Factsheet 47 – January 2008

Transport service licences

Drivers and operators of freight and passenger transport services industries are required to comply with a range of rules and regulations.

These regulations and rules assist transport service licence holders to run successful and compliant businesses while ensuring safe management practices and protecting other road users.

This factsheet provides advice on how to obtain a transport service licence. On the last page, there is guidance on where to find more complete information.

Who needs a transport service licence?

Whether you're an individual or a company, you must hold the appropriate transport service licence if you're operating any of the following types of service:

A goods service

A goods service delivers or carries goods, whether or not for hire or reward, using a motor vehicle that has a gross laden weight* of 6000 kg or more, including one that is 'on hire' to carry goods.

A passenger service

A passenger service carries passengers; usually for hire or reward.

There are two types of passenger service: small and large.

• A small passenger service uses vehicles that carry 12 or fewer people (including the driver), for hire or reward. Small passenger services include taxi services, shuttle services and private hire services. Dial-a-driver services are also small passenger services but the vehicles used in these services are not passenger service vehicles. There are special rules for taxi services that do not apply to other small passenger services - see Factsheet 4, Taxi drivers and area knowledge certificates.
• A large passenger service uses vehicles that are designed to carry more than 12 people (including the driver), whether or not they operate for hire or reward.

A vehicle recovery service

A vehicle recovery service tows or carries vehicles. It requires a transport service licence if it isn't exempt under the Land Transport Act (eg you don't need a transport service licence to tow a friend's car with your own in the case of a breakdown).

A rental service

A rental service hires out vehicles to carry goods or passengers.

* Gross laden weight is the greatest of the following:

• any weight specified as a vehicle's gross laden weight by the vehicle's manufacturer
• any weight specified as the gross laden weight of a particular kind of vehicle by the NZ Transport Agency 
• the weight of a vehicle together with any load it is carrying, including any equipment and accessories.

Penalties for operating an unlicensed service

It's illegal to operate an unlicensed transport service of the kinds described above. If you're convicted, you may face a fine of up to $10,000. The fine increases to a maximum of $25,000 for subsequent convictions.

In addition to the fine, the court may impound vehicles used in an unlicensed service for up to 90 days (no matter who owns them).

How to apply for a transport service licence

Fill out an application form

You need to fill out and submit an application form. You can get one from the 'Commercial transport' section of our website. You can also get one from a NZ Transport Agency office (call in to your nearest office or phone them and ask them to send you one).

Take your completed application form into your nearest NZ Transport Agency office or send it by post, making sure you have provided everything necessary for the application.

What do I have to provide?

You need to provide:

• the application fee of $440
• a certificate of knowledge of law and practice relevant to the transport licence you are applying for, except if you are going to operate a dial-a-driver or rental service
• the personal details required in the application form, including a statement asserting that the information supplied in the application form is correct and that you are not disqualified from holding or obtaining a transport service licence.

What is the criteria for approval?

The person who will hold the licence or will be in control of the transport service will have to meet the legal 'fit and proper person' criteria.

Certificate of knowledge of law and practice

One of the requirements for getting a transport service licence is that either the licence holder or the person in control of the service must have a certificate of knowledge of law and practice. It shows that the holder of the certificate has the required knowledge of the laws and practices relating to the safe and proper operation of a transport service.

How do I get the certificate?

To get a certificate of knowledge of law and practice, you have to pass a test run by Assessment Systems Limited (ASL).

ASL's contact details are:

Assessment Systems Ltd
PO Box 30343
Level 9, Avalon Tower
Percy Cameron St
Lower Hutt

Phone: (04) 913 9812
Fax: (04) 913 9816
Website: www.exams.co.nz

The test covers the rules relating to the type of service you will be operating and specific knowledge relating to the requirements and responsibilties of a transport service licence holder.

There is an individual handbook for each class of service.

What are the costs?

Handbook and test
Handbook	$40.00
Test	$90.00
Total	$130.00
Optional extras
Priority marking	$30.00
On-demand examination	$310.00
Late entry fee (if test is applied for after the closing date and received by 5 working days prior to the test date)	$40.00

Who might be exempt?

The requirement for a certificate of knowledge of law and practice does not apply to rental services and passenger service licences for dial-a-driver services.

In special circumstances, the NZ Transport Agency may waive the requirement for other transport service operators to hold the certificate where the service is limited or infrequent. An example is a truck that is used to carry apples in the picking season, but that only carries bits and pieces around the orchard for most of the year. Generally, exemptions are granted for operators who are carrying their own goods and not for hire or reward.

The application form for an exemption is available from any NZ Transport Agency office.

Complete the application form when you apply for your transport service licence.

About the tests

The ASL website (www.exams.co.nz) has excellent information on the test, including sample test questions.

The test questions are based on the Knowledge of Law and Practice handbook. You can buy these from NZ Transport Agency offices and from ASL.

The test is 'open book', which means you may take the handbook into the test with you. Handbooks are not supplied by ASL at the test venue.

You have up to two-and-a-half hours to complete the test.

Test standards are set and audited by the NZ Transport Agency and you must score 80 percent or higher to pass the test.

What identification do I need to bring to the tests?

On the day of the test, you'll need to show identification that has both your photograph and signature on it (eg your driver licence or passport). If you don't present acceptable identification, you won't be able to sit the test. You can find out more about acceptable identification on the ASL website.

When does the test take place?

ASL has timetables for when the test takes place in different areas. These are available from ASL and from NZ Transport Agency offices.

ASL offers an 'on demand' option, which reduces the waiting period but costs more.

How do I apply to sit the tests?

You'll need to complete and send in the application for test form (ASL 228). It's available from ASL and can be downloaded from their website: www.exams.co.nz.

Before sending your completed application form to ASL, please make sure you have:

• indicated the date and town/city for the test you wish to sit
• enclosed payment for the cost of the test (and the cost of handbook, if required) – cheques should be made payable to Assessment Systems Limited
• signed your application.

Send all this information to:

Assessment Systems Ltd
PO Box 30343
Lower Hutt 5040

If your application is not filled out properly, ASL may return it to you for correction.

If your completed application is not received in time, you may be rescheduled to the next timetabled test day in your area.

ASL will let you know in writing when they've received your application, and will confirm the test venue, date and time.

For information on transfers to different test dates, cancellations or refunds, refer to ASL's candidate information and instructions sheet. (It's attached to the application for examination form.)

Further information

If you have any questions regarding getting or holding a transport service licence, contact the nearest NZ Transport Agency office for advice.

Or contact the NZ Transport Agency:

• Email info@nzta.govt.nz.
• Call our contact centre on 0800 699 000.
• Write to us: NZ Transport Agency, Private Bag 6995, Wellington 6141.