Report Urges Taxi And Rental Car Reforms

Press, Volume CI, Issue 29798, 14 April 1962, Page 12

Report Urges Taxi And Rental Car Reforms

(AZ. Press Association) WELLINGTON, April 13. The Minister of Transport, Mr McAlpine, todav released the report of the committee of inquiry into the taxi-cab and rental vehicle industries. It calls for extensive changes, including abolition of restrictive licensing for rental cars, and is strongly critical of some aspects of the taxi industry.

The committee, comprising Mr C H. Benney, of Wellington (chairman), Mr W G Baird (Dunedin) and Brigadier R. S Park (Auckland), was set up in May last year to examine the two industries. and was the first major inquiry into these services for more than 25 years

"The recommendations of the committee call for farreaching changes in both the rental vehicle and taxicab industries.” said the Minister. “I have asked a Government committee, at present examining the Transport Bill (introduced in Parliament last session) to study the report with a view to assisting the Government in deciding what action is to be taken.” he said. Rental Hirers

Abolition of restrictive licensing for rental cars was one of the main recommendations The committee said that it regarded the promotion of the public welfare as the sole justification for licensing and control of any industry, and considered that, while the interests of licensees who obtained protection

from any control must be given sympathetic consideration, public interest must never be subordinated to them.

In recommending that the present restrictions be eased, the committee said that some form of control by licensing was still essential in the public interest. It suggested an “as-of-right” system of licensing under which any person fulfilling certain minimum requirements would be entitled to operate rental vehicles. It recommended that licences be granted to anyone who had suitable premises and was:

A fit and proper person to operate such a service. In a financial position to conduct it satisfactorily. Able at all times to arrange a comprehensive insurance covering his operations.

Able to provide for the proper maintenance and upkeep of his vehicles. Able to ensure and maintain the road safety record of his fleet.

The committee said there seemed to be no good reason why full insurance cover in all respects (subject to the normal franchise provided for privately-owned vehicles) should not be provided. The comprehensive insurance policy should indemnify the hirer, and this indemnity should be provided for in the standard hire agreement. Other recommendations are that one-way hiring should be allowed, that rental vehicle licences should be issued for a maximum of three years with the right of renewal, and that the operator should be permitted to let on hire as many vehicles and of such type as he wishes provided they meet the requirements of registration, insurance and mechanical fitness.

The committee felt that while the rental vehicle industry might not welcome its recommendations to remove the ring of protection inside which the industry had developed since 1939, such controls could no longer be justified.