PAPER A2
Purpose: For
Decision
Committee: OVERARCHING
REGULATORY COMMITTEE
Date: 5
JULY 2005
Title: TAXI
ZONING
REPORT
OF THE HEAD OF CONSUMER PROTECTION
SUMMARY/PURPOSE
1. To invite the
Committee to consider an officer recommendation that a single taxi licensing
zone on the Isle of Wight be adopted and that a submission to this effect be
sent to the Secretary of State for Transport.
BACKGROUND
2. Zoning in a licensing context is the
term used to describe arrangements where a licensing authority licences taxis
to operate only in a limited area or zone within the total licensing area. A taxi licenced for one zone cannot lawfully
ply for hire outside that zone. Only about
5% of licensing authorities in England and Wales are zoned.
3.
This Council currently has four zones, one zone is based on
the geographic area formerly administered by South Wight Borough Council,
remaining zones cover the Newport, Ryde and Cowes areas.
4.
Committees of the Isle of Wight Council have considered
establishing a single taxi licensing zone or dezoning on several
occasions. About four years ago a
Hackney Carriage Working Party was established to meet with representatives of
the Isle of Wight Taxi Association. The
Association at that time was against dezoning and it is believed that this
remains the Association’s position. On
21 October 2002 the Fire and Public Safety Select Committee resolved that it be
recommended to the Executive that, after a further consultation process that a single
zone for taxi licensing on the Isle of Wight be adopted and that a formal
submission to this effect be presented to the Secretary of State for
Transport. (At that time legal advice
indicated that a decision concerning taxi zoning had to be taken by the
Council’s Executive).
5.
Officers as directed, undertook further consultation,
particularly with the trade. In the
meantime the Office of Fair Trading (OFT) launched an investigation entitled
“The regulation of licenced taxi and private hire vehicle services in the
UK”. The investigation, made under the
Fair Trading Act 1973 and Enterprise Act 2002, was broadly directed at
identifying laws and regulations creating barriers to competition that held
back innovation and progress.
6.
During 2003 the additional consultation requested by the
Select Committee was completed. Legal
advice was then sought and it became apparent that authority for the Council to
take a decision about zoning had moved to the Licensing Committee.
7.
The OFT
Report into the taxi trade was published in November 2003. It is 91 pages long!
The summary
and conclusions from that report are attached as Appendix 1
Paragraphs
7.24 – 7.27 of the report refer specifically to “zoning within one licensing
authority”. The report explains that
under current legislation licensing authorities are permitted to remove all
licensing zones with the approval of the Secretary of State for Transport. The report indicated that this requirement
will be amended by a Regulatory Reform Order (RRO) so that licensing
authorities can amalgamate licensing zones without seeking Secretary of State
approval. Regrettably, this RRO
heralded by the OFT report has still not been published. Officers do not believe the publication is imminent.
8. The
OFT report also includes the statement:-
“We think that licensing authorities will
bring greater clarity to the market if they remove zoning within their
districts”.
Paragraphs 7.24 – 7.27 of the OFT report,
the paragraphs specific to zoning, are attached as Appendix 2.
9.
Government
responded to the OFT report with a written Statement to Parliament on 18 March
2004. A copy of the statement is
attached as Appendix 3.
The
Government Statement indicated that it welcomed the OFT report. Emphasis in the Government’s Statement is
given to licensing authorities removing controls restricting the number of
taxis operating in their respective areas and encouraging competition. Paragraph 24 of the Statement includes a
reference to taxi licensing zones being removed to establish a single licensing
area in each licensing authority. The
statement reads in relation to this OFT recommendation; “The Government agrees
and will include a statement to this effect in the draft best practice
guidance.”
The
best practice guidance referred to in the Government’s Statement is still in
preparation.
10.
On 22
October 2004 the then Leader of the Council received a letter from David Cooper
OBE, Deputy Transport Director at the Government Office of the South East. The letter followed a visit he had made to
the island with then Transport Minister Charlotte Atkins.
A copy of the letter is
attached as Appendix 4.
The
letter refers to the OFT taxi report and in relation to taxis it refers to
Government proposals for “best practice guidance for local authorities”.
Mr
Cooper’s letter draws attention to the importance attached to the removal of
licensing zones and establishment of single licensing areas. He anecdotally refers to an experience of
his own and queried how zones on the Island could be efficient or lead to a
better service.
11.
There are
increasing numbers of major events taking place on the Island where thousands
of people congregate. Public transport
has a crucially important role to fill taking people to and from these events. It is submitted that removal of licensing
zones and the barriers that such zones create will ease the travel arrangements
for many of these people and reduce the possibility of disorder.
CONSULTATION
12.
After the Fire and Public Safety Select Committee requested
further consultation in October 2002 an advert was placed in the Isle of Wight
County Press in January 2003. One
response was received in favour of dezoning.
Town and Parish Council were also approached, as were Newport and Ryde
Forums; twelve replies were received 8 in favour; 2 against and 2 neutral.
13.
Officers meet periodically with representatives of the Isle
of Wight Taxi Association to discuss matters of mutual importance. The Association appears to be representative
of the trade in the Newport, Ryde and Cowes areas, perhaps less so in the
former South Wight area. Insofar as the
Association is concerned there appears to be concern that a single zone will
lead to an influx of taxis to busy areas at peak times and a reduction in
availability of taxis in quiet areas could follow.
FINANCIAL IMPLICATIONS
14.
Broadly, Council expenditure on licensing matters and
specifically those matters administered and enforced by Consumer Protection
balances income generated from fees. It
is submitted that a single taxi licensing zone will be marginally more cost
effective for the Council to administer.
It is also submitted that a single taxi licensing zone will enhance
competition and improve service in those localities where demand is greatest.
LEGAL IMPLICATIONS
15.
Section 17 of the Crime and Disorder Act has been
considered. Possible benefits from
dezoning include:
a)
Island town centers, particularly if the night time economy
expands, should be cleared faster if there is greater supply of taxis when
demand is high.
b)
Customer confusion should reduce if all taxis operate
islandwide.
16.
Legal authority for this committee to take a decision on
behalf of the Council concerning taxi zoning is found in the Local Authorities
(Functions and Responsibilities) (England) Regulations 2000.
17.
Dezoning is not prevented by the Human Rights Act 1998. Recent case law on the subject of hackney
carriage licences has made clear that changes in the law which might affect
property values or the value of a business could not normally be impunged under
Article 1 of the first protocol solely on the ground that change had caused a
diminution in value. Further more, in
one case, the court stated that unlike real or personal property there was no
intrinsic reason why a hackney carriage licence, which was an authorisation
granted by the state, should have a “private value” in the hands of the licence
holder.
18.
In recommending de-zoning consideration has also been given
to Article 8 (right to privacy and family life) and Article 1 of the first
protocol (right of peaceful enjoyment of possessions) of the European Convention
of Human Rights. The impact that this
change in Council policy might have on members of the taxi trade has been
carefully considered by officers.
Whilst there may be some interference with the rights of these people
this has to be balanced with rights of the Island community and visitors to
have access to any available taxi in any part of the Island. Insofar as there is an interference with the
rights of the trade it is considered appropriate for the protection of rights
and freedoms of the community as a whole.
It is also considered that such an action is proportionate to a
legitimate aim and in the wider public interest.
19.
If the Secretary of State authorizes dezoning the decision
cannot be reversed.
OPTIONS
20.
That a single taxi zone for licensing taxis on the Isle of
Wight be supported and that a formal submission to this effect be sent to the
Secretary of State at the Department of Transport.
21.
That no action be taken, and that the status quo of four
zones be retained.
EVALUATION/RISK
MANAGEMENT
22.
The Council has listened carefully to the views of
representatives of the Isle of Wight Taxi Association in the past and as a
consequence has approached the issue of taxi zoning with caution and
sensitivity. Insofar as the trade is
concerned this is a very important issue, principally because it has potential
financial implications.
23.
Although there have been delays with publication of
Government best practice guidance to local authorities about the taxi trade and
with the Regulatory Reform Order referred to in this report, it is clear that
the Office of Fair Trading, the Government, the Department of Transport and
Government Office for the South East believes that this Council should
dezone. Failure on the Council’s part
to take this step could impact on transport related grants. It is timely to consider this matter and on
Office of Fair Trading evidence would appear to be in the wider interest of the
general public.
|
RECOMMENDATION
24.
That a single taxi zone for taxi licensing on the Isle of
Wight be supported and that a formal submission to this effect be made to the
Secretary of State for Transport.
|
APPENDICIES
ATTACHED
25.
1) OFT
report “The regulations of licensed taxi and PHV services in the UK” Summary and Conclusions. (pages 1-9 of
report)
2) Extract from OFT report,
paragraphs 7.24 –7.27 “zoning within one licensing authority”
3) Government Response to OFT Report
Written Statement to Parliament 18 March 2004
4) Letter from David Cooper,
Deputy Transport Direct GoSE.
BACKGROUND PAPERS
26.
Report to Fire and Public Safety Select Committee 21 October
2002, and minutes.
27.
OFT Report “The regulation of licenced taxi and PHV services
in the UK”.
28.
Local Authorities (Functions and Responsibilities)
Regulations 2000.
Contact Points: John
Murphy, Principal Licensing Officer x 3152
email [email protected]
Rob Owen, Head of Consumer
Protection x 3388
email [email protected]
ROB
OWEN
Head Of Consumer Protection