|
Industry reacts to 12,000 per cent increase in licensing fees
Following yesterday’s announcement of the massive increase in London Private Hire licensing fees, the chauffeur industry has been reacting to TfL’s announcement. The Transport for London Finance Committee approved a drastic increase in licensing fees for private hire operators on Friday 15 September. The new licensing fee rates have the ability to devastate the London private hire taxi trade according to trade bodies.
Under the proposals, businesses across London will be faced with an extortionate increase in the cost of a five-year private hire operator’s license. Operators with between 101-500 cars will see their licensing fees jump by over £147,000 – or 5,200 per cent. Meanwhile, operators with 501-1000 cars face an increase of over £347,000 – or 12,000 per cent.
The Licensed Private Hire Car Association has raised concerns that operators jobs are under threat, TfL has not published evidence to justify the increases and the fees are “disproportionate, random and irrational.”
Steve Wright MBE, Chairman of the LPHCA said: “I am shocked and disappointed by the extortionate increase in licensing fees. Many operators will be forced out of business and jobs will be lost if these fees are not reversed. TfL Taxi & Private Hire do not understand our industry and are hitting compliant operators that have worked hard to grow their businesses with massive and unjustified compliance costs.”
Greg Mendoza, Chairman of the Chauffeur and Executive committee of the LPHCA told TheChauffeur.com; “TfL TPH have increased Operator License Fee’s with no justification, they have ignored the consultation results which were overwhelmingly against the increases, and have not provided any meaningful justification for carrying on regardless.”
“Private Hire Operators in London are highly compliant, the justification for the increase is to manage compliance of the increasing number of drivers and vehicles, these are funded through their own license fee’s. In any case, the unprecedented and uncontrolled increase in numbers, which is as a direct result of the woeful inability of TfL TPH to actually regulate the private hire industry in London, has resulted in a windfall of unexpected vehicle and driver license fee revenue and with economies of scale one would expect related fees to be reduced not increased.”
Mendoza added; “Meanwhile, due to unfair competition and increasingly heavy handed regulation, the number of operators is decreasing, reducing competition and choice for the travelling public. TfL state that they need the additional funding to deal with illegal operators and drivers, these are not part of our regulated industry, but criminals who should be dealt with by the police and funded accordingly, not by penalising legitimate and fully compliant operators, or indeed drivers.”
“TfL are clearly attempting to retrospectively fill a hole in their budget as the majority of additional enforcement officers were appointed months ago, long before the consultation on operator license fees was released and it is clear the consultation outcome was predetermined. Therefore the Chauffeur and Executive Committee will be consulting its members and with their agreement will support a judicial review into the process and justification that has led to this unprecedented increase in fee’s which will undoubtedly be the final straw for many of London’s highly compliant and safe PHV operators.”
However, the largest Private Hire firm in London, Addison Lee is welcoming the changes. A spokesperson told us; “Addison Lee is supportive of TfL’s move to implement new regulations and to increase the number of enforcement officers in London to make Taxis and private Hire service in London as safe as possible.
They added; “We recognise that these measures need to be paid for and are grateful that TfL has listened to our consultation response and developed an equitable framework for the charges necessary to cover the enforcement work they will undertake.”
When asked why Addison Lee is happy is pay a massive increase in their licensing fees, the spokesperson replied; “We are happy to pay our share as we believe that it is right to do so.” The announcement will be the hot topic of the forthcoming LPHCA Roadshow on 28th September.
_________________
IDFIMH
|
Login
Register
FAQ
