Bills

Passenger Transport (Miscellaneous) Amendment Bill

Introduction and First Reading

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (15:44): Obtained leave and introduced a bill for an act to amend the Passenger Transport Act 1994; and to make related amendments to the Motor Vehicles Act 1959. Read a first time.

Second Reading

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (15:44): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

This Bill will introduce a raft of new penalties for anyone providing unlicensed and unaccredited passenger transport services.

This Bill will ensure Transport Safety Compliance Officers have adequate powers to do their jobs in light of the new business models and technologies which are transforming the small passenger transport industry.

The Government introduced widespread reforms to the taxi and chauffeur vehicle industry in July last year in response to a comprehensive, independent review which followed extensive consultation with the public and industry. The reforms facilitated the introduction of new entrants and technologies to encourage innovation and choice for passengers, while ensuring the long-term sustainability of the industry.

New technologies such as smartphone booking apps have increased opportunities for unscrupulous drivers and operators to avoid the legislative environment designed to keep the public safe and maintain the level playing field essential to the long term resilience and stability of the industry.

I have previously publicly committed to introduce tougher penalties for drivers, operators, company executives and directors, who seek to circumvent the rigorous legal framework in place to protect our community. This Bill delivers on this commitment.

The Bill's primary focus is to ensure the drivers and cars providing passenger services remain safe. The increased penalties set out in the Bill are designed to deter and disrupt the activities of illegal and non-compliant drivers, vehicles and operators.

To achieve the necessary level of deterrence, accurately reflect the seriousness of the offences, restore the deterrence effect of existing fines that have remained static for several years and not kept up with inflation and to put beyond doubt the Government's commitment to maintaining and enforcing the existing rigorous accreditation standards, the penalty provisions across the Passenger Transport Act 1994 will be increased.

For example, the current penalty for operating a passenger transport service without holding an appropriate accreditation for that service incurs a Division 3 fine, not exceeding $30,000. The proposed penalty for this offence is a fine of $35,000 for the first offence and a fine of $50,000 for subsequent offences.

In addition to increasing all penalties, the Bill also introduces demerit points and licence disqualifications. These significant sanctions have been introduced to address the increase in the number of unaccredited drivers working in the industry since the introduction of the new reforms. The demerit points and licence disqualifications will act as a deterrent and prevent drivers from reoffending.

These sanctions also reflect the seriousness of providing a passenger service without criminal, medical and vehicle safety checks and ensure that unaccredited drivers do not avoid the effect of penalties by having third parties pay fines or expiations on their behalf. The demerits and licence disqualifications will eventually prevent repeat or recalcitrant offenders (unaccredited drivers) from continuing to drive.

The Bill also introduces a corporate multiplier of five times the maximum penalty for an offence if committed by a corporation.

The South Australian Government is committed to protect the public from drivers who after acquiring accreditation commit offences which strongly indicate they no longer meet the fit and proper persons standard required and demanded of all persons who drive passenger transport vehicles. The Bill will enable the automatic temporary suspension of accreditation if the driver is charged with a serious offence which is to be defined as an offence punishable by imprisonment. To ensure the principles of natural justice have been applied and observed and the temporary suspension is appropriate in the circumstances the driver will have the right to appear before the Passenger Transport Standards Committee (PTSC) who will independently review the fairness of this administrative action.

The temporary automatic suspension will also apply where a driver's licence has been suspended, cancelled, expired or made subject to conditions. These provisions are designed to ensure that appropriate and immediate action is taken to remove the driver from driving a public passenger transport vehicle if they do not hold and appropriate and current drivers licence.

The ways in which we book and pay for passenger transport services have undergone a revolution and in recognition of these ever evolving methods the Bill introduces new evidentiary provisions that will enable a screen shot from an electronic booking device such as a smart phone, tablet or computer to be introduced as prima facie evidence of an offence.

This will remove the need for Transport Safety Compliance Officers to provide evidence from printed record which may not be readily obtainable. For unaccredited drivers, this will provide invaluable evidence that a passenger service has been provided.

The Government appreciates that breaches can be unintentionally made and prosecution of these offences is not always the quickest and most efficient way to remedy such contraventions. The Bill introduces a constructive alternative to prosecution through Enforceable Voluntary Undertakings which allow a co-operative approach to those situations where remedial or proactive action by the offender to address the breach of passenger transport law and prevent its recurrence is in the best interests of passenger transport safety. While the undertakings are voluntary, the making of an undertaking is creating a legal obligation and there are legal sanctions for failing to fulfil its requirements.

These reforms to the taxi and chauffeur vehicle industry which have been delivered by this government have enabled new participants to enter a previously restrictive market. Many of these organisations are not based in South Australia and future entrants may not be based in Australia.

Unfortunately this can lead to the erroneous assumption on the part of some participants, particularly those that use apps and cloud based technologies for booking, payment and record keeping systems, that this state's legislative requirements do not apply to them.

This Bill, through the insertion of an extra territorial provision, addresses this erroneous presumption and will put beyond doubt that the point to point legislative framework set out in the Passenger Transport Act and Regulations applies to all providers of services regardless of whether they or their parent companies are based in another Australian jurisdiction or another continent and that this Government holds them now, and in the future, accountable for services they provide in this state.

The reforms introduced last year have significantly increased the number of point to point drivers on South Australian Roads. These drivers are likely to be on the road more often than a private car user and are therefore it is only fair that they to pay a CTP premium that reflects the increased level. The Bill amends the Motor Vehicles Act 1959 to ensure drivers found driving under the incorrect Compulsory Third Party Insurance category are required to pay the correct premium. This measure is essential to protecting the integrity of the CTP system.

Mr Speaker, this government remains committed to the continuing reform of the small passenger transport industry to deliver the highest standards of customer service without watering down our stringent safety requirements, fostering innovation, promoting fair competition whilst building a resilient and sustainable businesses.

The reforms that will be delivered by this Bill, are designed to protect the public from unscrupulous drivers who have not ensured their vehicles meet minimum safety standards, who have not undertaken the required medical and criminal checks and who have not been assessed as possessing the appropriate skills we not only require but demand of those drive small passenger vehicle drivers for fare or reward.

The reforms will actively deter unaccredited persons from working in the industry. The members of our community who use small passenger transport services can be assured of this Government's ongoing commitment to their protection and respond to the challenges created by new business models and technologies.

This Bill will underpin the delivery of safer journeys, get unaccredited drivers and cars off the road, build public confidence in the industry and ensure no participants in the industry can gain an unfair competitive advantage by breaking the laws put in place to protect the public.

I commend the Bill to the House.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Passenger Transport Act 1994

4—Amendment of section 3—Objects

This clause makes a consequential amendment to the objects provision.

5—Amendment of section 4—Interpretation

This clause inserts definitions of driver's licence and screenshot and also deletes the definition of centralised booking service and replaces it with a definition of transport booking service.

6—Insertion of section 6

This clause inserts a provision for extraterritorial operation of the measure.

7—Amendment of section 27—Accreditation of operators

This clause slightly increases the penalty for a first offence of operating a passenger transport service without the appropriate accreditation and introduces a higher penalty for a second or subsequent offence. The provision also makes it clear that certain people and companies are not entitled to accreditation (where there has been insolvency or winding-up).

8—Amendment of section 28—Accreditation of drivers

This clause splits the current offence for driving a public passenger vehicle without accreditation into 2 offences - a less serious offence for people who have let their accreditation lapse within the preceding 3 months and a more serious offence for other circumstances. The more serious offence is punishable by a maximum fine of $15,000 or an expiation fee of $500 and by a licence disqualification, whilst the other offence for people whose accreditation has lapsed is punishable by a maximum fine of $10,000 or an expiation fee of $500.

9—Insertion of section 28A

This clause inserts a new section providing for an automatic suspension of a driver's accreditation if the person is disqualified, under the law of any jurisdiction, from holding or obtaining a driver's licence, is charged with a serious offence (which is defined in the provision) or if the Registrar of Motor Vehicles directs the person to submit to an examination under section 79B of the Motor Vehicles Act 1959. Following the suspension, the Standards Committee must hold an inquiry to determine whether proper cause exists for disciplinary action against the person (and the suspension remains in place until that issue is resolved or the person surrenders the accreditation).

10—Amendment of heading to Part 4 Division 3

This clause makes a consequential amendment to a heading.

11—Insertion of section 28B

This clause inserts a new provision defining a transport booking service.

12—Amendment of section 29—Accreditation of transport booking services

This clause slightly increases the penalty for a first offence of operating a transport booking service without the appropriate accreditation and introduces a higher penalty for a second or subsequent offence. The clause also makes a consequential amendment.

13—Insertion of section 35AA

This clause enacts new offences relating to accreditations. Firstly, there is to be an offence for a person who represents, by words or conduct, that the person undertakes an activity for which an accreditation is required when the person does not hold the relevant accreditation. The offence is punishable by a maximum fine of $35,000. Secondly there is to be an offence for a driver who accepts bookings from a person who operates a transport booking service without taking reasonable steps to ensure that person is accredited. This offence is punishable by a maximum fine of $10,000 and, in the case of a second or subsequent offence, a licence disqualification. Finally, a driver who accepts a booking from a person operating a transport booking service knowing or having reason to suspect that the person does not hold an accreditation is to be guilty of an offence punishable by a fine of $20,000 and a licence disqualification.

14—Amendment of section 52C—Overcharging for non-cash payment surcharge

This clause makes a consequential amendment.

15—Amendment of section 53—Authorised officers

This clause clarifies the power of an authorised officer to take screenshots or films, photographs or other records and to require a person to state the person's full name, usual place of residence and date of birth and to produce evidence of the person's identity.

16—Amendment of section 54—Inspections

This clause amends section 54(12) to allow a direction to be issued that a vehicle be presented for inspection and not be used as a public passenger vehicle until the inspection is carried out. The clause also extends liability under section 54(14) to the operator of the passenger transport service (as well as the driver of the vehicle and any person by whom the driver is employed to drive the vehicle) and slightly increases the maximum penalty as well as adding an expiation fee.

17—Insertion of sections 57A to 57E

This clause inserts provisions as follows:

57A—Offences by persons involved in management of corporations

This provision is being moved from the current Schedule 2 and generalised.

57B—Penalties for corporations

This provision is being moved from the current Schedule 2 and generalised.

57C—Continuing offences

This provision is being moved from the current Schedule 2 and generalised.

57D—Recovery of economic benefit

This provision allows for the making of an order that a person who has contravened the Act pay to the Minister an amount not exceeding the court's estimation of the amount of economic benefit acquired by the person, or accrued or accruing to the person, as a result of the contravention. An amount paid to the Minister under the section must be applied for the benefit of the point to point transport service industry.

57E—Enforceable voluntary undertakings

The Minister may accept a written undertaking given by a person in connection with a matter relating to a contravention or alleged contravention of the Act and it is an offence, punishable by a maximum fine of $20,000 to contravene an undertaking. The Minister may also apply to the Magistrates Court for enforcement of the undertaking and the provision sets out various orders that may be made by the Court in such enforcement action. Failure to comply with such an order is punishable by a maximum fine of $35,000.

18—Amendment of section 61—Evidentiary provision

This clause provides evidentiary aids in relation to screenshot evidence.

19—Amendment of Schedule 2—Point to point transport service transaction levy

This clause defines a rank and hail taxi service and provides for payment of the levy in respect of such a service by the primary booking service (which will be determined in accordance with the regulations). The clause also makes consequential amendments.

20—Repeal of Schedule 4

This clause repeals the schedule of transitional provisions, which is now spent.

Schedule 1—Related amendments and transitional provisions

Part 1—Related amendments to Motor Vehicles Act 1959

1—Insertion of section 81DA

This clause is consequential to clauses 8 and 13 and inserts a new provision allowing a Registrar imposed licence disqualification where a person expiates an alleged offence against section 28(1a) or 35AA(2) (other than a first offence) of the Passenger Transport Act 1994.

2—Amendment of section 99A—Insurance premium to be paid on applications for registration

This clause creates a specific offence of failing to notify the insurer where, by reason of a motor vehicle being used for the provision of a passenger transport service, a greater premium becomes payable in respect of the motor vehicle. Both the insured person and any person who drives the motor vehicle for the provision of such a passenger transport service are guilty of the offence, punishable by a maximum penalty of $5,000 or an expiation fee of $500.

3—Amendment of section 124A—Recovery by insurer

This clause is related to the amendment above and allows for recovery by the insurer where an insured person incurs a relevant liability but has contravened the Act by committing an offence against new section 99A(7a).

Part 2—Transitional provision

4—Centralised booking services

This clause deals with the transition from centralised booking services to transport booking services.

Schedule 2—Further amendment of Passenger Transport Act 1994

This Schedule slightly increases penalties and converts them from Divisional penalties to monetary amounts.

Debate adjourned on motion of Mr Pederick.