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Transport Operations (Passenger Transport) Amendment
TRANSPORT OPERATIONS
(PASSENGER TRANSPORT)
AMENDMENT BILL 1996
EXPLANATORY NOTES
Preamble
The Transport Operations (Passenger Transport) Amendment Bill 1996
has been drafted consistent with current legislative drafting practice and in
modern language. As a consequence, particular sections, clauses and
subclauses require little or no specific further explanation and in these
Explanatory Notes those sections, clauses and subclauses may be repeated
or summarised in general terms.
Object of Bill
Taxi fares are the only public transport fares in Queensland specified in
subordinate legislation. As a result, any increase in taxi fares requires the
approval of the Governor in Council. This increases the cost and the time
needed to increase taxi fares in line with increased costs faced by industry.
The first object of the Bill is for the chief executive to set the maximum
fares for taxis by gazette notice. The Bill also provides for the chief
executive to exclude certain types of taxi from the maximum fares where
the hirer requests that type of taxi when booking the taxi and the fare is
agreed. Such arrangements are already currently in place under Transport
Operations (Passenger Transport) Regulation 1994 for luxury taxis and
high occupancy taxis.
The second object of the Bill is to extend the transitional provisions
preserving those parts of the former State Transport Act 1960 which
continue licences and permits of certain operators of scheduled bus services,
including arrangements for school transport operators, who have not
entered into a new service contract. The transitional financial arrangements
applying to certain operators of scheduled bus services are also amended.
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Transport Operations (Passenger Transport) Amendment
What will the Bill Achieve
By removing the maximum taxi fares from the Regulation and giving the
chief executive the power to set the maximum fares, the process for
changing taxi fares is simplified. More importantly, it allows an agreed
basis for taxi fares to be developed and implemented over the medium to
long term. This is not possible under the current system which requires
Executive Council approval for each taxi fare increase.
The chief executive will be able to respond more quickly to proposals for
exclusions of specific types of taxis from the maximum fare or for changes
to the structure of fares. Receiving quicker responses will allow taxi
operators to better plan their businesses and undertake innovative
approaches with greater certainty about future revenue streams.
The Transport Operations (Passenger Transport) Act 1994 provides for
a system of service contracts specifying minimum service levels and
funding arrangements for operators of certain scheduled bus services.
Chapter 13 of the Act, in part, provides transitional arrangements to ensure
existing service licences and permits under the State Transport Act 1960
continue in force until new service contracts can be entered into.
These transitional arrangements expire on 8 November 1996. Due to the
size and complexity of the task, new service contracts with all eligible bus
operators will not be entered into by that date.
As a consequence, it is necessary to extend the transitional provisions
relating to scheduled bus services, including school bus services for a
further three years. Such an extension will ensure urban and school bus
operators remain regulated and can continue to operate within established
parameters under the provisions of the State Transport Act 1960 until new
service contracts under the Transport Operations (Passenger Transport)
Act 1994 are entered into.
In addition to extending the provisions of the State Transport Act 1960, it
is also proposed that the transitional financial provisions outlined in section
172 of the Act be amended to reflect the original intent of the Transport
Operations (Passenger Transport) Act 1994. It should be noted that the
proposed amendment of the transitional financial arrangements applies only
to urban bus operators and not to operators that only run school services.
The existing section 172 of the Transport Operations (Passenger
Transport) Act 1994 provides for financial assistance to be paid to existing
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Transport Operations (Passenger Transport) Amendment
operators during the transition to new service contracts. Under the new
contract arrangements, reducing financial assistance to urban bus operators
over the first five years of any new service contract is provided to partly
compensate the difference between the level of financial assistance
previously provided under the Urban Passenger Proprietors Assistance
Act 1975 and the level of assistance provided for under the Transport
Operations (Passenger Transport) Act 1994 Act. Reduced subsidy levels
under the Transport Operations (Passenger Transport) Act 1994 are
possible as bus operators under contract typically operate over a
significantly larger area that non-contract bus operators thereby providing
more opportunity for higher revenue streams and economies of scale.
As identified by the recent Public Transport Review, the way the section
is currently drafted provides a disincentive to existing operators to enter into
a new service contract until as late as possible. The disincentive occurs
because the subsidy received by bus operators that have entered into a
contract reduces over time while the subsidy for bus operators that have not
entered into a contract continues at traditional levels until a contract is
agreed.
The proposed amendment removes this disincentive and provides for
greater equity between all urban bus operators by providing for urban bus
operators that have not entered a new service contract before 1 December
1996 to receive financial assistance as if they had entered into a service
contract on that date. Financial assistance for privately owned urban bus
services will be reduced over a five year period as provided for in the 14
contracts covering approximately 60 percent of urban bus services
throughout the State that have already been agreed with some bus operators.
While financial assistance will be reduced over the medium term, the
amendments will have no immediate impact on private urban bus operators
that have not entered into contracts as funding levels from 1 December
1996 to 30 November 1997 will be unchanged from funding provided
between 1 December 1995 and 30 November 1996.
Estimated Cost for Government Implementation
By replacing the previous time consuming process for amending taxi
fares, the Bill will provide administrative savings.
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Transport Operations (Passenger Transport) Amendment
No costs are incurred by the State for changes to those transitional
arrangements in Chapter 13 of the Transport Operations (Passenger
Transport) Act 1994.
Compliance with Fundamental Legislative Principles
The provisions of the Bill observe the requirements of section 4 of the
Legislative Standards Act 1992.
Consultation
Industry and a wide range of community groups were consulted on the
proposal to remove the maximum fare schedule from the Regulation and
for the chief executive to set maximum taxi fares.
In general, community groups and the Tourism Council of Australia
noted that the new process would reduce administrative costs associated
setting with taxi fares while the Taxi Council of Queensland noted that the
process would reduce the current uncertainty surrounding fare increases and
de-politicise taxi fare setting.
Individual bus operators and bus industry associations have been
consulted and did not oppose the changes concerning the extension and
changes to transitional provisions.
NOTES ON PROVISIONS
Clause 1 states the short title of the Act.
Clause 2 provides that the Act will commence on a day to be fixed by
proclamation.
Clause 3 states that this Act is created to amend the Transport
Operations (Passenger Transport) Act 1994.
Clause 4 removes the head of power to set maximum taxis fares by
regulation and provides for them to be published in a gazette under section
74A (clause 5).
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Transport Operations (Passenger Transport) Amendment
Clause 5 provides for the chief executive to decide maximum taxi fares
by publishing them in a gazette notice. The chief executive may also decide
the maximum fares do not apply to certain types of taxis, where procedures
exist for a person to request a specific type of taxi, for example a luxury
taxis, and the fare will be agreed between the operator and the hirer when
the booking for the taxi is made.
Clause 6 extends the operation of section 156 by three years.
Section 156 states that section 29(2) and (3) of the Judicial Review Act
1991 does not apply to the decisions of the chief executive. Section 29(2)
and (3) of the Judicial Review Act 1991 allows a court or a Judge to place a
stay of operation or proceedings on decisions made.
This exclusion has been made to ensure that the implementation of the
reforms to public passenger transport in Queensland, enshrined in the
Transport Operations (Passenger Transport) Act 1994, are not unduly
delayed. This exclusion does not limit a persons right to challenge
decisions taken by the chief executive.
Decisions of the chief executive relate to decisions made under the
Chapter 13 of the Transport Operations (Passenger Transport) Act 1994,
or, decisions to cancel, suspend, grant or refuse to renew a licence, permit,
contract or another authority, under provisions of the State Transport Act
1960 or the Urban Public Passenger Transport Act 1984 which continue
to have effect under Chapter 13; or, a decision that a service contract is
required for an area or route; or, a decision to refuse to grant a service
contract under Chapter 6 of the Transport Operations (Passenger
Transport) Act 1994.
Clause 7 provides for the extension of section 157 for three more years.
Section 157 ensures no compensation will be recoverable for a decision
made under section 156 or because of application of the Part 1 of Chapter
13 of the Transport Operations (Passenger Transport) Act 1994 to a
licence, permit, contract subsidy or other payment.
Clause 8 extends the operation of section 158 for a further three years.
Section 158 provides that section 77 of the State Transport Act 1960
continues to have effect for decisions of the chief executive mentioned in
section 156. Section 77 of the State Transport Act 1960 indemnifies the
chief executive.
Clause 9 extends for three years the provisions of section 159.
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Transport Operations (Passenger Transport) Amendment
Section 159 applies to a scheduled passenger service by road that was
being provided immediately before the commencement of the Transport
Operations (Passenger Transport) Act 1994, under Part 4 or Part 5 of the
State Transport Act 1960, which complies with the definition for a
scheduled passenger service under the Transport Operations (Passenger
Transport) Act 1994.
Following the amendment, it will allow these operators to continue
operations for a period no longer than five years after commencement of the
Transport Operations (Passenger Transport) Act 1994 or until a service
contract under Chapter 6 of the Transport Operations (Passenger
Transport) Act 1994 for the area or route is entered into, whichever occurs
first. (The Transport Operations (Passenger Transport) Act 1994
commenced on 7 November 1994).
This section does not prevent the termination of a licence or permit under
Part 4 or Part 5 of the State Transport Act 1960.
Clause 10 provides for the provisions section 160 to extended by a
further three years.
Section 160 applies to a scheduled urban bus services that were being
provided immediately before the commencement of the Transport
Operations (Passenger Transport) Act 1994 and were the subject of a
contract between the corporation sole established under section 10 of the
Urban Public Passenger Transport Act 1984 and an operator.
Following the amendment, the operations under an existing contract will
be allowed to continue for a period no longer than five years after
commencement of the Transport Operations (Passenger Transport) Act
1994 or until a service contract under Chapter 6 for the area or route is
entered into, whichever is the earlier.
This clause also provides for a temporary service contract to be entered
into on substantially the same conditions, if an existing contract expires
before a service contract under Chapter 6 for the area or route is entered
into.
Clause 11 extends the provisions of Section 161 or a further three years.
Section 161 applies to a school transport service that was being provided
immediately before the commencement of the Transport Operations
(Passenger Transport) Act 1994 by an operator under an arrangement
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Transport Operations (Passenger Transport) Amendment
under Part 9A of the State Transport Act 1960 between the State and the
operator that was entered into for a fixed term.
The operators are also taken to have entered into a service contract under
Chapter 6 of the Transport Operations (Passenger Transport) Act 1994,
on the same terms as the existing arrangements between the State and the
operators for those services.
Furthermore, the clause removes a previous provision where these
arrangements could have been terminated two years after the
commencement of the Transport Operations (Passenger Transport) Act
1994. The arrangements will now continue until the end of their existing
term.
Clause 12 extends the provisions of section 162 for a further three years.
Section 162 applies to a school transport service that was being provided
immediately before the commencement of the Transport Operations
(Passenger Transport) Act 1994 by an operator under an arrangement
under Part 9A of the State Transport Act 1960 between a local conveyance
committee and the operator, that was entered into for a non-fixed term.
The operator is also taken to have entered into a service contract under
Chapter 6 of the Transport Operations (Passenger Transport) Act 1994
with the chief executive, in the same terms as the existing arrangement
between the local conveyance committee and the operator.
The arrangements covered under this section will now continue for a
period no longer than five years following the commencement of the
Transport Operations (Passenger Transport) Act 1994; or, an earlier date
if prescribed by regulation; or, if a new service contract is entered into for
the whole or part of an area or route directly affecting these existing
arrangements.
Clause 13 replaces section 172 with seven distinct sections which clearly
delineate the seven components of financial assistance.
New section 172 restates the existing provision that an interest rate
subsidy approved the under the Urban Passenger Service Proprietors
Assistance Act 1975, may continue while the operator holds a licence or
permit to which section 159 applies or holds a service contract under
Chapter 6 to operate the services or similar services.
Furthermore, the section allows for an operator who holds a licence or
permit under section 159 or a service contract under Chapter 6 to be granted
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Transport Operations (Passenger Transport) Amendment
a similar interest subsidy up to 7 November 1999. An interest subsidy
may apply for a maximum of ten years.
Section 172A restates that an operator of an urban bus service to which
section 159 applies may continue to receive a subsidy calculated on the
basis of gross fare revenue under the Urban Passenger Service Proprietors
Assistance Act 1975 and reimbursement of revenue foregone for providing
concessions to senior card holders.
The section confirms that the percentage of gross fare revenue the
operator receives as a subsidy is the percentage the operator was receiving
for the year commencing 1 July 1994.
However, the subsidy under this section ends, when section 159 ceases
to apply or 30 November 1996, whichever is the earlier. Previously, the
subsidy terminated on 8 November 1996 unless a service contract had been
entered into.
Section 172B restates that an operator of an urban bus service to which
section 160 applies, may continue to receive payment under the contract
entered into under the Urban Public Passenger Transport Act 1984.
However, the payments under this section end when section 160 ceases
to appy or 30 November 1996, whichever is the earlier. Previously
payments terminated on 8 November 1996 unless a service contract had
been entered into.
Section 172C provides new transitional financial assistance to an operator
who has not entered into a service contract before 2 December 1996.
From 1 December 1996, the operator is to receive financial assistance as
if a service contract to provide the services were entered into on that day.
This includes the transitional funding which will be phased out over 5 years.
The payments under this section cease when the operator enters into a
service contract or when sections 159 or 160 cease to apply, whichever is
the earlier.
However, the Minister may reduce the transitional funding if the Minister
is satisfied the operator is not maintaining the services at least at the level of
service that existed at 30 November 1996.
Section 172D provides for an operator who enters into a service contract
between the commencement of this Amendment Act and 1 December
1996. (Section 172 to be replaced provides similar financial assistance to
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Transport Operations (Passenger Transport) Amendment
service contract holders who entered in service contract prior to
commencement of the Amendment Act.)
In addition to the financial assistance the operator is entitled to receive
under section 52(2)(b) for providing government specified fare concessions
for pensioners and senior card holders, the Minister is to pay transitional
funding.
In the first year of the service contract, the sum of the payment under
section 52(2)(b) and the transitional funding is to be equal to what the
operator received under section 172A or 172B for the year prior to entering
into the service contract.
For the subsequent four years, the transitional funding for each year
cannot be more than that paid in the first year and is to reduce to zero over
the period.
Section 172E applies to an operator who enters into a service contract
after 1 December 1996.
In addition to the financial assistance the operator is entitled to receive
under section 52(2)(b) for providing government specified fare concessions
for pensioners and senior card holders, the Minister is to pay the remainder
of transitional funding the operator would have received under section 172C
had the service contract not been entered into.
Section 172F restates that an operator of a bus service to which section
159 applies may continue to receive payment of a subsidy for local
pensioner fares under the Urban Passenger Service Proprietors Assistance
Act 1975.
However, the payments cease when section 159 ceases to apply or 7
November 1999, whichever is the earlier. This extends the subsidy by up
to three years.
Clause 14 extends the provisions of section 179 for a further three years.
Section 179 states when section 178 expires. Section 178 permits
regulations to be made to assist the operation from an Act repealed or
amended by the Transport Operations (Passenger Transport) Act 1994 to
the operation of the Transport Operations (Passenger Transport) Act
1994.
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Transport Operations (Passenger Transport) Amendment
Clause 15 adds a decision by the Minister to reduce payment of
transitional funding under section 172C(5) to the list of decisions which are
subject to review and merits appeal and the court in which the matter is to
be heard.
© The State of Queensland 1996