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A finger of fudge
I am sure everyone is now aware of the decision in the Berwick case, the obvious word to point out is ‘decision’, if the Berwick ‘decision’ was a piece of confectionary from the 1970’s, it would, without out a doubt, be a fudge and a fudge that will put pressure on whichever judge resides over the forthcoming Wrexham case.
Rather than give details of the case, I intend to highlight one specific point, namely section 16 of the 1985 transport act.
Section 16 states;
“the grant of a hackney carriage licence may be refused for the purposes of limiting the number of hackney carriages in respect of which licences are granted, if, but only if, the person authorised to grant licences is satisfied that there is no significant demand for the services of hackney carriages (within the area to which the licence would apply) which is unmet.”
It is reasonable to suggest that section 16 has created a plethora of court cases over the years.
Prior to 1985, local authorities had discretion to refuse to issue hackney carriage licenses, after 1985 they did as well, but had to be satisfied there was ‘no significant unmet demand’ within the area or the fact that the applicant wasn’t fit and proper.
The case therefore again raises the question as to whether or not a local authority can refuse to issue a hackney carriage license. What the Judge has basically said is that a council has the mechanism to refuse a license on the basis that it won’t be worked in the area, again, this is contrary to previous thinking, and seemingly contrary to various Judges remarks.
The immediate example is the Wirral case the following has been pointed to me by our old friends at taxi driver online;
95. The claimant does not contest that, since 1985, licensing authorities have not been empowered to limit the number of hackney carriage vehicle licences in their area unless satisfied that there is no unmet demand. In R v Great Yarmouth Borough Council ex parte Sawyer, cited above, the chairman of tile local taxi proprietors association challenged the decision of the licensing authority to de-restrict the number of hackney carriages operating in the Borough. Ill rejecting the application Woolf LJ (as he then was) said at p. 298 F-R
“Clearly, the policy of the Transport Act 1985 is to restrict the ability of the licensing authority to refuse a licence for the purposes of limiting the number of hackney carriages, except in circumstances where the authority is satisfied that there is no significant demand for the services of the hackney carriages which is unmet. In the words of the judge, it is to remove restraints and allow market forces to take their course in a way which did not exist before section 16 of tile Transport Act 1985 came into effect. It is, however, to be noted that not with-standing the amending provisions of section 16, the licensing authority still retains a discretion. Its discretion is only limited where the refusal is 'for the purpose of limiting the number of hackney carriages.'
If the grounds for refusing the grant of a licence are for a different purpose, then, as I understand the proper interpretation of section 16, it does not restrict the discretion which the licensing authority had prior to the amendment.”
Whilst the reading of section 16 by the good judge is correct, do you notice the little waiver in the final sentence? (You should, its in bold and underlined in italics)
In Maud vs. Castle Point, the following has been sent my way;
[4] Section 16 of the Transport Act 1985 introduced an important amendment. There is no dispute that its purpose was to allow market forces to play a larger role in the taxi business. Section 16 reads as follows:
“The provisions of the Town Police Clauses Act 1847 with respect to hackney carriages, as incorporated in an enactment (whenever passed), shall have effect ‑
(a) as if in Section 37, the words 'such number of' and 'as they think fit' were omitted; and
(b) as if they provided that the grant of a licence may be refused, for the purpose of limiting the number of hackney carriages in respect of which licences are granted, if, but only if, the person authorised to grant licences is satisfied that there is no significant demand for the services of hackney carriages (within the area to which the licence would apply) which is unmet.”
[5] Until that provision took effect a licensing authority had a discretion which was largely unfettered as to the number of licences it granted or refused, subject only to the normal administrative law principles. Section 16 clearly limited that discretion. The judge in the court below summarised the legal position thus produced in a way which seems to me to be accurate when he said at para 6 of the judgment:
“(a) before a local authority can refuse an application for a vehicle licence in order to limit the number of licensed taxis, they must be satisfied that there is no significant demand for the services of taxis, within the area to which the licence would apply, which is unmet;
(b) if the local authority are thus satisfied, a discretion, as opposed to an obligation, arises to refuse the grant of a licence; but
(c) if the local authority are not so satisfied, they cannot refuse to grant a licence for the purpose of limiting the number of licensed taxis and are thus obliged to grant it.”
[6] Finally on this survey of the legislative provisions it is necessary to refer to the Local Government (Miscellaneous Provisions) Act 1976 (“the 1976 Act”). An authority is empowered by that Act to impose conditions on a licence granted by it under the 1847 Act. That power is to be found in s 47 (1) of the 1976 Act. That provides
“A district council may attach to the grant of a licence of a hackney carriage under the Act of 1847 such conditions as the district council may consider reasonably necessary.”
Again, the point made in bold states section 16 limits discretion, it doesn’t say gives no discretion.
Furthermore, I am reliably informed the following is stated in Knowsley vs. McGuire & Others;
The effect of the amendment to sub-paragraph (b) is to transform the permissive "may" into a partial **mandatory** "must". Unless the Authority is "satisfied that there is no significant demand . . . which is unmet . . . it is obliged to issue a licence to an otherwise suitable applicant. Of particular significance in the present case is that they must be satisfied that there is no significant demand "for the services of hackney carriages".
I could go on, but the point is, the consistent line of thinking from virtually all judges, in the all too many cases revolving around section 16, are all broadly of the same opinion, if there is no significant unmet demand in an area, a local authority must issue a license. But there does appear to be a waiver, please note what I’ve highlighted in bold and underwritten.
Okay, returning to the Berwick Judgement and section 16, the judge makes only a passing reference to it, basically stating Newcastle City Council use section 16 to limit taxis and Berwick do not.
I am left slightly perplexed by this, you see if the Judge in the Berwick case was going to make a specific point regarding section 16, I would have thought he would have, you see the following is stated in section 16;
‘may be refused for the purposes of limiting’
If what the judge is saying, is that an application can be refused on grounds other than ‘for the purpose of limiting’ and i.e. if the vehicle which was to be licensed was going to be used in another area. Then why didn’t he actually state that?
Am I reading this totally wrong? Are what the judges saying in the above cases that a council can refuse to issue a license if there’s an unmet demand for reasons other than for the purposes of limiting?
If the judges are saying this, then what are the reasons? Presumably not supplying a correct type of vehicle to be licensed maybe one, not being fit and proper maybe another.....but what about not using it in your prescribed area?
I am no friend of the Berwick situation, I see it as going against the principles of local licensing, but the Judgement is open to all manner of speculation by the judges seeming refusal to make a decision either way.
I will make reference to the Gladen case, I sincerely believe it has been misinterpreted, I have spent probably too many hours arguing this, however, in my view the following was asked and answered;
35. The district judge posed this question for the opinion of the High Court: "Whether it is necessary to hold a licence under section 55 of the Local Government (Miscellaneous Provisions) Act 1976, in an area where that Act is in force, to operate a hackney carriage duly licensed as such under the Town Police Clauses Act 1847 as a private hire vehicle."
36. The answer to that question is: no. Accordingly, I would dismiss this appeal.
As many of you will know, this case was a ‘win’ for the taxi trade, and we all owe Mr. Gladen gratitude, as we do with Bryan Rowland who was extremely supportive to Mr Gladen when many others closer to Brentwood weren’t.
The case put to bed the fact that Hackney Carriages could do Private Hire work and didn’t need a Private Hire operators license, now even accepting my view of the Gladen case (which is obviously right), if we are suggesting a HC must be physically within its own area when accepting a pre-booking (as per DFT advice which wasn’t mentioned at all in the Berwick case), what will happen tomorrow morning if one of you is hired to another area and your mobile phone goes requesting a cab from your out of town position to another area? Are you breaking the law by accepting?
Many thanks to taxi driver online for helping me with the various cited cases.
Berwick decision? You’re having a laugh.
reproduced courtesy of taxitalk magazine....many thank to those of you on TDO for helping with the court cases.
CC
_________________ Think of how stupid the average person is, and realize half of them are stupider than that. George Carlin
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