Third World Taxi Industry in NZ from 2017

The New Zealand Government is about to introduce a third world taxi industry to New Zealand, without any obvious awareness of the likely impact on New Zealand's reputation as an international tourist destination. Submissions on the Land Transport Amendment Bill close in just a few days - 27 October 2016. See the Bill here: https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/00DBHOH_BILL69924_1/land-transport-amendment-bill

And this is all just because Uber has bigger balls, and is wealthier, than the NZ Government! Ubers net revenue in 2015 was US$11 BILLION! So it is not surprising that Uber has been able to flout the law in NZ, and even been rewarded by having the legislation changed to accommodate their preferred business model. Uber has fallen foul of the law in many of the countries in which is has chosen to operate since its establishment in 2008, and has raised over US$15 Billion in various requests for venture capital, investments having been made by parties as diverse as the Saudi Government, Google, and the largest search engine in China.

In September the Philippine Government, worried about Ubers business practices in that country, stopped issuing permits for Uber's "partner drivers"in that country. In the same month, to NZ Government introduced the Land Transport Amendment Bill, apparently as a reward to Uber.

Features of the Bill, and the supporting Land Transport Amendment Rules (which have now been published by NZTA, and are also open for submission - See: https://www.nzta.govt.nz/about-us/consultations/land-transport-rule-small-passenger-services-2017/ )

will, if unchanged, result in the following:

• The term "TAXI"will no longer be a protected term, so that anyone with a P (Passenger) driver licence endorsement, and working under a Passenger Service Licence will be able to paint "Taxi"on the side of their car, put on a roof sign and ply for hire. (See a little further down this list for the changes to the requirements for a P Endorsement and a Passenger Service Licence)
• Taxi drivers will not be required to speak or understand English
• Taxis will not be required to use a meter to calculate the fare, but the basis for the cost of the trip should be understood at the commencement of the trip
• "Taxi" stands will become "Small Passenger Service Stands", and anyone who has a small passenger service vehicle, irrespective if they have painted TAXI on the side or not, and irrespective if they can speak English or not, and irrespective if they have a meter or not, will be able to park there and ply for hire.
• Taxi drivers will not be required to hold an Area Knowledge Certificate. While it is easy to argue that with the advent of GPS this is unnecessary, the Area Knowledge has also restricted the locations in which a taxi driver could operate. With the removal of the area knowledge requirement, taxi drivers (English and non-English speaking, with metered or un-metered taxis, with or without any knowledge of the law, and with or without their knowledge of NZ traffic law, or practical driving skills in NZ having been assessed [see below]) will be able to park on taxi stands any where in the country, fleece the locals and then move on to a new location........
• Small Passenger Service Operators (ie, those in charge of the business, including owner operators) will still need to have a Passenger Service Licence, - permission from NZTA to operate the service. Currently the requirements to gain a PSL include being a "fit and proper person", and having to pass a "Certificate of Knowledge of Law and Practice"about operating such a service. From 2017, the applicant for a PSL will simply need a NZ address, and be deemed a "fit and proper"person. So the people who will be operating a small passenger service, from the mum and dad non English speaking "taxi" drivers, to the managers of a fleet of hundreds of "taxis" do not have to provide any evidence that they have any understanding of the law.
• Changes to the requirements to obtain a P (Passenger) Driver Licence Endorsement. To carry passengers for hire or reward, a driver currently needs to hold P endorsement from NZTA. This is something that Uber ignored when it commenced operations in Christchurch this year, and, although some of its drivers have been prosecuted, Uber itself was left alone by the enforcement agencies. So, having been able to defy the law in Christchurch without any enforcement action, Uber stopped requiring its Auckland and Wellington "driver partners" to obtain P endorsements. To obtain a P endorsement at present, a driver has to:
• ------------have held a full NZ driver licence for at least two years, AND, if it is more than 5 years since the driver has sat the NZ full driver licence test, or has never sat the full NZ licence test but gained the NZ licence on the basis of overseas equivalence, pass the full NZ Practical driving licence test, and
• ------------pass an NZTA Driver Licence medical assessment by a GP to confirm medical fitness to drive, and
• ------------be deemed a "fit and proper person" on the basis of a review of criminal offending and driving offences in NZ, and anything else NZTA knows about you, as well as evidence of being a "fit and proper person" from all overseas jurisdictions where the applicant has lived for 12 months or more since age 14, and
• ------------successfully complete a NZTA approved Passenger Endorsement Course. The course is about 10 - 12 hours long, generally over 2 days, and costs about $400 to $700 (inc gst). The course covers a knowledge of the law about carrying passengers for hire or reward, fatigue and its affects on drivers, fatigue management, the work time rule and correct completion and management of driving hours log books.

The new law will only require the applicant to have held a NZ full car licence for two years, meet the fit and proper person requirements (as at present), and pass the NZTA medical. There is no course. Presumably still will be a requirement to comply with the law, but no requirement for the applicant to demonstrate (or have?) any knowledge of the law. There is no requirement to have sat a driver licence test in NZ.

Note that drivers from the following countries are able to apply for a full NZ licence on the basis of their overseas drivers licence (if they have held it for at least 2 years). They are NOT required to sit the NZ theory (Learners) test, NOR are they required to sit the Practical Test. They will now be able to become Taxi Drivers in NZ without having demonstrated their knowledge of NZ road rules, or their skills in driving on NZ roads: South Africa • Australia • Austria • Belgium • Canada • Denmark • Finland • France • Germany • Greece • Ireland • Italy • Japan • Luxembourg • Norway • Portugal • Spain • Sweden • Switzerland • The Netherlands • United Kingdom • United States of America - any concerns there??

So, "Welcome to New Zealand. We recommend that once you come out of the International Terminal, or alight from your cruise ship, that you check to see if your taxi has a meter. If it doesn't you need to negotiate with the driver the basis of the fare. Note, that there is no requirement for NZ taxi drivers to speak English. You may wish to check if the driver speaks a language you understand before hiring that particular taxi. Please enjoy your stay. If you are visiting from Asia, please note that our taxi services are likely to be very similar to those you are familiar with."

If you would like to see our submission on the Land Transport Amendment Bill go to: www.stephenwickens.co.nz And, if you are as concerned as I am, and want to chat about it, email me on stephen.passrite@xtra.co.nz or phone 027-2885712

And, please share this!

Stephen Wickens 23 October 2016