Cab drivers switch to boss's other firm

By SCOTT MACLEOD transport reporter

Safety chiefs have warned an Auckland taxi firm it risks a $10,000 fine after it was effectively taken over by another cab company that had been ordered to close.

The Land Transport Safety Authority told Ideal Cabs 12 days ago that its licence would be revoked on January 26 because of problems with "general control and registration."

But the firm's director, Zafar Iqbal, has since tried to shift his drivers and other assets to Black Cabs, in which he has a majority shareholding.

LTSA spokesman Andy Knackstedt yesterday said some of Ideal's drivers had already switched to Black Cabs and other Auckland taxi firms, although he was unable to give numbers.

He said Black Cabs faced a $10,000 fine under the Transport Services Licensing Act if Mr Iqbal was found to be illegally in control of the firm.

Anybody who controls a transport service must apply to the LTSA for approval, and is given background checks.

Mr Knackstedt said Black Cabs had told the LTSA that Mr Iqbal was joining it, but had yet to pay an application fee for approval.

"Until that approval is given, if he is found to be in control, then that fine could be incurred," Mr Knackstedt said.

"As for the drivers, they are free to join any organisation they like as long as they have a passenger endorsement."

A Heraldsearch of company records yesterday found that Mr Iqbal is also director of ABC Taxis Ltd and a car import firm. The LTSA said ABC Taxis withdrew an application last week to gain approval as a cab company.

Mr Iqbal could not be reached for comment.

Meanwhile, Work and Income NZ confirmed that it paid Ideal $41,496 in subsidies to employ 24 drivers who had been on the dole.

The subsidies were paid between July 1998 and September last year as part of the department's Job Plus and Job Plus Training schemes, open to any employer.

Spokeswoman Kate Joblin said that if Winz knew about the problems with Ideal Cabs, it would have taken them into account when giving the subsidies.

But the last subsidy ended four months ago and problems with the firm had emerged only in the past couple of weeks.

No subsidies were paid to any of the other firms linked to Mr Iqbal.

The LTSA said when revoking Ideal's licence that its managers seemed not to know if their vehicles were warranted or registered, despite four months of warnings.

Examples were of a woman driving a cab registered only to her husband, and at least one taxi operating after its certificate of fitness had expired.

Ideal is believed to have 235 taxis and more than 500 drivers, making it one of Auckland's biggest fleets.

LTSA figures for the year to June 2000 suggest that Auckland taxi drivers generally behave well compared with their colleagues in other centres.

In that time, Auckland had four taxi license suspensions, five endorsement disqualifications and three Transport Service Licence revocations.

Hamilton had figures of five, eight and 13 respectively, giving its taxi firms the worst record per capita in New Zealand.