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Quantity restrictions 
1.84 RP explained that the blunt nature of quantity restriction and the current de-regulatory climate meant that restrictions would have to be justified. Currently it seemed that only defensible argument was that linking deregulation to congestion, rather than unmet need.
Bet that went down well.
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1.85 JM noted that there were no limits in London but that he was under huge pressure to introduce them. This was particularly the case in suburban areas where there was oversupply.
So this will stop new green and yellow badge holders entering the trade?
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1.86 GR believed that there were effective barriers to entry in London. Quantity restriction arguments tended to centre on plate value. He believed that sensitive regulation looked at the economic situation of the area in question and allowed for periodic growth.
You mean just complying with the current law, SUD and all that?
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Although the Law Commission did not believe that arguments as to driver earnings justified restrictions, GR believed that maintaining earnings was important to maintaining the industry.
What's driver earnings got to do with restricted vehicle numbers? Perhaps he's confusing drivers with plateholders?
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Deregulation in Sweden had led to ten years of chaos before good companies had emerged.
Chaos no doubt exaggerated.
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JU responded that the distinction between good and bad companies could be resolved by setting standards at the correct level. Quantity restriction should not be used as a tool to ensure quality.
Funny how the LC bods have only been looking at the trade for a few weeks but have already seen through the tosh linking restricted numbers and standards.
Maybe Mr London could get rid of the KOL and introduce restricted numbers instead - that would do the trick!
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1.87 Vindelyn Smith-Hillman (VSH) noted that problems around numerical deregulation could arise as a result of other reforms which had taken place at the same time. National standards could help to avoid these problems.
Someone else on the ball, but did she really mention national standards for taxis?
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1.88 JB recognised that quantitative restrictions were an emotive issue. There was no argument for quantity restrictions in the PHV trade, which led him to question the need for restrictions on taxi numbers. He believed this to be an example of protectionism. An area could sustain a particular quantity of vehicles and this could be split between taxis and PHVs.
Or a single-tier unrestricted taxi trade?
Oh no, wait a minute, people wouldn't be able to phone for a cab anymore
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1.89 DoP felt that the public was served not only by the number of vehicles but also by the quality of the fleet. He believed this to be higher in restricted areas. Restrictions led to greater confidence in business models and guaranteed reasonable earnings. De-regulation could also have a negative impact on supply in the night-time economy as there would be fewer PHVs.
1.90 VSH asked whether this could be countered by setting high standards. DoP felt that it was preferable for the market to lead standards.
I commented on this the other day, in particular that the market would in fact supply effectively none of Mr Pow's WAV vehicles, hence his call for the market to lead standards doesn't seem particulary astute.
And another point - in the first paragraph he said that restricted numbers meant a higher quality fleet, yet in the second paragraph says it's preferable for the market to lead standards.
And he clearly hasn't been to Blackpool.
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1.91 TM explained that the Wirral had de-restricted following two unmet demand surveys. Taxi numbers had risen from 82 to more than 360. Many of those who had migrated from the PHV trade went bankrupt. The police had supported re-regulation because of the impact on congestion.
And according to Toots if it was rerestricted it would be as tightly restricted now as it was then
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1.92 JF noted that taxi drivers tended to be sole traders and as such had limited earning potential. De-restriction discouraged entry to the market and affected supply.
WTF?
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It would encourage drivers to push for higher fares, thus reducing public uptake and creating a downward push on standards.
Gosh, so higher fares means less takings?
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Examples that he was aware of included owners using unaccredited garages for MOTs and “cannibalising” vehicles.
So this is linked to unrestricted numbers or just bent garages, cowboy operators and lax enforcement?
There's plenty of rubbish motors in restricted areas - I work in one
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1.93 BR argued that evidence showed that deregulated areas with high standards were very successful in controlling numbers and congestion and ensuring a mixed fleet. He was in favour of a qualification for operators, as they were often inexperienced in running businesses.
Mr Roland with his derestrictionist head on!
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1.94 PC explained that Manchester had introduced a growth rate, with surveys every three years and an average of 20 vehicles added each time.
So is this just the legal obligation dressed up as somethinge else?
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He noted that finance companies were reluctant to lend to would-be drivers in de-regulated areas.
That's a new one - I've never heard of a finance company using restricted/unrestricted numbers as a lending criterion. Well worth another
But no mention of how easy it is to get finance to buy a restricted plate, ie risk the family home as security, and of course someone without a mortgage for a good few years or a big wodge of cash in the bank has no chance.
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1.95 BO felt that the question was very complex. A survey undertaken by Ipsos MORI had shown sufficient supply in London. He believed that quantity restriction had to be considered alongside fare regulation, and thought that if an area was to be de-restricted, drivers should be compensated by being allowed to charge higher fares.
Which Mr LTI had just said (1.92) would lead to reduced takings and lower standards
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1.96 MB believed that de-regulated areas lost a significant proportion of their WAVs, resulting in a mixed fleet run on a low-cost basis.
Which parallel taxi universe did this occur on?
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One local authority he had in mind had since re-regulated but had required all new licensed vehicles to be WAVs.
No doubt, but I'm not sure if this actually follows from the point above.
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Those coming into the trade should be encouraged to consider the business case for doing so.
I'm speechless
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](./images/smilies/eusa_wall.gif "Brick wall")
No, I didn't call a shortage of rank space and work 'competitive'.