PAPER B1

 

Purpose: For Decision

 

Committee:    LICENSING PANEL

 

Date:               13 JANUARY 2004

 

Title:                TO REVIEW THE ISLE OF WIGHT COUNCIL’S HACKNEY CARRIAGE TABLE OF FARES

 

REPORT OF THE HEAD OF CONSUMER PROTECTION

 

 

 


PURPOSE/REASON

 

1.         To make recommendations concerning the Isle of Wight Hackney Carriage table of fares applicable to all four licensing zones.

 

2.         On the 1 December 2003 the Licensing Panel resolved that a taxi fare increase be granted to a maximum of the following figures:-

 

No      of Miles

Tariff 1 (£)

Tariff 2 (£)

Tariff 3 (£)

Flag

3.00

4.00

6.00

1

3.00

4.50

6.00

2

4.50

6.50

9.00

3

6.00

9.00

12.00

4

7.50

11.00

14.50

5

9.00

13.00

18.00

6

10.50

15.00

20.00

7

11.50

17.00

22.00

8

13.00

19.00

25.00

9

14.00

21.00

27.00

10

15.00

22.00

30.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.         The Panel agreed that should technical difficulties arise, due to programming of the taxi meters, the matter would be brought back to a future meeting.

 

4.         The matter is re-presented, because taxi meter manufacturers have advised the trade and Council officers of difficulties in programming some of the above figures. For the purposes of calibration the meter can only value each mile at an equal amount. Several proprietors would be obliged to purchase new meters at considerable expense.

 

DETAILS

 

5.                  At a meeting of the Isle of Wight Council’s Licensing Panel on the 17 October 2003 it was resolved:

 

“THAT, if the trade still wished the Isle of Wight Council to regulate their fare structure, the Isle of Wight Taxi Proprietors Association (IWTPA) and the Licensing Officer be requested to continue to negotiate, with a view to reaching an acceptable compromise, which can be brought back to the Panel at the earliest opportunity.”

 

6.         The Panel recognised the need for an increase in fares, particularly for short journeys.  However, concern was expressed over the use of taxi services by the elderly, during the day and by the young at night.

 

7.         The most recent correspondence from the IWTPA is set out at Appendix 1.

 

8.         A copy of the existing tariff card along with a joint IWTPA, officer proposal for fares are set out at Appendix 2.

 

9.         The average U.K. fare based on a standard two mile daytime journey is currently £3.93 (source: Private Hire and Taxi Monthly November 2003).

 

10.       Examples from the existing table of fares and the IWTPA’s proposed fares are set out at Appendix 3.

 

11.       These examples are for 1 to 10 mile journeys for 2 passengers on tariffs 1, 2 and 3 with no extras added.

 

LOCATION & SITE CHARACTERISTICS

 

12.       Not applicable to this matter.

 

RELEVANT HISTORY

 

13.       The last Hackney Carriage fare increase was agreed by the Council in 1997.

 

14.       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.

 

15.       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.

 

16.       If the proprietors’ request is approved, IW Council fares would be between numbers 20 – 31 in the league table which is in alphabetical order.

 

17.       The level of fares can be influenced by 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.

 

18.       If Members set the 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.

 

19.       The Council should, where possible, actively facilitate more price competition in the market, particularly in the rank and hail sectors of the market.

 

20.       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 to be printed and supplied by the Council.  Discussions will take place with those proprietors wishing for such signs.

 

21.       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 can still only charge as a maximum of what is displayed on the meter.

 

22.       The Panel may wish to approve the proposed fare increases with the condition that no further increase will be considered until the Isle of Wight Taxi Proprietors Association 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, passengers travelling in comfort and adequate space for a suitable amount of luggage to meet today’s needs.

 

COUNCIL POLICY

 

23.       Although not mandatory under the relevant legislation, historically, the Council (or its predecessors) has set the maximum rate of fares to be charged.

 

24.       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

 

25.       The Council’s Licensing Section met with four IWTPA representatives on the 3 December 2003.  In the light of continuing escalating costs a fare structure was agreed allowing both parties to take the fare structures to the Licensing Panel for approval, subject to all extra charges, except  fouling of vehicle, remaining at the current rates until the next request for a fare review.

 

THIRD PARTY REPRESENTATIONS

 

26.       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.

 

27.       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

 

28.             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

 

29.       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.”

           

30.       Each case should be considered individually so as to comply with the rules of Natural Justice.

 

31.       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

 

32.       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

 

33.       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

 

34.       To grant a fare increase in accordance with the joint proposal as at Appendix 3, subject to all extra charges, except fouling of vehicle which is proposed to be increased to £60, remaining at the current rates until the next request for a fare review.

 

35.       To introduce a condition that all Proprietors display their fares in a window, either in terms of the price for a standard journey, or if relevant, as a percentage discount of the metered fare to be approved by the Licensing Officer. 

 

36.       To grant the above fare increase on the condition that this will only be reviewed when the Isle of Wight Taxi Proprietors association and Officers have produced proposals for improving the quality and safety of both taxis and private hire vehicles.

 

37.       To decline to set fares and let market forces determine the level.

 

EVALUATION/RISK MANAGEMENT

 

38.       Officers assessing the impact of fare regulation took into account the following:-

 

 

39.       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. 

 

40.       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.

41.       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.

 

42.       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. 

 

43.       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

 

44.     To grant a fare increase in accordance with the joint proposal, subject to all extra charges to remain at the current rates until the next request for a fare review, with the exception of fouling of vehicle which should be increased to £60.

 

45.   The increase to have the following condition attached, all Proprietors to display their fares in the window, either in terms of the price for a standard journey or if relevant as a percentage discount of the metered fare to be approved by the Licensing Officer.

 

46.       To grant the above fare increases on the condition that this will only be reviewed when the Isle of Wight Taxi Proprietors Association and Officers have produced proposals for improving the quality and safety both for taxis and private hire vehicles.

 

 

APPENDICES ATTACHED

 

47.             Appendix 1 – Correspondence from IWTPA

Appendix 2 - Existing Tariff card along with the IWTPA’s proposed fares

Appendix 3 - Examples from the existing table of fares, the IWTPA’s and Officers’ proposals

 

BACKGROUND PAPERS

 

48.       Fare request application file.

 

49.       Office of Fair Trading Report, The Regulation of licensed taxi and PHV services in the UK.

 

50.       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