Limousine service illegal, says Hide

Allegations that the Government operated an illegal limousine service are under investigation by the Land Transport Safety Authority.

Act MP Rodney Hide raised the issue in Parliament yesterday.

He called on Prime Minister Helen Clark to say what role VIP Transport had in providing cars for United Arab Emirates Airlines staff visiting Auckland.

Helen Clark refused last month to fully answer a written question from Mr Hide about the deal, on the grounds that details were commercially sensitive.

Mr Hide said if it was a commercial arrangement, then the Mercedes Benz cars used would have had to be registered for that purpose.

He understood they were not, yet the LTSA had still dismissed a complaint from Auckland limousine operator Jean-Michel Jefferson.

In an August 11 letter to Mr Jefferson, the LTSA said the provision of Mercedes cars was a courtesy service provided free of charge.

But an LTSA spokesman said yesterday its Auckland office was investigating a complaint from a competing limousine service.

"As the investigation is still under way there is not much I can say about it, other than they are investigating alleged breaches of the Transport Services Licensing Act," he said.

Asked about the matter in Parliament, Transport Minister Paul Swain said "hire and reward is a complex issue, and has been the subject of much debate over the years".

He was satisfied the LTSA was properly applying the licensing rules for small passenger service operators.

The maximum penalty for an incorrectly licensed vehicle is a $500 fine, he said.

Operating a passenger service without a licence can draw a maximum fine of $10,000 for a first-time offender.

Mr Hide asked him how he squared the LTSA deciding VIP Transport did not need to license the "courtesy service" with the Prime Minister saying it was a commercial deal.

"What is it, a courtesy service, or a commercial deal?" Mr Hide said.

Mr Swain said he would not comment, as there was a complaint before the LTSA.

It was not fair that private sector operators such as Mr Jefferson had to meet LTSA regulations, Mr Hide said, when VIP Transport did not.

- NZPA