May 1, 2007
Taxi fares to rise 10% under rules
By KIM THOMAS
Taxi passengers face paying up to 10 per cent more for fares as a result of new legislation clamping down on rogue operators, the Taxi Federation says.
New Land Transport New Zealand regulations to catch and punish dodgy operators will be in place within the next five months.
Enforcement officers will conduct stings to nab those flouting the rules.
The regulations include new test fees and compliance costs for taxi companies.
The rules were introduced after a damning 2005 industry report by the Auditor-General and allegations of illegal practices such as disqualified drivers carrying passengers and cabbies working a huge number of hours.
Taxi Federation Christchurch president Julie Gane said she had calculated the new regulations would cost taxi companies an extra 10% a year, which would be passed on to passengers.
While the industry welcomed moves to tackle rogue drivers, the rules would hit companies financially, she said.
Increased competition and soaring petrol prices had already put taxi drivers under financial strain in the past year, and the new regulation costs could be the last straw for some struggling companies, she said.
Another cost for Christchurch drivers was the $200 annual fee that would soon be charged for cabs to work at Christchurch International Airport, Gane said.
Taxi Federation executive director Tim Reddish said the new regulations had just been approved by the Government and should be in place by September.
Reddish estimated the changes would cost the national industry a one-off $756,000 for existing drivers and an extra $672,000 a year for new drivers – a cost that could be passed on to passengers.
The regulations would result in a "welcome shake-up" in an industry that had been poorly policed.
An estimated 30% of taxi drivers in Auckland, Wellington and Christchurch were not complying with rules, he said.
"The new regulations will make sure every taxi company complies with all aspects of the passenger laws," Reddish said.
The industry had experienced phenomenal growth since deregulation in 1989.
Some operators had poor or nonexistent systems to ensure the safety and compliance of drivers, he said.
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