U.S. visitor decries taxi deregulation

Press, 4 June 1988, Page 9

U.S. visitor decries taxi deregulation

PA Auckland An American taxi company owner, Ms Beth Peterson, warned yesterday that taxi fares would increase and taxi services deteriorate if the Government deregulated the industry.

The Government is considering whether to lift restrictions on the taxi industry. A summary of submissions will be released at the end of next week and legislation introduced later this year. On a visit to Auckland, Ms Peterson, who runs a taxi dispatch firm in Honolulu, warned of what happened after Hawaii lifted restrictions on running taxis six years ago. The increased competition led to fares rising 14 to 18 per cent, she said. "One of the reasons people want to deregulate is because they think competition will force prices down. But that has not happened in any city in the United States,” said

Ms Peterson. “Because of the competition, the drivers have to give others a cut to get the business, like the hotel bell boy and the dispatch company. “They will increase the fare by taking the long route to the airport or overcharging for baggage. “Because they don’t want short rides, a lot hang round the airport and fewer cabs are in residential areas for old people wanting to go a few blocks.” The open competition has resulted in 150 more cabs on the road in Honolulu, bringing the total to 1450. There are only two taxi' inspectors to check them. “We have wound up with drivers who are un-

disciplined and rude, and whose cars are dirty, up to 15 years old and dented. “Drivers trying to make a living are working 12hour to 15-hour shifts and the number of accidents in the early morning hours has increased.” Ms Peterson, who came to New Zealand for a holiday after attending an international taxi conference in Brisbane, spoke about her concerns to the Auckland Co-op Taxis deputy chairman, Mr Bob Rock. He said he believed the Government wanted .to deregulate to reduce its costs to the Ministry of Transport and running three licensing authorities. But Ms Peterson said

the Hawaiian experience showed paperwork in processing the increased number of taxis would add to costs. “We have a taxi advisory committee in Honolulu which has spent one to two years sorting out our problems and what changes are ' needed. Ironically, some of the regulations here could work for us and I am going to take them back with me.” Options for changes in the taxi industry are outlined in a Ministry of Transport discussion paper released last year. They include lifting restrictions on who may drive taxis, what sort of cars they may use and how much may be charged.

The Minister of Overseas Trade and Marketing, Mr Moore, presented $l4OO to Papanui High School yesterday for winning an environmental studies award.

Holding the cheque are, from left, Ms Ann Thomas, Mr Moore, Mr John Hallett, environmental manager of ACI New Zealand, glass manufacturers company, and pupils, Dean Van der Klei, Damon Woodhead, Katie Shier, and Pam McEwan (front).

The money will be used by the school to set up a meteorological station. Ms Thomas, the head science teacher, said the facility would be invaluable for science and geography students. “As well as learning about measuring all aspects of the weather, students will be able to practise research and