Taxi industry inquiry

Final recommendations

2.2 The existing Metropolitan hire car zone should be expanded to align with the Metropolitan and Urban taxi zones (as set out in Recommendation 1.6). Areas outside of this (which includes the Regional and Country taxi zones (as at Recommendation 1.6) should form a new Country hire car zone. New and existing licences VHA, VHB, VHC and other current licences with full operating rights (including hybrid licences) should be authorised to operate a Pre-Booked Only (PBO) service in the relevant zones. The existing licences should transfer to the new PBO category.

New PBO licences should be available for purchase by approved applicants at a one-off set price established for each zone (as below):

Metropolitan hire car zone: $40,000

Country hire car zone: $20,000

2.3 The PBO licence should have a uniform set of conditions set in regulation, including that they are:

Of no fixed term

Transferable

Non-assignable (the rights to operate the vehicle cannot be assigned to another party)

Restricted to pre-booked operation only

Restricted to operation within the zone(s) for which they are issued.

2.4 The current (minimum) requirement for existing hire car licence holders to purchase a vehicle meeting the luxury vehicle tax threshold should be removed.

2.5 All PBO drivers should continue to be required to be accredited and a new requirement added that they display their accredited driver ID prominently inside the vehicle.

2.6 The mandatory requirement currently in place for metropolitan hire car drivers to undergo the Course in Taxi Driving should be removed and metropolitan PBO drivers should not be required to sit the independent Knowledge exam (refer Recommendation 5.4). Accredited permit holders operating PBO services should be required to ensure the adequate training, skills and competence of their PBO drivers by, for example, delivery of their own induction and training program or by choosing to send drivers to all or part of a taxi driver training course.

2.7 PBO vehicles should be easily identifiable to the public and regulators by a specific number plate prefix and a visible, prominent permanent sticker on the windscreen. Consistent with Recommendation 7.2, PBO vehicles will be required to provide in-vehicle access to customer information that is compatible with smartphone technology and display any other customer information that is determined by the Taxi Services Commission.

2.8 A new Stretched Vehicle licence category should be available for purchase to approved applicants at set one-off prices of $15,000 for Metropolitan hire car zone operators and $10,000 for Country hire car zone operators. The Stretched Vehicle licence should provide the licence holder full operating rights, excluding at the airports. Stretched vehicle operators who wish to operate at the airport will need to purchase a full PBO licence.

2.9 The Stretched Vehicle licence should have a uniform set of conditions set in regulation including that they are:

Of no fixed term

Transferable

Non-assignable (the rights to operate the vehicle cannot be assigned to another party)

Restricted to pre-booked operation only

Not permitted to operate at Melbourne or Avalon airports.

2.10 A vehicle-based registration system should be established for two types of restricted purpose vehicles that currently operate under a Restricted Hire (RH) licence: motorcycles and tricycles, and vehicles with special off-road features (4WDs). Registration of these vehicles will be available ‘as of right’ for an upfront payment of $1,500 and an annual registration fee of $500 to applicants who satisfy basic entry requirements of proof of identity and a national police check. Existing RH vehicles and Special Purpose Vehicles that fit the vehicle categories set for the new registration scheme should transfer automatically to the new Registered Hire category at no charge, and then be made subject to the new annual fees.

2.11 Vehicles used only for weddings and tours will no longer be required to be licensed or registered by the Taxi Services Commission. If used for other commercial hire services, they will require a PBO licence.

2.12 Any person operating a Registered Hire or Stretched Vehicle licence and found to be operating outside of the conditions of their registration or licence will be deemed to be operating as an unlicensed PBO.

2.13 A more orderly approach should be adopted at Melbourne Airport to provide a smoother process of pick up and drop off of customers and to deal with the problem of touting, including:

The terminal operators making available rental space to a third party or parties to provide a PBO cabs booking kiosk

Consideration that any tender offered by terminal operators at Melbourne Airport for a PBO booking kiosk should provide access for more than one operator or network to the booking kiosk, to enhance competitive pressures between operators

Ensuring adequate on-site and off-site parking facilities for PBO cabs

A designated pick-up area for drivers to meet customers.

2.14 The Taxi Services Commission should establish a Working Group including representation from the Commission, Melbourne Airport, the Victorian Taxi Association and hire car industry representatives to consider implementation of the Taxi Industry Inquiry’s recommendations concerning the airport and future initiatives.

2.15 As a matter of priority the Taxi Services Commission should develop strategies to ensure the elimination of illegal touting by unlicensed/unregistered or licensed/registered operators and report on progress regularly. The Commission should be given adequate powers to deal with unlicensed/unregistered operators and vehicles touting for work. Penalties should be increased to provide sufficient deterrence to prevent illegal touting.