What is a small passenger service?
A small passenger service is a service that receives revenue for connecting a passenger with a driver. This includes taxis, private hire services such as limousines, shuttles, ridesharing, and dial-a-driver services.
What rules currently apply to small passenger services?
The rules that apply to small passenger services are outlined in the Operator Licensing Rule, which can be found at: https://www.nzta.govt.nz/resources/rules/operator-licensing-2007/Operator Licensing Rule .
What is changing?
The Government has decided to simplifyWhy did the rules for small passenger services.
Currently there are separate categories and rules for taxis, private hire, shuttles, and dial-a-driver services. In the future, these services will be regulated under the single categoryMinistry of a small passenger service.
Some rules that impose costs on operators, but no longer provide any significant benefits, will be removed (more on this below).
WhatTransport do the changes mean for taxis?
Taxis will continue to be defined as a small passenger service. Some requirements will be removed, however, in practice taxis will operate in much the same way as they do currently. These requirements are listed below.
What do the changes mean for technology or app based operators who connect passengers and drivers?review?
A technology or app based operator that receives revenue from connecting a passenger with a driver will be defined as a small passenger service, and therefore will be required to become an approved transport operator (see definition below).
Under the new system, how will passengers be confident that they can use services safely?
Under the new system, the fundamentalsIn January 2015 Hon Craig Foss Associate Minister of safety are maintained:
- Drivers continue
Transport asked the Ministry of Transport (the Ministry)to be required to holdconducta P endorsement and display a driver identification card. A fit and proper person check, including a police check, is undertaken before a P endorsement is granted - Drivers must continue to operate within their work time limits
- Vehicles will continue to be required to have a Certificate
reviewof Fitness - Vehicles operating within the 18 main urban areas will require an in-vehicle recording camera unless they have an exemption.
What requirements will be removed under the new system?
For a small passenger service vehicle:
Signage requirements (including information about fares, mandatory branding, information supplied in Braille)
For a driver:
- An Area Knowledge Certificate
- Passing a full licence test in the preceding five years (currently needed to obtain a P endorsement)
- In addition, the continued need
regulatory frameworkfor a driver to have passed a Passenger endorsement course is being reviewed by Ministers. Removing this would save a driver $400-$700 when applying for a P endorsement.
For an operator or company:
- The need to belong to an approved taxi organisation
- Provision of small passenger services on a 24/7 basis
- A certificate of knowledge of law and practice
- A Passenger Service Licence
- Driver panic alarms, monitored 24/7 from a fixed location
Why are these requirements being removed?
The Ministry’s review found that these requirements no longer add value. For example, GPS and mapping technology means that area knowledge is notservices, such as important as it was in the past. Removing these requirements means that the proposed regime will be more flexible,taxis and reduces compliance costs. It encourages businesses to make their own decisions about what their services should include, depending on their customers’ needs.private hire car services.
Why did the Ministry of Transport do a review?
The Ministry undertook the review to ensure New Zealand’s regulatory environment is fit for purpose and flexible enough to accommodate new technologies.
The existing rules for the sector have been in place since 1989 and a lot has changed since then.
Since then technology, the range of services offered, and consumer expectations have changed greatly. In particular, the increasing use of smart phone technologies in New Zealand and the introduction of ridesharing in overseas markets have underlined the importance of the review.
The agreed changes are necessary to:
The review is proposing changes to the rules that the small passenger services sector must comply with. The proposed changes are necessary to:
- Respond to new and innovative technology business models that are emerging within the small passenger services sector
- Ensure the sector is able to operate in a competitive market
- Ensure that the regulatory framework is both fit for purpose to meet future needs and that it delivers maximum benefits for consumers.
What did the review look at?
The review looked at how New Zealand’s regulatory regime could apply in the future to services such as carpooling, private hire, and taxis.
This included looking at how it could better incentivise competition through encouraging new technologies and improving customer services.
In particularly it looked at ways to maximise benefits for customers while maintaining the safety of passengers, drivers, and vehicles.
Was there public consultation before decisions were made?
Yes, the Transport Ministers sought public feedback between 14 December 2015 and 12 February 2016 through a consultation paper.
What is a P endorsement?
A passenger or P endorsement is required by anyone wanting to drive a small passenger service vehicle. It includes regular checks that the holder is ‘fit and proper’ to provide a transport service. More information on P endorsements and how to apply for one can be found at: https://www.nzta.govt.nz/driver-licences/getting-an-endorsement/p-endorsement-for-carrying-passengers/ .
What is an ATO?
The review looked at the small passenger services sector and ways to maximise benefits for customers while maintaining the safety of passengers, drivers, and vehicles.
What has happened since the review was completed?
Under the current system an ATO is an Approved Taxi Organisation. Under the new system an ATO is an Approved Transport Operator.
All drivers must drive for an Approved Transport Operator. This could mean that an owner/driver will need to be an ATO themselves.
What will an approved transport operatorOfficials have provided advice to do?
Under the new system an approved transport operator must be approved by the NZ Transport Agency. Approval is based upon a fit and proper person check. The NZ Transport Agency will audit approved transport operators to ensure compliance.
An approved transport operator would be responsibleMinisters on options for ensuring and maintaining evidence that:
- All of its drivers have a P endorsement (and display an identification card)
- All drivers only work within their legal work time limits
- All vehicles have a Certificate of Fitness
- If operating in a main urban area, all vehicles have an in-vehicle recording camera, or an exemption.
Has anything changed in regards to in-vehicle recording cameras?
In-vehicle cameras have an important role in promoting driver and passenger safety. After considering submissions, cameras will continue to only be required for services operating in the 18 main urban areas.
However, a specific exemption criteria has also been developed.
What are the criteria for an exemption from the requirement tofuture regime. Ministers have an approved in-vehicle camera?
The four criteriaissued the NZ Transport Agency will useconsultation paper to determine whether an approved transport operator should be exempt fromseek the approved in-vehicle recording camera requirement are:
- Providing services to registered passengers only
- Collection of driver and passenger information
- Availability of driver and passenger information
- Retaining a record of each trip.
Where an ATO is given an exemption under the above criteria, this would apply to any driver using the system.
What about cameras in limousines, shuttlesviews of the sector and other private hire vehicles?
Investigations are continuing, to provide an exemption for such services. Approved transport operators will be able to apply to the NZ Transport Agency for this. More informationwider public on this will be provided in the legislation.review’s proposals before making any final decisions.
What is ridesharing?
Ridesharing is when a third party connects people that want to take a trip, anddoes the third party receives revenue for facilitating the ridesharing trip.
Under the new rules ridesharing will be defined as a small passenger service, and will meet the same requirements as any other service defined as a small passenger service.
What does this mean for neighbours and friends who share rides, such as a regular commute to work?consultation paper say?
The consultation paper sets out five options, which were considered by the review for the future of small passenger services sector.
Is there a preferred option in the consultation paper?
Neighbours and friends sharing rides, or carpooling, will not be definedOption 4 has been identified as a small passenger service. This isbeing the current situation.
What does this meanpreferred approach for third parties that don’t charge to connect people who want to share rides?
Third party organisations, such as council-run carpooling schemes, which connect people but do not receive revenue from doing so, will not be defined as athe small passenger service. These types of services will remain exempt.
What if someone receives a payment for connecting passengers and drivers?
Where a third party receives revenue from connecting a driver and passenger/s who do not previously know each other, they will be required to register as an approved transport operator.
However, it is intended that if the driver is operating purely on a cost-sharing basis, they will not be required to hold a P endorsement. The NZ Transport Agency will have investigatory powers to ensure compliance in this regard.
When willsector in the new system start?
The new system must go through the regulatory process before it will become law. This means that any changes are unlikely to start before 2017.
Will there be further opportunities to comment on final proposals?
Changes to the Land Transport Act are required, so there will be further opportunity to comment via Select Committee when the changes are considered by Parliament.
Specific changes to the rules are also required and these will offer further opportunities for consultation.
Option 4 would allow businesses to compete on a level playing field while making sure safety concerns for both drivers and passengers are considered.
What is the timeframe for submissions on the consultation paper?
Consultation will take place over 9 weeks from the week beginning 14 December 2015 until Friday 12 February 2016.
Ministry officials will then analyse the submissions and report back to Transport Ministers in due course.
How can I have my say?
You can either:
Complete an online submission available on www.transport.govt.nz/spsreview
Send us a written submission using the submission template available on www.transport.govt.nz/spsreview
You can email your written submission to spsvreview@transport.govt.nz with the word Submission in the subject line.
Or you can post it to:
Small Passenger Services Review Submissions
Ministry of Transport
PO Box 3175
Wellington 6140.
What date do I need to make my submission by?
The deadline for submissions is 5pm, Friday 12 February 2016.
What would change under option 4, the review team’s preferred option?
Under option 4 the different rules for different types of small passenger services are removed and a single class of small passenger service is established.
Some rules that impose costs on operators, and which no longer provide any significant benefits, would be removed.
Under option 4, how would passengers be confident that they can use services safely?
Under option 4, the fundamentals of safety are ensured:
All drivers continue to be required to hold a P endorsement and display a driver identification card. A fit and proper person check is undertaken before a P endorsement is grantedAll drivers must continue to operate within their work time limits and continue to use logbooksAll vehicles continue to be required to have a Certificate of FitnessAll vehicles require an in-vehicle security camera unless they have an exemption.
What is a P endorsement?
A passenger or P endorsement is required by anyone wanting to drive a small passenger service vehicle. It includes regular checks that the holder is ‘fit and proper’ to provide a transport service. More information on P endorsements and how to apply for one.
Who cannot hold a P endorsement?
Under section 29A of the Land Transport Act 1998, a person is prohibited from holding a P endorsement who has been convicted of specified serious offences. Serious offences include murder, attempted murder, serious sexual and violence offences, abduction and kidnapping.
The list of prohibiting offences.
By precluding certain individuals from being able to legally drive a small passenger service vehicle, the fit and proper person test provides confidence to passengers about the suitability of a small passenger service driver.
The prohibition does not apply to carpooling.
What is a fit and proper person assessment?
A fit and proper person assessment must be passed to gain a P endorsement. The assessment is the responsibility of the NZ Transport Agency, which assess whether an individual is a fit and proper person to participate in the small passenger service industry.
The fit and proper person assessment applies to all passenger service drivers (including taxi and private hire drivers).
The NZ Transport Agency take into account relevant criminal convictions (such as assaults or sexual offending), road traffic history, as well as any relevant information that may be held by the NZ Police (such as patterns of behaviour that may indicate a person is not appropriate to hold a P endorsement). These provisions will not change in the future regime.
Part of the fit and proper person test is a vetting check undertaken by the NZ Police.
What else is considered for a P endorsement?
Apart from the fit and proper person test, driving history and licence record are also considered when an application is made for a P endorsement.
An applicant must have held a full New Zealand driving licence for at least 2 years to ensure familiarity with New Zealand road conditions.
An applicant must also be medically fit with a medical certificate.
What costs for some operators may reduce under option 4?
Requirements that are proposed to be removed under option 4 include:
For a small passenger service vehicle:
Signage requirements (including information about fares, mandatory branding, information supplied in Braille)
For a driver:
An Area Knowledge CertificatePassing a full licence test in the preceding five years (currently needed to obtain a P endorsement)An English language requirement
For an operator or company:
The need to belong to an approved taxi organisationProvision of small passenger services on a 24/7 basisA certificate of knowledge of law and practiceA Passenger Service LicenceDriver panic alarm, monitored 24/7 from a fixed location.
Why are these requirements being proposed to be removed under option 4?
The Ministry’s review found that these requirements no longer added value. For example, GPS and mapping technology means that area knowledge is no longer as important as it was in the past. Removal of these requirements would mean that the proposed regime is more flexible and that compliance costs for operators could be lessened. It encourages businesses to make their own decisions about what their services should include, depending on their understanding of their customers needs.
What costs for some operators may increase under option 4?
There may be a small group of operators who are not currently required to have an in-vehicle security camera. If they did not meet the exemption criteria (outlined below) they will be required to fit an in-vehicle security camera at their own cost.
What is an ATO?
Under the current regime an ATO is an Approved Taxi Organisation.
Under the proposed regime an ATO is an Approved Transport Operator.
Under option 4, all drivers must drive for an Approved Transport Operator. This could mean that an owner/driver would need to be an ATO themselves.
What would an Approved Transport Operator have to do?
Under the proposed regime an approved transport operator must be approved by the NZ Transport Agency. Approval is based upon a fit and proper person check. The NZ Transport Agency will audit approved transport operators to ensure compliance
An approved transport operator would be responsible for ensuring and maintaining evidence that:
All of its drivers have a P endorsement (and display an identification card)All drivers only work within their legal work time limitsAll vehicles have a Certificate of FitnessAll vehicles have an in-vehicle security camera, or an exemption.
The consultation paper refers to a Transport Network Company (TNC), what is that?
A TNC is a Transport Network Company that only provides communications functions between passengers and drivers, as opposed to providing services.
Will all small passenger services be required to have an approved in-vehicle security camera under option 4?
Yes, all small passenger services would be required to have an approved in-vehicle security camera under option 4.
An approved transport operator would be able to apply for an exemption from the NZ Transport Agency and would be granted if it met the criteria.
What are the criteria for an exemption from the requirement to have an approved in-vehicle camera?
The consultation paper proposes four criteria the NZ Transport Agency would use to determine whether an approved transport operator should be exempt from the approved in-vehicle security camera requirement under option 4.
Providing services to registered passengers onlyCollection of driver and passenger informationAvailability of driver and passenger informationRetaining a record of each trip.
What could the changes proposed under option 4 mean for taxis?
Taxis would continue to be defined as a small passenger service under option 4. Some requirements would be removed, however, in practice, taxis could operate in much the same way as they do currently.
What do the proposed changes mean for technology or app based operators?
Under option 4, a technology or app based operator that connects a passenger with a driver, would be defined as a small passenger service and therefore would be required to become an approved transport operator.
What is ridesharing?
Ridesharing is when a third party connects people that want to take a trip, and the third party receives revenue for facilitating the ridesharing trip. Under option 4, it is proposed that ridesharing would be defined as a small passenger service, and would meet the same requirements as any other service defined as a small passenger service.
What does this mean for neighbours and friends who share rides, such as a regular commute to work?
Neighbours and friends sharing rides, or carpooling, will not be defined as a small passenger service. This is the current situation.
What does this mean for third parties that don’t charge to connect people who want to share rides?
Third party organisations, such as council-run carpooling schemes, which connect people but do not receive revenue from doing so, would not be defined as a small passenger service. These types of services would remain exempted under the proposed option 4.
What if someone receives a payment or cut for connecting passengers and drivers?
Where a third party connects the driver and passenger/s who do not know each other previously, and receives revenue from this, would be considered as ridesharing, not carpooling. They would be defined as a small passenger service.
When will the proposed regime start?
Following consultation, the proposed regime must first be approved by Government. If it is, then it must go through the regulatory process before it will become law. This means that any changes are likely to take place in early 2017.
Will there be further opportunity to comment on final proposals?
If changes to the Land Transport Act are required, there will be further opportunity to comment via Select Committee as the changes are considered by Parliament. Specific changes to the rules will offer further opportunity for consultation.