A shock draft council report suggests that 200 of Dundee's taxis might be operating illegally.

A fortnight ago Taxi Driver Online reported that a "large proportion" of Dundee's taxis are being operated on illegal 'hire-plates', where the taxi license holder's plate is used in conjunction with a vehicle belonging to another person, with the vehicle owner actually running the taxi and the plate holder receiving a rental for use of the license.

Since then this practice has been dramatically highlighted in a draft report prepared by a senior Dundee City Council official, which claims that this black market may account for "upwards of 200" of the city's 500 or so taxis.  As well as meaning that people running taxis may never have been vetted by police, it also seems unlikely that any insurance policy would remain valid, and no pay out might be made in the event of an accident should the insurance provider become aware of the illegal activity.

The report attributes the black market to the council's policy of limiting the number of taxi plates: "Participation in this unlawful activity is attractive to some existing taxi license holders whose taxi plate has become a valuable marketable commodity as a direct result of the limit on the number of taxi licenses imposed by the [Licensing] Committee...This occurs when the taxi license holder for whatever reason decides not to operate the taxi themselves and rather than surrender it continues to make money by hiring the plate on the black market."

"Anecdotal evidence suggests that upwards of 200 plates are currently being hired, the going rate being up to £2,500 per annum."

The report perhaps attributes blame for this unsatisfactory situation more directly when it claims: "It appears that by imposing a limit on the number of taxis the Committee itself may be creating the black market.  Without a limit new applications would not have to go on a waiting list."

Allegations of plate hiring are investigated by Tayside Police and, where appropriate, the Inland Revenue and the Department for Work and Pensions.  The report points out that the amount of time spent investigating these claims is detrimental to other enforcement activities.

Comment
The report has received extensive coverage in the local press, and was the lead story in a recent edition of local morning newspaper The Courier and Advertiser.  The paper commented: "The upshot is that the council is in a weaker position to ensure standards are being maintained than if it had not sanctioned the limit in the first place.  What was that about good intentions?"

One trade source thought that the ground was being prepared to de-limit taxi numbers in the city: "This has been going on for years and the council has been trying to stamp it out for years.  I can't think of any other reason that they would choose to give it such a high profile now."

Meeting
The report will be considered at a licensing committee meeting next month.  This will also consider a survey by independent consultants Halcrow, which found no unmet demand for taxis in the city.  The dearth of wheelchair accessible taxis in Dundee will also be addressed.

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