This the latest report from the DTI not of the press.
http://213.38.88.221/gnn/national.nsf/T ... endocument
P/2004/103
18 March 2004
GOVERNMENT ACTION PLAN PUTS CONSUMERS AND COMPETITION AT THE HEART OF THE TAXI
AND PRIVATE HIRE VEHICLE MARKET.
Local authorities in England and Wales will be asked to publicly
justify and regularly review taxi licence restrictions as part of a
Government action plan to improve service for consumers.
The plan, announced by the Department of Trade and Industry and the
Department for Transport, is the Government's response to the OFT's
report into the UK market for taxis and private hire vehicles.
It calls for:
* local decisions to restrict taxi numbers to be made with consumer
interests in mind;
* decisions on quantity controls to stay with the local district;
* increased competition in the taxi market;
* best practice guidance for licensing authorities on quality and
safety standards; and
* better information to enable consumers to negotiate lower fares.
Consumer Minister Gerry Sutcliffe said:
"These measures will help cut waiting times for consumers as well as
increase consumer choice and the availability of taxis. They will
also make it easier for people wanting to start their own taxi
business.
"Restrictions on numbers of taxis can be a barrier to market entry,
which can lead to lower consumer choice and lower taxi availability.
"But it is important that local authorities are allowed to regulate
local taxi markets to take exceptional local circumstances into
account. That is why we have decided not to remove this power from
local authorities at this time. But we're asking them to explain how
any imposed restrictions benefit consumers."
At present, local authorities in England and Wales, outside London,
can limit the number of licensed taxis allowed to operate in a local
area.
The OFT's report, published last year, said these restrictions were
not justified and called for the Government to remove local
authorities' power to limit licences.
It also called for best practice licensing guidance so that local
authorities could consider whether their quality standards, which
varied greatly within and between districts, were proportionate.
On taxi fares, the report said local authorities should set maximum
fare rates rather than mandatory rates, to enable consumers to
negotiate lower fares, while protecting vulnerable consumers from
being overcharged.
Following a full consultation, the Department for Transport will
issue the guidance to local authorities in England and Wales.
Local authorities will be asked to review any taxi licence
restrictions by 31 March 2005 and, where they cannot be justified,
lift the restrictions. Any restrictions that are justified will have
to be reviewed every three years and the results published.
Transport Minister Tony McNulty said:
"While keeping decisions on quantity control at the local level, we
shall shortly be writing to local authorities asking them to justify
their quantity control policy. During the summer, we hope to consult
on best practice licensing guidance, which will include model taxi
and private hire vehicle policies for the next round of Local
Transport Plans, with a view to publication by the end of the year.
"These developments, together with a review in three years' time of
those authorities that still restrict taxi licences, should lead to
more streamlined and improved taxi and private hire vehicle services
for the benefit of all."