actively monitor and direct the performance and standards of operators and drivers through consistent application of procedures and ensuring adherence to safety and service standards contained in, but not limited to, legislation, Key Performance Indicators, Codes of Conduct, licence conditions and Information Bulletins; - implement and maintain customer complaint handling procedures that are consistent with the Australian Standard AS ISO 10002-2006; and - provide monthly reports, or as requested, to the Department of Transport on all booked, rank and hail work provided by that network, including but not limited to: ■ number of drivers affiliated and active on the network; ■ wait times; ■ number of jobs received; ■ vehicles available; ■ answering time of telephone calls; ■ pick up and drop off destinations; ■ driver and passenger safety; and ■ complaints by type and time to resolve. a) Networks b) Operators will be required to: b) Operators - actively monitor the performance of their drivers to ensure they adhere to appropriate safety and service standards contained in, but not limited to, legislation, Codes of Conduct, Key Performance Indicators, licence conditions and Information Bulletins; and c) Drivers d) Passengers QS2: Enhance the current industry requirements to require all new industry entrants to undertake the following. a) Drivers – Complete the current national training program, English assessment and driving assessment for taxi and minibus drivers by approved registered training organisations. b) Operators – Complete a training course, such as the free Department of Business training course, regarding establishing and managing a 14 business. - refer any complaints regarding drivers to the network for action and recording. c) Drivers will maintain current requirements including: - adhere to the Code of Conduct which establishes minimum industry protocols and standards of customer service; - be a professional representative of the industry and drive safely and defensively in all weather and traffic conditions; and - conduct themselves in a professional and courteous manner and comply with all relevant legislation. The department of transport will work with industry to develop driver uniform standards for inclusion in the Code of Conduct. QS6: No change to current legislation regarding point-to-point ridesharing transport services. QS7: Introduce an annual Mystery Shopper Program to evaluate the quality of services provided by industry. QS8: Introduce a Territory-wide driver award program. The mystery shopper program would provide consumer feedback on CPV services including; waiting times, presentation of the vehicle and driver, fares charged, customer services and the overall experience. DEPARTMENT OF TRANSPORT 15 4. SAFETY 4.1 Issues Raised in the Review Position Paper The Review Position Paper acknowledged that safety of vulnerable passengers was a key challenge in the Territory, nationally and internationally. The Review Position Paper stated that reviewing and improving safety infrastructure such as in-car security cameras to incorporate audio, continuous recording and improved picture quality would assist in meeting this challenge. In-car security infrastructure was reported to be an invaluable tool for deterring potential offenders, providing evidence for prosecutions and assisting with complaint management investigations. Unacceptable customer behaviour also impacts on the industry’s ability to attract new entrants, both drivers and operators. The Review Position Paper suggested that an annual education campaign regarding acceptable passenger behaviours could assist with addressing the safety of drivers in the CPV industry. 4.2 Results of the Consultation Process 4.2.1 In-Car Security Camera Infrastructure An overwhelming 86% (285 respondents of 331) supported improvements to in-car security camera infrastructure including audio, continuous recording and improved picture quality. Almost all key industry stakeholders, including the Taxi Council, 2 taxi networks, one minibus network and a Registered Training Organisation (RTO), supported the recommendation. 4.2.3 Driver Protection Screens The following options regarding driver protection screens were provided for consideration in the Review Position Paper: 1. Mandatory installation in all vehicles within the Taxi Category. 2. Mandatory installation on driver request. 3. Continue with the current arrangement of installing screens on a case-by-case basis on approval from the Department of Transport. Figure 5 and Figure 6 provide a summary of survey responses from both industry and passengers. A total of 123 industry representatives responded with 63% supporting the option of installing driver protection screens. Of 163 passengers, 64% supported the installation of screens on driver request. This equated to an average of 64% support. Figure 5 – Industry - Driver Protection Screens 100% 90% 80% 70% Advances to in-car security camera technology are fast moving and the current standards in the NT are insufficiently flexible to ensure safety standards are in line with these advancements. 60% 50% 40% Legal advice suggested live streaming of images from security cameras back to a network base could lead to a greater risk of privacy violations under the Privacy Act. 4.2.2 30% YES Education Campaign 20% 10% Through the survey, 88% of respondents, 287 of 328 supported the proposed annual campaign that would inform the public about acceptable and unacceptable behaviour. Passenger behaviour can at times be unacceptable, jeopardising the safety of drivers, other passengers and other road users. This issue had been recently demonstrated when a Darwin taxi driver was viciously assaulted 2. NO Percentage of Respondents The Review Position Paper acknowledged that drivers often experience unacceptable customer behaviour and/or behaviour which presents a risk to their personal safety. Previous stakeholder consultation has indicated that the maintenance of quality standards and safety in the CPV industry was a major issue and impacts on the travelling public’s perception of the industry. 0% NT News – Darwin taxi driver begged for his life when attacked by passenger possibly on drugs, 1 July 2015 – http://www.ntnews.com.au/news/northern-territory/ darwin-taxi-driver-begged-for-his-life-when-attacked-by-passenger-possibly-on-drugs/ story-fnk0b1zt-1227423411042 2 DEPARTMENT OF TRANSPORT 17 Figure 6 – Passengers – Driver Protection Screens 100% 90% 70% 60% 50% 40% 30% YES NO Percentage of Respondents 80% Having a safety presence at high risk locations was an issue raised by the CPV industry and passengers. 20% 10% 0% 4.2.4 Security Presence Having a safety presence at high risk locations was an issue raised by the CPV industry and passengers. There was strong support for Government to provide the authority to arrest offenders and respond to drivers’ requests for assistance 24/7 in Darwin and Alice Springs. NT Police response times were frequently raised in the survey, with respondents seeking better response times or dedicated resources to ensure safety is improved. 4.3 Government Decisions SA1: Raise the minimum standard of in-car security camera infrastructure in vehicles to include audio 18 and continuous recording and improved picture quality. SA2: Conduct an annual education campaign, similar to ‘Respect your Cabbie’, regarding acceptable behaviours. SA3: Driver protection barriers will be installed on a case-by-case basis at the request of drivers. SA4: Investigate options on providing a security presence at high use ranks when required and work with industry on investigating options for marshals at high use ranks such as the airport and city. 5. QUALITY INFRASTRUCTURE 5.1 Issues Raised in the Review Position Paper The Review Position Paper reported that ensuring infrastructure is maintained and upgraded to meet industry, public and safety expectations must be a priority. The Review Position Paper stated that infrastructure improvements and standards need to be adequately considered ensuring the application of standards that improve safety and the customer experience. Infrastructure includes taxi ranks and the standardised appearance and branding of network and fleet vehicles. The Review Position Paper stated that a competitive market should encourage operators to set high standards including well-presented drivers and vehicles. Quality services include operations that maintain the highest safety standards for passengers and drivers, report and resolve complaints, and maintain comprehensive management and vehicle maintenance records. 5.2 Results of the Consultation Process 5.2.1 Rank Safety Program In the survey 98% of 283 respondents agreed that a rank safety program should be put in place across the Northern Territory and that infrastructure should be maintained and upgraded to meet industry and passenger expectations and safety considerations. Tourism NT supported improvements to taxi rank infrastructure and advised that an upgrade of highuse facilities would improve the visitor experience and increase the feeling of safety of rank users. Figure 7 details 262 responses to the desirability of infrastructure features at taxi ranks. The suggested security presence at high use ranks is addressed in Chapter 4. The Taxi Council recommended that the Department of Transport work with industry and the relevant authorities to provide taxi bays at every suburban shopping centre across the NT, including increased taxi bays in the Darwin CBD. A rank safety program will be implemented to provide improved infrastructure to assist with security and comfort for passengers and drivers. Depending on the location and use of a specific rank, infrastructure may include: ■ information – signage, line marking and totem poles; ■ accessibility – boarding and alighting areas, rank queue railings, waiting areas, wheelchair spaces, tactiles and pedestrian crossings; and ■ street furniture – seating, shelter, CCTV and lighting. 5.2.2 Network and Fleet Livery Through the survey, 269 people provided views as to whether livery of a network or fleet should be consistent, including the shade of colour on network or fleet vehicles. Of these respondents, 182 including 87 from Figure 7 – Infrastructure at Ranks 250 200 200 176 154 150 11 1 4 3 Rubbish Bin 3 Queue Rails Kerbing for Disabled etc 18 Phone 5 Water 2 Totem Poles 2 Toilets 1 Tactile indicaters 33 Cover / Shade / Shelter Security CCTV Lighting 0 22 Car Shade 50 Child Restraints / Seats 100 Seating Number of Respondents in Favour This data demonstrated overwhelming support from both industry and passengers for seating, lighting and closed circuit television (CCTV) to be provided where appropriate. DEPARTMENT OF TRANSPORT 19 industry, supported consistency of livery. Network and fleet standardisation cannot be implemented immediately and implementation will occur as vehicles are replaced and as new vehicles enter the industry. 5.3 Government Decisions QI1: Agree infrastructure priorities with industry to achieve a standard for ranks including provision of CCTV, lighting, seating and directional tactile indicators over a period of time and as funding permits. QI2: Amend the In-Service Maintenance Standards to achieve network and fleet livery standardisation over time. 20 6. INDUSTRY ENGAGEMENT 6.1 Issues Raised in the Review Position Paper The Review Position Paper acknowledged the difficulty of engaging with industry through a single body, given the segmentation of the industry and competing interests, was recognised in the Review Position Paper. While other industry sectors have a single liaison body, the CPV industry across Australia is represented by a variety of organisations. A CPV Board was established in the NT under the Commercial Passenger (Road) Transport Act 2003. The CPV Board has not played a significant role in the CPV industry for over 3 years and has been subsequently disbanded. It was proposed that the legislation be amended to remove the statutory requirement for a CPV Board. 6.3 Government Decisions IE1: Remove the statutory requirement for a CPV Board. IE2: Develop a CPV Consultation Strategy including: ■ consolidate Government industry liaison through industry forums in Darwin and Alice Springs and expand into other markets as required; and ■ Department of Transport to meet quarterly with peak industry bodies. 6.2 Results of the Consultation Process 6.2.1 CPV Board and Consultation Strategy A total of 157 people provided their views on the removal of the CPV Board with 61% supporting this recommendation. There was broad and strong support to remove the CPV Board from the CPV industry, including from the Taxi Council. As part of the survey, passengers were asked if the current industry forums in Darwin and Alice Springs should have a representative ensuring the passenger perspective is also considered. A total of 134 passengers responded with 72% agreeing that the forums should be expanded to include a passenger representative. A Working Group has been established specifically for this specialised transport sector and meets as required in Darwin. An Alice Springs CPV Advisory Committee has also been established which includes a disability advocacy representative. DEPARTMENT OF TRANSPORT 21 7. OPEN AND COMPETITIVE INDUSTRY 7.1 Introduction There were 3 broad industry reform objectives underpinning the Review. ■ Improved quality of service - Improved reliability of service (reduced wait times for passengers). - Reduced or no short trip refusals. - Driver training to improve quality of customer service. ■ Improved safety - Direct safety improvements – reducing the number of in-taxi assaults experienced by both passengers and drivers. - Indirect safety – reduced incidences of passengers waiting, drink and/or drug driving and on-street violence in entertainment precincts. ■ Meeting customer demand - Improved availability of regular vehicles. - Improved availability of vehicles for customers requiring disability access. 7.2 Issues Raised in the Review Position Paper The Review Position Paper stated that demand for services, customer-focus and the need for high quality reliable services should be the key determinants of the availability of taxi licences. A customer-focussed industry should support strategies that meet the needs of passengers as an industry priority. The Review Position Paper stated that Government was conscious of the need to foster competition within the industry and to focus on service and quality. The Review Position Paper stated that there was a need to foster competition within the industry and to focus on service and quality. The cap on taxi licences in Darwin and Alice Springs was reported to prevent the growth in vehicle numbers, restrict service availability and prevent competition resulting in reduced quality of service. The cap was reported to be preventing drivers wishing to enter the industry in their own right from doing so. To address poor services to people living with a disability, or those who are less mobile, a target for the issue of new taxi and minibus licences as Multiple Purpose Taxis’ (MPTs) was proposed. 7.3 Results of the Consultation Process 7.3.1 A total of 384 people responded to the recommendation to move the taxi industry to an unrestricted market. Of these 57% (220 respondents) were supportive of a less restrictive industry model. Forty three (43%), or 164 respondents were not supportive. The supporting views cited improved reliability and a reduction in waiting times, which would lead to improved customer service. Those not supporting a less restrictive market expressed concerns suggesting that an unrestricted industry may result in mass industry entry causing financial instability for existing operators. Through the public survey 141 industry representatives provided views as to whether they would seek to operate their own taxi or increase their current fleet numbers. Figure 8 below demonstrates strong support from drivers wanting to start their own business (75% of drivers) as well as 37% of operators wishing to expand their current business. In comparison, 22 operators (63%) reported a desire to keep their market share and not expand the industry to include new entrants. Figure 8 – Own and Operate Taxi and or Increase their Taxi Fleet The Review Position Paper raised a range of issues that identified the need for reform including: 80 ■ addressing the service gap between demand and supply; 70 ■ the need for a reliable and professional customerfocused service; 50 ■ improved services to people living with disabilities; ■ improved safety for drivers and passengers; ■ driver complaints that they are unable to enter the industry as operators; and ■ addressing the allegedly widespread sub-leasing licence issue. Unrestricted Taxi Industry Respondents 60 40 30 20 10 0 CPV Driver CPV Operator CPV Network  Not Supported  Supported 22 Figure 9 – Removal of the Taxi Cap 120  Not Supported  Supported Respondents 100 80 60 40 20 0 CPV Driver CPV Operator CPV Network Passenger Figure 9 demonstrates strong support from 106 drivers and 100 passengers, including 14 operators, for a move to an unrestricted taxi industry. Through the survey passengers were asked if taxi availability impacted on their taxi usage. Figure 10 illustrates the finding that if demand was met, and the service was more reliable, taxi usage would increase. Figure 10 – Use of Services if more Taxis were Available Not Supported 59 7.3.2 Supported 77 Service for People Living with Disabilities or are Less Mobile A total of 324 people provided views on a review of the number of MPTs and Minibuses (wheelchair assessable vehicles) in each region across the Northern Territory. There was overwhelming support for a review, with 99% agreeing that a minimum percentage of overall fleet numbers should be adopted. Analysis of the survey results found that those who identified themselves as living with a disability preferred a MPT percentage of the total fleet of between 25% to greater than 60%. There was clear support for a review of the minimum percentage and an increase in MPT taxis and minibus vehicles across each region. Several submissions recommended that more MPT taxi licences should be released. DEPARTMENT OF TRANSPORT 23 7.4 Options for Reform ■ During the consultation process, to provide direction for the Review process a number of Options for reform were identified. The Department of Transport has identified the benefits and challenges of these and other Options. Retains restrictions on numbers of licences in the short term, which may not allow all drivers wanting a licence being able to obtain one. ■ Will require further consideration of the financial sustainability of the industry in the medium term. 7.4.1 Option 1 – Maintain the Cap - Ongoing 7.4.3 Option 3 – Industry Buy Back Benefits This Option would provide operators in the taxi industry the opportunity to buy back taxi licences from Government and provide the capacity to sell licences for a market value. Operational requirements could include the following. The benefits of this Option would be : ■ Licensees could still pay an annual licence fee to Government. ■ Purchased licences could be sold to another accredited operator. ■ Government leased licences would not be transferable. ■ Sub-leasing, for both purchased and leased licences within agreed standards, would be possible. ■ Both parties, operators and sub-lessors would have equal responsibility and accountability. This Option would maintain a restricted taxi market in Darwin and Alice Springs based on a population ratio of 1 taxi per 900 people. ■ Financial sustainability of existing operators ■ No requirement for regulatory change Challenges Ongoing restrictions on the number of taxi licences may result in an undersupply of taxis which would impose costs on passengers in the form of higher fares, longer waiting times, less reliable taxi services and reduced service innovation and differentiation. Maintaining the cap indeterminately may result in: ■ demand remaining unmet; Benefits ■ a lack of a professional customer-focused service; ■ This Option would generate short-term revenue for the ■ inadequate services for people living with disabilities; ■ continuation of alleged widespread illegal sub-leasing of licences; and ■ a lack of opportunity for drivers to enter the industry as operators. 7.4.2 Option 2 – Maintain the Cap – Not Ongoing This Option would maintain the number of taxi licences in line with population in the short term, additionally releasing the licences currently on hold and reviewing the financial sustainability of the industry. Northern Territory Government. ■ This Option would entrench the market power of existing licence holders who would be able to purchase their licences. Challenges ■ This Option would not address any of the 3 objectives of reform (see 7.1). ■ This Option would have significant transitional challenges. ■ Other Australian jurisdictions are seeking to move away from this model. Benefits ■ Financial sustainability of the industry can be considered following release of the additional licences ■ The number of taxis, and capacity to meet demand, would not change. ■ Some drivers who wish to enter the industry would be able to do so through an allocation of the additional licences. ■ A further barrier to the entry of new industry participants in the taxi market will have been created. ■ More taxis would be available. ■ Government would have the capacity to release further licences (both standards and MPT) in 12 months time, by adjusting or removing the cap in response to service delivery KPIs to ensure demand is being met. This Option would result in unrestricted taxi numbers and create an open market for qualified and accredited operators. Licences would still be leased from the Northern Territory Government. ■ Reform that is not unnecessarily disruptive to industry or costly. 7.4.4 Option 4 – Remove the Cap Benefits ■ This Option would align with reform trends in the taxi industry nationally and internationally. ■ More taxi licences would increase competition. This would be expected to improve the quality of services, especially for customers with disabilities. ■ This Option would allow those drivers wishing to Challenges ■ Releasing additional licences may have some impact on current operators profitability 24 obtain a licence to do so. ■ Additional competition would be likely to increase pressure for innovation. ■ There would be greater capacity to meet demand as more taxis would be available. ■ Operators would reconsider their pricing structure, in light of increased competition, potentially resulting in a lower cost to passengers. Challenges The challenges of this reform Option align with the pressures of an increase in vehicle numbers. These would be likely to include the following. ■ Potentially compromise the financial viability and sustainability of existing operators and industry in general. ■ Enforcement of compliance of a larger number of vehicles would require increased funding. ■ There may be an initial oversupply of taxis, resulting in a reduction in service quality, and impact on current operator’s earnings. ■ This Option would result in significant objection from sectors within the taxi industry. ■ There may be a lower maintenance spend, depending on the level of enforcement, due to increases in competition. industry changes. ■ 7.4.6 This model represents a broader scale of reform than the other Options as, in addition to complete deregulation of fares and removal of the cap on licences, it would involve a restructure of the industry. Despite the scale of reform that would be required, it was considered that this Option warranted consideration as the model has a primary focus on improved customer service. Option 6 – Modified Cap This Option would establish a modified cap that maintains the number of standard taxi licences in line with population, while removing the cap on MPT vehicles. Benefits ■ Industry objections to the removal of the cap, and the unrestricted entry model for standard taxi licences, would be reduced while transitioning to an industry model which would be responsive to the demands of the market. ■ Drivers who wish to enter the industry would be able to do so through an allocation process or by obtaining an MPT licence. ■ More taxis would be available. ■ Customers with disabilities may have improved access to services. However survey data indicated that an excess of MPT licences, if they were removed from the Modified Cap criteria, is unlikely. ■ Government would have the capacity to release further licences (both standards and MPT) in 12 months time, by adjusting the cap in response to service delivery KPIs to ensure demand is being met. ■ Reform that is not unnecessarily disruptive to industry or costly. ■ Responds to demand including population growth pressures. 7.4.5 Option 5 – Transition to New Industry Structure In this model, currently operating in Singapore, Government would have a licensing and monitoring role. Licences would be issued to networks and all taxi drivers would be required to be members of a taxi network. Networks are responsible for meeting KPIs, complaint management and driver behaviour. In addition, KPIs are a trigger to release more taxi licences. Drivers are bound to the network for which they drive. The driver and the network negotiate remuneration. The size of the consumer market in the Northern Territory may prove insufficient to justify the establishment of multiple, competing networks. Challenges There may be some resistance from existing taxi operators as this Option would provide competition to their current market share with concerns of excessive MPT vehicles, however industry commentators have also highlighted the reduced profitability of MPTs due to higher operating costs as a deterrent to operating a MPT vehicle. Benefits This Option would provide Government with an industry that is structured around a relationship with a limited number of networks and is focused solely on performance standards. Challenges ■ Transition to this model would result in significant opposition from some industry stakeholders. ■ The transition process would be lengthy, costly and complex due to the scope and the scale of proposed DEPARTMENT OF TRANSPORT 25 7.5 Government Decisions OC1: Maintain the cap on taxi licences in Darwin and Alice Springs for the next 12 months with a view to increasing or removing the cap in the future. OC2: Release 13 standard taxi licences in Darwin on hold since the commencement of the CPV review through a ballot. OC3: No taxi cap will be introduced in regional areas. General Information Taxi Ballot Eligibility The ballot for standard taxi licences will be open to individuals or legal entities that: a) have current accreditation as a commercial passenger vehicle (CPV) operator; b) hold a current taxi CPV ID Card; c) does not already have a current taxi licence; d) has a good compliance history. A good compliance history is determined using a variety of factors such as but not limited to the below: ■ substantiated complaints against you; ■ driving history and whether you have a pattern of offences; ■ court matters; ■ the amount of warnings or suspensions issued to you showing a pattern of undesirable behaviours and service standards; and ■ pattern of behaviour relating to relevant legislation and regulations. Sub-Leasing of Taxi Licences Sub-leasing of taxi licences will remain illegal and offenders will be prosecuted. The Department of Transport will continue to work with the taxi industry to stop illegal sub-leasing activities. Multiple Purpose Taxi Drivers and Operators Drivers will not be able to reject a booked job that involves transporting wheelchair passengers. Enforcement action will be undertaken by those drivers who do not provide a priority service to people travelling in wheelchairs. DEPARTMENT OF TRANSPORT 27 8. REGULATORY COMPLEXITY 8.1 Issues Raised in the Review Position Paper The Review Position Paper highlighted the fact that there are currently 9 CPV licence classes in the Territory. This was reported to create confusion for both customers accessing CPV services and operators trying to assess the section of the market in which they can legally operate. The Review Position Paper suggested that, in a developing market, this creates tension between competing licence holders. The Review Position Paper proposed a reformed system, reflecting a deregulated approach, which would reduce the 9 categories to the following 4, grouping CPVs that have operational similarities. ■ Taxis (including minibuses which could be renamed Taxi Bus); ■ Bus (including route and flexi-route bus services); ■ Private Hire (may include some in the current limousine category); and ■ Charter (combining tourist vehicles, pre-booked private bus charters, special passenger and function vehicles and some limousines). Vehicles in each proposed category would have similar access to the market and pay the same annual licence fee. Courtesy vehicles would be unregulated as they are offered as part of an accommodation or recreational package at no additional cost to the consumer. 8.2 Results of the Consultation Process 8.2.1 Licence Categories deregulation of this category. The schematic below provides an overview of the 5 proposed categories. 8.2.2 Market Access A total of 164 people responded to the recommendation Courtesy Vehicle Deregulated Bus Motor Omnibus Special Passenger Charter Special Function A total of 333 people provided comment on the proposed licence categories. There was broad support for the proposed categories, with the exception of the proposed combination of minibuses into the Taxi Category. The consultation found that minibuses can operate differently to taxis. These differences include: ■ application of pre-set fares not regulated by Government; ■ prepayment of fares; ■ larger vehicles provide greater carrying capacity; and ■ minibuses provide extra services to rural and regional areas currently not provided by taxis. As a result of these differences there was industry opposition to combining minibuses with taxis. The CPVTC Working Group supported the reduction of 9 categories to 5, namely taxi, minibus, private hire, bus and charter. A total of 138 people responded to the survey question regarding potential deregulation of the Courtesy Vehicle Category. There was generally strong support for 28 Figure 11 – Proposed New CPV Categories Tourist Vehicle Limo Private Hire Private Hire Minibus Minibus Taxi Taxi that vehicles within each category should have similar access to the market and pay the same annual licence fee. Seventy percent (70%) supported this recommendation. Figure 12 below illustrates this support. Figure 12 – Similar Market Access and Annual Fees for Licence Categories Not Supported 30% 8.3 Government Decisions RC1: Amend the Commercial Passenger (Road) Transport Act to replace the current 9 categories of licence with 5 categories, namely Bus, Taxi, Minibus, Private Hire and Charter. a) The Bus Category will include only the route and flexi-route bus services such as urban services, airport shuttles, sightseeing and hopper services. b) Taxi Category will remain as is. Supported 70% Percentage of Respondents Summary The simplification of CPV categories provided an opportunity for each category to have a clearly articulated and simplified regulatory framework. Licence fees would need to be reviewed in line with a reformed industry and would need to reflect market access. Taxi and minibus categories have the greatest market access with exclusive rights to pick up passengers from ranks and to be hailed from the street. In addition: ■ the Minibus Category has less market access owing to limited access to ranks; ■ the Private Hire Category has substantially less market access being only authorised to use designated ranks, at special events and some functions; and ■ the Charter Category has the least access to the market with no rank or hail access. c) Minibus Category will remain as is. d) The Private Hire Category will remain as is. e) A new Charter Category will include tourist vehicles, pre-booked private bus charters, special function vehicles and special passenger vehicles. f) Those operators currently in the Limousine Category will be able to choose to be in either the Private Hire or a Charter category with relevant fees and market access. RC2: Regulate that vehicles within each category will have similar market access and will pay the same annual licence fee. RC3: Amend regulations to reflect the fact that Courtesy Vehicles will no longer be regulated as a CPV category. Drivers will be required to hold a current CPV identification card. RC4: Develop a single body of regulations to simplify the current complex system. 8.2.3 Legislation Of 143 people providing views on the current legislative system, 69% supported the move to a single body of regulations for the new categories. Figure 13 below summarises the consultation outcomes for a future legislative model. The CPVTC Working Group also supported a single body of regulation. Figure 13 – Simplifying Legislation Not Supported 45 Supported 98 Percentage of Respondents DEPARTMENT OF TRANSPORT 29 9. RESOURCING CPV REFORM (FARES AND FEES) 9.1 Issues Raised in the Review Position Paper The Review Position Paper acknowledged that implementing reforms requires investment, for both Government and industry. The Review Position Paper stated that physical and human capital improvements in the CPV industry are required in order to move towards a safe and innovative industry. The Review Position Paper was clear that adequate resourcing of implementation is a prerequisite for effective and sustainable reform. The Review Position Paper suggested that a cost-neutral model for reform of regulation and industry development could be funded through existing industry licence fees. The Review Position Paper also included a review of the taxi fare setting process using the Australian CPI, taxi fare review timeframes and the concept of taxi fare prepayment. 9.2 Results of the Consultation Process 9.2.1 Cost and Budget Neutral Model Through the survey, 84% of 268 respondents agreed that licence fees collected by Government should be reinvested into the CPV industry to cover the cost of the future industry development. The Taxi Council did not support this recommendation stating the following: ■ this direction may lead to an increase in licence fees; ■ initiatives required to support industry development cannot be wholly funded using this mechanism; ■ a number of the proposed initiatives are the responsibility of Government, including infrastructure and passenger education; and ■ other transport providers are heavily subsidised by Government including ferry and bus services. Other commentary on this issue included support for the suggested direction from a number of stakeholders. The CPVTC Working Group supported this recommendation and recognised that licence fees may be reviewed depending on the decisions made by Government. A viable CPV sector, that meets the needs of the travelling public, will require investment in both people and infrastructure. Licence fees are a funding option which could support both physical and human capital improvements in the CPV industry. In response to concerns raised during the consultation process, the following information is provided: ■ Increase in Licence Fees – The objective is to move to a cost and budget-neutral model with licence fee income being returned to industry through a variety of means such as subsidies for training, infrastructure improvements, education campaigns, security presence and increased enforcement activity and 30 data collection and management. ■ Government Subsidies for Ferry and Bus Services – The objective of Government subsidisation of the delivery of transport services is to provide Territorians with an affordable scheduled transport service to support access to basic needs such as employment, health services, education and shops. The high level of private vehicle usage in Australia means that public transport demand is typically too low to recover operational costs. Such subsidised services include the Darwin bus network and school bus services. Government subsidised services serve a different market to the taxi industry and are not designed to directly compete with the higher level of service provided by the taxi industry. 9.2.2 MPT Licence Fees The Taxi Council proposed a reduction in MPT licence fees from 50% of the standard taxi licence to a peppercorn amount. The rationale for this proposal was that the fee reduction would assist in covering the additional operational costs faced by MPT operators. License fee structures will remain unchanged and where categories have similar access to the market, they will pay the same annual license fee. 9.2.3 Fare Setting Methodology There was overall support for moving from a ‘basket of costs’ methodology for determining taxi fares, to use of the CPI. A total of 336 survey respondents provided their views with 82% supporting this methodology. A detailed comparison of the impact of fare review processes, using both the CPI and the Basket of Costs methodologies, which was provided in the Review Position Paper appendices. This comparison demonstrated little significant difference in fare review outcomes. Results of the consultation process demonstrated strong support for the use of the less complex CPI methodology as the CPI is a transparent and credible indicator informed by ABS data. To ensure the new fare setting methodology does not increase fares to the extent that taxis are no longer an affordable transport option, a full comparison of fares (every 3 years) using the previous Basket of Costs methodology will be conducted and fares adjusted accordingly if necessary. 9.2.4 Fare Review Periods The consultation process found that the recommendation 9.3 Government Decisions to review taxi fares every 2 years was not supported by the taxi industry or passengers. Through the survey, respondents were asked how often taxi fares should be reviewed. The survey results indicated clear support for the annual review of taxi fares. The CPVTC Working Group also supported an annual taxi fare review. 9.2.5 RR1: Adopt a new taxi fare setting methodology based on the Australian Consumer Price Index. RR2: Review taxi fares annually. RR3: Mandatory prepaid taxi fares will be introduced at selected locations, between 10 pm and 5 am Friday and Saturday nights. Airport pickups are excluded. This strategy will be supported by appropriate infrastructure including signage and a public education campaign. Prepaid Taxi Fares The Taxi Council has previously approached Government to consider the introduction of prepayment of taxi fares to address fare evasion. The survey results indicated that 62% of respondents supported the introduction of prepaid taxi fares. A variety of options regarding prepayment criteria were provided through the survey with relatively equal support across all options. The results are provided in Figure 14. Fare evasion continues to be a consistent problem in the Territory. While currently taxi drivers do have the right to refuse a fare if the passenger is unable to demonstrate a capacity to pay, this right of refusal is not effective and fare evasions occur frequently. Based on the outcomes of the consultation, and the work of the CPVTC Working Group, prepayment of taxi fares Figure 14 – Survey Results on Proposed Prepaid Taxi Fares Options Variation of options All trips from identified taxi ranks between 10pm & 5am  Passengers  Industry All trips from identified taxi ranks between 10pm & 5am on Thurs, Fri & Sat nights All trips between 10pm & 5am, excluding airport pickups 0% 20% 40% 60% 80% 100% Percentage of Respondents in Favour will be implemented based on the following criteria. ■ Prepayment should only occur at identified taxi ranks such as secure or high usage ranks. ■ Prepayment could apply on all trips at certain times, such as Friday and Saturday nights, between the hours of 10 pm and 5 am. ■ Airport pickups should be excluded from any fare prepayments. ■ Both signage and an education campaign would be required. DEPARTMENT OF TRANSPORT 31 10. ADDITIONAL RECOMMENDATIONS 10.1 Introduction The consultation process resulted in an additional 136 recommendations, or variations of the original recommendations, submitted for consideration. Of these, 65 were considered to complement the original recommendations, suggest changes to operational requirements, or raise questions that were worthy of further examination in the Review. The remaining recommendations were not further considered for one or more of the following reasons. ■ The recommendation did not represent a majority view. ■ The suggested recommendation would increase red tape and/or be anti-competitive. ■ The recommendation was outside the scope of the Review and/or the Department of Transport’s responsibilities. ■ The recommendation may result in unsafe practices. ■ The issue was adequately addressed by the original recommendations. ■ The recommended direction would provide an unnecessarily complex regulatory model. The recommendations requiring further consideration were discussed by the CPVTC Working Group. A summary of the recommendations is provided below. 10.2 Additional Issues Raised 10.2.1 On-line Payments The Taxi Council recommended that the current on-line payment system be extended to include CPV licence fees. This would remove the necessity for payments to be made in person, reducing waiting times and providing greater efficiency for all parties. Subject to meeting legislative requirements, funding and technological amendments, a review of CPV transactions will be completed and, where transactions can be made using an on-line payment method, recommendations will be subject to normal Government decision-making processes. 10.2.2 Dedicated CPV Counter at Goyder Rd, Parap The Taxi Council proposed a dedicated CPV counter be established at MVR in Goyder Road to achieve greater efficiency and reduce waiting time. The proposal is not supported for the following reasons. ■ Since the introduction of on-line payments for MVR transactions, waiting times have reduced at MVR front counters across the Northern Territory. ■ Establishment of a dedicated counter for CPV transactions will require additional staff. ■ Capacity to cover breaks, sick leave and recreational 32 leave will require additional resources. The proposal to implement on-line transactions is supported. Implementation of on-line payments will reduce demand for services at the MVR. 10.2.3 Taxi Booking Fee The Taxi Council requested that the taxi booking fee be reinstated. Taximeter technology has advanced to allow the booking fee to be added automatically, not by the driver, which may reduce abuse by drivers who were charging the fee to every trip. Four (4) of 8 jurisdictions charge a booking fee ranging from $1.50 to $2.40. The Taxi Council requested a $1.50 booking fee which may encourage taxi drivers to make more effort to locate the customer who booked the service. Discussions were held with the CPVTC Working Group on this issue, and it was agreed that customer service issues, such as driver reliability and timeliness, need to be addressed before a booking fee could be considered. Customer service KPIs have been drafted for consideration during this Review process. These KPIs were drafted in collaboration with CPVTC Working Group. A booking fee may be considered when industry has demonstrated improvement in the provision of a high quality, reliable and safe transport service. 10.2.4 Taxi Station Wagon Fee The Taxi Council suggested that a station wagon fee be implemented. The Taxi Council suggested that there is a linkage between the size of the vehicle, its carrying capacity, and distances covered. The linkage between the size of the vehicle, its carrying capacity, and distances covered is not supported by evidence. In addition, it is reported that approximately 40% of the current 202 taxis vehicles satisfy the luggage dimensions of a station wagon providing ample capacity if requested by a passenger. Finally, an operator who chooses to purchase a vehicle of this size has a greater opportunity to service this market. 10.2.5 Driver Assaults and Property Damage The Taxi Council acknowledged that CCTV cameras are an effective safety feature for drivers. The Council reported that many in the industry have been disillusioned when courts hand down apparently light sentences for assaults on taxi drivers and no restitution is imposed for damage to property. No recommendation was made on this issue. As part of the reform legislative review, the adequacy of existing penalties will be considered. 10.2.6 Expand the Lift Incentive Scheme The Lift Incentive Scheme (LIS) is a Government funded incentive which provides drivers of approved wheelchair accessible CPVs with $20 for journeys involving a passenger travelling in a wheelchair. Lift incentives are paid in recognition of the fact that wheelchair/mobility device passengers may require more time to embark and disembark a MPT than other passengers. This incentive also encourages MPT drivers to pick up more passengers in wheelchairs/mobility devices. The current LIS restricts membership to those who have been approved under the Taxi Subsidy Scheme. An expansion of the scheme, to include all permanent Territory residents who are permanently wheelchairbound, was proposed. It was reported that currently, if drivers become aware of wheelchair passengers who are not part of the LIS, they may not provide a service. There may be a potential cost associated with expanding the scheme. The introduction of service standards and taxi availability KPIs will assist in addressing poor services to people living with disabilities. With lift incentive payments being paid to drivers, expanding the scheme to a wider range of customers will provide additional income for MPT drivers and compensate them for the time and effort associated with loading and unloading passengers. 10.2.7 Reduce CPV Electronic Payment Surcharges Taxi passengers highlighted card payment surcharges as an area of concern. It was reported that these fees have been unreasonably high for many years. Passengers suggested that the Review should address this issue. Surcharges on electronic payments within the taxi and hire car industry has been, or is currently being, reviewed across Australia. ■ Victoria reduced the electronic payment surcharge from 10% to a maximum of 5%, including GST in February 2014. ■ New South Wales implemented a surcharge cap of 5% including GST in December 2014. ■ Western Australia implemented a 5% cap, also inclusive of GST in February 2015. ■ The ACT announced on 30 September 2015 surcharges will be capped at 5% 8. ■ In June 2015 South Australia also announced a review of the taxi and chauffeur vehicle indusStry highlighting surcharges as one aspect to be reviewed 9. excessive surcharging remains a concern and some State governments have imposed surcharge caps of 5% on taxi fares 10. In July 2015 the Minister for Transport approved the inclusion of this issue as part of the CPV Review and targeted consultation was undertaken. Reducing the surcharge to 5% inclusive of GST would bring the Territory into line with other jurisdictions and will provide a benefit to consumers, ensuring they are not being excessively charged for use of an everyday payment method. The taxi industry and other key stakeholders advised if electronic payment surcharges were reduced the financial sustainability in the taxi industry could be effected. 10.3 Government Decisions AR1: Expand the on-line payment system to include additional CPV transactions. AR2: Expand the Lift Incentive Scheme to include all Territory residents permanently confined to a wheelchair. AR3: Reduce electronic payment surcharges to a maximum of 5% (inclusive of GST) for all CPV transport transactions. On 4 March 2015, the Reserve Bank released an issues paper ‘Review of Card Payments Regulation’ seeking views from interested parties. The paper states that despite the changes implemented in March 2013, Taxi Industry Innovation Review Discussion Paper, ACT Government, 18 May 2015, pp. 41-43 – http://timetotalk.act.gov.au/storage/150366%20Taxi%20 Review%20FA%20Screen.pdf 8 Media Release, Minister Stephen Mullighan ‘Review of taxi and chauffeur vehicle industry set to commence’, 4 June 2015 - http://www.premier.sa.gov. au/images/news_releases/2015/15_06Jun/taxireview.pdf 9 Reserve Bank of Australia Issues Paper ‘Review of Card Payments Regulation’ March 2015, p. 20 – http://www.rba.gov.au/payments-system/ reforms/review-of-card-payments-regulation/pdf/review-of-card-paymentsregulation-issues-paper.pdf 10 DEPARTMENT OF TRANSPORT 33 11. IMPLEMENTING THE REFORM PACKAGE The reform proposal outlined in this Report has been developed as an overall package with a number of key elements. As a package, the success of each element is dependent on the success of other key elements. The proposed reforms require a range of legislative, regulatory, policy, system and administrative changes. The reform package will result in long-term benefits to the community, the CPV industry and other stakeholders. A number of reforms will be delivered in the near future with the remaining reforms phased in over time. Successful implementation of the reform package requires that administrative and policy changes must be undertaken in conjunction with the necessary legislative and regulatory changes. Reforms that do not require legislative change can be implemented in a logical and strategic order. Where relevant, further discussion with industry and consumer representatives will finalise operational and administrative processes. Reform implementation is costly for both government and industry. Physical and human capital improvements are required to move towards a modern, safe and innovative CPV industry. 34 12. APPENDICES Appendix A – Consultation Participants Submissions Received Written submissions were received from the following key stakeholders and their views are incorporated throughout this Report. ■ Anti-Discrimination Commissioner ■ Local Government Association of the NT ■ Australian Hotels Association NT ■ Machado Joseph Disease (MJD) Foundation ■ Cabcharge Australia Ltd ■ National Disability Services ■ CabFare (National Billing Group Pty Ltd) ■ National Seniors Australia ■ Centre for Appropriate Technology ■ NT Councils of Social Service Inc (NTCOSS) ■ City of Darwin ■ Office of Disability, Department of Health ■ Council of the Aging (COTA-NT) ■ Taxi Council of the NT ■ Department of Business ■ Tourism Central Australia ■ Disability Advisory Committee, City of Darwin ■ Tourism NT ■ Disability Advocacy Service Inc ■ Tourism Top End ■ Eagle Training Services NT ■ Transpol Consulting Pty Ltd ■ KidsafeNT ■ Transport Engineering and Automotive Advisory Council ■ Lirrwi Yolngu Tourism Aboriginal Corporation ■ Uber Demographics of Survey Participants Figure 15 below provides a breakdown of responses to the public survey. Figure 15 – NT CPV Consultation Period – Survey  CPV Driver  CPV Operator  CPV Network Service Provider  Passenger 28% 61% 10% 1% Respondent Per Cent Response Count Driver 28% 110 Operator 10% 39 Network 1% 6 Passenger 61% 241 Total 100% 396 Figure 16 – Gender of Participants – NT Survey Responses – January 2015 Left and on the next page are figures (Figure 16, Figure 17, Figure 18 and Figure 19) providing details on who contributed to shaping the future commercial passenger vehicle industry. Female 41% Male 59% DEPARTMENT OF TRANSPORT 35 Figure 17 Age Range of Respondents – NT Survey 1% 5% 8% 17% 26% 21% 22%  Under 18  18 to 24  25 to 34  55 to 64 Figure 18 Disabled Respondents – NT Survey  35 to 44  45 to 54  65 or older Figure 19 Regional Breakdown – NT Survey Yes, 2.8% No, 97.2%  Alice Springs  Darwin  Katherine  Nhulunbuy  Tennant Creek 36 Appendix B – Key Performance Indicators The Commercial Passenger Vehicle Taxi Category Working Group drafted the below (Table 1) key performance indicators (KPIs) for the relevant CPV industry categories to be held accountable. Penalties and sanctions will accompany the KPIs to ensure compliance in a co-regulatory environment. The provision of data from communication and dispatch networks to the Northern Territory Government will be mandated to ensure the regulator audits the CPV industry against the KPIs, and undertakes relevant action when compliance is not achieved. Table 1 – Key Performance Indicators for the Taxi Industry Key Performance Indicator Measure Comment Standard Standard & MPT& MPT • 80% calls answered •80% of calls of answered within 30 within 30 seconds seconds • 20% calls answered •20% of calls of answered within within 60 seconds •60 seconds Network responsibility Address complaints of networks not answering calls or taking a long time to answer. Quality of Service Standards Call Answer Rate (Percentage of calls answered by the communications and dispatch system) Cater Rate (Percentage of calls dispatched that are successfully matched with CPVs) Standard & MPT • Right of refusal for any booked job is removed, therefore all jobs to be accepted and completed Passenger waiting time for CPV to arrive Standard & MPT& MPT Standard (The pick-up time is the time from when the Darwin• CBD - 80% Darwin CBDof- passengers 80% of booking is required by the customer to the time the picked up in 5 mins or less, 20% passengers picked up in CPV turns its meter ‘on’ or equivalent) of passengers in 10 5 minspicked or less,up 20% of mins or less passengers picked up in minsarea or less Greater 10 Darwin (including Peak times northern suburbs, Palmerston) • Greater Darwin area – Darwin 80% of passengers picked up in (including northern Mon to Thurs – 10 am to 2 pm 10 mins or less, 20% picked up in suburbs, Palmerston) – 4 pm to 7 pm 15 mins or less – 80% of passengers Fri to Sat – 24 hour period picked– up in 10 mins or 80% of customers Mon to Sun* – 10 am to 4 pm Alice Springs less, 20% picked up20% in picked up in 5 mins or less, – 11 pm to 7 am 15 mins or less of customers picked up in 10 mins Alice Springs or less• Alice Springs – 80% of Mon to Sun* – 10 am to 1 pm customers picked up in – 4 pm to 5:30 pm Pre-booked trips 5 mins or less, of 90% of pre-booked jobs20% arrived Sat to Sun – 2 am to 4 am customers picked up within 5 mins of booked time in *Airport peak times. 10 mins or less contact Off-peak times Pre-booked trips disorderly o All other times. • 90% of pre-booked jobs arrived within 5 mins of booked time Network and Driver responsibility Address CPVs that are rejecting jobs. Network and Driver responsibility Shows when booking is accepted and how long it takes for a CPV to arrive i.e. passenger waiting time for a taxi. Taxi Availability Standards Percentage of taxis on the road (Ensure there are enough taxis on the road to meet demand) Standard & MPT Peak Times • 90% of vehicles on road for a month Off-Peak Times • 60% of vehicles on road for a month Network and Operator responsibility DEPARTMENT OF TRANSPORT 37 Key Performance Indicator Measure Comment Operational Levels – Network Reporting Requirements Number of drivers active on the network • Number of drivers actively working Could be used as part of the barrier to entry to ensure the driver is actually working in the industry. Number of jobs received • Number of jobs received by hour for each day Determine peak and off-peak times. Number of ‘no shows’ • Number of no shows recorded • Number of meter flashes by drivers Remove the meter flashes to indicate a job has been completed. Networks to audit and action if this occurs. Darwin • Minimum 30 jobs per month Alice Springs • Minimum 40 jobs per month Network and Driver responsibility No jobs are to be rejected and are subject to the passenger waiting time KPI criteria. Jobs assigned by suburb • List number of job requests from pick-up points by suburb Determine trends of taxi usage. Help determine taxi rank requirements i.e. infrastructure upgrades or new ranks. Safety Driver Safety Record safety issues from a driver • Number of duress alarms and passenger perspective. activated • Number of incidents that require police or ambulance intervention Passenger Safety • Number of serious complaints: - Inappropriate comments and/or suggestions - Unwanted physical contact - Disorderly or discourteous behaviour (report as required) (The number of booking requests in the month where the customer is not at the booking address when the CPV arrives) Number of dispatched jobs completed by each MPT taxi per month (Average number of MPT jobs are based on 2014 reported network issued jobs) Complaint Management High Priority Where there is reasonable belief that a law is being contravened or there is an immediate safety risk. Medium Priority Where a situation is likely to change in the near future that will affect an outcome, i.e. loss of potential evidence. Low Priority Where records are required for statistical or audit purposes. 38 • High Priority – within 24 hours • Medium Priority – within 48 hours • Low Priority – within 14 days Network and Operator responsibility Ensure complaints are actioned in a timely manner. The Northern Territory Government will be mandated to ensure the regulator audits the CPV industry against the KPIs, and undertakes relevant action when compliance is not achieved. DEPARTMENT OF TRANSPORT 39 Appendix C – Glossary Accreditation To require the operator of a commercial passenger vehicle to be accredited, where accreditation indicates: (a) that the accredited person is (or, in the case of an accredited body corporate, the designated directors and managers of the body corporate are) considered to be of good repute and in all other respects fit and proper to be responsible for the operation of a commercial passenger vehicle; and (b) that the accredited person has demonstrated the capacity to meet the required standards of safety of passengers and the public to the degree and in the manner required in respect of the operations and in accordance with the conditions specified in the person’s accreditation. ATIA Australian Taxi Industry Association Australian Standard AS ISO 10002-2006 An Australian standard on customer satisfaction and provides guidelines for complaints handling in organisations. Australian Taxi Industry Association The ATIA provides a voice articulating the Australian taxi industry’s position and working with the Federal Government and its agencies to find workable solutions to legislative, regulatory and policy matters. Basket of Costs The Department of Transport currently completes a taxi fare review using the ‘basket of costs’ model. This model, which has been in use since the 1990s, takes into account the costs incurred in operating a taxi with all identifiable costs included for consideration. The model does not consider income in the calculation. The model recognises changes in fixed and variable costs of operating a taxi in the NT. Petrol, driver salary, maintenance labour, vehicle parts and panels, cleaning and tyres are considered as variable costs. Vehicle lease costs, insurance, government charges, network fees, plate lease fees and establishment costs are considered fixed costs. CBD Central Business District CCTV Closed Circuit Television Closed Circuit Television Is the use of video cameras to transmit a signal to a specific place, on a limited set of monitors (security camera system). Code of Conduct A set of guidelines designed to set minimum protocols and standards of customer service and acceptable behaviours. Commercial Passenger (Road) Transport Act An Act to regulate the carrying of passenger in motor vehicles for hire or rewards, and for related purposes. Commercial Passenger Vehicle Means a taxi, private hire car, limousine, special function vehicle, minibus, courtesy vehicle, motor omnibus, tourist vehicle or special passenger vehicle. To carry passengers for hire or reward includes any case where the operator or driver of a motor vehicle used: (a) offers the carriage as an inducement in respect of an agreement for the provision of other services or goods; or (b) receives consideration for an arrangement whereby the carriage is affected or to which the carriage is related. Consumer Price Index The Australian Consumer Price Index (CPI) is an important economic indicator. It provides a general measure of changes in prices of consumer goods and services purchased by Australian households. CPI figures are produced by the Australian Bureau of Statistics (ABS) for each quarter and are compiled according to international standards based on robust data collection and compilation methodology. The CPI measures changes in the price of a ‘basket of goods’ and services which account for a high proportion of expenditure by metropolitan households. This ‘basket’ covers a wide range of goods and services categorised within the following groups food and non-alcoholic beverages; alcohol and tobacco; clothing and footwear; housing; furnishings, household equipment and services; health; transport; communication; recreation and culture; education; and insurance and financial services. 40 Co-regulation Co-regulation between government and industry develops strong partnerships by sharing responsibilities achieving a focus on performance and improve accountability. Co-regulation can provide a flexible way of maintaining relevant and enforceable best practice standards within a changing environment; it provides incentives for industry commitment of resources and potentially enables achievement of reform more quickly than through legislative processes. This can be achieved through a consultative approach and mutual cooperation between industry and government. Courtesy Vehicle Means an approved motor vehicle (not being a motor vehicle operated as a taxi, private hire car, limousine, special function vehicle, minibus, motor omnibus, tourist vehicle or special passenger vehicle) used, with the services of a driver, to carry passengers for hire or reward where the carriage: (a) is offered as an inducement in respect of an agreement for the provision of accommodation or activities for recreation or pleasure; and (b) is provided to passengers without payment of a fare. CPI Consumer Price Index CPV Commercial Passenger Vehicle Director Commercial Passenger (Road) Transport The Minister may, by notice in writing, appoint a Chief Executive Officer or employee, as defined in the Public Sector Employment and Management Act, to be the Director of Commercial Passenger (Road) Transport. Subject to this Act, the Director has power to do all things necessary or convenient to be done for or in connection with, or incidental to, the performance of the Director’s functions under this Act. Disruptive Technology Disruptive technology is technology that helps create a new market and eventually disrupts an existing market (usually over a few years or decades), displacing an earlier technology. The term is used to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market. Driver Protection Screen An approved taxi / minibus driver protection screen is constructed of suitable material and designed to primarily restrict a seated driver being attacked from behind. Examples of attack the screen should deter include being grabbed by hand; a person pulling against the driver’s seat belt; assault with a weapon or liquid; or a sharp instrument such as a knife or screwdriver being pushed through the driver’s seat back. At the same time, the screen must not present any hazard for the driver, passengers or any other road users. In this context, a screen must not hinder the driver’s control of the vehicle and not adversely impact upon the comfort and safety of vehicle occupants. Fair Work Ombudsman The Fair Work Ombudsman is an independent statutory office. Its jurisdiction is set out in the Fair Work Act and its services are free to all workers and employers in Australia. Its main role is to: • promote harmonious, productive and cooperative workplace relations • ensure compliance with Australian workplace laws • monitor certain 457 subclass visa arrangements. Its free services include: • a single point of contact for reliable and timely information about Australia’s workplace relations system • educating people working in Australia about fair work practices, rights and obligations • assessing complaints or suspected breaches of workplace laws, awards and registered agreements • litigating in some circumstances to enforce workplace laws and deter people from doing wrong in the community • building strong and effective relationships with industry, unions and other stakeholders. It works closely with the Fair Work Commission to ensure its services are integrated, timely, relevant and accessible to all Australians. DEPARTMENT OF TRANSPORT 41 Framing the Future Framing the Future strategic plan sets out the Government’s policy that will underpin service delivery for all Territorians. The Framing the Future strategic plan will help Government maximise the new and evolving opportunities within the Territory, Northern Australia and with our Asian neighbours. It will also guide Government decision-making and will be a tool for Ministers and Government agencies to ensure work is focused on what is important to Territorians. Hail To signal to a taxi or minibus that you want to be picked up. Hopper Service A transport service that allows passengers to hop on and hop off along the route of travel. Key Performance Indicator A key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organisation or of a particular activity in which it engages. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc), and sometimes success is defined in terms of making progress toward strategic goals. KPI Key Performance Indicator Lift Incentive Scheme An eligible person who requires the wheelchair capability of a multiple purpose taxi may offer a lift incentive to the driver of the taxi. The lift incentive may be provided in the form of: (a) a redeemable voucher; or (b) another means of payment approved by the Minister. If the taxi driver accepts the offer of the lift incentive: (a) the hiring is taken to commence only after the wheelchair, and any person in the wheelchair, have been loaded into the vehicle and made secure; and (b) the driver must not charge for any time spent waiting: (i) for the hirer before loading the wheelchair; or (ii) in loading and unloading the wheelchair. A taxi driver is not obliged to accept a lift incentive and may instead charge for time spent waiting for the hirer and in loading and unloading the wheelchair. LIS Lift Incentive Scheme Livery A livery is a uniform, insignia or symbol adorning a person, an object or a vehicle that denotes a relationship between the wearer of the livery and an individual or corporate body. Alternatively, some kind of a personal emblem or badge, or a distinctive colour, is featured. Minor New Works Program Minor new works are projects up to $500 000 in value and provide government agencies with the flexibility to undertake construction projects to improve the serviceability of assets. MPT Multiple Purpose Taxi MPV Multiple Purpose Vehicle Multiple Purpose Taxi Means a standard taxi fitted to carry a passenger seated in a wheelchair and in respect of which the licence contains a condition that priority is to be given to carrying passengers in wheelchairs. Multiple Purpose Vehicle Means a standard vehicle fitted to carry a passenger seated in a wheelchair and in respect of which the licence contains a condition that priority is to be given to carrying passengers in wheelchairs. Mystery Shopper Program It is a tool used externally by market research companies, watchdog organisations, or internally by companies themselves to measure quality of service, or compliance with regulation, or to gather specific information about products and services. Cont on next page... 42 Mystery Shopper Program Cont... The mystery consumer’s specific identity and purpose is generally not known by the establishment being evaluated. Mystery shoppers perform specific tasks such as purchasing a product, asking questions, registering complaints or behaving in a certain way, and then provide detailed reports or feedback about their experiences. Network A communications network for communicating with, controlling or co-ordinating commercial passenger vehicles used to carry passengers for hire or reward; or a dispatch network for accepting bookings for the use of commercial passenger vehicles for hire or reward or allocating commercial passenger vehicles for hire or reward on pre-booked journeys. OECD Organisation for Economic Co-operation and Development Organisation for Economic Co-operation and Development The Organisation for Economic Co-operation and Development’s (OECD’s) origins date back to 1960, when 18 European countries plus the United States and Canada joined forces to create an organisation dedicated to economic development. Today, it 34 member countries span the globe, from North and South America to Europe and Asia-Pacific. They include many of the world’s most advanced countries but also emerging countries like Mexico, Chile and Turkey. They also work closely with emerging economies like the People’s Republic of China, India and Brazil and developing economies in Africa, Asia, Latin America and the Caribbean. Together, its goal continues to be to build a stronger, cleaner and fairer world. The mission of OECD is to promote policies that will improve the economic and social well-being of people around the world. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. It works with governments to understand what drives economic, social and environmental change. It measures productivity and global flows of trade and investment. It analyses and compares data to predict future trends. It sets international standards on a wide range of things, from agriculture and tax to the safety of chemicals. It also looks at issues that directly affect everyone’s daily life, like how much people pay in taxes and social security, and how much leisure time they can take. It compares how different countries’ school systems are readying their young people for modern life, and how different countries’ pension systems will look after their citizens in old age. Drawing on facts and real-life experience, it recommends policies designed to improve the quality of people’s lives. It works with business, through the Business and Industry Advisory Committee to the OECD, and with labour, through the Trade Union Advisory Committee. They have active contacts as well with other civil society organisations. The common thread of its work is a shared commitment to market economies backed by democratic institutions and focused on the wellbeing of all citizens. It also sets out to make life harder for the terrorists, tax dodgers, crooked businessmen and others whose actions undermine a fair and open society. Peak Body An advocacy group, an association of industries or groups with allied interests. They are generally established for the purposes of developing standards and processes, or to act on behalf of all members when lobbying government or promoting the interests of the members i.e. the Taxi Council of the NT. Peppercorn A very small payment. RBA Reserve Bank of Australia Registered Training Organisation A vocational education organisation that provides students with training that results in qualifications and statements of attainment that are recognised and accepted by industry and other educational institutions throughout Australia. Reserve Bank of Australia The Reserve Bank of Australia (RBA) is Australia’s central bank and derives its functions and powers from the Reserve Bank Act 1959. Its duty is to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate to meet an agreed mediumterm inflation target, working to maintain a strong financial system and efficient DEPARTMENT OF TRANSPORT 43 Reserve Bank of Australia Cont... payments system, and issuing the nation’s banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia’s gold and foreign exchange reserves. Rideshare Ridesharing transport services provides a point-to-point on-demand transport option for passengers at a fee that involves profit for the driver and the booking service. RTO Registered Training Organisation Sanction A penalty imposed on someone as a way of discipline to address behaviours and actions. Smartphone Application A mobile app is a computer program designed to run on smartphones, tablet computers and other mobile devices. Strangulation Cap To constrict the number of taxi licences released based on a predetermined formula in the event of excessive entry into the taxi industry. Sub-leasing Operating a CPV licence that has not been issued to him / her. This is usually by arrangement with the operator for a weekly / monthly based fixed payment, thereby, the sub-lessee retains all income from the operation after making the set payments, and after paying the driver the agreed percentage. A driver is not considered a sub-lessee where the driver has no interest in the operation other than driving. A person paid by the operator to management day to day operations for an agreed amount is not considered a sub-lessee. In these instances, the operator would still derive an income based on vehicle takings rather than a fixed weekly / monthly payment. Taxi Cap An administrative restriction imposed by the Northern Territory Government on the number of taxi licences available to operate in Darwin and Alice Springs. The taxi cap is based on a 1:900 formula being one taxi per 900 people. Taxi Council of the NT A peak body that represents the taxi industry. Taxi Subsidy Scheme The Taxi Subsidy Scheme (TSS) provides assistance to permanent residents of the Northern Territory who have been assessed as having a disability or significant mobility restriction that prevents them from being able to use public transport to access the community. The disability may be physical, sensory, psychiatric or intellectual. TSS is intended to assist with transport needs, not meet all transport costs, by subsidising half of a taxi fare. TSS membership is not transferable to and/or from other States and Territories. Current TSS members who are temporarily travelling interstate can apply for interstate vouchers. When making an application for interstate vouchers, please allow at least 5 working days prior to departure date. Taximeter A mechanical or electronic device installed in taxis that calculates passenger fares based on a combination of a flagfall, distance travelled and waiting time. 44 45