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Agenda Item No:
LICENSING ENVIRONMENT AND SAFETY COMMITTEE
Date: 11th February 2009
REPORT FOR MEMBERS TO CONSIDER THE PROVISION OF TAXIS AND PRIVATE HIRE VEHICLES IN THE BOROUGH
Report of the Director of Environment & Economic Development
1. PURPOSE OF REPORT
1.1 For members to consider the results of the report commissioned to examine the provision of taxi and private hire vehicles in the Borough.
1.2 For members to decide on the most appropriate action in relation to the issuing of taxi licences.
2. BACKGROUND
2.1 In November 2003 the Office of Fair-Trading (OFT) issued a report which concluded that authorities that currently limit numbers of 'taxi' licences should end the restrictions. They were of the opinion that maintenance of limits was anti-competitive and against the interests of the consumer. Members have, in consequence, received a number of reports relating to the limitation of taxi numbers in the Borough and reaffirmed the limitation of licences at a level of 114 in 2005 and subsequently in 2006 and 2007. A history of the legal and actual situation relating to the limitation of taxi numbers is contained in appendix 1.
2.2 Following due consideration members requested that a survey be commissioned to examine the provision of taxi and private hire vehicles. Transportation Planning (International) Ltd (TPI) undertook the survey at the end of 2008 and the report has been distributed to Members. The report was circulated on general release and received comments on the options available to members are contained in appendix 3.
3. OPTIONS
3.1 Options available are:
a) To maintain the current limit of 120 licences.
b) To remove the limit entirely.
c) To increase the limit by a specific number.
d) To increase the number by a specific amount on an annual basis.
3.2 In reaching a conclusion members must be satisfied that the criteria laid down by the Government as stated in paragraph 1.5 appendix 1 has been met.
That is: 'The Government considers that unless a specific case can be made, it is not in the interests of consumers for market entry to be refused to those who meet the application criteria'.
4. RECOMMENDATIONS
4.1 For members to consider the appropriate action to be taken with regard to the limitation of taxi licence numbers in the Borough.
Background Papers
Full report and findings of the report undertaken by Transportation Planning (International) Ltd (TPI).
Anyone wishing further information, please contact Norman Elthorpe on 474-4244
APPENDIX 1
History
1.1 Stockport Metropolitan Borough Council currently licenses 120 hackney carriages. The previous limit of 114 was increased following a recent Court case where the judge issued 5 licences to the appellants on the basis that the Authority could not be satisfied that there was no significant unmet demand. A licence was issued to a sixth applicant to avoid further legal challenge.
1.2 The award of the further licences was on the basis of the legal challenge by the five individuals and not in recognition of the policy decided by members in relation to the issuing of licences (see APPENDIX 2) or in relation to any determined unmet demand.
1.3 The licensing of taxis is controlled by the Town Police Clauses Act 1847 (TPCA) and the Local Government (Miscellaneous Provisions) Act 1976 (LGMPA). The (TPCA) previously allowed Councils to limit the number of taxi licences to such a number as it "sees fit". This was subsequently amended by the Transport Act 1985 which altered the situation to, 'Councils have the power to refuse applications IF, but only if, the Council is satisfied there is no significant demand for the services of taxis within the Borough which is unmet'.
1.4 In November 2003 the Office of Fair-Trading (OFT) issued a report which concluded that authorities that currently limit numbers of licences should end the restrictions. They were of the opinion that maintenance of limits was anti-competitive and against the interests of the consumer.
Their findings concluded that restrictions could typically create circumstances that:
a) Reduce the availability of taxis.
b) Increase waiting times for consumers.
c) Reduce safety and choice for consumers.
d) Restrict those wanting to set up taxi business.
1.5 The Government responded to the report accepting the content, however, stating that the issue of 'delimiting' was a local issue influenced by local needs. Therefore, they required authorities that maintained limits to justify their position. Further, that the report had to demonstrate how the restriction showed a benefit to the consumer.
The Government position is: 'The Government considers that unless a specific case can be made, it is not in the interests of consumers for market entry to be refused to those who meet the application criteria'.
1.6 Following the Governments approach the Department for Transport contacted those councils where limits are maintained requiring them to justify their position in the interests of the consumer. It is anticipated that the Department will be contacting Councils during the current year to again justify their policy.
The guidance to Councils in their deliberations has to have regard to:
The Government agrees that consumers should enjoy the benefits of competition in the taxi market and considers that it is detrimental to those seeking entry to a market if it is restricted. The Government is therefore strongly encouraging all those local authorities who still maintain restrictions to remove restrictions as soon as possible. Restrictions should only be retained if there is a strong justification that removal of the restrictions would lead to significant consumer detriment as a result of local conditions.
1.7 As a direct result of the recent Court case we have received 26 applications for 'taxi' licences. These consist of 19 applicants who are already licensed hackney drivers who do not own a black cab, 6 licensed private hire drivers and 1 non-licensed driver who is a Stockport resident. Members will note that apart from the unlicensed driver all meet the criteria set down in appendix 2.
APPENDIX 2
Member received a report on 14th June 2006 where they restated the policy for the issue of Hackney Carriage Licences should the policy of restriction be removed or if the limit of 114 were to be increased.
The criteria determined were:
1. Experienced drivers.
2. Experienced in the taxi or private hire trade in Stockport.
3. Intending to drive the taxi personally.
4. Not currently holding a taxi vehicle licence.
5. Living in the Borough and intending to garage the taxi in the Borough.
6. Able to provide satisfactory personal and financial references.
APPENDIX 3
RESPONSE TO THE UNMET DEMAND SURVEY:
The report is very lengthy and I have analysed it in detail. The resounding fact is that there is no “Unmet Demand” in the Town. In the current economic climate I would only like to add that early reports indicate that trade is down around 30% on this time last year, in effect this means that had the survey been carried out in January, there would have been even less demand.
In summary this means members are now able to defend their policy of maintaining numerical control. The survey is valid for three years and I hope that this can be a useful reference document to improve co-operation between everyone involved in licensing and the trade.
Over the three year life of the survey it would be most helpful to work together to address some of the issues raised, mainly:
The policy of numerical control is a solid and sensible way to deal with taxi licenses. Councils who have removed numbers have often regretted it at a later stage. It is by then too late to reverse the damage done.
S L
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Having read the survey, in my opinion, there is no unmet demand for taxis in the Stockport area.
A P
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Dear Licensing
We welcome the findings of the report which clearly shows there is no significant unmet demand in the Borough with only 17% of passengers waiting for a taxi and that average wait being only 12 seconds.
This we feel shows the Council have been correct in their policy they have adopted for number of years to maintain a limit on Hackney Carriages. It is a policy which helps provide a healthy round the clock service to the public.
We feel the report confirms the need for further ranks which is an issue we have been promoting for some time, in particular Heaton Moor, Hazel Grove, and Asda/Portwood. These ranks would help create a greater circulation of cabs around the Borough and help address the issue of latent demand that the report says "may exist, however it is not suggested that latent demand exists in any scale and if measures were put in place to release this demand is expected to take time to emerge".
We are happy to read that many bodies feel there is a need for greater consultation with the trade and feel that this is a forwards step in many ways and can provide future improvements for the trade and public alike.
We also feel that the report shows a need to provide greater awareness of the benefits of using a hackney carriage as many groups seem unaware of the way the law works surrounding hackney carriages and private hire, we feel this will improve the safety of the travelling public.
Finally we must re-iterate our call for the Council to maintain a limit in the interests of providing the framework around which we can continue providing an excellent service for the consumer of Stockport.
S Hulme Secretary S.O.D.A.
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Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.
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I wonder if there's a stockport usa?