MEETING:
LICENSING & SAFETY PANEL
DATE:
20TH JULY 2009
SUBJECT:
REVIEW OF PUBLIC/ PRIVATE HIRE VEHICLE TESTING ARRANGEMENTS
REPORT FROM:
ASSISTANT DIRECTOR (ENVIRONMENTAL SERVICES)
CONTACT OFFICER:
W A JOHNSON
TYPE OF DECISION:
COUNCIL
FREEDOM OF INFORMATION/STATUS: This paper is within the public domain
SUMMARY:
At the meeting of the Licensing and Safety Panel 20th October 2008, Members requested a report on the options for devolving the testing of public and private hire vehicles to multiple garages.
The review concludes there is no added value in expanding the number of MOT centres in Bury on the basis that this would:
• artificially increase costs to Bury taxi owners and the council;
• risk losing public confidence, reputation of the Council and licensed trade;
• risk a drop in public protection standards;
• loss of direct intelligence on maintaining regulatory standards relating to public safety.
OPTIONS & RECOMMENDED OPTION
1. Members accept the conclusions of the review, which is to maintain Bradley Fold MOT Centre as the main and only centre where Bury licenced taxis are tested;
2. That the MOT station’s performance continues to be monitored on an annual basis by the Executive Director of Environment and Development Services as part of the department’s Departmental Plan.
IMPLICATIONS:
Corporate Aims/Policy Framework:
Do the proposals accord with the Policy Framework? Yes No
Financial Implications:
The Licensing spend on taxi testing for 2008/09 was in the region of £73,000. This is recharged to the trade. As the current MOT charge is very competitive, the effect of any revenue loss to the Council’s Bradley Fold workshop would have to be passed on in full to taxi owners.
Risk Considerations:
Experience from other local authorities shows that multiple garages dilutes regulatory control, which in turn may affect public safety/confidence and the Council’s reputation if garages do not meet the highest standards.
Statement by Director of Finance and E-Government:
The full cost of the licensed MOT test has to be recovered. Any loss of targeted income from testing would result in an under recovery of overheads, unless charges were increased to meeting the shortfall.
Equality/Diversity implications:
Yes No
The report will affect all vehicle licence holders equally. An equality impact assessment has been completed and the impact is assessed overall as neutral.
Considered by Monitoring Officer:
Yes
Are there any legal implications?
Yes No
The Local Government Miscellaneous Provisions Act 1976 sets out that licensed vehicles must be inspected and tested by or on behalf of the Council within such period and at such place as the Council requires, so that it can maintain control of the licensing process. Members are aware that decisions (even to change policies) have to be taken on a reasonable basis, that is, that only relevant and not irrelevant considerations may be taken into account. The main consideration here is public safety.
Staffing/ICT/Property:
N/A
Wards Affected:
All equally
Scrutiny Interest:
Economy, Environment and Transport Scrutiny Commission
1.0 BACKGROUND
1.1 Council policy requires that all licensed vehicles are tested at the Council’s vehicle workshop and MOT testing station at Bradley Fold industrial estate. Currently, most licensed vehicles in Bury are tested twice per year.
1.2 The testing regime consists of compliance with the requirements of a standard MOT and a number of other checks based on customer safety and comfort. For example, the test also includes the operation of the heater, wheelchair access (in hackney carriages) the general condition of bodywork, interiors and paintwork etc.
1.3 The current testing regime, whilst compliant with national legislation has been developed around local circumstances to ensure the required vehicle standards for public and private hire are consistency applied. Crucially, much of the intelligence to inform those developments has been provided by feedback from the Council staff at Bradley Fold on a regular and unsolicited basis.
1.4 A further benefit of ‘in house’ provision is that wider intelligence is available through Benchmarking with the 13 Local Authorities who are linked to the AGMA Public Protection Partnership (PPP). This networking has revealed all but Bolton rely on a single testing garage. The new arrangements at Bolton were introduced in November 2007 and as yet there has not been a formal evaluation. There are however emerging concerns regarding a lack of consistency between garages and falling standards.
2.0 REVIEW CONCLUSIONS
Financial Implications
2.1 From a survey of MOT testing stations, taxis drivers licensed with Bury Council enjoy the lowest testing rates in Bury. The cost of a taxi test at Bradley Fold is currently £45, which is recharged into the licence fees paid by the licence holder. Bradley Fold currently charge private motorists £48 for a MOT. The average MOT fee taken from a small survey of Bury garages is £48.50, but that cost does not include the additional compliance checks over and above the standard MOT.
2.2 Were additional MOT stations to be sanctioned by the Council this would result in a loss of income for Bradley Fold which in turn would require the price of a test to rise in order to ensure there would be full recovery of fixed overheads. The amount would depend on the no of tests lost but would be at least £2 assuming a 10% drop, rising to around £5 if there was a reduction of 20% drop. In addition, there would be additional administrative costs of procuring, managing and monitoring these facilities. It is anticipated this could add a further £2 to the test, artificially increasing the cost of a Test to £52 a full 15% higher than present. Similarly, appointed garages may well also pass on any additional costs in complying with the reporting requirements demanded by the Council. This is what happened in Bolton where a test rose from £38 to £55.
2.3 Public Confidence/Public Safety
2.4 Public confidence in the safety and comfort of licensed vehicles is paramount. A loss of public confidence would directly impact negatively on the reputation of the Council to protect the public from a fall in standards. Similarly there could a loss of reputation of the licensed trade as a result. The testing facility at Bradley Fold is operated on a ‘not for profit’ basis which is considered a key factor in securing the public’s confidence with this service.
2.5 The law on Testing is contained within Sec 50 Local Government (Miscellaneous Provisions) Act 1976. The Act requires a licensed vehicle to be presented for inspection and testing by or on behalf of the Council within such period and at such place within the area of the Council as the Council may reasonably require. These requirements are necessary to ensure that licensed vehicle inspection is part of the Council’s integrated approach to public protection and public safety.
2.6 There is no evidence from the public that they want to see a change in the current arrangements; see inconsistencies of standards being applied for testing or for a reduced level of regulatory ‘policing’ of taxis per se.
2.7 Consultation with sections of the public/private hire trade, other than Hackney Carriage Association, which represents less than 10% of those that would be affected by any change, has indicated satisfaction with the existing arrangements and no desire to change.
2.8 Contacts with licensing authorities in other areas where multiple garages are used reveal that it is difficult to ensure a consistent approach is taken to achieve common standards. At present around 80-90% of tests in Bury are carried out by the same skilled tester giving a high degree of consistency and access to expert witnesses.
2.9 One of the major benefits to the Licensing trade has been the driving up of standards since testing was introduced via Bradley Fold. This has resulted in a higher level of confidence by the Council about the road worthiness of vehicles and this in turn has resulted in vehicles up to and over 10 years old being allowed to operate, when other neighbouring authorities restrict the number of years.
Test Arrangements/Testing Hours
2.10 A review of service provision at Bradley Fold indicates that there it is sufficient flexibility with adequate capacity to meet to needs of the licensed trade. Bradley Fold currently offer tests:
• Monday to Friday - 8.00 am – 2.30 pm
2.11 A pilot scheme was introduced for Saturday opening - 8.00 – 11.00am. There was very little uptake for of this service. However, should demand increase the service would be re-instated.
A test takes in the region of 1 hour to complete. After 3.30 pm the garage provides retests, often on demand.
3.0 CONCLUSION
3.1 The current testing regime has been successfully running for 10 years. As a result, there is higher confidence with older vehicles from council public protection officers, which in turn has allowed licensed taxis owners to extend the economic life of well maintained vehicles.
3.2 During that time, through concerted and often unheralded action the standard of licensed vehicles has improved and as a result the public can have confidence when using these vehicles. In addition, the licensed trade continues, year on year to enjoy very competitive testing rates in Bury which offer real value for money. In addition, by extending the number of testing stations there are concerns regarding the maintenance of regulatory standards related to public safety.
3.3 The review must therefore conclude that there would be little to be gained and much to lose by creating new Testing facilities across the Borough. Financially, costs would increase for the Council and Licensed trade; there would be a risk of the loss of public confidence and a further possible impact on the current policy on the age of vehicles allowed to operate if standards start to drop.
List of Background Papers:-
• AGMA Benchmarking statistics
• DoT Best Practice guidance Oct 2006
• Letter from H C Association April 2008
• Review reports to the Licensing Panel – 28 August 2008; 20 October 2008
Contact Details:-
W A Johnson
Head of Commercial and Licensing
Environmental Services
Textile Hall
Bury Tel: 0161 253 5514
a.johnson@bury.gov.uk
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