New laws giving the NZ Transport Agency stronger enforcement powers over commercial transport operators are now in force, including the ability to immediately suspend Transport Service Licences (TSLs) for significant health and safety concerns.
The Regulatory Systems (Transport) Amendment Bill came into effect on May 18 and introduces four major changes to the way NZTA regulates commercial operators.
The changes require the Director of Land Transport to approve new persons in control of a transport service, allow immediate suspension of TSLs for major safety risks, introduce new penalties for transferring or leasing TSLs, and give NZTA powers to audit operators suspected of running services without a licence.
Under the new rules, operators must seek approval before adding or changing persons in control of a transport business, replacing the previous notification-only system. NZTA says a six-month grace period will apply until November 19.
The agency says infringement fees of $500 for individuals and $1000 for companies can apply if someone gains control of a transport service without approval.
NZTA can also suspend or revoke a TSL if a new person in control does not meet fit and proper person requirements.
Factors considered include transport-related offending, fraud, drug offences, unpaid fines and organised criminal activity.
The legislation also allows NZTA to immediately suspend a TSL where there are significant health and safety concerns, including unsafe vehicles, breaches of work-time rules, unsafe loads or driver impairment.
National Road Carriers Association chief executive Justin Tighe-Umbers says the reforms mark a significant shift for the sector.
“The Director of Land Transport has been given a bigger stick designed to tighten up management of TSLs.
“These changes are an essential step closer to ensuring that the TSL system only grants fit and proper operators who are compliant the privilege to operate a commercial transport business and access our roading network.”
Tighe-Umbers says compliant operators should not be concerned.
“But these changes are sending a warning shot to the complacent and the negligent – you are on notice.”
Transporting New Zealand also supported many of the reforms during the select committee process, describing them as “mostly common-sense reforms” that would help ensure all TSL holders met appropriate fit-and-proper standards.
The organisation also raised concerns about operators re-emerging through so-called phoenix companies.
“There needs to be a more rigorous application process that would catch this,” Transporting NZ says.
Transporting New Zealand chief executive Dom Kalasih says members frequently raise concerns about rogue operators creating an uneven playing field.
“Given our sector is relatively heavily regulated and there is a transport licensing regime in place, arguably NZTA shouldn’t be allowing those rogue operators to continue operating.
“However, NZTA’s view is that it hasn’t had the appropriate powers to act, and therefore we’ve been advocating for years for that to change.
“The fundamental intent and the purpose of a Transport Service Licence (TSL) is to prove that an operator is fit, legally compliant, and knowledgeable to run a commercial transport business. The licensing regime should ensure safe management practices, holds operators accountable, and protect other road users.”
Kalasih says Transporting New Zealand supports a formal independent licensing system backed by strong legal powers.
“Otherwise I’m concerned that we get pseudo systems like accreditation regimes that are in essence duplicating what should already be there and they are just another compliance cost and the integrity and rigour can vary significantly,” he says.
