THE NEW ZEALAND TAXI SYSTEM

Prepared by:
David Samuel, Executive Officer Policy and Communication VTA

TABLE OF CONTENTS

ACKNOWLEDGMENTS ........................................................................................................ 1 ACRONYMS ......................................................................................................................... 2 INTRODUCTION .................................................................................................................. 3 1. 2. 3. 4. 5. 6. 7. 1989 DEREGULATION .................................................................................................. 3 POST 1989 INDUSTRY STRUCTURE .......................................................................... 4 APPROVED TAXI ORGANISATIONS (ATO) ................................................................. 6 THE REGULATORS AND REGULATIONS ................................................................... 7 VEHICLES AND DRIVERS ............................................................................................ 9 REGIONAL TAXI SERVICES....................................................................................... 10 WHEELCHAIR ACCESSIBLE TAXIS (WATS) AND TRANSPORT COMPETITORS ... 10

CONCLUSION AND OBSERVATIONS ............................................................................... 11 APPENDIX 1 - VEHICLES .................................................................................................. 13 APPENDIX 2 - COMPETITORS .......................................................................................... 15 APPENDIX 3 - FARES ........................................................................................................ 17 APPENDIX 4 TAXI INFRASTRUCTURE.......................................................................... 19 APPENDIX 5 DOWN TIME .............................................................................................. 21 APPENDIX 6 SHORT FARE REFUSAL ........................................................................... 24

ACKNOWLEDGMENTS

The VTA would to thank all those who helped compile this document. Special thanks go to Tim Reddish from the New Zealand Taxi Federation for his help in organising the trip and subsequent discussions.

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ACRONYMS
ATO Approved Taxi Organisation CAD Central Activity District DOT Department of Transport MOT Ministry of Transport NZ New Zealand NZTA New Zealand Transport Agency NZTF New Zealand Taxi Federation VHA Victorian Hire Car Association VTA Victorian Taxi Association VTD Victorian Taxi Directorate WAT Wheelchair Accessible Taxi

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INTRODUCTION
In November 1989 the New Zealand (NZ) Government introduced significant reforms to the countrys taxi system. At the centre of the reforms was a decision to deregulate the supply of taxi licences. Up to this point, licence supply had been restricted by Government. Given the current Inquiry into Victorias taxi industry, the Victorian Taxi Association (VTA) thought it important to try and gain greater insight into how the NZ system evolved and how it currently works. The focus of this exercise was to examine the impacts of the 1989 reform process on the taxi customer and to evaluate, so far as possible, whether or not similar reforms could assist in addressing the issues facing Victorias taxi system. It is important to state at the outset that although comparisons have been drawn between NZ and Victoria, there are stark demographic, economic and political differences between the two jurisdictions. The taxi industries in both countries are no different in this respect: simply the fact that Melbourne is 6 times more dense than any NZ city highlights the limitations inherent in attempts to draw comparisons between the two jurisdictions. This is not to say, however, that there is no merit in examining the NZ system, or in trying to ascertain whether there are lessons that the Victorian taxi industry can learn from NZ to better understand and service the needs of Victorians. On the whole, like in Victoria, the industry provides New Zealanders with a good door to door transport service.

1. 1989 DEREGULATION
Prior to the 1989 reforms, the NZ Government had a significant role in regulating the taxi industry. Licences were tradable subject to Ministry of Transport (MOT) approval. The MOT was also responsible for setting the fares, and this was done on an annual basis. At the time of deregulation, taxi licences had a capital value of approximately NZ$20,000 (1989 prices). A purchased licence had to remain with the Approved Taxi Organisation (ATO) to which it was affiliated prior to the transfer. The buyer could request MOT allow them to transfer the licence to another taxi company. This could be done on the grounds that it was not in the new licence holders commercial interests to stay with the ATO in question. The MOT was reluctant to become involved in this area, and permission was seldom granted. All those interviewed for this research agreed that, prior to November 1989; the NZ industry was largely dysfunctional. Queues for taxis were long, and the industry was not responsive to demand. Anecdotal stories tell of drivers (who were generally also the licence holder) earning up to $3000 per week. While we do not wish to comment here on what appropriate earnings should or should not be, this does tend to indicate that demand was high and supply unresponsive. Essentially it would appear that the issues the NZ system faced in 1989 related directly to the supply of taxi services. Deregulation in the NZ context was far reaching and went beyond just the supply of taxi licences. Fare setting was also deregulated and ATOs were handed this responsibility. Standards remained in place, but the regulator was not equipped with resources to enforce them. 3|Page

Immediately following the reforms, there was an exponential surge in the number of taxi licences in NZ cities. From December 1989 to late 1990 there was an approximate 20% increase in the number of cars from 900 to 1080. From 1991, the fleet in Auckland grew to the present day figure of between 3,500 to 4,000 cars It is hard to gauge the impact of deregulation on prices because, as explained above, this function was deregulated and the Government did not track prices over time. Inadequate enforcement of standards and the dramatic increase in the number of taxis, particularly in metropolitan areas, led to a sharp decline in service standards. This decline was not, however, uniform across the taxi fleet. Rather, a tiered or dual system developed. While standards tended to be maintained by ATOs and drivers that had worked within the industry prior to November 1989, new players entering the market did not generally deliver the same levels of service. The leading cause of this dual system was a lack of adequate and effective regulation. In a normal functioning market, companies that failed to adhere to basic service standards would fail to generate adequate business and would eventually leave the market. However, the highly elastic nature of demand for taxi services - whereby there is work at high demand times even for those providing a substandard service - has meant that poorly performing companies have been able to remain in the market. Another feature of this scenario is the ability of these less desirable companies to cut costs by not complying with standards. This non-compliance was largely the result of inadequate regulation, or at least a lack of resources to enforce it. This scenario continued to play out in NZ and still does to a lesser extent until the present day. The catalyst for change has been a number of (easily accessible) damning reports by the NZ Auditor General conducted from the late 1990s through to the mid 2000s. NZ industry figures throughout this period continued to push for regulation, or at least enforcement of the regulated standards. Government figures spoken to acknowledge the pressure the industry had applied during this difficult phase. In 2011 much more emphasis has been placed on the enforcement of standards by the New Zealand Ministry of Transport (MOT) and the New Zealand Transport Agency (NZTA). Reports on how successful this has been varied, but all agreed things had improved.

2. POST 1989 INDUSTRY STRUCTURE

This section outlines key features of the NZ taxi system post-1989. The list includes regulatory requirements and some accompanying observations relating to how the system has developed. Industry participants must comply with Land Transport Act 1998: http://www.legislation.govt.nz/act/public/1998/0110/latest/DLM433613.html Industry participants must adhere to NZTA rules/standards set out in Land Transport Rule Operator Licensing: http://www.nzta.govt.nz/resources/rules/operator-licensing-2007-index.html

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Industry participants must pass the Fit and Proper Person Test and hold a Certificate of Fitness administered by MOT. The ATO must register tariff rate with NZTA This is not an approval process, but rather a registration process. The schedule is regulated to ensure that passengers can compare services. For example, same measures used, X distance = X rate. A driver / vehicle owner must affiliate with an ATO. A driver must complete Knowledge Test for area(s) intend to work. This creates unofficial zones. ATOs do not appear to compete on price. All about the same. Little customer focus on tariff. ATOs must provide a 24/7 service. This obligation is not extended to the vehicle. Most cars are single shifted and driven by owner. Most seem reluctant to put driver on due to perceived cost not the demand to justify expense outside of peak times. Strict rules around driving hours. A driver is not permitted to drive more than 13 hours in one shift. After 7 hours a drive must take a half hour break. A comprehensive log book system has been introduced to enforce this regime. ATOs are free to brand their affiliated vehicles. There is no standard or regulated colour scheme. From a passenger service point of view it is very hard to gauge the impact of deregulation on passenger satisfaction because there has been no coordinated collection of this information by the NZ authorities. MOT confirmed there had been 3 surveys conducted since 1989. NZ authorities found it hard to gauge the impact of deregulation on price since the reforms of 1989, due to the fact that since deregulation the ATOs had been responsible for setting fares. Attached at Appendix 3 is a fare schedule from Auckland CO OP taxis and pictures of an external and internal tariff label, one of NZs largest and most respected ATOs. The information demonstrates that there is little difference between the price of catching a taxi in New Zealand or in Victoria. Most of those interviewed during this study were of the view that there was not a great deal of difference when it came to price offered to ATO customers. Rather, competition appears to centre on ATO reputation and service standards rather than price.

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It is also worth noting the minimum charge for Airport customers of $25, and an additional charge of $7 to account for the amount the airport charges the taxi to enter the rank. The $25 fixed charge is designed to avoid fare refusal for international and domestic travellers arriving in Auckland. Taxi infrastructure is not as prolific in NZ as in Victoria. In Auckland there is not enough ranks space as the pictures at Appendix 4 demonstrate. Further, Airport space is bought, as is rank space in the CAD (see Appendix 4). Another significant difference between the NZ and the Victorian systems relates to how most drivers receive a fare. There appeared to be much more reliance on phone bookings in NZ than in Victoria. This was particularly the case in areas outside of the CAD, even immediately outside. For example, when arriving in Devonport (about 18kms for the CAD), at approximately 11 am on Tuesday, it was not possible to hail a taxi. A phone booking was required. At the same time in Aucklands CAD there was any number of taxis available for hire.

3. APPROVED TAXI ORGANISATIONS (ATO)

The role and structure of modern ATOs appears to be heavily influenced by the 1989 deregulation process. In the Victorian context the ATO is probably best described as being somewhere between a PSNP and a large fleet operator. The ATO provides phone booking services and a range of ancillary services. The level of regulatory intervention into the affairs of ATOs appears to be kept as minimal as possible. The regulator actively encourages the ATO to take a leading role in setting, maintaining and enforcing service standards. After 2006 significantly more resources were dedicated to enforcing standards. While industry representatives expressed some frustration at the inaction by Government in this regard, all those interviewed acknowledged that things have improved dramatically since 2006. The number of ATOs increased after 1989. It has remained a legal requirement in the deregulated market that, to own/drive a taxi, one must affiliate to an approved ATO. Deregulation saw large discrepancies develop in the quality of service offered by different ATOs. This difference was particularly marked between 1989 2006 when, according to all interviewed, enforcement of standards was not effective. Affiliation fees and entitlements differ from ATO to ATO. Established ATOs, those that were already involved prior to deregulation, required that new players buy a share in the company/CO-OP. This share was introduced to ensure that the new entrants contributed something to the company and did not simply free ride off the back of the investments of the existing members.

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The share system remains in place today in many ATOs. The newer ATOs, in particular, charge quite low fees. However, the quality of the service to both the owner of the vehicle and the customer is generally lower. In effect, the quality of the taxi service in NZ is tiered. The quality of service appears to be heavily determined by the ATO to which the driver/owner/vehicle is affiliated. The NZTA are confident they are overcoming these issues, and removing some of the lower quality ATOs, but it has taken time and effort. Recently the NZTA shut down a 200 car ATO in Auckland for not fulfilling its responsibilities. One important factor affecting competition in the NZ taxi market is the ability of ATOs to differentiate themselves aesthetically. There is no standard colour scheme or regulations unique to the taxi industry that impacts on the vehicles appearance (accept for some very minor requirements such as the tariff rate sticker). This allows a better performing ATO to clearly differentiate itself from a poorer performing company, and allows the customer to make this important distinction. Much of the onus of ensuring quality customer service lies with the ATO. The better ATOs have strong disciplinary processes to deal with drivers/owners who do the wrong thing (in reaction to the law or by breaking the ATOs rules). Unlike Victoria, the Government encourages the ATOs to take on this role. The reason why an owner/driver chooses to pay more to join one ATO over another varies, but can include: Radio work Ancillary services offered, e.g. insurance. Geographic coverage Tariff rate Airport priority.

4. THE REGULATORS AND REGULATIONS

The regulatory bodies in NZ are the Ministry of Transport (MOT) and the New Zealand Transport Agency (NZTA). In structural terms they perform the equivalent roles of Victorias Department of Transport (DOT) and the Victorian Taxi Directorate (VTD - soon to be Taxi Services Commission). NZTA has a broader role than the VTD, as it also has responsibility for vehicles such as Hire cars and other small passenger vehicles. They do not appear to have access to the same level of resources as the VTD to deal specifically with taxi issues. An NZTA official interviewed expressed the view that resources dedicated to taxis are disproportionate to their role in NZs transport system. Interestingly, however, he saw this as appropriate due to the consequences of not providing adequate enforcement of standards in the past.

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The same official expressed concerns that the current economic climate in NZ could see a reduction in Government funding to manage taxi issues. This, he believed, could significantly set back the standard of the countrys taxi industry. NZ MOT does not have the resources to manage every aspect of the industry they also do not appear inclined to do so. Instead, they believe that the industry should take responsibility for the service the passenger receives. This makes them appear, on the whole, much more outcome focused than Victorian regulators. Government does not invest in ongoing customer satisfaction monitoring. As stated above, MOT representatives explained that approximately three customer service satisfaction surveys had been conducted since 1989. NZTA effectively enforce the regulations and legislation developed and administered by the MOT. Attached below are the links to numerous regulations that directly or indirectly relate to taxis. For more information, go to: http://www.nzta.govt.nz/resources/factsheets/numerical.html Information regarding the following key pieces of regulation can be found at the attached address:
Land Transport Act 1998 http://www.legislation.govt.nz/act/public/1998/0110/latest/DLM433613.html Land Transport Rule Operator Licence http://www.nzta.govt.nz/resources/rules/operator-licensing-2007-index.html P Endorsement http://www.nzta.govt.nz/resources/factsheets/42/index.html Area Knowledge and Language Requirements http://www.nzta.govt.nz/resources/factsheets/04/index.html Passenger Services Vehicle http://www.nzta.govt.nz/resources/factsheets/15/index.html Customer Service Standards http://www.nzta.govt.nz/resources/factsheets/21/index.html Work time and Log Books http://www.nzta.govt.nz/resources/factsheets/02/index.html Transport service Licences http://www.nzta.govt.nz/resources/factsheets/47/index.html Disqualifications and Suspensions http://www.nzta.govt.nz/resources/factsheets/50/disqualifications-and-suspensions.html

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5. VEHICLES AND DRIVERS

Vehicles On the whole NZ taxis are clean, well presented and appear safe (at least from a users perspective). There are very few restrictions on the type of vehicle that can be used as a taxi providing the vehicle has a certificate of fitness. The certificate of fitness requires the vehicle to pass an inspection every 6 months. Standard NZ vehicles used for personal transport require a warrant of fitness which requires that the vehicle is inspected every 12 months if the vehicle is less than six years old, or every six months if the vehicle is more than six years old. Unlike Victoria, there are any number of different makes and models registered as taxis. Attached at Appendix 1 is a collection of photographs demonstrating the different types of vehicles that are used as taxis. The interior of taxis in NZ are not as cluttered as those in Victoria, and do not contain the same number of different stickers and passenger information issued by Government. All vehicles must run an approved taxi meter, and will soon have security cameras fitted. The taxi can be used as a private vehicle when not operating as a taxi. Most have magnetic decals and a removable dome light. There was little advertising on the vehicle except for the ATOs details. The ATOs fare schedule is set out in sticker form. There is one sticker on the front passenger door and one on the dashboard inside the vehicle. These stickers were easy to read and understand. New Zealand taxis have electronic payment systems. Most vehicles appeared to be fitted with Taxi Charge facilities (a comparable system to those found operating in Victorian taxis). The passenger pays a 10% surcharge on electronic payments the same percentage as applies in Victoria. Drivers Much like Victoria, NZ drivers are, on the whole adequately presented and friendly. It is hard to gauge their specific knowledge because the author of this reports geographic knowledge of NZ is very limited. One method used to try and overcome this was to take the same trip twice with the same ATO (because price differs between ATOs). On the limited number of occasional this was done the outcome was a very similar price indicating the drivers knew where they were going, and werent trying to extort a higher fare from a passenger unfamiliar with their surrounds. Frustration expressed by NZ taxi drivers were similar to those often articulated by Victorian taxi drivers. On the whole their concerns relate to the fact that they believe there are far too many taxis. This meant that in non-peak times it is very hard to get work. Drivers explained that they may wait between 2 and 3 hours for a fare at non-peak times. Simply from observation, there did appear to be many vacant cars on the streets during nonpeak times. See Appendix 5.

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As explained earlier, most drivers are the owners of the taxi vehicles in NZ. Those spoken to did not see any economic benefit in bailing their taxi to a driver because there simply was not enough work to justify the cost. Many drivers spoken too expressed frustration with the log book system. They put the view that it was open to fraudulent behaviour and some took advantage of this to the detriment of others in the industry because it increased the number of vehicles on the road. Some drivers were also of the view that they should be able to determine their own hours of work and not be limited to the current maximum13 working hours every 24 hours. They explained that they rested during quiet times and therefore did not necessarily need to come off the road after the mandated 13 hours.

6. REGIONAL TAXI SERVICES

Regional taxi services were hit particularly hard by the 1989 deregulation process. Many have simply shut down and/or been replaced by VHA type services. There seemed to be a common view that those that did remain ended up being more expensive for the taxi user. On top of competition from VHA types vehicles, regional NZ taxis have also faced increased competition from community transport type arrangements and free hospitality services. Such services are not, however, permitted to charge a fee in NZ. Regional taxis providers in NZ appear to suffer the same frustration as Victorian regional taxi service providers. The main frustration would appear to be the increasing prevalence of competitors who do not face the same regulatory costs/requirements both within and outside the industry. Once again, it is important to point out that the size structure of regional taxi services in NZ is very different from that of regional Victoria. There simply isnt the same population or large number of urban settings in NZ as there is in Victoria.

7. WHEELCHAIR ACCESSIBLE TAXIS (WATS) AND TRANSPORT COMPETITORS

WATS Like Victoria, NZ has WAT vehicles that transport customers in a wheelchair. Unlike Victoria, these vehicles did not have an obvious presence on the streets. According to industry figures most WAT work was done via phone booking and not many WAT vehicles worked at night. There did appear to be a sustainable number of van style taxis, but most did not appear to have wheelchair capabilities. To encourage drivers to do wheelchair work, ATOs offer incentives based on a lifting fee, similar to Victoria. Auckland Taxi CO OP charged a $10 lifting fee. The WAT service is subsided by the Government through the passenger, as is the case in Victoria.

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Transport Competitors There is no real discernable difference between Victoria and NZ when it comes to the forms of transport that taxis compete with. There is a relatively high proliferation of community transport and courtesy bus competition. There is also competition from hire car services, particularly outside of the CADs. Government officials noted that like Victoria, this was a definite area of friction. Attached at Appendix 2 are photographs of some transport competitors.

CONCLUSION AND OBSERVATIONS

On the whole, the NZ taxi service appears to work quite well. However, there is little to suggest that it is markedly superior to Victorias. Deregulation certainly has not been the panacea that some would have us believe. It has taken NZ more than twenty years to get where they are today. At the end of the day, effective reform must relate directly to the problems it is attempting to address. Importantly, if we are drawing upon the experiences of one jurisdiction to inform the design of reforms in another, we must ensure we are comparing like with like. This would not appear to be the case when comparing NZ to Victoria. Customers have very little interest in the structure behind a taxi service. They want a clean taxi that takes them where they want to go at an affordable price. On the whole, both NZ passengers and Victorian passengers experience this. In NZ, despite the fact that ATOs are free to set their own tariff rate cost to the end user does not differ much from ATO to ATO. In other words, there is a convergence of the price the community pays to use a taxi. Further, the price does not seem to be the determining factor in consumer choice anyway. The most frequently used ATOs also appear to be marginally more expensive. This seems to support the hypothesis that the VTA has advocated from a number of years now; that the key features informing taxi patronage are firstly, necessity (the lack of other transport options) and secondly, quality. The NZ model strongly supports this notion. Price seems to be an almost secondary concern to a lot of consumers (there would obviously be a point where this would price would see consumers leave the market and the VTA are not advocating the argument that you could charge any price). Ultimately the best measure of end user satisfaction is occupancy. Occupancy is down in Melbourne when benchmarked against historical markers. The question that remains is how much of this is due to unjustified increases in licence numbers and large increases in competition from other transport modes like the VHA industry, improved public transport services in Melbourne and unregulated community transport in country and regional areas. NZ deregulation has not addressed the customer satisfaction issues that face the Victorian taxi service. Customer complaints in NZ relate to short fare refusal and cleanliness issues. Recent examples of this from the NZTA and a NZ newspaper are attached at Appendix 6. Knowledge tests are still required and enforced by regulation. These things are the product 11 | P a g e

of the return to drivers being too low. This is precisely the scenario the VTA has arguing is occurring in the Victorian context for a number of years now. There is nothing to suggest that NZ style deregulation would address the alleged issues affecting Victorias taxi industry. This is simply because increased supply will not address those things that are, apparently, not working. On the whole, the issues in Victoria relate to the level of service not the availability of taxis. In NZ and Melbourne, at least anecdotally, the number one complaint is short fare refusal. The fact that there are three times as many taxis per capita in Auckland than in Melbourne yet short fare refusal is still the most common complaint, seriously brings into question the ability of increased supply, through deregulation, to deal with this apparent problem. Further, the NZ experience demonstrates that deregulating who can enter the industry, and how they can do so, leads to a sharp decline in the standard of the service on offer because the regulator is simply unable to keep up with the sharp rise in the number of taxis on the road. The VTD, according to the Governments own commentary, has failed to effectively manage and regulate the standard of 4,200 Melbourne taxis. It is therefore highly questionable not to mention concerning - to suggest that they could therefore manage to regulate the quality and standard of an extra 12,000 metropolitan taxis (use the 20% growth figure from Auckland) no matter what structural reforms are to be made to the agency. Increasing supply via deregulation of licences would simply amplify the existing problems with Melbournes taxi service. The only justification for increases in supply can be that demand is not being met across an entire shift (as opposed to only short pockets at peak time). With occupancy rates in Melbournes taxis of between 25%-30% per shift this is, once again, an unsustainable argument. In summary, New Zealand-style deregulation will not address the perceived issues with Melbournes taxis. The taxi industry in Victoria requires a combination of appropriate and effective regulation, coupled with the appropriate incentives to continue to provide a first class service.

END.

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APPENDIX 1 - VEHICLES

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APPENDIX 2 - COMPETITORS

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APPENDIX 3 - FARES

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External tariff sticker

Internal tariff sticker and new Camera sticker

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APPENDIX 4 TAXI INFRASTRUCTURE

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Private taxi ranks

Airport space is sold. This gives certain ATOs priority. Pic Wellington Airport.

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APPENDIX 5 DOWN TIME

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APPENDIX 6 SHORT FARE REFUSAL

NZTA action against taxi drivers refusing short trip fares
Home National Contributor:

Voxy News Engine Sunday, 10 July, 2011 - 04:00

The NZ Transport Agency says two Auckland taxi drivers have been penalised with instant $400 fines for refusing short journey fares, and four other drivers are under investigation for similar offences.

All six drivers were working at night when they refused the fares.

The two fines, imposed under the Operator Licensing Rules (2007) which prohibits drivers from refusing fares because the requested journey is too short, follow complaints to the NZTA from people unable to get rides in the central city area.

Two of the remaining four face fines after an operation by NZTA officers targeting central city ranks. The two others are also the subject of complaints from people who tried to hire their taxis. One of the four drivers faces additional court action for removing his identification disc, which he is required by law to display inside his taxi.

Andy Thackwray, the Regional Manager in Auckland for Access and Use - the NZTA group responsible for regulating the taxi industry - says there has been increase in complaints recently about drivers refusing short fare trips, and the NZTA's action sends a clear message to both the industry and to the public that the practise will not be tolerated.

"It's not just a question of money, it's also an issue of providing a service, especially at night. People need to have the confidence that they can hire a taxi so that they can get to their destination safely, no matter the length of that journey.

"We accept that drivers, especially late at night, can wait a long time for a fare. There are reasons when drivers can legitimately refuse a fare, but the distance a person wants to travel is not one of them," says Mr Thackwray.

All six drivers are able to continue to drive, but Mr Thackwray says their refusal to accept short journeys may be taken into account when they come to renew the P endorsement on their licence, which they need to operate as taxi drivers.

"Taxi drivers and their companies have an obligation to provide a reliable and safe service - not just during the Rugby World Cup - but long before that tournament begins and long after it is over," Mr Thackwray says. "The NZTA insists that drivers and companies comply with that obligation."

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TAXI COMPANY NOT 'FARE'

By Andre Hueber 5:30 AM Sunday Jul 10, 2011

Expand

Ranjit Singh was the director of Urgent Cabs Taxis Limited. Photo / Herald on Sunday An Auckland taxi company is off the road after being nabbed for refusing to take short fares. In one case, a driver would not take an injured woman to hospital because the fare was not big enough.

Urgent Cabs Taxis Limited surrendered its licence on July 1 and ended the jobs of 200 drivers after a New Zealand Transport Agency sting.

Director Ranjit Singh continues to operate two other companies however, one of which was set up a week before Urgent ended.

Drivers for Urgent were responsible for 80 per cent of short fare complaints so officials targeted taxi ranks around Auckland's CBD. Two Urgent drivers were handed instant $400 fines during the operation.

The work was prompted partly by a Herald on Sunday investigation into cab companies. In the worst case to come to light, Viaduct night spot Danny Doolans manager Sean Lee made a complaint after a woman slipped on his venue's dance floor and injured her ankle on St Patrick's day. Doorman John Lomu, Jonah Lomu's younger brother, carried the woman to an Urgent taxi but the driver refused to take her to hospital because it wasn't far enough.

When Lomu tried to take down the driver's number, he removed it from the dashboard.

"It's piss poor," Lee said. "The World Cup's coming up and if they're doing that to injured people it won't show us in a good light."

Other recent complaints included a refused fare from Vector Arena to SkyCity, and another was turned down for a trip from Hobson St to Upper Queen St.

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NZTA regional manager Andy Thackwray said the agency reviewed the company and found "a number" of management issues, including instances where drivers failed to show a licence, inappropriate behaviour and threatening behaviour towards other drivers.

Singh said he chose to surrender his licence rather than face prosecution for "a lot of breaches". But he continues to run Reliable Cabs 2011 Limited and Sunshine Taxis Limited from the same Otahuhu flat. He said any drivers he employed were given a copy of taxi rules and regulations. "I clearly tell them you can't refuse a short fare and you have to have respect for other taxi drivers."

A source said most of the firm's drivers were overseas students, many of whom were now trying to move to other companies. Sixty Urgent drivers have been employed by Crown Cabs Limited. Spokesman Khalil Tajek said those who refused short fares would not be employed.

Thackwray said drivers were able to refuse a fare if they felt at risk or if a passenger was intoxicated, in a filthy condition or unable to pay - but distance wasn't a legitimate excuse.

If people were refused a short fare they should write down the driver's ID number, the fleet number of the vehicle and the name of the company.

"First complain to the company and if that's not successful we will intervene," said Thackwray.

NZTA and police this week began conducting voluntary safety checks of 4000 taxis, limousines and shuttle-buses in Auckland in the lead-up to the Rugby World Cup. Those who pass are given an orange sticker and a publicity campaign will let visitors know to look out for the distinctive stickers.

Source: NZ Herald News, Sunday Jul 10, 2011.

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