OFT MARKET STUDY ON TAXIS AND PRIVATE HIRE VEHICLES

The Secretaries of State for Trade and Industry and Transport and Scottish Executive Ministers today received a report from the Office of Fair Trading (OFT) into the UK market for taxis and private hire vehicles and whether consumers are best served by the current regulatory regime under which taxis and private hire vehicles are licensed.

DTI Competition Minister, Gerry Sutcliffe said:

"I welcome publication of this report, which results from OFT's new role in considering the impact of regulation in markets on competition. We will be considering carefully the report and its recommendations.

"The DTI is responsible for co-ordinating a response across Government and will be working closely with other departments and the devolved administrations. Views are welcome and should the Government decide to make regulatory changes, there will be consultation on draft proposals."

Transport Minister Tony McNulty, who has responsibility for taxis and private hire vehicles in England and Wales, said:

"Taxis and private hire vehicles are an important part of integrated transport and play a key role in local transport provision, particularly for those without cars.

"We will carefully consider the report's implications - not just for drivers and operators, but for local authorities, especially in the context of their local transport plans, and most importantly, for all taxi and private hire vehicle users as well. We shall of course be inviting the views of all stakeholders. I very much look forward to hearing their views on this report".

Scottish Executive Ministers Andy Kerr, Minister for Finance & Public Services and Nicol Stephen, Transport Minister, agreed with the sentiments expressed by Mr McNulty and added:

"The regulation of taxis and private hire cars are devolved to the Scottish Parliament but we plan to invite views in order to determine whether any of these recommendations should be implemented in Scotland."

Notes for Editors

1. Comments on OFT's findings can be sent to:
Regarding England and Wales:

Pippa Brown
Taxis@dft.gsi.gov.uk

Regarding Scotland:
Ann Callaghan
OFTtaxireport@scotland.gsi.gov.uk.

Regarding Northern Ireland (until 26 November):
Pippa Brown
Taxis@dft.gsi.gov.uk

2. DTI has a general interest in OFT's market studies (and co-ordinates Government responses where those studies make regulatory recommendations). Queries should be addressed to Rosita Hill in Consumer and Competition Policy Directorate, 6.10, 1 Victoria Street, London SW1H 0ET (tel 020 7215 6260) rosita.hill@dti.gsi.gov.uk

3. DTI is responsible for delivering the competitive framework for the growth of successful businesses and a fair deal for consumers. The OFT has undertaken this investigation under Section 2 of the Fair Trading Act 1973, which gives the OFT broad powers to report on commercial activities in the UK.

4. Responsibility for legislation on taxis and private hire vehicles in England and Wales falls to the Department for Transport. In Scotland it is devolved to Scottish ministers and falls within the responsibility of the Minister for Finances & Public Services. Responsibility for taxi regulation in Northern Ireland is also devolved when direct rule is in force.

5. OFT's report can be found in full on their website
http://www.oft.gov.uk/Market+studies/Studies/taxis.htm.

6. The Government expects to respond to this report within 120 days.

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