| Type | Government Agency |
|---|---|
| Predecessor | Director of Public Transport (second phase only) |
| Founded | 19 July 2011 |
| Founder(s) | Government of Victoria |
| Headquarters | Melbourne, Victoria, Australia |
| Area served | Victoria |
| Key people | Allan Fels (Chairperson), David Cousins (Commissioner) |
| Services | Conduct an inquiry into the taxi industry and taxi and small commercial passenger vehicle services in Victoria (first phase) and regulate the taxi industry and small commercial passenger vehicle sector (second phase)(not yet commenced) |
The Taxi Services Commission (the TSC or the Commission) is the independent Government agency responsible for conducting a major inquiry, the Taxi Industry Inquiry, into taxi and other small commercial passenger vehicle services in the State of Victoria, Australia. The Commission will also become the State's ongoing taxi regulator in place of the current regulator, the Director of Public Transport, once the inquiry concludes.
The TSC was created as a statutory corporation under legislation passed by the Victorian Parliament[1] 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[2]. A range of changes were made to the Transport Integration Act and the Transport (Compliance and Miscellaneous) Act 1983 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.
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The TSC was established due to concerns about the ongoing poor performance of Victoria's taxi industry.
An Inquiry into the taxi industry was announced on 28 March 2011 by the 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[3].
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 key problems with the current Victorian taxi industry listed by Mr Baillieu in his announcement were -
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)[6], 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.[7]
In its initial incarnation, the Commission is responsible for conducting an inquiry into the taxi industry and wider commercial passenger vehicle industry[8]. 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[9].
In its second phase, the Commission has been positioned as the Victorian Government's regulator of taxi services and other small commercial passenger vehicles[10]. 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[11].
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[12].
The Commission consists of a Chairperson and up to two Commissioners[13]. Professor Allan Fels 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[14]. 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[15].
The Transport Integration Act provides the TSC with a governance framework - the objects, functions and powers - which comprise the charter of the agency.
The Transport Integration Act provides that the object of the Commission in its inquiry phase is to
The function[17] of the TSC includes -
In performing its function, the Commission is required to consider the desirability of -
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[20].
The TSC is generally able to conduct its inquiry in the manner it considers appropriate[21]. A number of requirements and signals are included in the legislation, however, which require initial discussions and ongoing consultations[22]. The Commission's procedures are informal - it is not bound by the rules of evidence and may inform itself as it considers appropriate[23]. In addition, the Commission is empowered to conduct hearings in public or in private[24] and may determine whether a person can appear at a hearing and be represented by another person[25].
The Transport Integration Act provides the TSC with a range of general corporate powers [26]. 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[27]. Provisions include those enabling the Commission to require information and documents and those concerning the issue and tabling of reports.
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[28].
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 -
The statutory offices include -
These agencies are part of the Department of Transport but each has a distinct statutory charter and powers[31].
The statutory authorities[32] are -
These agencies are structurally separate from the Department of Transport[33]. Agencies such as the Taxi Services Commission are subject to the same or similar provision.
The Transport Integration Act provides for two independent safety agencies[34]. 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[35]. 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.
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