NEW SECURE SMART CARD TACKLES TAXI SUBSIDY FRAUD
Published Tuesday, 30 October, 2007 at 12:05 PM
Minister for Transport, Trade, Employment and Industrial Relations
The Honourable John Mickel
New smart cards will be sent from today to Queensland's Taxi Subsidy Scheme (TSS) members to make the system easier for them to use and remove the potential for fraudulent use.
Transport Minister John Mickel said the TSS was available to people with disabilities who meet a stringent Queensland Health test. The State Government paid 50 percent of taxi fares for eligible members to a limit of $25 for each trip taken.
"It's about helping people get more mobile and having a better quality of life," he said.
"During 2005-06, an average 5255 trips were made each day by members of the TSS, and the total subsidy paid by the Government exceeded $12 million.
"Unfortunately, the current paper voucher-based system is open to fraudulent use by unscrupulous people, and Queensland Transport has found a number of such cases," Mr Mickel said.
"While people who are found to have cheated the system are prosecuted, the new smart card, with photo identification and computer processing, removes the possibility of that kind of fraud occurring," Mr Mickel said.
The Minister said that, under the old system, books of paper vouchers were issued to members to hand to taxi drivers who then recorded the trip details and claimed payment from Queensland Transport.
Queensland Transport had found fraudulent misuse of the system including:
• Taxi drivers charging more for trips than the actual cost
• Taking multiple vouchers from members – and filling out false trip details
• Non-members taking vouchers from members and using them in taxis
• Taxi drivers claiming the full fare from the government (instead of the 50 percent permitted)
• TSS members colluding with taxi drivers to make false claims for trips that did not take place.
"The TSS exists to provide affordable travel by taxi for people with disabilities who are unable to use other forms of public transport," Mr Mickel said.
"The vast majority of TSS members, their carers and taxi drivers are honest people who are doing the right thing. They welcome the new smart card because it simplifies the system for both members and drivers while blocking misuse by the few dishonest people in the system," he said.
The Minister said the smart card would replace all the paper vouchers by February 2008. A member's personalised smart card is logged into the taxi's Cabcharge system at the start of each journey. The smart card, Cabcharge and Queensland Transport systems verify the taxi driver and TSS member involved, and collect details of the journey.
The exact correct fare is automatically calculated and 50 percent of the fare directly charged to Queensland Transport. "Because the card has photo identification on it, taxi drivers are able to easily verify that the user is the owner of the card," Mr Mickel said.
"These inbuilt safeguards in the smart card system will help ensure all available assistance and funding goes to people who need it – not to frauds and cheats".
"Taxi drivers involved in cheating the system are taking a ridiculous risk because, if convicted, on top of any court-imposed penalty they could lose their Driver Authorisation and be banned from working in the passenger transport industry," Mr Mickel said
He said Queensland Transport stepped up misuse/fraud investigations into the TSS from July 2006, with ongoing joint investigations with the Queensland Police Service Fraud Squad.
Outcomes of the continuing crackdown included:
• Taxi driver fined $8,000 in the Cleveland Magistrates Court on November 13, 2006
• Taxi driver fined $13,000 and put on a two year good behaviour bond at Cleveland Magistrates Court on November 20, 2006
• Taxi driver fined $5000 at Brisbane Magistrates Court on January 8, 2007
• Taxi driver ordered to pay $13,818 restitution to Queensland Transport and had DA suspended for two years at Brisbane Magistrate's Court on April 3, 2007
• Two taxi drivers fined $1000 each and put on two year good behaviour bonds at Mossman Magistrates Court on June 20, 2007
TSS member fined $1000 and put on a two year good behaviour bond at Brisbane Magistrates Court on September 21, 2007
• Taxi driver to appear in the Cairns Magistrate Court for a hearing on December 13, 2007
• Brisbane taxi driver currently before the courts.
Media contact: Chris Brown 3237 1944 or Elouise Campion 3237 1125.
Transport Minister John Mickel said the TSS was available to people with disabilities who meet a stringent Queensland Health test. The State Government paid 50 percent of taxi fares for eligible members to a limit of $25 for each trip taken.
"It's about helping people get more mobile and having a better quality of life," he said.
"During 2005-06, an average 5255 trips were made each day by members of the TSS, and the total subsidy paid by the Government exceeded $12 million.
"Unfortunately, the current paper voucher-based system is open to fraudulent use by unscrupulous people, and Queensland Transport has found a number of such cases," Mr Mickel said.
"While people who are found to have cheated the system are prosecuted, the new smart card, with photo identification and computer processing, removes the possibility of that kind of fraud occurring," Mr Mickel said.
The Minister said that, under the old system, books of paper vouchers were issued to members to hand to taxi drivers who then recorded the trip details and claimed payment from Queensland Transport.
Queensland Transport had found fraudulent misuse of the system including:
• Taxi drivers charging more for trips than the actual cost
• Taking multiple vouchers from members – and filling out false trip details
• Non-members taking vouchers from members and using them in taxis
• Taxi drivers claiming the full fare from the government (instead of the 50 percent permitted)
• TSS members colluding with taxi drivers to make false claims for trips that did not take place.
"The TSS exists to provide affordable travel by taxi for people with disabilities who are unable to use other forms of public transport," Mr Mickel said.
"The vast majority of TSS members, their carers and taxi drivers are honest people who are doing the right thing. They welcome the new smart card because it simplifies the system for both members and drivers while blocking misuse by the few dishonest people in the system," he said.
The Minister said the smart card would replace all the paper vouchers by February 2008. A member's personalised smart card is logged into the taxi's Cabcharge system at the start of each journey. The smart card, Cabcharge and Queensland Transport systems verify the taxi driver and TSS member involved, and collect details of the journey.
The exact correct fare is automatically calculated and 50 percent of the fare directly charged to Queensland Transport. "Because the card has photo identification on it, taxi drivers are able to easily verify that the user is the owner of the card," Mr Mickel said.
"These inbuilt safeguards in the smart card system will help ensure all available assistance and funding goes to people who need it – not to frauds and cheats".
"Taxi drivers involved in cheating the system are taking a ridiculous risk because, if convicted, on top of any court-imposed penalty they could lose their Driver Authorisation and be banned from working in the passenger transport industry," Mr Mickel said
He said Queensland Transport stepped up misuse/fraud investigations into the TSS from July 2006, with ongoing joint investigations with the Queensland Police Service Fraud Squad.
Outcomes of the continuing crackdown included:
• Taxi driver fined $8,000 in the Cleveland Magistrates Court on November 13, 2006
• Taxi driver fined $13,000 and put on a two year good behaviour bond at Cleveland Magistrates Court on November 20, 2006
• Taxi driver fined $5000 at Brisbane Magistrates Court on January 8, 2007
• Taxi driver ordered to pay $13,818 restitution to Queensland Transport and had DA suspended for two years at Brisbane Magistrate's Court on April 3, 2007
• Two taxi drivers fined $1000 each and put on two year good behaviour bonds at Mossman Magistrates Court on June 20, 2007
TSS member fined $1000 and put on a two year good behaviour bond at Brisbane Magistrates Court on September 21, 2007
• Taxi driver to appear in the Cairns Magistrate Court for a hearing on December 13, 2007
• Brisbane taxi driver currently before the courts.
Media contact: Chris Brown 3237 1944 or Elouise Campion 3237 1125.