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PostPosted: Wed Sep 30, 2009 3:06 pm 
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Council forced to sell off taxi licences worth £700,000 for £3,600


COUNCIL chiefs have been forced to virtually give away lucrative taxi licences that could actually be worth up to £700,000.

The lottery-style draw which takes place today gives hundreds of applicants the chance to win one of 20 hackney carriage plates that could be sold on the open market for up to £35,000 each.

Yet under the law Southampton city bosses are prevented from selling them and can only cover administration costs, which amounts to £180 per licence.

The city council has admitted there is nothing to stop drivers applying for a plate with a view to selling it on for a healthy profit, as the legislation simply isn’t in place to stop the practice.

In all 346 applicants will be in the hat for today’s draw, giving them a one in 17 chance of landing a potential money spinning licence.


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PostPosted: Wed Sep 30, 2009 5:02 pm 
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captain cab wrote:
The city council has admitted there is nothing to stop drivers applying for a plate with a view to selling it on for a healthy profit, as the legislation simply isn’t in place to stop the practice.

I think I know how to stop that practice. :roll: :roll:

But issuing by lottery is IMO a f***ing joke. :sad:

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PostPosted: Wed Sep 30, 2009 5:04 pm 
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They do this in other places......can't see it being particularly good headlines for those who want limited numbers policies.

CC


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PostPosted: Wed Sep 30, 2009 7:25 pm 
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captain cab wrote:
They do this in other places......can't see it being particularly good headlines for those who want limited numbers policies.

CC


Yes, the facts do often get in the way :wink:


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PostPosted: Wed Sep 30, 2009 8:21 pm 
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captain cab wrote:
They do this in other places......can't see it being particularly good headlines for those who want limited numbers policies.

CC
Deregulation its the only fair way.


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PostPosted: Wed Sep 30, 2009 8:24 pm 
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Smoked Glass wrote:
Deregulation its the only fair way.


I will politely disagree with you.

CC


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PostPosted: Wed Sep 30, 2009 8:34 pm 
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captain cab wrote:
Smoked Glass wrote:
Deregulation its the only fair way.


I will politely disagree with you.

CC
:lol: :lol: I read what you say then look at your avatar :lol: :lol: but I take your opinion with all sincerity.


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PostPosted: Wed Sep 30, 2009 8:47 pm 
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Smoked Glass wrote:
captain cab wrote:
Smoked Glass wrote:
Deregulation its the only fair way.


I will politely disagree with you.

CC
:lol: :lol: I read what you say then look at your avatar :lol: :lol: but I take your opinion with all sincerity.


That's a real photo of him :lol: :lol:


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PostPosted: Wed Sep 30, 2009 8:49 pm 
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skippy41 wrote:
Smoked Glass wrote:
captain cab wrote:
Smoked Glass wrote:
Deregulation its the only fair way.


I will politely disagree with you.

CC
:lol: :lol: I read what you say then look at your avatar :lol: :lol: but I take your opinion with all sincerity.


That's a real photo of him :lol: :lol:


And thats a real one of skippy :lol:

CC


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PostPosted: Wed Sep 30, 2009 9:17 pm 
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So the licences are worth thousands on the open market owing to their earning potential but the poor old Council can only sell them for £180 which is the cost of their Administration charges?

I don't see anything wrong here at all. Councils are in the business of serving the public, not making a profit. I also worked for one long enough to know that any profit is used to plug perceived funding shortfalls in other services or areas. It is NEVER used to lower Council Tax bills or improve services.

I'd also add that Councils have no business worrying themselves how much licences make on the open market. Their only duty is to ensure those who are issued licences meet and adhere to the standards and conditions set out in them.


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PostPosted: Thu Oct 01, 2009 2:11 am 
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Saltmarket wrote:
I'd also add that Councils have no business worrying themselves how much licences make on the open market. Their only duty is to ensure those who are issued licences meet and adhere to the standards and conditions set out in them.


Do I detect a whiff of hypocrisy here?

If the council's only duty is to ensure that the licence standards and conditions are adhered to then what business has it in creating the environment which results in licences having a value in the first place?


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PostPosted: Thu Oct 01, 2009 2:20 am 
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Fae Fife wrote:
Saltmarket wrote:
I'd also add that Councils have no business worrying themselves how much licences make on the open market. Their only duty is to ensure those who are issued licences meet and adhere to the standards and conditions set out in them.


Do I detect a whiff of hypocrisy here?

If the council's only duty is to ensure that the licence standards and conditions are adhered to then what business has it in creating the environment which results in licences having a value in the first place?


Not the same thing.

The market is created by the restriction of numbers.

The restriction of numbers is created by not wanting to choke your city up with taxis. The Councils don't restrict the numbers to inflate market value. They restrict numbers based on demand, tantrums from existing drivers crying about stolen food from tables etc.

If the Council was the one restricting numbers AND selling the licences at market prices there might be something suspicious but when the two are unrelated it just is what it is; a Council crying to a reporter about being 'forced' to do stuff when in reality all it's doing is what its' required to do.


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PostPosted: Thu Oct 01, 2009 2:41 am 
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Ah, so now you're saying that it's NOT the council's ONLY duty to ensure adherence to standards and conditions?


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PostPosted: Thu Oct 01, 2009 2:49 am 
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Fae Fife wrote:
Ah, so now you're saying that it's NOT the council's ONLY duty to ensure adherence to standards and conditions?


What?

Are you having trouble with reading comprehension?

The article is about the Council crying because they can't make any money from the licences. The value of those licences is created because scarcity gives them a market value.

I'm saying the Councils have no business in the market beyond ensuring demand for taxis is met by the number of licences, that those licenced are fit and proper people and the ongoing enforcement of standards.

I also said that were the Councils in the position of dictating the number of licences issued AS WELL AS being the ones who were the market for the licences then something would be fishy.

Is that clear enough?


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PostPosted: Thu Oct 01, 2009 3:38 am 
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This seems to be a bit of a lottery type draw to get a license and whilst I appreciate there is no price for the ticket so to speak there is still a prize. I'm just curious as to whether that's legal :?

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