Taxi Driver Online

Taxi firm says new 20mph limit is one reason fares should rise 10% in North Wales county


Denbighshire will consider raising taxi tariffs this week – as firms fear the incoming speed limit reduction from 30 mph to 20mph will hit profits. The council’s licensing committee meet this Wednesday to debate tariffs, following a request by a taxi driver to review the current charges.

The taxi firm is not named in the report but approached the council, requesting to increase all tariffs and extras by 10%. But licensing officers have recommended a rise of 5% instead.

The request follows drivers citing inflation as well as fuel costs rising at an ‘alarming rate’. In a report to be presented to the committee, the request includes details of other rising costs such as wage rises, garage charges, and electric bills increasing by over 50%.

In a letter to Denbighshire, the taxi driver wrote: “We also have the imminent imposition of the 30mph to 20mph speed reduction on September 17. This will increase journey times. As taxis charge by the mile, the drivers will be able to earn less per hour as they will be able to cover less miles.”

The letter also pointed out that taxi firms were hit by bank charges. “More customers than ever wish to pay by card,” the letter read. In real terms this is a 2-3% reduction in the fare due to processing fees.”
A consultation report revealed 47 of 56 responses from 280 drivers were in favour of the fare increase. One taxi driver responded to the consultation asking for a 15% rise. “Fares being increased by 10% is simply not enough,” they said. “It’s impossible to attract drivers to the job because we taxi drivers do not get looked at fairly.

“We have had to struggle for 12 months through the economic crises, and now this insulting offer (of 5%), which will no doubt get dragged out for six months and then get rejected. People in high places need to look at why we can’t attract drivers to the job, but again, they won’t. Fares should increase but by 15% minimum, then a small increase every year like every other industry.”

The committee has the option of going with the officers’ recommendation and accepting the 5% rise, accepting the proposed 10% rise, or not raising fares at all. Once agreed, the council will publish a statutory notice with an implementation period of 28 days.

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

I get using the cost of living crisis as a legitimate cause for concern for drivers when requesting an increase.

But changing the speed limit? FFS.

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IDFIMH

No more than a passing mention of the 20mph stuff below - I mean, it might increase journey times slightly, but unless they're currently flat out all the time then it's not going to affect profitability at all.

And on the one hand, this isn't particularly interesting. On the other, worth reading because of the nonsense of it all. Another consultation, and they're using consultants.

But at least one councillor acknowledges that they're ill-equipped to make these decisions - who knew?

And then there's the procedural rigmarole at the end

Reminds me of a recent important vote in the Scottish Parliament, which is done electronically. Some prominent SNP politicians pressed the wrong button


Public to have say on proposals to increase taxi fares in Denbighshire

https://www.dailypost.co.uk/news/north- ... i-27709426

A firm wrote to the council saying the 20mph limit was one reason fares should increase

Members of the public will be able to have their say on whether taxi fares should rise by 5% in Denbighshire. An unnamed taxi firm wrote to Denbighshire Council, requesting a 10% increase to all tariffs and extras.

The company gave a wide range of reasons for the rise they said was needed, including the new 20mph speed limit, inflation, rising fuel costs, electric bills and card payment charges. But licensing officers recommended a rise of 5% instead after some councillors opposed the increase during a meeting of the licensing committee on Wednesday.

The matter will now go out to public consultation. During the meeting, Cllr Brian Jones said he feared for the elderly trying to afford the increased fares.

"I think of all the elderly people who use taxis, and you'll isolate them straight away. Apparently, it happened in Conwy. I really feel bad about that," he said.

"I wouldn't support any increase on taxi fares at this point in time. What I've heard here this morning is that we are paying a consultant.

"We are supposedly in a black hole financially, and we are spending money on consultants to look at things.” He went on to say that as local members, councillors weren't knowledgeable enough about the industry to decide on an increase.

Cllr Joan Butterfield added: "I feel reluctant to say this, but I do agree with (Cllr) Brian in some ways. I feel uncomfortable at this particular time we are looking to increase taxi fares.”

Cllr Butterfield then added she could also understand why an increase was needed before voting for a 5% rise. But confusion disrupted the meeting when there were questions over whether Cllr Brian Jones’ amendment not to increase taxi fares should stand – with Cllr Gwyneth Ellis doubting officers’ advice that it should.

To make matters worse, councillors and officers lost track of which committee members had voted and for what, initially missing a vote by Cllr Joan Butterfield against leaving fares as they were. With the vote at a 4-4 deadlock - over whether to increase taxi fares and by how much - chairwoman Cllr Bobby Feeley was then given the deciding vote to conclude the matter, and it was agreed officers should be instructed to go out to a public consultation on a proposed 5% rise.

Yeah, that extra 25p on a £5 fare is going to be the end of the world for them.

Did the same numpty worry about everyone, when he agreed to the 4% increase in council tax?

Maybe this councillor thinks the faires pay the extra cost drivers are having to find at the petrol pumps, and financing new vehicle.

Who votes for these people?

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IDFIMH

Nothing particularly interesting here, but the councillor's comments are a wee bit odd. Not because what he's saying is incorrect (I see what he's getting at, but I suspect a qualified economist would say he's talking nonsense in a technical sense) but because he's using one idea from economics when a more obvious concept would be more appropriate. I think


Taxi firm's plea for fare price rise amid default 20mph limit rejected - for now

https://www.dailypost.co.uk/news/north- ... e-28270697

A taxi company suggested Denbighshire Council should bring in a 10% fare rise

Taxi fares in Denbighshire won’t go up – at least not yet – after a public consultation found opposition to a 5% tariff increase. Denbighshire Council's licensing committee met to discuss a request from a taxi firm to increase the maximum tariffs a firm can charge for a journey within the county.

A request was made in mid-June when some drivers feared the new default 20mph speed limit introduced in September could hit profits. Other escalating running costs associated with inflation included wage rises, garage charges and electric bills.

The taxi company suggested a 10% rise, but at a meeting in September, councillors instead voted for 5% based on the retail price index for motoring. This then went out as part of a public consultation.

If there had been no objections, the new increased tariff would have been introduced on November 1. But the council received 64 responses, with 37 against the 5% increase, 14 in support, and four neutral.

An additional nine respondents wanted an increase of more than 5%. At the committee meeting at Ruthin’s County Hall, Cllr Hugh Irving proposed the committee voted against the rise.

“This is a difficult issue. One or two things I've taken from the report are that I know the request to review the fares on this particular occasion didn't come from a fare review calculation,” he said. “It came from an approach from one operator.

"A large proportion of the taxi companies seem to be against an increase on the basis, I would imagine, that they are destroying their own business model. Taxis aren't cheap, and there is a view it's actually a negative issue because people make less journeys in their taxis.

"So in a way, it becomes the law of diminishing returns.” He then said he feared increasing the tariff could end up costing the council at a time when budgets were tight, citing the use of taxi for home-to-school transport, but this was debated, and it wasn’t clear how this would affect fixed-term contracts.

The matter will be re-debated at a future licensing committee following a fare calculator review of the current needs and costs of the industry.

'Law of diminishing returns', eh?

Maybe the laws of economics are more relevant here, because what he's talking about is basic supply and demand analysis, which is Economics 101

Or, more specifically, it's about the demand side, and more precisely, what is the price elasticity of demand?

Thus, to what extent will fare rises mean fewer customers?

A significant % of B&H's roads have been 20% for about 15 years.

Hasn't made an iota of difference to the way the trade works.

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IDFIMH