11. The
Licensing Panel will be aware that a league table of fares is collated by the
National Private Hire Association (NPHA), and published in their official
newspaper, the Private Hire and Taxi Monthly.
12. This
Council is currently (November 2003) no. 56 out of 376 Local Authorities in the
UK. (including the Isle of Man) where trade associations have informed the
trade newspaper of their Council’s fare structure. A copy is enclosed at Appendix 4. An A3 copy has been circulated to members of the Panel under
separate cover. Further copies can be
obtained from Committee Services.
13. If the
proprietors’ request is approved, IW Council fares would be between numbers 20
– 31 in the league table. If officers’ proposal is approved the IW will be
between numbers 34 – 48 in the table.
14. The
level of fares can depend on a number of local factors including the bargaining
power of the taxi trade, the affluence of taxi users, and the cost of providing
taxi services.
15. The
cost of living index of the Isle of Wight would appear to be higher than on the
mainland due to a low salary structure and the expense of transporting
essentials including fuel from the mainland.
16. The
rural nature of the Island and the number of towns has resulted in people
travelling to work, for shopping and entertainment. Where taxis are used, this
can result in considerable “dead mileage” which increases operating costs.
17. Officers
are aware of 18 authorities that allow the taxi trade to set their own
fares. Those authorities, which
responded to this Council’s request for information, have stated that they do
not have any significant problem using this system. These authorities are mainly in rural or semi-rural areas with
the majority of work coming from telephone bookings.
18. Unmet
demand surveys carried out on the Isle of Wight, between 1987 – 1998, indicated
that 25% or less work came from taxi ranks or hailings resulting in a
considerable number of telephone bookings.
19. If
Members are minded to set fare tariffs these should represent the maximum that
can be charged, and not fixed or minimum fares. It should be made clear to consumers by the Licensing Authority
that they are able to negotiate on fares, for example, when ordering a
taxi/private hire vehicle over the telephone.
20. The
Council should, where possible, actively facilitate more price competition in
the market, particularly in the rank and hail sectors of the market.
21. One
method the Licensing Panel may wish to consider is to condition all proprietors
to display their fare in the window or the outside of the taxi, either in terms
of the price for a standard journey or if relevant as a percentage discount of
the metered fare.
22. Members
should be aware that if granted an increase, taxi proprietors are not obliged
to reset their meter. If they do not reset the meter, they could still only
charge what is displayed on the meter.
23. The
Panel may wish to approve one of the proposed fare increases with the condition
that no further increase will be considered until the Isle of Wight Taxi
Proprietors and Council Officers put forward proposals for regulating quality
and safety of taxis and private hire vehicles.
Examples of this could be uniform taxi roof signs, vehicle age limit and
passengers travelling in comfort and adequate space for a suitable amount of
luggage, to meet today’s needs.
24. The
Panel could also instruct Officers to meet with the trade to enable both
parties to work towards implementing Government proposals in relation to the
Office of Fair Trading’s report on the regulation of licensed taxis and private
hire vehicles in the UK, published recently.
COUNCIL POLICY
25. Although not mandatory under the relevant
legislation, historically, the Council or its predecessors has set the maximum
rate of fares to be charged.
26. The fares were set by Byelaw under the
Town Police Clauses Act 1847 until approximately 1978 when they were set by the
Council under the Local Government (Miscellaneous Provisions) Act 1976 Part 2.
FORMAL CONSULTATION
27. The
Council’s Licensing Section met with four IWTPA representatives on the 21
October 2003 and although a fare structure was not agreed sufficient progress
was made for both parties to agree to take their revised fare structures to the Licensing Panel.
28. Since
the above meeting a report on the regulation of licensed taxis and private hire
vehicle services in the UK has been published by the Office of Fair Trading.
THIRD PARTY REPRESENTATIONS
29. If
the Panel approves in principle an increase in fares, any representations will
be as a result of a public advertisement being placed in the Isle of Wight
County Press.
30. Any
objections, if not withdrawn within 14 days of the advert, will have to be
considered by the Council and a further date will be set no later than two
months after the original date for any new fare structure to commence.
FINANCIAL IMPLICATIONS
31. Broadly, Council expenditure on Licensing
matters and in particular those which are administered and enforced through
Consumer Protection, balances income received from licence fees.
LEGAL IMPLICATIONS
32. The relevant legislation in this case is
the Local Government (Miscellaneous Provisions) Act 1976 Part II Section 65(1)
which is set out below:-
“A
district council may fix the rates of fares within the district as well for
time as distance, and all other charges in connection with the hire of a
vehicle or with arrangements for the hire of a vehicle to be paid in respect of
the hire of hackney carriages by means of a table (hereafter in this section
referred to as a ‘table of fares’) made or varied in accordance with the
provisions of this section.”
33. Each case should be considered
individually so as to comply with the rules of Natural Justice.
34. In arriving at their decision the Panel
will have taken into account all relevant matters; and not taken into account
any irrelevant matters.
IMPLICATIONS UNDER THE CRIME AND
DISORDER ACT 1998
35. Without prejudice to any other obligation
imposed on it, it shall be the duty of each authority to which this section
applies to exercise its various functions with due regard to the likely effect
of the exercise of those functions on, and the need to do all that it
reasonably can to prevent, crime and disorder in its area.
IMPLICATIONS
UNDER THE HUMAN RIGHTS ACT
36. Members
are advised that this application must be considered against a background of
the implications of the Human Rights Act 1998.
There
are three convention rights which need to be considered in this context:-
a) Article 6 - Right to a fair trial
In the determination of
his civil rights and obligations or of any criminal charge against him,
everyone is entitled to a fair and public hearing within a reasonable time by
an independent and impartial tribunal established by law.
It has been held that the
fact that there is a right of appeal to the magistrates’ court from any
decision of the Panel is sufficient to make the Council’s licensing system
compliant with the convention rights.
b)
Article 8 - Right to respect for private and family life.
Everyone has the right to
respect for his private and family life, his home and his correspondence. In the case of article 8 there shall be no
interference by a public authority with the exercise of this right except as
such in accordance with the law and is necessary on a democratic society in the
interests of national security, public safety or the economic wellbeing of the
country, for the prevention of disorder and crime, for the protection of health
or morals or for the protection of the rights and freedoms of others.
c)
Article 1 of the first protocol – protection of property.
Every natural or legal
person is entitled to the peaceful enjoyment of his possessions. In the case of
Article 1 of the first protocol it states that “no one shall be deprived of his
possessions except in the public interest and subject to the conditions
provided for by law and the general principles of international law. The preceding provisions (of which articles
6 and 8 are but two) shall not however in any way impair the right of the state
to enforce such laws as it deems necessary to control the use of the property
in accordance with general interest or to secure the payment of taxes or other
contributions or penalties”.
d) The
Panel needs to be clear as the rights granted and the need to ensure that the
reasons given for any interference are proportionate and in accordance with the
Council’s legitimate aim.
OPTIONS
37. To grant a fare increase in accordance
with IWTPA’s proposal.
38. To grant a fare increase in accordance
with officers’ proposals.
39. To grant any other fare increase deemed
reasonable by the Panel.
40. To
grant one of the above fare increases on the condition that this will only be
reviewed when the Isle of Wight Taxi Proprietors and Officers have produced
proposals for quality and safety both for taxis and private hire vehicles.
41. To decline to set fares and let market
forces determine the level.
42. To seek further information prior to
making a decision.
43. To refuse a fare increase.
EVALUATION/RISK MANAGEMENT
44. Officers
assessing the impact of fare regulation took into account the following:-
- The rationale
behind fare regulation and the protection it affords consumers,
- The impact that
fixing fares has on the market for taxis,
- The experiences of
international markets that have deregulated fares.
45. Officers
found that, whilst there are some arguments for removing fare regulation, the
case for retaining controls is much stronger.
The nature of the hail sector of the taxi market makes it difficult for
consumers to exercise choice on price when hailing as it is very difficult to
shop around.
46. Officers
are concerned about passenger safety (for example, if they are catching a taxi
late at night), or for those who do not know the local area.
47. Officers having considered the above,
along with the implications under the Human Rights Act and the Local Government
(Miscellaneous Provisions) Act Part II Section 65(1), agree that there are
already risks involved with the existing fares, but it is not believed that
this will change greatly if an increase in fares is approved.
48. This matter has been discussed with the
Compliance & Risk Management Section and it is believed it is the
applicant’s responsibility to carry out their own risk assessment in relation
to their own or their employees’ safety.
49. Insofar as any risk to the Council is
concerned, the issue of Crime and Disorder and Human Rights have been
evaluated. Any resolution the Panel
makes is within its delegated powers.
RECOMMENDATION
50. Members are requested to determine the application.
|
APPENDICES ATTACHED
51. Appendix 1
- IWTPA’s costings.
Appendix
2 - Existing Tariff card
Appendix
3 - Examples from the existing table of fares, the IWTPA’s proposed fares and
Officers’ proposals
Appendix
4 - League table of fares
BACKGROUND PAPERS
52. Fare
request application file.
53. Office of Fair Trading Report, The
Regulation of licensed taxi and PHV services in the UK.
54. Checklist for this report in relation to
the Human Rights Act, Wednesbury principles, and proportionality.
Contact point: John Murphy, F 823152
ROB
OWEN
Head
of Consumer Protection
APPENDIX 1
APPENDIX 2
ISLE OF WIGHT COUNCIL (for all
former Boroughs) TAXI
FARES (Inclusive of VAT where
appropriate)
ALL TARIFFS ARE SHOWN ON
THE METER
Maximum fares from 25.03.97
A driver must inform
passengers prior to the start of their journey of any charge he intends to make
for issuing receipts of handling credit cards, cheques, etc, over and above
those charges listed on the tariff card.
|
PERIOD
APPLICABLE
|
8.00 am
to 10.30 pm
|
6.00 am to 8.00 am
& 10.30 pm to midnight
|
After 12.00 midnight
&
before 6.00 am &
all
BANK & PUBLIC HOLIDAYS
|
|
TARIFF
RATE
|
1
|
2
|
3
|
|
If
the distance DOES NOT EXCEED 804.32 metres (880 yards), for the whole
distance or part thereof
|
,2.00
|
TARIFF 1 + 50%
|
TARIFF 1 + 100%
|
|
EACH
SUBSEQUENT 321.73 metres (352 yards) or part thereof (this charge is operational after the
first 804.32 metres for the next 3.86 km (2 2/5 miles)
|
30p
|
TARIFF 1 + 50%
|
TARIFF 1 + 100%
|
|
THEREAFTER
for each subsequent 267.8 metres (293 yards) or part thereof
|
20p
|
TARIFF 1 + 50%
|
TARIFF 1 + 100%
|
|
WAITING
TIME for each period of 72 seconds add
|
30p
|
TARIFF 1 + 50%
|
TARIFF 1 + 100%
|
[taxi\fares.hc]
APPENDIX 3
APPENDIX4
