Taxi Services Commission
Encyclopedia
The Taxi Services Commission (the TSC or the Commission) is the independent Government agency
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

 responsible for conducting a major inquiry, the Taxi Industry Inquiry
Taxi Industry Inquiry
The Taxi Industry Inquiry is an inquiry being conducted in the State of Victoria, Australia by the Taxi Services Commission into the taxi industry and taxi services in that State. The Inquiry is headed by Professor Allan Fels, the former head of the Australian Competition and Consumer Commission...

, into taxi and other small commercial passenger vehicle services in the State of Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

. The Commission will also become the State's ongoing taxi regulator in place of the current regulator, the Director of Public Transport
Director of Public Transport
The Director of Public Transport is the Government agency responsible for promoting, providing, coordinating and regulating public transport in the State of Victoria, Australia...

, once the inquiry concludes.

The TSC was created as a statutory corporation under legislation passed by the Victorian Parliament which amended the State's prime transport statute, the Transport Integration Act 2010. The Commission is subject to the high level policy and operational framework contained in the Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

. A range of changes were made to the Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

 and the Transport (Compliance and Miscellaneous) Act 1983
Transport (Compliance and Miscellaneous) Act 1983
The 'Transport Act 1983' is a prime statute regulating transport activities in the State of Victoria, Australia...

 to provide the Commission with sufficient powers to undertake its work both as an inquiry body and a regulator.

The Commission commenced operation in its initial inquiry phase on 19 July 2011.

Context

The TSC was established due to concerns about the ongoing poor performance of Victoria's taxi industry.

Initial announcement

An Inquiry into the taxi industry was announced on 28 March 2011 by the Premier of Victoria, Ted Baillieu
Ted Baillieu
Edward Norman "Ted" Baillieu MLA is an Australian politician. He is currently the Premier of Victoria and the member for the Legislative Assembly seat of Hawthorn...

. The Premier advised that it would be headed by Professor Allan Fels
Allan Fels
Professor Allan Fels is an Australian economist, lawyer and public servant. He was most widely known in his role as chairman of the Australian Competition and Consumer Commission from its inception in 1995 until 30 June 2003...

, the former head of the Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...

.

Mr Baillieu said the Fels Inquiry’s key tasks would include improving disastrously low levels of public confidence, providing better security and support services for drivers and safety for customers, and ensuring drivers were properly trained and knowledgeable. The media release issued by the Premier announcing the Inquiry reported him as saying that -
“The state of the taxi industry has deteriorated under the former Labor Government, failing both passengers and the industry. It is a troubled industry that needs significant reform to drive improvements in service.”

Taxi industry problems

The key problems with the current Victorian taxi industry listed by Mr Baillieu in his announcement were -
  • low customer satisfaction, with a sharp decline over the past five to six years
  • safety and security for passengers and drivers
  • insufficient support for drivers
  • too many poorly-skilled drivers with inadequate knowledge
  • a high turnover of drivers resulting in a shortage of experienced drivers
  • complex ownership and management structures
  • lack of competition
  • too much of the industry revenue not being directed to the service providers – the drivers and operators.

Inquiry details and ongoing regulatory responsibilities

The Premier indicated that reforming the Victorian taxi industry would occur in two stages. In the first stage, the Fels Inquiry was tasked with undertaking a comprehensive inquiry into the service, safety and competition issues in the Victorian taxi industry. In the second stage, following Professor Fels’ investigation, the Taxi Services Commission will take over the role of industry regulator with the powers and tools necessary to drive reform in the taxi industry. The Premier announced that the Taxi Services Commission would be established as a statutory authority.

The Premier indicated that the current taxi industry regulator, the Victorian Taxi Directorate (VTD), was to operate as normal until the Commission was established. During the second stage staff and resources from the VTD will move to the new body once it assumes the ongoing role of regulator.

Inquiry phase

In its initial incarnation, the Commission is responsible for conducting an inquiry into the taxi industry and wider commercial passenger vehicle industry. The Commission is then required to report on those matters including by making recommendations about how the commercial passenger vehicle industry should be structured and regulated.

Regulator phase

In its second phase, the Commission has been positioned as the Victorian Government's regulator of taxi services and other small commercial passenger vehicles. This role will require the TSC to, among other things, administer any licensing and accreditation schemes and conduct compliance and enforcement and other activities which apply to the taxi and broader small commercial passenger vehicle industries.

Establishment

The TSC was established following passage of the Transport Legislation Amendment (Taxi Services Reform and Other Matters) Act 2011
Transport Legislation Amendment (Taxi Services Reform and Other Matters) Act 2011
The Transport Legislation Amendment 2011 is a law enacted by the Parliament of the State of Victoria, Australia to support major reform of taxi services and other small commercial passenger vehicle services in that State.The Act makes changes to the Transport Integration Act 2010 and the...

. That Act amended the Transport Integration Act 2010 to create the Commission alongside Victoria's other transport agencies. The Commission is a body corporate.

Constitution

The Commission consists of a Chairperson and up to two Commissioners. Professor Allan Fels
Allan Fels
Professor Allan Fels is an Australian economist, lawyer and public servant. He was most widely known in his role as chairman of the Australian Competition and Consumer Commission from its inception in 1995 until 30 June 2003...

 has been appointed as Chairperson and Dr David Cousins AM as a Commissioner. A third Commissioner has not as yet been appointed. Provision is made for staff to be engaged by the Commission. The Commissioners in the Commission's initial inquiry phase are not automatically transitioned to manage the Commission when it assumes its role as a regulator.

Transport Integration Act

The Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

 provides the TSC with a governance framework - the objects, functions and powers - which comprise the charter of the agency.

Objects

The Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

 provides that the object of the Commission in its inquiry phase is to
"(a) pursue and promote major and enduring improvements in ... —
(i) the provision and accessibility of services in the commercial passenger vehicle industry;
(ii) competition in the commercial passenger vehicle industry;
(iii) innovation in the commercial passenger vehicle industry, including in the business structures, service delivery models, policies and procedures in the industry;
(iv) the safety of passengers and drivers of commercial passenger vehicles;
(b) promote public confidence in the safety of the commercial passenger vehicle industry."

Functions

The function of the TSC includes -
"(a) conducting an inquiry into—
(i) the structure, conduct, performance and regulation of the commercial passenger vehicle industry; and
(ii) ancillary matters related to the provision of commercial passenger vehicle services; and
(b) reporting on the outcome of the inquiry, including making recommendations about how the commercial passenger vehicle industry should be structured and regulated."

Desirable considerations

In performing its function, the Commission is required to consider the desirability of -
  • raising the standard of customer service in the commercial passenger vehicle industry
  • integrating the commercial passenger vehicle industry with other forms of public transport
  • improving efficiency in the commercial passenger vehicle industry
  • providing education and training to drivers of commercial passenger vehicles
  • ensuring that the commercial passenger vehicle industry is regulated under a performance-based regulatory framework
  • improving the financial viability of the commercial passenger vehicle industry
  • alternative regulatory frameworks and the potential costs (including externalities) and benefits of those frameworks
  • any regulatory framework that is recommended being consistent with relevant health, safety, environmental and social requirements
  • applying to the commercial passenger vehicle industry
  • achieving consistency in the regulation of the commercial passenger vehicle industry between States and on a national basis
  • reducing obstacles that prevent people from using commercial passenger vehicle services
  • improving the quality of commercial passenger vehicle services at State borders
  • promoting environmentally sustainable practices in the commercial passenger vehicle industry.

Provisions triggering inquiry

It is not sufficient for the Commission to merely be established for it to conduct an inquiry. It must also have matters formally referred to it by the Minister for Public Transport before it can commence its inquiry duties. Accordingly, the Transport (Compliance and Miscellaneous) Act makes provision for the Minister to issue a notice specifying the matters to be investigated, the nature of the Commission's reporting on its investigations and other relevant matters.

General

The TSC is generally able to conduct its inquiry in the manner it considers appropriate. A number of requirements and signals are included in the legislation, however, which require initial discussions and ongoing consultations. The Commission's procedures are informal - it is not bound by the rules of evidence and may inform itself as it considers appropriate. In addition, the Commission is empowered to conduct hearings in public or in private and may determine whether a person can appear at a hearing and be represented by another person.

Powers

The Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

 provides the TSC with a range of general corporate powers . More specific powers including those of a coercive nature are contained in the key support statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...

 to the Transport Integration Act, the Transport (Compliance and Miscellaneous) Act 1983
Transport (Compliance and Miscellaneous) Act 1983
The 'Transport Act 1983' is a prime statute regulating transport activities in the State of Victoria, Australia...

. Provisions include those enabling the Commission to require information and documents and those concerning the issue and tabling of reports.

Independence

The TSC is independent of Ministers and Government generally in its initial inquiry phase. No provision is included for the Commission to be directed during this period thereby enabling it to operate without interference. This changes during the second phase when the Commission will be subject to the standard powers of direction available to Ministers.

Other Victorian transport agencies

There are a range of State agencies responsible for the transport system in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

. The Department of Transport
Department of Transport (Victoria, Australia)
The Department of Transport or DOT is the central Government agency responsible for the coordination, integration and regulation of the transport system in the State of Victoria, Australia...

 (DOT) oversees and coordinates the activities of the agencies which can be divided into three main types - statutory offices, statutory authorities and independent transport safety agencies. Together with DOT, the agencies provide, manage and regulate transport system activities in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

 including -
  • heavy and light rail systems including trains and trams
  • roads systems and vehicles including cars
    CARS
    Cars, or automobiles, motor cars, are wheeled motor vehicles used for transporting passengers.Cars or CARS may also refer to:-Entertainment:* Cars , a Disney/Pixar film series...

    , trucks and bicycles
  • ports and waterways including commercial ships and recreational vessels
    Vessels
    Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 the band self-released a five track eponymous EP, and played many gigs, including the unsigned stage at Leeds Festival as one of the six winners of the Futuresound competition.On 5...

  • some air transport systems.

Statutory offices

The statutory offices include -
  • the Director of Public Transport
    Director of Public Transport
    The Director of Public Transport is the Government agency responsible for promoting, providing, coordinating and regulating public transport in the State of Victoria, Australia...

  • the Transport Infrastructure Development Agent.


These agencies are part of the Department of Transport
Department of Transport (Victoria, Australia)
The Department of Transport or DOT is the central Government agency responsible for the coordination, integration and regulation of the transport system in the State of Victoria, Australia...

 but each has a distinct statutory charter and powers.

Statutory authorities

The statutory authorities are -
  • the Roads Corporation (VicRoads)
    VicRoads
    VicRoads or the Roads Corporation of Victoria is a statutory corporation which is the state road and traffic authority in the state of Victoria, Australia. It is responsible for maintenance and construction of the state arterial road network, as well as driver licensing and vehicle registration. ...

  • the Taxi Services Commission
  • Victorian Rail Track (VicTrack)
    VicTrack
    VicTrack is the Victorian Government agency which owns all railway and tram lines, associated rail lands and other related rail-related infrastructure in the state of Victoria, Australia....

  • V/Line Corporation (V/Line)
    V/Line
    V/Line is a not for profit regional passenger train and coach service in Victoria, Australia. It was created after the split-up of VicRail in 1983. V/Line is owned by the V/Line Corporation which is a Victorian State Government statutory authority...

  • the Linking Melbourne Authority
  • the Port of Melbourne Corporation
    Port of Melbourne Corporation
    The Port of Melbourne Corporation is a statutory body established by the Victorian Government. The Corporation commenced operations on 1 July 2003, when it took over the management of the Port of Melbourne from Melbourne Port Corporation...

  • the Victorian Regional Channels Authority
  • the Transport Ticketing Authority
  • the Regional Rail Link Authority.


These agencies are structurally separate from the Department of Transport
Department of Transport (Victoria, Australia)
The Department of Transport or DOT is the central Government agency responsible for the coordination, integration and regulation of the transport system in the State of Victoria, Australia...

. Agencies such as the Taxi Services Commission are subject to the same or similar provision.

Independent transport safety agencies

The Transport Integration Act
Transport Integration Act
The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

 provides for two independent safety agencies. The Director, Transport Safety
Director, Transport Safety
The Director, Transport Safety is the independent Government agency responsible for rail, bus and marine safety in the State of Victoria, Australia. The position was created as a statutory office by the Transport Integration Act 2010...

 and the Chief Investigator, Transport Safety
Chief Investigator, Transport Safety
The Chief Investigator, Transport Safety is the independent Government agency responsible for investigation of safety-related trends and incidents in the rail, bus and marine industries in the State of Victoria, Australia. The position was created as a statutory office by the Transport...

. The agencies are part of the Department of Transport
Department of Transport (Victoria, Australia)
The Department of Transport or DOT is the central Government agency responsible for the coordination, integration and regulation of the transport system in the State of Victoria, Australia...

 but are functionally independent and report to the relevant Ministers. The Director, Transport Safety
Director, Transport Safety
The Director, Transport Safety is the independent Government agency responsible for rail, bus and marine safety in the State of Victoria, Australia. The position was created as a statutory office by the Transport Integration Act 2010...

 has oversight of safety regulation schemes and industry performance under the schemes. By contrast, the Chief Investigator, Transport Safety
Chief Investigator, Transport Safety
The Chief Investigator, Transport Safety is the independent Government agency responsible for investigation of safety-related trends and incidents in the rail, bus and marine industries in the State of Victoria, Australia. The position was created as a statutory office by the Transport...

 is responsible for no blame or just culture inquiries and investigations in the transport sector.

See also

  • Taxi Industry Inquiry
    Taxi Industry Inquiry
    The Taxi Industry Inquiry is an inquiry being conducted in the State of Victoria, Australia by the Taxi Services Commission into the taxi industry and taxi services in that State. The Inquiry is headed by Professor Allan Fels, the former head of the Australian Competition and Consumer Commission...

  • Transport Legislation Amendment (Taxi Services Reform and Other Matters) Act 2011
    Transport Legislation Amendment (Taxi Services Reform and Other Matters) Act 2011
    The Transport Legislation Amendment 2011 is a law enacted by the Parliament of the State of Victoria, Australia to support major reform of taxi services and other small commercial passenger vehicle services in that State.The Act makes changes to the Transport Integration Act 2010 and the...

  • Department of Transport
    Department of Transport (Victoria, Australia)
    The Department of Transport or DOT is the central Government agency responsible for the coordination, integration and regulation of the transport system in the State of Victoria, Australia...

  • Transport Integration Act
    Transport Integration Act
    The Transport Integration Act 2010 is a law enacted by the Parliament of the State of Victoria, Australia. The Act is the prime transport statute in Victoria, having replaced major parts of the former Transport Act 1983....

  • Transport (Compliance and Miscellaneous) Act 1983
    Transport (Compliance and Miscellaneous) Act 1983
    The 'Transport Act 1983' is a prime statute regulating transport activities in the State of Victoria, Australia...


External links

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