The Taxi Industry

Press, Volume CI, Issue 29803, 21 April 1962, Page 10

The Taxi Industry

The opinion of the Committee of Inquiry into the taxi and rental car industries that “ by and large ” a good proportion of operators were trying to give good service to the public is satisfactory. Most users of taxis would endorse this opinion. Nevertheless, the theme of the committee’s report is that the public interest is entitled to more consideration from the industry than it receives. The industry is protected by a licensing system and. as is not unusual with protected industries, abuses have developed. The goodwill that attaches to licences is an instance. Evidence in Christchurch showed that in the previous year there were 34 transfers of licences among the 205 current; the average goodwill paid on the transfer of a licence was £ 1800. Goodwill of such substantial proportions shows obviously that a licence is a most desirable commodity, and >t is not surprising that there is temptation to “ farm ” or to “lease” licences. These practices, which the committee was told by the Drivers’ Union representatives were prevalent in Auckland and Wellington, are breaches of the law and the public will share the committee’s concern at the failure of the enforcement authorities to take effective action to stamp out these offences. The committee did not go as far as some thought it should tn its recommendations aboui the trafficking in licences The practice could be brought

summarily to an end, for instance, if all licences were withdrawn and new licences issued under strict provisions as to transfer. But this would impose hardship upon those who have, “ bought into ” the business, many of them returned soldiers under rehabilitation schemes. The committee goes no further in its recommendations than to propose that a new taxi licence shall not be transferable for three years in any circumstances, and during the succeeding three years transferable only in extenuating circumstances. The Government should h a ve little hesitation in accepting this reasonable recommendation. Another recommendation the Government should view with approval is one that would give taxi organisations better control and discipline over operators. In evidence given to the committee it was said that a few “ rebels ” in the organisations could cause endless trouble and the organisations had great difficulty in disciplining “ rebels ”, who replied to efforts to control them by threatening legal action. After all, the taxi organisations have a vital interest in securing and holding the good will of the public, for only with the public’s good will can the industry prosper. Operators should be the first to appreciate that if the public became seriously dissatisfied it would insist upon far more drastic disciplinary measures than are practised or are proposed.