TAXI INQUIRY

Evening Star, Issue 22462, 6 October 1936, Page 10

TAXI INQUIRY

DUNEDIN SITTING COMMENCES EVIDENCE DF LOCAL MANAGER SUGGESTED LIMITATION OF LICENSES Interesting opinions in respect to the organisation of the taxi service for Dunedin were given this morning by a local taxi company manager at the first sitting of the Taxi Cab and Town Carrier Committee. The sitting took place in the Council Chamber of the Town Hall, the large attendance of those concerned showing the wide interest which is being taken in the inquiry of the committee. The members of the committee are Mr P. M. Butler (Wellington), chairman, Mr James Walker (Masterton), and Mr H. B. Smith (Transport, Department, Wellington). SCOPE OF INQUIRY, The order of reference of the committee is:— ‘‘ To make inquiries into the businesses of the carriage for hire of goods or persons in motor vehicles (including town carriers* vehicles and motor cabs) by persons not licensed under the Transport Licensing Act, 1931, and with a view to improving the general efficiency to the public of such businesses and promoting their co-ordipa-tion with other forms of transport and improving the working conditions of the persons engaged in such businesses, to consider and report what measures, if any, should be adopted for their improvement, co-ordination, and development, and their better regulation ana control and matters incidental thereto.” CO-OPERATION SOUGHT, The Chairman stated at the outset that the committee was set up by the Minister of Transport under the Transport Licensing Act with the power and authority of a commission under the Commissions of Inquiries Act, 1908. _ It was proposed that any persons giving evidence should be sworn. If practicable it was preferred that the witnesses should have a written statement for the committee, but verbal evidence would also be taken in the ordinary way. The committee sought the cooperation of all concerned in its investigation of the industry. It was felt that the taxi business had been monopolising the inquiries of the comiriittee to some extent, and he wished to draw attention to the fact that town carrier business was also a subject of investigation. . THE FIRST WITNESS. The first witness examined l by the committee was Herbert James Hastie, manager of Gold Band Service ComSany Ltd. and Red Bandl Taxis Ltd. ieplying to a question by the chairman, he said his firm employed drivers on a commission basis. Witness definitely refuted a statement published in a Dunedin newspaper that the industry had no outstanding problems which required investigation, or that companies were reaping outstanding profits. There were three original companies in Dunedin which had become bankrupt—the Gold Band Taxis, the Red Band Taxis, and the Gold Star Taxis. His company had taken over the Gold and the Red Band businesses. Mr Hastie read a memorandum that had been forwarded by bis firm to the Government relating to the business up to June 12, 1936, when there were 120 iaxki In 1926-27 there were only three companies operating in Dunedin, paying drivers £4 12s 6d per week, said Mr Hastie, and operating in accordance with the existing, award of 60 to 70 hours alternate weeks. Fares were 33 1-3 per cent, higher than to-day. In January, 1931, four persons from Invercargill commenced _ operations _in Dunedin as taxi proprietors, cutting fares by 33 1-3 and in some cases 40 per cent. Country trips were quoted at 6d per mile instead of 7d 'to 9d as formerly, and for the first time in Dunedin the system of paying drivers on commission amounting to from 25 per cent, to 33 1-3 per cent, was introduced. “ This ruined the award immediately, and all taxi drivers were compelled to follow suit,” stated witness. For one year his company endeavoured to carry on and pay wages, but ultimately had to adopt the commission basis, as this meant unlimited hours for drivers.” “'The weekly average takings of the drivers in our employ has all along been in the neighbourhood of £4 15s, and, except in special seasons such as Christmas and Easter, their hours have not been excessive,” declared witness. “ The company which introduced the commission system adopted the title of Gold Star taxis, which led to much confusion,” said Mr Hastie. He stated that after 12 months this firm went bankrupt, and the stock was bought by witness’s company in an endeavour to protect the title of Gold Band. The members of the late Gold Star concern, however, immediately recommenced business under the title Silver Fern Taxis, and were still in business to-day. Since that time they had subdivided into four other companies—Kiwi Taxis, Kia Ora Taxis, Silver Band Taxis, and had lately reverted to the original title of Gold Star Taxis. “ To-day,” said witness, “therefore we have the same danger of confusion as before, in the minds of the public, who in many cases seem to think that Gold Star Taxis, operating from Cargill’s Corner, is a branch of my company.” Also, two months ago, witness’s company was compelled to rent a building just below its premises to prevent Kai Ora 1 Taxis from operating so close to it and getting its work.

To-day more than 14 companies operated taxis in Dunedin, and his concern, which pioneered taxi companies nearly 10 years ago, found that it was stifled in all directions, and at an absolute standstill as far as progress was concerned. “ Wo have more than once sought to induce the City Council to take action along the lines of fixing fares, or limiting the number of taxis, but we are told that action will be taken if we secure unanimity, which is impossible, since naturally we cannot get any agreement,” added Mr Hastie. The latest development so far as the council was concerned had been to intensify the competition by running corporation buses over various routes from dances and other functions, and also lately from midnight on Saturday from the centre of the town. Saturday was looked upon by taxi people as the day and night on which revenue could be made up. On race days his company could no longer run at so much per head; nor could it advertise to run at so much per bend over any part of New Zealand. It was against the city by-laws if four persons asked to be conveyed over a route which would work out at exactly £1 per bead for witness's firm to quote £1 each to them. It must quote £4 for the trip, or so much per mile. In addition, his company was at a, loss in not being

allowed to advertise observation trips over any route. “ The City Council is at once a competitor and the Licensing Authority and the body that makes the rules of the game,” declared Mr Hastie. Taking 120 taxis in Dunedin, which meant at least 140 drivers, and presuming that each driver earned on a commission basis or as owner-driver 25 per cent of the total takings, and that this proportion amounted to, say, £5 per week per driver (the week being taken to include Sunday), then the position was that, with total commission or earnings at £7OO per week and the total revenue at four times that amount, or £2,800 weekly, £145,600 yearly would be required in revenue under this system to pay drivers £5 a week of seven days. The public of Dunedin could not be exjjected to pay this amount in taxi fares per annum. Therefore many drivers must be existing on that part of their revenue which should be set aside for depreciation and the purchase of new vehicles, which again meant in numerous cases the continuance in use of vehicles really unfit for the conveyance of passengers. REMEDIES SUGGESTED. To place the taxi business on a proper footing in Dunedin, witness suggested that the following methods should be adopted:— 1. Limitation of taxis on a population basis. r 2. Regulation of the hours of work of all drivers, including owner-drivers, whether operating individually or in groups. 3. Compulsory wages, and the prohibition of a commission or share-hold-ing system where devised to defeat the award. 4. Regulation or standardisation of fares on a remunerative basis. 5. Standard requirements as to the fitness of both drivers and vehicles. 6. The right to quote trips or tours for a price per passenger. In Dunedin 70 taxis could, with the E resent demand, cope with all the taxi ires if under proper control. Twelve cars alone could convey over 300 passengers to the railway station from the suburbs in one hour. To-day there were about 20 companies and stands, representing 120 vehicles. This was 50 taxis too many, unless the effective demand for the service was largely increased. At present the rent of over a dozen depots and the high interest charges on the price of vehicles bought under the hire-purchase system was being added to the cost of the business. With Government supervision and standard fares Mr Hastie said he was sure the public would be well catered for in every respect, and the whole business conducted exactly on the lines indicated by the Government in the management of its road services. “ My company puts forward these suggestions with the idea that under Government control and regulations, the advantages to be gained would be beyond comparison with the present-day arrangements. We are prepared to undertake the co-ordination of the whole of Dunedin’s taxi organisation, and to comply with all by-laws and labour conditions,” said Mr Hastie. Witness added that he thought those whose services were dispensed with under such a scheme should be_ compensated, the basis of compensation to be arrived at by competent assessors. WOULD WELCOME AWARD. Mr Hastie went on to say that at present there was no alternative but to pay commission. His company ran on a commission basis because other companies did tho same. If one company cut fares the other companies had to follow. It was a matter of great concern to them when the commission business was installed, but it had been compensated for to some extent by increased business. If they had to pay wages again and work under limited hours, they would be pleased to do so. In reply to Mr W. Herbert, Mr Ijfastie said the average commission paid to their drivers over a period of 140 weeks was £4 6s lOd a week. The Chairman: How many hours a week did they work? Is it true tho average was 90 hours a week ? Mr Hastie: Quite possible. What are the maximum hours worked per week?—l would have to get down to pencil and paper to work it out. In further reply to Mr Herbert the witness said he did not agree with the commission basis. He would like to see it cancelled. HIGHER FARES. James'Phillips, a director of Silver Band Taxis, asked Mr Hastie if, in the event of the business having to work under an award, with wages and set hours, he could carry on with the fares now being charged. Mr Hastie: No. You are definitely in favour of higher fares?—Yes, if and when an award is in operation. Mr Moffat: Would price-cutting be obviated by the use of meters on cars ? Mr Hastie: I think it is worth consideration. The Chairmhn: When did you commence paying on commission ? Mr Hastie: In 1932. Prior to the introduction of commission, were you paying wages under an award?—Yes, under the 1931 award. How many drivers did you then employ?—About seven or eight. How many do you employ now? —Eleven. You pay 25 per cent, commission? —Yes. On the gross takings?—Yes. Mr Hastie detailed figures concerning the running of his fleet for the year 1935-36. The total running cost per mile was 4.43 d, or with commission, 6.23 d. The aggregate mileage for that year was 315,505, and for the total fleet the running cost was £5,822 16s lid. The gross takings were £9,498 19s sd, and, less commission, £7,124 4s 7d. ■ The average takings per mile were 7.23 d. The profit, therefore, was approximately Id a mile, out of which the fleet had to be maintained. No dividends whatever had been paid by the company since the introduction of the commission basis. The Chairman: Has the number of taxis in Dunedin increased each year? Mr Hastie: it appears so to me. If not in the number of private owners, then in the number of companies. You think that if the number of licenses was reduced the taxi industry would be able to give a reasonable return on the capital invested? —I do. If there is to be an increase in the fares it might possibly be on the passenger basis—according to the number of passengers carried. Would you restrict drivers? —I think it would be a very good thing for the taxi business as a whole if there was some sort of further recommendation than exists to-day. Mr Smith: From your experience would you say that the public would receive a more efficient service if the whole of the industry were organised on a co-ordinated basis? Undoubtedly. What steps do you take to see that your vehicles are fit?—.Just what an ordinary business man takes. We inspect them. The Chairman cited a by-law of the City Council requiring every taxi under its control to undergo an annual inspection. He asked witness whether he knew of the existence of the by-law,

and expressed incredulity when told that he had never had his cars inThe Chairman: In March, 1936, there were 92 taxis operating in Dunedin; you said 120. Witness: Approximately 120. Brief evidence was also given by W. Weitzel, a driver on commission, and the committee adjourned till the afternoon.