A curious state of affairs
Letter to Councillor Anderson
Dear Cllr Anderson
Re: Civic Government (Scotland) Act 1982 - (The Act)
Tonight I learned that a taxi licence plate has been traded for the artificial "value" of £50,000.
It is now around one year since the Jacobs Report concluded that there was no significant unmet demand for taxi services in Edinburgh. City of Edinburgh Council (CEC) seized upon this report to deny licence applicants licences to operate a taxi.
Indeed, the record shows that CEC is going to inordinate lengths to ensure that licences will be denied to licence applicants, even to the point of using the draconian tactic of pursuing the matter to the highest courts in the form of a judicial review. Clearly a tactic designed to inflict the most financial injurious penalty applicants by a Council which can dig deeply in the pockets of licence payers to prosecute a dubious case.
Nevertheless, it is a matter of public record that the "value" of licence plates being traded has been deemed a key criterion in other licensing authorities to demonstrate that a significant unmet demand exists. This factor was specifically excluded by CEC in its remit to Jacobs Consultancy.
Since the Jacobs report, taxi licence "values" have now increased by over a further 25%.
Under the strict terms of the Act, I would be grateful if you would advise me precisely where it permits taxi licences to be traded in this way and an artificial plate "value" to accrue?
Please ask, on my behalf, the Council's legal department to explain the precise sections in the Act which sanctions CEC to allow this?
I would also be grateful if you could ask the Council's legal department to explain why only taxi licences, alone of all licensing types controlled by CEC under the Act, are allowed to be traded in this way?
Additionally Cllr Anderson, please explain the political justification for this "policy".
When did this become official Labour Party policy?
Does this policy have the full support of the Scottish, and National, Labour Parties?
Can you explain when this policy was adopted and what the process for its adoption was?
Specifically, can you, as Leader of the Council, describe how it is politically acceptable for someone who wants to operate a taxi licence to have to pay £50,000 to do so, when every other licence type only has to apply to the Council for a licence, subject to the normal tests of competency to operate the licence in line with Police requirements, in order to operate their business?
Thank you for your assistance with this important matter and timeous reply.
Yours
Jim Taylor
Councillor Anderson's reply
Dear Mr Taylor,
CIVIC GOVERNMENT (SCOTLAND) ACT 1982 – A CURIOUS STATE OF AFFAIRS
I refer to your e-mail of 14 July 2006. I note your concern over your understanding that a taxi licence has been traded at a price of £50,000.
I am not aware of this particular situation but any price payable would presumably be to reflect the entirety of the business associated with the licence e.g., goodwill, vehicle, radio circuit position etc.
You will be aware that on 15 December 2005, the Council resolved to:-
i) Adopt the conclusion of the Survey of Demand 2005 commissioned from Jacobs, in particular the finding that there is no evidence of significant unmet demand for taxis at the present time;
ii) Reaffirm the policy of not issuing further taxi licences until there is a substantial change in present circumstances; and
iii) Note the Regulatory Committee's decision to appoint a short life working group to develop a draft strategic taxi action plan.
A member/officer working group has been meeting since 21 March 2006. This has been convened by Councillor Wigglesworth who has since become convener of the Regulatory Committee. The issue of the measurement of demand using significant indicators including the value of taxi businesses has been on the agenda of the group since that first meeting. It is intended to report to the Committee and Council Executive on a taxi action plan, which will address these issues later in the year, hopefully before Christmas.
The Council Solicitor advises that there is no transfer provision for taxi licences or indeed any licences issued under the Civic Government (Scotland) Act 1982. The report by the task group set up by the Scottish Ministers to review the licensing provisions in that Act which reported in December 2004 stated at paragraph 2.13: ‘in practice, a number of taxi firms are now licensed as companies, which allows retention of the business in the event of bereavement and also enables the business to be sold as a going concern if the owner took the decision to sell, simply by varying the licence to denote the new owner as a director of the company.’ The report went on to recognise that further consideration needed to be given to complete transferability of taxi and phc licences given that to do so might exacerbate the situation whereby taxi licences plates can achieve an artificial ‘scarcity’ value, and that it was never the intention of the 1982 Act that licences should have any intrinsic value.
Since 1997 the Council has provided guidance to existing licenceholders who intend to form partnerships or companies to hold their licences. Such guidance is merely recognising the legality of corporate licence holding and does not condone transfers at value. The current guidance can be accessed on the Council website. The link is as follows:
www.edinburgh.gov.uk/internet/Business/ ... ences/Taxi
To summarise, this Council has put no policy in place to give effect to transfers. The issue of the value currently attaching to Edinburgh taxi businesses is receiving ongoing consideration in the member/officer working group and that group’s proposals on assessment of demand and possible issue of licences are awaited.
Yours sincerely,
COUNCILLOR DONALD ANDERSON
Leader – The City of Edinburgh Council
A curious state of affairs, please feel free to comment?
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