Taxi Services Commission

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 then Premier of Victoria, Ted Baillieu. The Premier advised that it would be headed by Professor Allan Fels, the former head of the Australian Competition and Consumer Commission.

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 -

Taxi industry problems

The key problems with the current Victorian taxi industry listed by Mr Baillieu in his announcement were -

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 to be 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 was to 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 was to be established as a statutory authority.

The Premier indicated that the previous taxi industry regulator, the Victorian Taxi Directorate (VTD), was to operate as normal until the Taxi Services Commission was established as the industry regulator. Staff and resources from the VTD moved to the new body when it became the ongoing industry regulator.

Inquiry phase

The Commission was initially responsible for conducting an inquiry into the taxi industry and wider commercial passenger vehicle industry. The Commission was 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 was positioned as the Victorian Government's regulator of taxi services and other small commercial passenger vehicles. This role requires the TSC to, among other things, administer licensing and accreditation schemes and conduct compliance and enforcement and other activities which apply to the taxi and broader small commercial passenger vehicle industries. The TSC commenced as the taxi industry regulator on 1 July 2013.

Establishment

The TSC was established following passage of the Transport Legislation Amendment (Taxi Services Reform and Other Matters) Act 2011. 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 was appointed as initial Chairperson to conduct the Taxi Industry Inquiry. Provision was made for staff to be engaged by the Commission. The Commissioners in the Commission's initial inquiry phase were not transitioned to manage the Commission when it assumed its role as industry regulator.

Transport Integration Act

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

Objects

The Transport Integration Act provided that the object of the Commission in its initial inquiry phase was to:

Functions

The initial function of the TSC when it conducted the Taxi Industry Inquiry included -

Desirable considerations

In performing its initial inquiry function, the Commission was required to consider the desirability of -

Provisions triggering inquiry

It was not sufficient for the Commission to be established for it to conduct an inquiry. It needed to have matters formally referred to it by the Minister for Public Transport before it could commence that work. Accordingly, the Transport (Compliance and Miscellaneous) Act 1983 made 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 was generally able to conduct its inquiry in the manner it considered appropriate. A number of requirements and signals were included in the legislation, however, which required initial discussions and ongoing consultations. The Commission's procedures were informal - it was not bound by the rules of evidence and was able to inform itself as it considered appropriate. In addition, the Commission was empowered to conduct hearings in public or in private and could determine whether a person could appear at a hearing and be represented by another person.

Powers

The Transport Integration Act 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 to the Transport Integration Act, the Transport (Compliance and Miscellaneous) Act 1983. Provisions include those enabling the Commission to require information and documents and those concerning the issue and tabling of reports.

Independence

The TSC was independent of Ministers and Government generally in its initial inquiry phase. No provision was included for the Commission to be directed during this period thereby enabling it to operate without interference. This changed during the second phase when the Commission became 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. The Department of Transport (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 including -

Statutory offices

The statutory offices include the Transport Infrastructure Development Agent. The agency is part of the Department of Transport but has a distinct statutory charter and powers.

Statutory authorities

The statutory authorities are -

These agencies are structurally separate from the Department of Transport. Agencies such as the Taxi Services Commission are subject to the same or similar provision.

Independent transport safety agencies

The Transport Integration Act provides for two independent safety agencies. The Director, Transport Safety and the Chief Investigator, Transport Safety. The agencies are part of the Department of Transport but are functionally independent and report to the relevant Ministers. The Director, Transport Safety has oversight of safety regulation schemes and industry performance under the schemes. By contrast, the Chief Investigator, Transport Safety is responsible for no blame or just culture inquiries and investigations in the transport sector.