WWW.GOCLEAR.CO.NZ RUNNING ON SCR?... LEGAL LINES
Understanding the
Operator Rating System
T
he Operator Rating System (ORS) is a system that aims to provide a fair and accurate indication of the safety of an operator’s fleet and the operator’s compliance with land transport safety legislation. The rationale for the ORS is that it will let operators know how well they’re complying with the legislation and that it will help the police to target regulatory activities that require the most attention. The Land Transport Rule Operator Safety Rating 2008 sets out the key aspects of the ORS and how the system should work. The ORS is designed to penalise non-compliant operators who undermine regulatory and safety performance when they are making decisions about maximising loads and minimising maintenance costs. The logic is that those who operate within the law should not be disadvantaged by having to compete with operators who do not comply. Some of the anticipated benefits of ORS include: • A reduction in heavy vehicle crashes and associated social costs due to the improved compliance that will result from targeted enforcement; and • Fairer and more effective enforcement throughout the transport industry, which will lead to a level playing field for the industry.
high-performing operators to ensure that their standards stay high, but they are likely to receive less attention. The ORS will provide a benchmark for operators to see whether they need to improve their performance or increase their safety or maintenance. Operators can publicise their ratings once they have been finalised and use it in marketing as a promotional tool. Currently the NZTA does not publish ORS ratings but companies and government agencies that contract transport services may require operators to have a certain ORS rating before they can tender for contracts. The ratings may also be of interest to the Accident Compensation Corporation when it comes to setting their levies. The NZTA will collect information from safety related events over a 24-month period, and every six months they will notify an operator of their proposed rating and how it has been calculated. If you believe an error or omission has been made then you can apply to have it reassessed. An error or omission can include an event in a vehicle that, at the time of the event, was not being operated under your transport service licence, or a missing event that you think should have been included. If after applying to the NZTA to get an error corrected you are still unhappy with the outcome, you can apply to the ORS Review Panel which is made up of one representative each from the NZTA, the transport industry and the legal profession. The review panel will consider the operator’s submission and make a decision on whether the rating should stand or be recalculated. There is a fee required to apply to have your matter heard by the review panel and you must apply within 20 working days of receiving notification of your revised proposed rating. Next month I want to discuss some ways that operators and drivers can improve their transport service so that they can achieve a five-star rating. I’ll also cover the different kinds of faults and offences that will be included in the rating system and how to distinguish which ones will have the biggest impact on the rating issued.
The incentive for operators to aim for a high rating is that the rating information will be used to target those who need the most assistance, and they will be scrutinised more closely.
The ratings are similar to hotel or restaurant ratings, with stars being allocated from 1 to 5 based on an operator’s level of compliance. 1 = Extremely Unsatisfactory 2 = Very Unsatisfactory, 3 = Unsatisfactory, 4 = Good, 5 = Very Good. The ratings are based on the number of safety events recorded. These include the number and severity of faults found during a certificate of fitness, the number and severity of faults found during roadside inspections, and the seriousness of any offences in which the operator’s vehicles are involved. When a crash occurs and a driver is found guilty or pleads guilty to an offence then this will be included in the rating to reflect their liability for the crash. Next month I will concentrate more on what kinds of faults and offences will have an impact on the rating issued. Calculation of the ratings is done using an algorithm. This means that there is a series of mathematical steps that produce a final score. I shall not attempt a more detailed explanation because my mathematical knowledge is limited and it’s usually the sort of stuff that makes most people’s eyes glaze over!
Please note that this article is not a substitute for legal advice and if you have a particular matter which needs
The incentive for operators to aim for a high rating is that the rating information will be used to target those who need the most assistance, and they will be scrutinised more closely. The NZ Transport Agency (‘the NZTA’) will still check
to be addressed, you should consult with a lawyer. Danielle Beston is a barrister who specialises in transport law and she can be contacted on (09) 379 7658 or 021 326 642.
80
New Zealand Trucking
May 2018
Danielle Beston