The NSW Taxi Industry is the largest Taxi Industry in Australia - comprising nearly 6,000 taxis and over 22,000 professional drivers. There are approximately 34 taxi co-operatives operating throughout country and regional NSW. Many of these have been operating for more than 40 years.

The peak industry body is the NSW Taxi Council comprising 69 networks, of which 57 represent country NSW. The Council is concerned with fare increases, rank locations, industry training and regulatory issues. The NSW Taxi Industry Association (TIA) is the registered Union under the NSW Industrial Relations Act for owners and operators. The Country Taxi Operators Association is concerned with issues effecting country Taxis including operation and administration. Is is represented on the Board of the TIA.

The taxi industry in New South Wales is overseen by the Director General of Transport who administers the 1990 Transport Act and all regulations pertaining to the taxi and hire car industry. The compliance requirements federally are the

1. Taxation Act
2. Goods and Services Tax Act
3. compliance with Australian Competition and Consumer Commission's requirements.

There are three tiers within the taxi industry.

• The licensed taxi operators.
• It is a legislative requirement that all taxi-cabs be attached to a booking service. Booking services are normally provided by taxi networks that have historically been formed in each place by a co-operative of taxi operators. (Note: In some places taxi operators have formed companies rather than networks and in a few instances all taxis are in single ownership.) The provision of radio communications to all taxis in a given area is the fundamental reason for the establishment of most co-operatives.
• The drivers. Taxi drivers are not employees. They are self-employed small business operators who conduct their business through the bailment of taxicabs, ie. contractors who hire cabs from the owner. This relationship has been confirmed by a ruling of the Federal Court of Australia.

Consequently, it is possible within a taxi network for all taxis at a given time to be driven by bailee drivers and not the owner/operator.

In recent times and usually in response to complaints made directly to it from within the taxi industry, the Australian Competition and Consumer Commission (ACCC) has tackled a number of taxi co-operatives in rural and regional NSW with a range of issues related to the Trade Practices Act 1974 (Commonwealth) (TPA). Complaints are often about member conflicts with the majority vote rule, which is an integral part of the co-operative ethos.

The ACCC allegations are that co-operative network rules contravene Sections 45 and 46 of the Trade Practices Act, which are related to the restraint of trade.

This issue raised by the ACCC, suggests that there is a dichotomy between the TPA, and NSW Passenger Transport Legislation 1990 (NSW) (PTA).

The ACCC questions the necessity for taxi co-operatives to impose operational guidelines on drivers of vacant taxis as to where they should stand for hire. The co-operatives regard this practice as good customer service and, as the network provider, as complying with the NSW PTA.

The taxi industry argues with the ACCC that Network rules related to:

• prioritising specific taxi ranks
• requiring drivers to stand at specific ranks
• co-ordinating the allocation of hirings received by the network booking service to out of area destinations,
• the rostering of taxi-cabs

are reasonable within the regulations.

The co-ops claim that issues such as those above are not made with the intent of restricting the trade of drivers. Drivers are not prevented, restricted, or limited from supplying taxi services other than through a co-operative's radio network. Drivers are always at liberty to stand or ply for hire.

Section 51 of the Trade Practices Act enables a State or Territory to enact or regulate to exclude conduct, which would otherwise be subject to the restrictive trade practices outlined in TPA. The NSW PTA does not comply with this requirement and therefore, does not exclude taxi co-operatives from the restrictive trade practices provisions in the TPA.

It appears that the conflict between TPA and NSW PTA, together with the diverse expectations of the different regulators, places taxi co-operatives in a difficult position.

The taxi industry in NSW is a heavily regulated environment. The NSW PTA, the Passenger Transport (Taxi-cab Services) Regulation 2001, and standards related to the accreditation of operators, the authorisation of drivers and accreditation of networks create an umbrella of legislation which regulates all facets of taxi operations.

The legislation specifically holds the taxi co-operative accountable to ensure the good order, discipline, and minimum standards of customer service within the network. The co-operative must also ensure that the performance of operators and drivers is consistent with the regulations.

The rostering of out of area hirings is another complaint to the ACCC. Country co-operatives consider it not only fair and reasonable but also consistent with the maintenance of good order within the network, to coordinate those out of area hirings received through the booking service. If out of area hirings were to be called over the radio then potentially many taxis would gravitate to that area in anticipation of being the 'nearest' car. This practice may lead to disorder in the vicinity of the hiring and reduce services elsewhere. Taxi co-operatives claim that such work practices would be detrimental to the public interest and are not supported.

The ACCC's view is that co-operatives should allocate jobs on the basis of nearest available car. The Co-operatives argue that such a practice is as anti-competitive as allocating hirings on a "points" or "roster basis".

Taxi co-operatives claim that the rules of co-operatives governing the allocation of work through the booking service have developed over many years and with two clear objectives in mind:

1. To properly manage the industry and offer the highest level of customer service consistent with community expectations and the demands of the NSW passenger transport legislation
2. To create equity and harmony amongst co-operative members and to promote the ethos of 'the common good' through reasonable rule making, consistent with the spirit that is expected within any co-operative environment.

In eaxmining this issue, ACCORD has contacted several taxi co-operatives, the NSW Taxi Council, the NSW Country Taxi Operators Association and ACCC for their comments. We welcome any comments on this issue.