Non-renewal of Taxi Operator Licence

Mr Ang Hin Kee asked the Minister for Transport (a) what are the lessons which LTA has learnt following the recent case of a taxi company which did not have its operator licence renewed; (b) what are the concerns raised by the industry players and taxi drivers; and (c) what measures will LTA put in place to handle future similar cases, especially if a larger operator is affected.

Taxi companies are required to meet Quality of Service (QoS) standards in the areas of taxi booking, safety and the conduct of their drivers. They are also expected to meet other regulatory requirements for renewal of their Taxi Service Operator Licence (TSOL), such as achieving the minimum fleet size and putting in place the capability to locate their taxis to facilitate taxi booking.

Smart had multiple failures in its QoS performance and did not demonstrate commitment to meet the licence renewal conditions, despite LTA's extensive efforts to work with them to improve. LTA did not take this decision not to renew Smart's licence lightly, and was fully cognisant of the potential impact, but it is important for the regulator to credibly ensure that operators perform according to the required standards, so that the commuter’s interests are protected.

To minimise the impact of Smart's exit, LTA had worked with the National Taxi Association to help Smart fulfil its obligations to its taxi drivers, and facilitate placements for them in the other taxi companies. LTA had also facilitated the transfer of Smart's taxi licences to Trans-Cab to ensure that the overall taxi fleet did not decline.

The principle of ensuring a reasonably orderly exit of a taxi operator, and ensuring that the impact on affected taxi drivers as well as on the commuting public would be minimised, would continue to be key considerations if there are future similar cases. Beyond these general considerations, the specific measures will have to be tailored based on the size of the operator and the relevant prevailing circumstances.

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