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Session 1997-98
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Arrangement of Clauses (Contents)

Private Hire Vehicles (London) Bill
 
 EXPLANATORY AND FINANCIAL MEMORANDUM
 
     This Bill provides for the regulation of private hire vehicles and their drivers and operators in London.
 
     Clause 1 defines the terms "private hire vehicle", "operator" and related expressions.
 
     Clauses 2 to 5 provide for the regulation of private hire vehicle operators in London. Each London private hire operator is required to have an operator's licence issued by the Secretary of State. The licence must specify the operating centres at which the operator can accept bookings. Clause 4 provides that a London operator must secure that the vehicles provided by him to fulfil a booking are either vehicles for which there is in force a London private hire vehicle licence and are driven by a person holding a London private hire vehicle driver's licence or are London cabs driven by a person holding a London cab driver's licence
 
     Clauses 6 to 11 provide for the regulation of private hire vehicles in London. Clause 8 specifies the obligations of the owner of a London licensed private hire vehicle. Licensed vehicles may be subject to spot checks by virtue of clause 9 for the purpose of ascertaining the fitness of the vehicle. Clause 10 provides that for the purposes of identification a vehicle licensed under the Bill must display a disc or plate issued by the Secretary of StateClause 11 makes provision about the testing of taximeters for those vehicles which are fitted with them.
 
     Clauses 12 to 14 provide for the regulation of private hire vehicle drivers. Clause 12 prohibits the driving of a private hire vehicle on a road in London unless the driver holds a private hire vehicle driver's licence. Clause 13 provides for the application and grant of London private hire vehicle drivers' licences. Under subsection (3) of this clause, the Secretary of State may require applicants to show that they possess an appropriate level of knowledge of London and of general topographical skillsUnder subsection (4), the Secretary of State may require a criminal record check to be made on an applicant for a private hire vehicle driver's licence. Clause 14 provides that licensed private hire vehicle drivers must wear an identification badge issued by the Secretary of State.
 
     Clauses 15 to 29 contain general provisions in respect of licences granted under the Bill. Clause 17 gives the Secretary of State power to suspend or revoke a licence. Clause 24 provides for the delegation of the administrative functions of the Secretary of State. It is presently intended to delegate the functions to the Public Carriage Office on a similar basis to their regulation of London cabs. Clauses 25 and 26 make provision about appeals
 
     Clauses 30 and 31 relate to the prohibition of certain signs from vehicles in London and of certain advertisements relating to the hire of vehicles.
 
     Clauses 32 to 40 are miscellaneous and supplemental provisions, Schedule 1 contains minor and consequential amendments and Schedule 2 provides for repeals.
 
 Financial effects of the Bill
 
     There are no records of how many operators, drivers or vehicles there are in the London private hire vehicle industry. It is accordingly difficult to predict how many will be licensed once the Bill comes into force. It is estimated that the overall annual cost of administering and enforcing the new law will be about £4 million (roughly twice the cost of regulating London cabs).
 
     It is intended that all continuing costs of administering the licensing system will be met from fees charged under the Bill. If the Public Carriage Office exercise the licensing functions of the Secretary of State the exercise of those functions will not result in any significant increase in public expenditure. It is possible that some expenditure in relation to start-up costs will be incurred by the Secretary of State, and some of this expenditure may not be met by fees charged under the Bill.
 
 Effects on public service manpower
 
     The Bill is not expected to have any significant effect on public service manpower.
 
 
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© Parliamentary copyright 1998
Prepared 16 January 1998