Taxi Driver Online

Council promises to meet drivers over taxi licence profit dispute

Council bosses have rejected claims from taxi drivers that they are making a profit from licensing cabs. Taxi drivers have threatened legal action after claiming North Lincolnshire Council stood to make a profit of more than £51,000 this year from licensing their cabs.

But the Conservative-run local authority insists the 2011-12 licensing budget will only break even and has offered to meet leaders of the 100-strong Scunthorpe and District Taxi Association to discuss their concerns. The row started after the association submitted a request under the Freedom of Information Act to investigate the licensing budget at the council.

Spokesman Stuart Commander claims that under a 35-year-old law, profit is illegal as councils can only budget to recover all reasonable costs. He said: "Licensing taxis is a not-for-profit cost recovery service and any money paid by licence payers must be dedicated to licensing. From the budget reports, we need to know whether this is happening. In the association's opinion, licence holders are being illegally used as cash cows.

"At the same time the council is running down the licensing department by cutting staff. "We believe it is becoming not fit for purpose due to no fault at all of the hard-working staff who are struggling to keep up with demand."

A North Lincolnshire Council spokesman said: "We have received a letter from the association and we have responded. "The simple fact is there is no financial surplus on the licensing function. Each financial year-end, an adjustment is made to council budgets.

"This is to recover costs incurred throughout the year for support given to the departments and is typically for services such as human resources, information technology and premises costs. "The licensing budget is set to break even. We have offered to meet with the association to discuss the matter further should they require."

Mr Commander later said he would be taking legal advice from his national association with a view to court action. He added: "Under the Freedom of Information act, I have now asked for a breakdown of the central establishment charges for taxi licensing and the records show the council budgeted £104,690 and stand to recoup £155,860."

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IDFIMH

our council has a set of books they wheel out showing taxi licensing to run at a huge loss ! apparently the 3 staff and costs of plates etc adds up to nearly a million pounds a year

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Were they trained by the Swiss banks??

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Do not argue with an idiot. He will drag you down to his level and beat you with experience.

Believe me, don't get Mercury X2

If you think that your council is making a profit or not following correct accounting practices then approach your local District Auditor.

It is a straight forward proces and I personally have been surprised by the 'fair' hearing you get.

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A member of the Hire or Reward Industry

As Tom says the District Auditor is the person to share your concerns with.

Although at present we are in a bit of an iffy situation as the gov is getting rid of them, and they haven't fully announced a replacement yet.

However when they do I think it will be better for us, as they will be very independent and want to keep councils on their toes.

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IDFIMH

It doesn`t hurt to ask "Under the Freedom of Information act, for a breakdown of the two central establishment charges for taxi licensing.

It was done last year and our council was exonerated !

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lack of modern legislation is the iceberg sinking the titanic of the transport sector