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Transport Legislation (Taxi Services) Amendment Bill 2015

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Transport Legislation (Taxi Services) Amendment Bill 2015 Parliamentary Transport Legislation (Taxi Services) Amendment Bill 2015 Report No. 21, 55th Parliament Infrastructure, Planning and Natural Resources Committee March 2016 Infrastructure, Planning and Natural Resources Committee Chair Mr Jim Pearce MP, Member for Mirani Deputy Chair Mr Michael Hart MP, Member for Burleigh Members Mr Glenn Butcher MP, Member for Gladstone (until 18 February 2016) Mr Shane Knuth MP, Member for Dalrymple Mrs Brittany Lauga MP, Member for Keppel Mr Lachlan Millar MP, Member for Gregory Ms Joan Pease MP, Member for Lytton (from 18 February 2016) Staff Dr Jacqueline Dewar, Research Director (from 4 January 2016) Ms Kate McGuckin, Research Director Ms Erin Pasley, Research Director (until 18 December 2015) Ms Margaret Telford, Principal Research Officer Ms Mary Westcott, Principal Research Officer Ms Marion O'Connor, Executive Assistant (from 16 November 2015) Ms Dianne Christian, Executive Assistant Technical Scrutiny of Ms Renée Easten, Research Director Legislation Secretariat Mr Michael Gorringe, Principal Research Officer Ms Kellie Moule, Principal Research Officer Ms Carla Campillo, Executive Assistant Contact details Infrastructure, Planning and Natural Resources Committee Parliament House George Street Brisbane Qld 4000 Telephone +61 7 3553 6621 Fax +61 7 3553 6699 Email [email protected] Web www.parliament.qld.gov.au/ipnrc Acknowledgements The committee thanks those who briefed the committee, provided submissions and participated in its inquiry. In particular, the committee acknowledges the assistance provided by the Department of Transport and Main Roads and the Queensland Police Service. Transport Legislation (Taxi Services) Amendment Bill 2015 Contents Chair’s foreword iii Acronyms iv Recommendations v 1 Introduction 1 1.1 Role of the committee 1 1.2 The referral 1 1.3 The committee’s inquiry process 1 1.4 Policy objectives of the Bill 2 1.5 Consultation on the Bill 2 1.6 Should the Bill be passed? 2 1.6.1 Committee comment 2 1.6.2 Recommendations 3 2 Examination of the Bill 4 2.1 Introduction 4 2.2 Regulation of taxi services in Queensland 4 2.3 Ridesharing services 5 2.4 Examination of issues raised by the taxi industry 6 2.4.1 Cost of compliance with regulations and unfair competitive advantage 6 2.4.2 Loss of income and the declining market value of a taxi licence 9 2.4.3 Concern for the safety and standards of the taxi industry 11 2.4.4 Insurance, including CTP insurance 12 2.4.5 Goods and Services Tax and Income Tax 13 2.5 The legal status of ridesharing services in Queensland 14 2.6 Queensland Government review of taxi, limousine and rideshare services 16 2.7 Enforcement of taxi licensing regulations 19 2.7.1 Legislative framework for enforcement 19 2.7.2 Enforcement action 20 2.8 Proposed demerit point scheme for rideshare services operating without a taxi licence 25 2.8.1 Stakeholder support for the introduction of demerit points 26 2.8.2 Stakeholders opposed to the introduction of demerit points 29 2.8.3 Double demerit points 31 2.8.4 Accumulation of demerit points on a driver’s traffic history 32 2.8.5 Committee comment 32 2.9 Stakeholder proposals for additional enhanced enforcement measures 33 2.9.1 Proposal to amend the TORUM Act 33 2.9.2 Other enforcement measures proposed in evidence 34 2.9.3 Committee comment 35 Infrastructure, Planning and Natural Resources Committee i Transport Legislation (Taxi Services) Amendment Bill 2015 3 Compliance with the Legislative Standards Act 1992 36 3.1 Fundamental legislative principles 36 3.1.1 Penalties 36 3.2 Explanatory notes 37 Appendices 38 Appendix A – List of submitters 38 Appendix B – List of witnesses at the public hearings 55 Statement of Reservation 58 ii Infrastructure, Planning and Natural Resources Committee Transport Legislation (Taxi Services) Amendment Bill 2015 Chair’s foreword This report presents a summary of the Infrastructure, Planning and Natural Resources Committee’s examination of the Transport Legislation (Taxi Services) Amendment Bill 2015. The committee’s task was to consider the policy outcomes to be achieved by the legislation, as well as the application of fundamental legislative principles, including whether it has sufficient regard to rights and liberties of individuals and to the institution of Parliament. The committee has considered all the issues raised by Mr Rob Katter MP who introduced the Bill into the Queensland Parliament, stakeholders, and the advice received from the Department of Transport and Main Roads. The committee has noted with concern the evidence provided by the taxi industry about the impact the introduction of ridesharing services has had on the industry in this state, including, unfair competitive advantages, loss of income and the market value of a taxi licence. It is clear to the committee that there are two key issues facing the Queensland Government in relation to personalised transport services in this state. The overarching task is to identify and introduce an efficient and effective regulatory framework for personalised transport services in this state. The more immediate task is to enforce the current regulatory framework to ensure that providers of personalised transport services comply with it. The committee is of the view that the independent Personalised Transport Services Review, which was established in October 2015 and is due to report to the Queensland Government in August 2016, is the appropriate mechanism for providing the Government with recommendations regarding the implementation of an efficient and effective regulatory framework. While noting that the independent review may result in changes to the regulatory system, the committee is strongly of the view that providers of personalised transport services should comply with the regulatory requirements currently in place. Evidence was provided to the committee that there are a number of issues affecting the ability of the department to enforce compliance and the department has advised it is currently investigating options within the existing legislative framework, including possible legislative amendments, to ensure compliance can be carried out effectively. This Bill proposes one option for dealing with non-compliance by applying demerit points for offences in addition to the existing fines. Evidence provided to the committee indicates that other measures, such as substantially increasing the fine and making non-compliance a criminal offence, have been effective in ensuring compliance in a number of countries. The committee is therefore recommending that the Minister for Transport and the Commonwealth Games take immediate action to develop options for ensuring that compliance with the current regulatory system is enforced. On behalf of the committee, I thank those organisations and individuals who lodged written submissions on the Bill and who provided evidence at public hearings. I would also like to thank the departmental officials who briefed the committee, the committee’s secretariat, and the Technical Scrutiny of Legislation Secretariat. I commend the report to the House. Jim Pearce MP Chair March 2016 Infrastructure, Planning and Natural Resources Committee iii Transport Legislation (Taxi Services) Amendment Bill 2015 Acronyms ABN Australian Business Number ACT Australian Capital Territory ATO Australian Taxation Office BAS Business Activity Statements The Bill Transport Legislation (Taxi Services) Amendment Bill 2015 CTP Compulsory Third Party (insurance) The department The Department of Transport and Main Roads and DTMR FLP fundamental legislative principle GST Goods and Services Tax LSA Legislative Standards Act 1992 NRMA National Roads and Motorists' Association OA Operator Accreditation OQPC Office of the Queensland Parliamentary Counsel PINS Penalty Infringement Notices PP&R Act Police Powers and Responsibilities Act 2000 RACQ Royal Automobile Club of Queensland Limited TCQ Taxi Council Queensland TOPTA Transport Operations (Passenger Transport) Act 1994 TOPT Regulation Transport Operations (Passenger Transport) Regulation 2005 TORUM Act Transport Operations (Road Use Management) Act 1995 USO Universal Service Obligation iv Infrastructure, Planning and Natural Resources Committee Transport Legislation (Taxi Services) Amendment Bill 2015 Recommendations Recommendation 1 3 The committee recommends the Transport Legislation (Taxi Services) Amendment Bill 2015 not be passed. Recommendation 2 3 The committee recommends the Minister for Transport and the Commonwealth Games: undertake an urgent review of mechanisms for enforcing compliance with the current personalised transport services industry regulatory framework and this review include examination of legislative amendments including those recommended by the Taxi Council Queensland and the demerit point penalties proposed in this Bill take immediate action to ensure that compliance with the regulatory system is enforced, and provide a report to the House during the second reading debate on this Bill about the measures being employed by the Department of Transport and Main Roads and the Queensland Police Service to enforce compliance consider seeking approval from the House for any legislative amendments emanating from this review to be considered under the urgency provisions provided for in Standing Order 137. Infrastructure, Planning and Natural Resources Committee v Transport Legislation (Taxi Services) Amendment Bill 2015 1 Introduction 1.1 Role of the committee The Infrastructure, Planning and Natural Resources Committee was established
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