VICTORIAN TAXI INQUIRY SUBMISSION

Transcription

1 VICTORIAN TAXI INQUIRY SUBMISSION

2 Victorian Employers Chamber of Commerce and Industry 486 Albert Street EAST MELBOURNE VIC 3002 Phone:

3 Why the Taxi Industry is Important to Victorian Business The information provided on the Inquiry website in Setting the Scene for the Taxi Industry Inquiry demonstrated that there is already a good basic understanding of some of the key issues and challenges facing the taxi industry. It is not VECCI s intent in this submission to replicate these issues. While our submission gives particular focus to the exploration of issues from a tourism and events industry perspective, many of the trends we have identified reflect the experience of business more generally. For this reason, improvements in taxi industry performance are likely to have a positive flow-on effect to the wider Victorian economy and community. Our consultations revealed that although many regional centres have a good local taxi service that is adequate for the local population, some regional tourism destinations suffer from insufficient taxi services during peak periods, when visitor numbers swell. Regional events, in particular wedding and function venues, are negatively impacted by this lack of supply, with function guests often experiencing lengthy waiting times for taxis to take them back to their accommodation. Business events including conferences, trade shows and meetings represent an important growth sector in Victoria. Business travellers are particularly reliant on an efficient taxi service to ensure that they are able go about their business in a timely and professional manner. The business and conferencing sector is especially important for regional tourism destinations as it helps to fill midweek vacancies and brings in high yield patrons. A reliable and adequate taxi service is therefore an important part of the state s overall business infrastructure. Specific Tourism and Events Industry Perspectives From a tourism and events industry perspective, taxis are a vital transport link for visitors. For visitors to Victoria, in particular international visitors, there is a great deal of trust invested in the taxi driver and an expectation that the driver will be able to bring them safely and efficiently to their destination. In some cases, visitors and tourists will be relying on even dependent on - the taxi and the driver s local knowledge to take them to where they need to go. As part of VTIC s Industry Survey for the May quarter 2011, a series of special questions relating to the experience of tourism operators/owners with the taxi industry were included. In all, 100 responses to the special questions were received. Consistent with the information contained in Setting the Scene, the results revealed concerns in respect of quality of service and value for money, as well as supply, coordination and availability. These issues are examined in further detail in the following section of this submission. Further comments on the experience of business with Victoria s taxi service are contained in Appendix 1. Quality of Service and Value for Money More than half (52 per cent) of the survey respondents reported that they believe the quality of the Victorian taxi industry has an impact on their business. Of these, 78 per cent believe the impact to be negative. The majority of respondents (69 per cent) indicated that from their own experience, taxi drivers do not demonstrate sound geographical knowledge of the areas they service. Overall, 94 per cent of respondents consider that taxi licence holders should be responsible for onthe-ground service outcomes. As the majority of taxis are not driven by licence holders, the implication is that without a clear incentive to provide good quality service, drivers will remain Page 1 of 6

4 unmotivated to make the personal investments required to improve many aspects of their service delivery, whether it be timeliness, vehicle cleanliness and safety, personal presentation, geographical knowledge or knowledge about visitor facilities, attractions or current events. The majority of respondents suggested that the commonly experienced driver practice of refusing short fares could be avoided through better enforcement of the existing legislation which states that a taxi driver cannot refuse a fare, with fines for non-compliance (69 per cent). Better driver education of their obligations was an additional measure that many (60 per cent) also thought could improve this practice. Only 42 per cent of respondents thought that setting a standard minimum fare would be effective. When it comes to taxi fares, three quarters of respondents were of the opinion that consumers are not satisfied with the cost of travelling by taxi in Melbourne/Victoria. Almost all respondents felt that it was unreasonable for electronic payment system providers to charge a ten per cent surcharge on top of the metered fare. Indeed, the majority of respondents were of the view that government should regulate taxi fares; only one in five thought that the market should determine taxi fares. Supply, Coordination and Availability When asked about the taxi hailing situation during events such as AFL matches, concerts or festivals, and the Spring Racing Carnival, almost half of all respondents indicated that hailing a taxi prior to an event was very difficult and almost 70 per cent indicated this was very difficult after the event. This can have a negative impact on the overall experience of event-goers. Greater efforts in planning, communication and cooperation between event organisers, venues and the taxi industry could go a long way to improving this situation. In general terms, nearly 80 per cent of respondents indicated that there were not enough taxis for hailing, whether or not there was an event happening. The graph below also indicates there is support for encouraging taxi drivers to queue at taxi ranks in peak periods, with reasons including ease of location and safety. Page 2 of 6

5 Respondents were asked to answer questions about the taxi industry in relation to their experience of the taxi service in their local area, or the area in which they have the most interaction with the taxi industry. Almost half of all respondents (49 per cent) indicated that they were located outside the Melbourne metropolitan area. The major regional centres of Ballarat, Bendigo and Geelong were all represented, as well as the Mornington Peninsula and Gippsland regions. The sample of responses from other regions included the Yarra Valley, Great Ocean Road, Wimmera, Mildura, the Grampians, Echuca-Moama, Bright and Strathbogie. Asked if taxis should be provided and funded by Government in areas where it may be uneconomic for those vehicles to operate on a commercial or market basis, just over half of respondents (54 per cent) indicated yes. Suggestions for such areas included the tourism centres of Mornington Peninsula and the Yarra Valley. The need for taxi services in regional areas with limited public transport alternatives, in particular to assist the disabled, ill or disadvantaged, was also expressed by several respondents. Overall, more than half of the respondents indicated that the needs of mobility-disadvantaged users were not being adequately serviced by the current structure and regulatory regime, including through the Government s Multi Purpose Taxi Program. In relation to supply at our airports, the graph below shows that the majority of respondents consider the supply of taxi and hire cars at our airports to be adequate. However, other results within the survey point to dissatisfaction with the quality of the service provided by Victorian taxis. Concluding Comments As important as the taxi industry is to all Victorians, its service delivery standards regularly fall short of the expectations and needs of the business community. Feedback from industry as input to this submission reflects dissatisfaction with a number of aspects of the current system. Page 3 of 6

6 The challenge of mapping out a future for the taxi sector that achieves meaningful and enduring improvements in service quality is significant. However, it must not be ignored. For a state that relies heavily on a multi-modal transport system, our taxis must be every bit as efficient, reliable and competitively priced as other parts of the transport network. Recognising that our tourism and events industries operate in a globally competitive market that relies on world-class support services that add value to the visitor experience, adds further weight to the importance of achieving sustainable improvements in taxi industry performance. VECCI, VTIC and VEIC stand ready to work cooperatively and constructively with the industry to ensure this goal is realised. Page 4 of 6

7 Appendix 1 Victoria s Taxi Experience - What Business is Saying Surveyed businesses were invited to provide comments on their experience with Victoria s taxi service. The following extracts provide a summary of commonly expressed concerns: Visitor experience Taxis are the first experience that international visitors have of Melbourne and their presentation must improve. Hugely varying fares from transport hubs. Many guests arrive with discontent before they get to know our city. Ferry passengers unable to get from terminal into town. Tourists lose confidence in Melbourne. Refusal of short fares Guests being asked to hop out of a taxi after [travelling a short distance] down the road, because the taxi could get a better fare to the airport. These were high profile international visitors that had just arrived in Melbourne; it doesn't leave a very good impression. International guests twice reported taxi drivers refused to take them because they weren't going far enough. Refusal of small fares for short distances is difficult for people who are travelling for medical appointments in Melbourne. Weddings We frequently experience difficulty getting taxis to pick up from our restaurant (mainly after weddings). People get to know that this is a problem and it can deter them from booking their wedding or other function here. When we do have people waiting for an hour or more for a taxi to arrive, it does finish the night on a negative note. This happens even when taxis are booked in advance. Guests can't book a taxi to pick them up from a wedding venue, so they decide not to drink and to drive home instead of staying the night. Availability and supply in regional areas We only have one operator for the whole shire: 3-4 vehicles. No regular taxi service in St. Andrews. We're between Mitchell Shire and the City of Bendigo - neither is of much help to us. There are only local Heathcote taxis for our guests. Very limited service in the area (Dandenong Ranges). Maxicab booking conditions are restrictive: can't pre-book more than 20 minutes ahead and then [have to wait for] first available taxi. Not enough taxis in this area when we have functions over 200 persons. Closest taxi is 26 km away - a very expensive exercise for visitors. Taxi not turning up at all or not within a reasonable time. The network is so rude when you call. Our local council, together with our tourism body, have met with the CEO and it all falls on deaf ears. We have had guests stranded in town after dining unable to get home, walking 4 km to our property! Page 5 of 6

8 Availability and supply in metropolitan areas Lack of supply of clean, available taxis for late night patrons. Insufficient supply during peak hours e.g. Friday and Saturday nights. Cannot get cabs on Saturday nights. Waiting times Long waiting times. It's very hard to find cabs when needed. Waiting times for maxi taxis is impossible. Lack of training of drivers about customer service needs for people with disabilities/mobility needs. Cultural/religious issues - declining passengers with guide dogs. Our venue is not serviced by public transport so visitors/customers must rely on private conveyance. Some of the taxis don't know where we are and provide our customers with a longer trip than is necessary. Service Non-permit drivers often do not know where they are going. Taxis not environmentally friendly. Can t fit bags in boot. Poor knowledge of road rules, poor knowledge of city. City taxi drivers continue to fail customers by not knowing major city landmarks and streets in the CBD. Awareness of locations, particularly in the Docklands area. Parents are not confident putting their children in taxis to attend events; therefore the parents have to drive them. Page 6 of 6