Betty S wrote:
Hmmm..... So you are saying that all HBC are failing to do is compile a survey to justify their limit on plate issues?Well maybe there is a reason as to why they are dragging their feet over this issue!
If you had been in touch with what had transpired in Halton you would already know that in November 2004 Halton declined to have a survey.
Seeing that you are not familiar with what is taking place on the political front in your own back yard I have taken the opportunity to enlighten you.
First comes the report on 29th November 2004 followed by the minutes of the same meeting. I suggest you read both items very carefully.
AGENDA ITEM NO. 3
REPORT: Regulatory Committee
DATE: 29th November 2004
REPORTING OFFICER: Council Solicitor
SUBJECT: Taxi Deregulation
WARDS: Borough wide
1.0 PURPOSE OF REPORT
To determine the Council’s policy regarding taxi deregulation.
2. RECOMMENDED: That
(1) the Committee consider the there is no evidence of significant unmet demand in the Borough;
(2) consequently, the Council’s existing policy be confirmed; and
(3) the Department for Transport be advised accordingly.
3.0 HISTORICAL INTRODUCTION
3.1 The Council has a policy to limit the number of hackney carriages license to operate in the Borough to 267. Legislation does not allow any limit on the number of private hire vehicles licensed by the Council.
3.2 The fact that hackney carriage numbers are limited inevitably causes a market in hackney carriage plates. It is thought that vehicles change hands for a premium of up to £10/12,000.
3.3 Up until 1985 the Council had a completely free hand in limiting the number of hackney carriages within the Borough (by virtue of section 37 Town Police Clauses Act 1847).
3.4 Section 16 Transport Act 1985 changed the position. Since then, an application for a new hackney carriage plate can only be refused if the Council is satisfied that there is no significant demand for the services of hackney carriages which is unmet.
3.5 The Council must have the necessary evidence on which to be able to form such a view. Even if the Council is satisfied that demand is being met it still has a discretion to grant a new licence.
3.6 The question arises as to what evidence the Council should rely on. The normal way of doing this is to undertake an unmet demand survey. This type of survey is undertaken by various universities and can cost in excess of £15,000. The costs would be re-charged to the trade in increased fees. The Council has only undertaken one such survey since 1985 (which resulted in the current limits being adopted).
4. RECENT DEVELOPMENTS
2.1 The Office of Fair Trading (OFT) issued a report last year which was strongly critical of the policy of limiting the numbers of hackney carriages. The OFT favours a policy of complete deregulation of numbers (effectively the same position as applies to private hire vehicles).
2.2 In response to the OFT report the Department for Transport (DfT) wrote to all taxi licensing authorities in June 2002 requesting them to review their policies and make public their conclusions by 30th April 2005.
2.3 The central point made by the DfT is that the Government believes that restrictions should only be retained where there is shown to be a clear benefit for the consumer.
2.4 The DfT suggest that the starting point is to look at the current (unofficial) value of hackney carriage plates in the Borough. If this is understood to be high this would indicate that there is a significant unmet demand for taxis in the area. This would then lead to a need for a survey to be undertaken.
3.0 THE POSITION IN HALTON AND THE GENERAL LOCALITY
3.1 A “high” value is a relative concept. The question is whether £10/12,000 should be considered to be “high”.
3.2 The following are examples of what is believed to be the (unofficial) value of plates in other areas:
Chester 20K/25K
Warrington 10K/12K
St Helens 7K/10K
Sefton 20K/25K
Knowsley 20K/25K
E/Port 12K/13K
Liverpool 50K/55K
Stockport 12K/20K
Manchester 55K+
Blackpool 40K/45K
3.3 It is clear that values in Halton are not high when compared with other areas. This implies that the Council can conclude that there is no significant unmet demand in the Borough and is under no obligation to commission a survey.
3.4 For completeness it should also be noted that the following local authorities in the area have already deregulated (and Liverpool deregulated and then re-regulated):
Wirral
Macclesfield
Crewe
Vale Royal
4.0 REPRESENTATIONS RECEIVED RELATING TO THE ISSUE
4.1 The Transport and General Workers Union is the largest single body representing taxi drivers in the country. It wrote to all licensing authorities in July 2004 setting out the case against deregulation. The experience of Liverpool and Birmingham is cited as examples of where deregulation led to a deterioration in the service provided to the community.
4.2 The Council’s Taxi Consultative Group has been asked to comment on this issue. The Group (which includes representatives from all parts of the trade) considered that there was no evidence of any significant unmet demand and that there should be no deregulation in the absence of such evidence.
5.0 OPTIONS OPEN TO THE COUNCIL
5.1 The following options are available to the Council:
Maintain status quo
Commission a demand survey
Completely deregulate immediately
Completely deregulate over a period of time
Increase the number of hackney carriage plates to a new maximum number immediately
Increase the number of hackney carriage plates to a new maximum number over a period of time
5.2 The starting point for all of the above should be a decision on the basic question of whether there is any significant unmet demand in the Borough at present. There is no evidence of significant unmet demand using the criteria put forward by the DfT. This implies that the most appropriate action is to maintain the status quo.
6. POLICY IMPLICATIONS
There are no policy implications should the Committee maintain the Council’s current policy. Otherwise the policy implications will depend on the action taken by the Committee.
7. OTHER IMPLICATIONS
There are no other implications should the Committee maintain the Council’s current policy.
...................................................................................................
REGULATORY COMMITTEE
At a meeting of the Regulatory Committee held on 29th November 2004 at the Town Hall, Runcorn.
Present: Councillors Philbin (Chairman), Cole, Cross, D. Inch, Lowe, Lloyd Jones, Pearsall and Wainwright.
Apologies for absence: Councillors Drakely, Gilligan and E. Ratcliffe.
Absence declared on Council business: None.
ITEMS DEALT WITH
UNDER POWERS AND DUTIES
EXERCISABLE BY THE COMMITTEE
Action
REG7 TAXI DEREGULATION
The Committee was advised that the Council had a policy to limit the number of hackney carriages licensed to operate in the Borough to 267. As hackney carriage numbers were limited inevitably this resulted in a market in hackney carriage plates. It was thought that vehicles change hands for a premium of up to £10/12,000.
It was noted that under Section 16 of the Transport Act 1985 an application for a new hackney carriage plate could only be refused if the Council were satisfied that there was no significant demand for the services of hackney carriages which was unmet. The Council must have the necessary evidence on which to be able to form such a view. Even if the Council was satisfied that demand was being met it still had a discretion to grant a new licence.
The Office of Fair Trading (OFT) had issued a report in 2003 which was strongly critical of the policy of limiting the numbers of hackney carriages. The OFT favoured a policy of complete deregulation of numbers (effectively the same position as applies to private hire vehicles).
In response to the OFT report, the Department for Transport (DfT) wrote to all taxi licensing authorities in June 2002 requesting them to review their policies and make public their conclusions by 30th April 2005.
The central point made by the DfT was that the Government believed that restrictions should only be retained where there was shown to be a clear benefit for the consumer.
The DfT suggested that the starting point was to look at the current (unofficial) value of Hackney Carriage plates in the Borough. If this was understood to be high this would indicate that there was a significant unmet demand for taxis in the area. This would lead to a need for a survey to be undertaken.
The Committee was advised on the unofficial value of plates in other nearby areas. It was clear that values in Halton were not high when compared with other areas. This implied that the Council could conclude that there was no significant unmet demand in the Borough and there was no obligation to commission a survey.
The Council’s Taxi Consultative Group had been asked to comment on the issue. The Group (which included representatives from all parts of the trade) considered that there was no evidence of any significant unmet demand and that there should be no de-regulation in the absence of such evidence.
RESOLVED: That
(1) the Committee considered that there was no evidence
of significant unmet demand in the Borough;
(2) consequently, the Council’s existing policy be confirmed; and Chief Executive
(3) the Department for Transport be advised accordingly.