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Setting the Scene taxi industry inquiry Setting the Scene How can I register my interest, provide a submission to the inquiry or find out more? The inquiry invites interested individuals and organisations to register their interest in the inquiry, make a submission or find out further information by: • sending an email to: [email protected] • visiting our website: www.taxiindustryinquiry.vic.gov.au • visiting us on Twitter: www.twitter.com/taxiinquiry • visiting us on Facebook: Taxi Industry Inquiry • mailing us at GPO Box 2797, Melbourne VIC 3001 Enquiries can be made by calling us on (03) 9655 2000. By registering your interest you will receive updates about the inquiry’s progress and key dates, and advance notice of public discussion opportunities. While there will be further opportunities to provide input to the inquiry, if you wish to provide a submission based on this paper we ask that you do so in writing by Friday 24 June 2011. Written submissions should ideally be kept to no more than 20 pages. Individuals and organisations should indicate if they wish their submission to be treated confidentially. Please note that freedom of information access requirements will apply to all submissions, even those treated as confidential. Taxi and hire car services are an essential part of Victoria’s transport system. They provide flexible “point to point” transport that gives people a level of mobility which is not offered by other services such as trains, trams and buses. They are critical to the business and social lives of Victorians and make an important contribution to Victoria’s overall liveability. Crucially, taxis and to a lesser extent hire cars provide a vital form of transport to groups which would otherwise be socially isolated, such as people with a disability, people who live in remote and rural communities, and a range of people who need to travel when alternative transport is not available. Taxis and hire cars also have a critical role to play in tourism, giving visitors their first and last impressions of our state. The quality and quantity of taxi and hire car services therefore has a major impact on the long term “brand” of Melbourne and Victoria. The community’s need for taxis and hire cars is serviced by a complex industry which has many players and which in some areas is subject to a high degree of government regulation. The fundamental structure of the industry in Victoria has remained largely unchanged for many decades. The Victorian Taxi Industry The inquiry should conduct broad ranging Inquiry – an introduction consultation to determine the views at all levels, including consultation with the general public and On 28 March 2011 the Victorian Government announced expert industry and other key stakeholders. a major independent inquiry into the Victorian taxi and The inquiry will report regularly to the Minister hire car industry to be chaired by Professor Allan Fels AO. for Public Transport and make a final report Professor Fels will be assisted by Dr David Cousins AM. and recommendations focussing in particular on the following: The Terms of Reference set by the Government, set out below, require the inquiry to undertake a wide-ranging • the appropriateness of the structure of the review of the Victorian taxi and hire car industry, focusing taxi industry including the accountability of the on core issues related to customer service, safety and range of industry participants with a particular the roles and accountabilities of industry participants. focus on commercial incentives to participants The overall aim of the inquiry is to instigate major and including licence holders to improve services enduring improvements to key aspects of the industry. to passengers; • service delivery and employee conditions, Terms of Reference in particular the working conditions, training, standards and remuneration of drivers, and The inquiry will have broad scope to review the how these contribute to service standards sector and its performance against the following and outcomes; principles: • competition in the sector, in particular focusing • customer and service focus; on vertical integration, anti-competitive • safety for passengers and drivers; practices and incentives for innovation; • support for and training of drivers; • the effects of regulation, particularly relating to entry to the taxi market through capped • integration with other forms of public licence numbers and to price controls and transport; taxi fare setting arrangements, and how these • an outcomes-based and accountable impact on customer service and innovation; regulatory framework; • the performance of the Multi-Purpose Taxi • market design that is effective, efficient and Program and wheelchair accessible taxis promotes competitiveness; and in providing service to people with disabilities • sustainability, in economic, environmental and and a broad range of mobility disadvantaged social terms. people; The overall aim of the inquiry is to instigate major • the current and potential role of taxis, hire and enduring improvements to service, safety and cars and other demand responsive transport competition to Victoria’s taxi and hire car industry. services in an integrated transport system, with a focus on the role of these services in The inquiry should be wide ranging and consider social inclusion; all point to point transport services including taxis, hire cars and other demand responsive services with a particular focus on service outcomes. 4 Setting the Scene The inquiry will gather input from key stakeholders • options for reform including benchmarking including taxi and hire car users, industry participants, safety and service standards, appropriate the business sector, the tourism sector, government market-based, legislative and administrative agencies and disability agencies. solutions, and communication technology advancements that may be harnessed, to There are many ways in which information will be facilitate improvements in the safety, service gathered. For example, the inquiry will: and environmental performance; • ask people to submit their ideas about how to • the appropriate regulatory and service model improve taxi and hire car services; for long term regulation and operation of the • talk to many individuals and organisations; industry, focussed on service outcomes; • attend meetings and conferences to hear the views • examine, evaluate and report on other models of broad groups of people; and and new approaches in the taxi and hire car • visit regional areas to hear people’s views. sectors both in Australia and overseas; • transitional arrangements from the current How can I have input into the inquiry? regulatory and service arrangements to the recommended model; and This paper marks the commencement of the inquiry’s consultation with the community and stakeholders. • any other related matters. The inquiry is seeking the assistance of individuals and organisations to ensure the inquiry covers all issues The inquiry is expected to run for approximately relevant to the Terms of Reference, and this paper 12 months, culminating in a report with recommendations provides an early opportunity to give input on the key being given to the Government. The inquiry is able to areas for the inquiry to examine. make early recommendations, if it elects, for consideration Individuals and organisations are therefore invited to by the Government while the inquiry is continuing its work. make an early submission based on the matters raised The inquiry’s recommendations may involve a in this paper and any other issues considered relevant. combination of measures including market-based, To ensure the inquiry has sufficient time to consider any legislative, administrative, commercial and input provided, we ask that submissions based on this technological reforms. paper are provided by Friday 24 June 2011. The issues to be considered by the inquiry are complex Details on how to make a submission to the inquiry and long standing, and are compounded by an absence based on this paper, and how to otherwise have input of verifiable data on many fronts, particularly relating into the inquiry, are contained on the inside cover of to demand for services. They will require thorough this paper. examination and openness to all ideas and perspectives. The different models and approaches to taxi and hire car regulation in Australia and overseas will also be examined. The inquiry’s recommendations may involve a combination of measures including market-based, legislative, administrative, [ commercial and technological reforms. ] Setting the Scene 5 What do people think about In relation to customer satisfaction with taxi drivers, research has shown the most important contributors taxi services? as being drivers’: • courteousness and helpfulness; While the inquiry provides an opportunity to fully explore what people think, past research suggests that Victorians • knowledge of streets and locations; are very concerned about the quality and safety of taxi • willingness to take the most direct route; services. Analysis of trends in customer satisfaction data, • wearing of clean and presentable uniforms; and complaints to the industry regulator and market research, • personal hygiene. along with public opinion as expressed in the news media, paint a worrying picture. (Source: Wallis Consulting Group Pty Ltd) Anecdotally, as a general theme, customers’ concerns What do customers say? in the metropolitan area have tended to focus on service General customer satisfaction
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