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Gateshead Cabinet has backed a licensing department initiative to review Quality control of both driver and vehicle standards. The full report, which is published below was passed without exception. You will notice at para 7 that hackney carriage licenses have also been suspended until the "Sustainable Communities Place Advisory Group" has reported back on the 2/11/06.
The review mainly concerns quality control of vehicles and drivers but mainly drivers. gatesheads present policy of unrestricted hackney carriage access, is unlikely to change.
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REPORT TO CABINET
5 September 2006
TITLE OF REPORT: Review of Policy on Hackney Carriages and Private Hire
REPORT OF: Derek Quinn, Group Director, Development and Enterprise
Purpose of the Report
1. The purpose of this report is to request that Cabinet initiates a review of the Council policy on the numbers of Hackney Carriages and on the standards and conditions attached to Hackney Carriage and Private Hire licences.
Background
2. Councils have a power to limit the number of Hackney Carriages operating in their area. There is no power to limit the numbers of Private Hire Vehicles. The power to limit numbers exists to give a degree of protection to the business income of Hackney Carriage proprietors, who provide an important service to the public without any form of government subsidy.
3. If a council chooses to limit the number of Hackney Carriages, it may only do so if it can prove there is no significant demand, which is unmet. This proof must be obtained by a detailed survey and study of demand. Once a limit is introduced, the retention of the limit must be justified by regularly repeating this survey. In addition, the Government now expects councils to justify any policy to limit numbers on the basis that removing the limit would cause detriment to consumers.
4. Until 1999 the Council had a policy to limit the numbers of Hackney Carriages. In 1999 this was reviewed and changed. After that time, a suitable applicant was able to obtain a new licence for a Hackney Carriage provided that the vehicle was suitably designed or adapted to carry passengers in wheelchairs.
5. Prior to the change in policy in 1999, there were 92 licensed Hackney Carriages. Since 1999, a further 240 wheelchair accessible vehicles have been licensed as Hackney Carriages, together with a further 100 Private Hire Vehicles.
6. Council last reviewed the policy in 2004, when the policy not to limit numbers was retained. In addition to concerns over the numbers of Hackney Carriages, there is a need to review conditions attached to all forms of licence related to the Hackney Carriage and Private Hire trades to ensure they remain fit for purpose.
Proposal
7. It is proposed that Cabinet seeks the views of the Sustainable Communities Place Advisory Group on the desirability of revising the policy, and on measures that are necessary to ensure that our policies, standards and conditions remain suitable to avoid detriment to consumers and the public. It is also proposed that Cabinet agrees to receive and consider a further report on the findings of the Advisory Group before making a recommendation to Council, and that the issue of further Hackney Carriage licences be suspended until that time. This interim measure will not have a detrimental impact on the level of service to the public.
Recommendations
8. It is recommended that Cabinet agrees to:
(i) seek the views of the Sustainable Communities Place Advisory Group on the policy of not restricting numbers of Hackney Carriages.
(ii) seek the views of Sustainable Communities Place Advisory Group on the conditions attached to all forms of licence related to the Hackney Carriage and Private Hire trades, to ensure they remain fit for purpose
(iii) receive a further report on the issues after they have been considered by the Sustainable Communities Place Advisory Group.
(iv) suspend the issue of new Hackney Carriage licences pending a decision on the outcome of the review of the policy for Hackney Carriages and Private Hire and conditions applying to the licences concerned.
For the following reasons:
(i) To obtain the views of Sustainable Communities Place Advisory Group prior to making a recommendation to Council to either retain or revise the policy.
(ii) To ensure that our policies, standards and conditions are suitable to protect consumers and the public
(iii) To ensure that no further growth in Hackney Carriage numbers takes place until Cabinet has given consideration to these matters.
APPENDIX 1
Policy Context
1. The policy contributes to the Council’s vision for Transport, as set out in the Community Strategy and Towards 2010; “Local people and businesses who have easy access to integrated, safe and affordable transport which supports economic growth and balances the needs of all users in a responsible way.”
Background
2. If a Council chooses to limit the number of Hackney Carriages, it may only do so if it can prove there is no significant demand, which is unmet. This proof must be obtained by a detailed survey and study of demand. Once a limit is introduced, the retention of the limit must be justified by regularly repeating this survey.
3. Until 1999 the Council had a policy to limit the numbers of Hackney Carriages. In 1999 this was reviewed and changed. After that time, a suitable applicant was able to obtain a new licence for a Hackney Carriage provided that the vehicle was suitably designed or adapted to carry passengers in wheelchairs.
4. Prior to the change in policy in 1999, there were 92 licensed Hackney Carriages. These existing licences are not bound by the requirement to be wheelchair accessible. Since 1999, a further 241 wheelchair accessible vehicles have been licensed as Hackney Carriages. In addition to this, a further 100 Private Hire Vehicles have been licensed in that time.
5. As the numbers of Hackney Carriages increased after the change of policy in 1999, some members of the trade began to complain that their income was being severely reduced by the increase in competition.
6. In 2004 the Government concluded a long running investigation into the desirability of allowing councils to retain their power to limit numbers of Hackney Carriages. They stopped short of revoking the power but concluded “Local Authorities are best placed to judge local needs and circumstances, but where they restrict taxi licence numbers they should be able to justify their policy publicly, and continue to do so on a regular basis. Where such a policy cannot be justified, the Government would expect local authorities to de-restrict”. The new Government guidance makes it clear that restrictions should only be retained where there is shown to be a clear benefit to the consumer.
7. Following the publication of this new guidance, a review of our policy was undertaken and it was decided by Council to keep the existing policy of not restricting numbers. A further 81 Hackney Carriages have been licensed since that time.
8. Of the Councils bordering Gateshead, Newcastle, North Tyneside, South Tyneside, Sunderland and Chester-le-Street have all retained their limit on numbers since the Government revised its policy in 2004. Tynedale Council does not limit numbers in their area.
9. The Government has promised further guidance to local authorities in early 2007 following a consultation in 2006.
Consultation
10. The matter has been discussed regularly at the Taxi Working Group.
11. Officers have met with officials and members of the Gateshead Hackney Carriage Association, who support the proposals.
12. The Cabinet Members for Employment and Economy and Transport have been consulted on this report.
Alternative Options
13. As the report seeks only to refer the matter to an Advisory Group, no further options have been considered.
Implications of Recommended Options
14. Financial Implications – The Strategic Director, Finance and ICT confirms that costs will be met from existing budgets.
15. Risk Management Implications – There are no Risk Management implications from the recommended option.
16. Human Resources Implications – There are no human resources implications of the recommended option.
17. Equality and Diversity Implications – Nil.
18. Crime and Disorder Implications – Hackney Carriages play a critical role in taking people home after an evening drinking, thus helping to reduce crime and disorder.
19. Sustainability Implications – Hackney Carriages make a vital contribution to the public transport infrastructure, significantly reducing the need for many people to own a car and reducing congestion.
20. Human Rights Implications – There are no implications for Human Rights.
21. Ward Implications – This report affects all wards equally.
Background Information
22. These documents that have been considered in preparation of the report:
Department for Transport publication; “Taxi Licensing: Review of Local Authority Quantity Control Policies”
Transport Act 1985
Department for Transport Publication “Office of Fair Trading - Taxi and Private Hire Vehicle Market Study”.
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