Media statement | 7 June 2006

Land Transport NZ orders taxi company off the road

Land Transport NZ has revoked the operating licence of an Auckland taxi company with a fleet of around 300 cabs.

The 'Approved Taxi Organisation' (ATO) status of Economy Taxi Ltd was revoked with effect from 6 June after a Land Transport NZ investigation uncovered several serious breaches of the regulations which apply to licensed passenger service providers.

Specific breaches uncovered included the existence of false rosters for drivers, false entries for driving hours in drivers' logbooks, taxis operating with expired Certificates of Fitness and without Passenger Service Licences, and drivers with expired passenger endorsements and/or suspended driver licences.

"There was a general lack of control by company management over its members and drivers," said John Doesburg, Land Transport NZ's National Manager for Commercial Road Transport. "The operating standards of this company were simply not up to scratch. We've given them opportunities to make improvements - they haven't done so and as a result their ATO status has been revoked."

Economy Taxi operates between 280 and 350 cabs around Auckland - the company was unable to provide Land Transport NZ investigators with an exact figure. Mr Doesburg said the lack of control by Economy's management meant it was likely that some drivers would not have been informed of the ATO revocation, even though the company was first informed of the intended action on 9 March and final notice was given on 25 May. Police have been notified of the revocation and will be stopping any Economy cabs still in operation and ordering them off the road.

Mr Doesburg said the revocation action was a sign of Land Transport NZ's commitment to improving standards in the taxi industry throughout the country. As part of the formation of Land Transport NZ in December 2004, a new nationally managed team of investigators was established to focus on the commercial road transport industry, including taxis.

"We will work with those who are willing to improve their standards, and we will take action against those who won't in order to ensure the safety and security of the travelling public," he said.

For more information

Andy Knackstedt
Media Manager
Land Transport New Zealand
Ph: 04 931 8829 or 0212 763 222