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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