Part D – Understanding and improving industry performance (PDF ...

10.7. Vehicle regulations
Taxis and hire cars are required to meet a number of
vehicle and safety requirements. These regulations have
a significant impact on industry performance. In general,
these kinds of regulations can be better supported
by ‘market failures’ than can other forms of regulation
discussed in this chapter. Nonetheless, the inquiry has
focused on ensuring the efficacy and efficiency of vehicle
and safety regulations.
In this section, the inquiry outlines what it has heard about
vehicles, including the scope of regulations and their impact
on the performance of the taxi and hire car industries.
Safety regulations are further discussed in chapter 17.
10.7.1. Vehicle regulations
Section 162 of the Transport (Compliance
and Miscellaneous) Act 1983 allows for the
drafting of regulations that cover ‘the design and
construction of commercial passenger vehicles so
as to secure the safety comfort and convenience
of drivers, passengers and the public’.
Taxi vehicle regulations are set out in the Transport (Taxi-
Cabs) Regulations 2005. Regulation 12 calls up a set of
specifications for taxi vehicles that must be published
by the licensing authority in the Victorian Government
Gazette. Gazetted vehicle standards cover a wide range
of matters, as shown in Table 10.6.
Table 10.6 Gazetted vehicle standards for taxi vehicles
Occupant capacity
Vehicle interiors, including
seat belts
Driver identification
Taximeters, radios and
dispatchers
Wheelchair accommodation
Access
Signs, symbols, notices
labels and fittings
Emergency warning devices
and security systems
Outside signage
Driver protection screens
Those vehicle standards that impose material costs
and were not otherwise covered in Australian Design
Rules were subject to a Regulatory Impact Statement
(RIS) in 2008. 117
The inquiry comments on the effects of two major
regulations: vehicle livery and restrictions on advertising.
Taxi age limits are discussed in chapter 17.
Livery
Section 19 of the Government-gazetted Determination
for Specifications of Taxi-Cabs sets out that all taxis must
be painted ‘Victorian Taxi Yellow’. 118
Vehicle livery was a significant issue of concern raised
with inquiry, especially in relation to taxi services in
regional Victoria. Some specific considerations relating to
country areas are discussed in chapter 16.
The RIS prepared for the Transport (Taxi-Cabs)
Regulations 2005 provides useful information on the
costs of this regulation for operators and, ultimately,
consumers. It suggested the cost of re-spraying vehicles
was $3,250 per vehicle. Advertisements in ‘Taxi Talk’
magazine suggest that the cost could be as low as
$1,300, 119 although some taxi operators have told the
inquiry this price is for a much lower quality service.
The inquiry has also been advised that the required
yellow is no longer a manufacturer standard colour for
the most popular taxi vehicle, the Ford Falcon, meaning
that all taxi vehicles now have to be re-sprayed before
commencing operation.
On the evidence of benefit from the standardised colour,
the RIS suggested that three kinds of benefit could be
postulated, none of which could be properly measured:
• Ease of location of vehicles by consumers (as few or
no other vehicles are of the same colour as Victorian
Taxi Yellow) and visibility for other drivers
• As an image or branding device associated with
quality services
• As a marketing image for Victoria.
Livery, including that taxis
must be painted ‘Victorian
Taxi Yellow’
Luggage space
Advertisements (which are
prohibited)
Taxi age limits
Limits on the number of
EFTPOS terminals
117 Economic Associates (April 2008), Transport (Taxi-Cabs)
(Amendment) Regulations 2008, Regulatory Impact Statement
118 Victorian Government Gazette, 24 May 2007
119 www.taxitalk.com.au/Magazines/taxi%20talk%20july%20website.
pdf, accessed 14 February 2012
Understanding industry performance CUSTOMERS FIRST 219