| OFT
reaction
(28/11/2003)
Reaction
from around the country to the OFT's
recommendation to end local authority
restrictions on the number of licensed taxis.
Reaction
to the Office of Fair Trading's taxi and
private hire report has been relatively
muted, at least insofar as our review of
the national and regional press reveals
little in the way of press comment, and
only a handful of predictable reactions
from taxi representative organisations
and consumer groups. This may
reflect the relatively conservative and
anodyne nature of the OFT's
report. However, on the issue of
restricted numbers the OFT was probably
as scathing as its generally inoffensive
style allows, and their de-restriction
recommendation attracted what little
interest is evidenced in the regional
press.
Transport
and General Workers Union
The T&G described the report as
'superficial and naive' and claimed that
a 'market solution' was an example of
'hope over experience'. The union
questioned whether the report's
recommendation's struck the correct
balance between a good deal for
consumers, allowing drivers to earn a
living, and providing a high quality
service.
National
Taxi Association
NTA chairman Dennis Conyon claimed
that de-restriction would compromise the
ability of drivers to make a living and
could force many into taking second
jobs. He pointed out that although
there were often customer delays when
the pubs emptied late at night, during
the day many cabs sat idle. The
Guardian quoted Mr Conyon as saying:
"How can a man make a living? This
could well turn the industry into a
part-time scenario."
Licensed
Taxi Drivers Association
While the OFT's report made no
direct comment which might have been
considered detrimental to the London
taxi trade, the Financial Times quoted
LTDA general secrertary Bob Oddy as
saying: "If this is supposed to be
a free market now, why don't we decide
what the fares are? If you are
deregulating, it must apply to fares as
well."
Brighton
and Hove
The Argus ran a story
pointing out that the report had
outlined the fact that taxi fares in
both the Brighton and Hove and Adur
council areas were the fifth most
expensive in Britain. Kevin Fry,
managing director of 414141 Carcabs,
defended the high fares on the basis of
the high cost of living in the area and
the high cost of running a cab. On
de-restriction, Brighton and Hove
Council expressed concerns about the
possible lowering of standards. Mr
Fry also claimed that it would force
drivers to work longer hours to make
ends meet.
Swansea
The OFT's de-restriction
recommendation was met by a call from
the trade to restrict taxi numbers in
Swansea, where numbers have been
unlimited for many years. The South
Wales Evening Post also quoted Bob
Hoyles of the Neath Port Talbot Taxi
Association as saying: "If there's
a free-for-all they will force every
taxi driver in to a part-time job.
Taxi drivers are professional people but
if you open the door wide you have to
ask what sort of person are you likely
to get coming into the business?"
Liverpool
Trade representatives claimed that
the proposals would force drivers into
bankruptcy, as hundreds would apply for
new licenses. Tony Mullane, a
driver for 26 years, told the Daily
Echo: "The taxi plates cost
£30,000 each and there are lads who
have mortgaged their houses to invest in
them. It is not fair this is now
to be opened up to anyone, especially
when there are plenty of taxis in the
city. We will be decimated by
this."
Glasgow
A week after publication of the
OFT's report The Herald reported
that Glasgow City Council was likely to
reject the de-restriction
recommendation. But after a
licensing committee meeting it was
decided that the council would consult
with the Glasgow-wide TOA before coming
to a conclusion on the issue. The
TOA told the Evening News: As far
as we are concerned the OFT proposals
would be detrimental to the quality of
service on offer in Glasgow at present.
An open free-for-all situation would
also be very difficult to police or
regulate. Our view is that Glasgow
could not sustain a deregulation of the
taxi industry."
Scotland
on Sunday
The only example of press/public
comment we could find was in Sunday
broadsheet Scotland on Sunday.
In an opinion entitled taking punters
for a ride, Dani Garavelli said:
MY
heart goes out to hackney cab drivers.
They work so hard to earn a meagre
living - and then some bod from the
Office of Fair Trading comes up with a
scheme to benefit the consumer, and cut
down city centre crime, and it all goes
up in smoke.
Ok, so I'm lying. Having been held
hostage to too many of their unpalatable
conversations, I have little sympathy
for their plight.
At present, local authorities limit the
number of licences available after
seeking advice from the taxi industry,
which has a vested interest in keeping
fares high and numbers low.
All the OFT wants to do is to lift
restrictions on the number of cabs in
areas where demand vastly outstrips
supply: in other words in city centres
where freezing and often bellicose
revellers are forced to spend hours at
ranks, or pacing the streets, in search
of that most elusive of things - a cab
with its yellow light on.
Such a move would reduce the risk of
stabbings, and stop those who cannot
wait placing themselves in danger by
flagging down illegal taxis.
But the hackney drivers are determined
to keep current protectionist practices
intact. They say any change will destroy
their livelihoods. Sure. And I had that
Prince William in the back of my cab,
you know.
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