Select Committee on Deregulation Second Report


ANNEX (continued)

Letter from the Head of Buses and Taxis Division, Department of the Environment, Transport and the Regions to the Clerk of the Committee

I should say at the outset that the order, as proposed, would make it clear that the Train Operating companies (TOCs) and the British Railways Road (BRB) had the ability to use licensed private hire vehicles (PHVs) as well as taxis and buses. The order is an enabling provision only, putting no obligation on TOCs to use PHVs. If a TOC considered in a particular case or in general, that the needs of its passengers would best be served by buses or taxis, then the order would not in any way prevent it from using them.

The Committee asked whether any guarantees of accessible transport for disabled passengers are given by rail companies at present. I am advised that TOCs do welcome disabled passengers, and are committed, in their Disabled Peoples' Protection Policy Statements, to making improvements to stations and trains to make rail travel easier. The Railways Act 1993 placed a duty on TOCs to have regard to the needs of disabled people. The Rail Regulator is responsible for policing that duty, and each one has to submit a Disabled Persons Protection Policy to the Regulator for approval.

However, the TOCs are under no specific obligations to make special arrangements for disabled passengers if train services are disrupted. In those circumstances, TOCs are required by their Franchise Agreement to use reasonable endeavours - having regard to safety and cost - to provide alternative transport for all their passengers. I enclose a copy of the relevant part of the "agreement template" - that is, the standard form on which the Franchise Agreements were based.

There is thus no specific guarantee that accessible public transport will be made for disabled passengers in the event of an interruption or discontinuance of a train service at present. However, I understand that there is to be a review of the Rail Regulator's Code of Practice on meeting the needs of disabled people which will begin shortly and we will ask the ORR to address this issue in the review. At present the Code simply recommends that disabled people be advised of any planned disruptions at the time of booking.

For the future, however, regulations under the Disability Discrimination Act 1995 will apply mandatory standards of accessibility to trains. That statutory requirement may well also apply to provisions made for alternative transport if train services are disrupted.

The Committee also asked why consultation was not undertaken with organisations representing disabled people. The Department originally saw the issue as essentially one of increasing the supply of road passenger vehicles to train companies, for the general benefit. It is perhaps worth pointing out that some accessible vehicles are licensed as PHVs, and although the majority of PHVs are not accessible, the same is true of taxis at present.

However, once it became clear that there were concerns about possible implications for disabled people, the proposal was discussed at some length by the DPTAC taxi committee. DPTAC are, of course, the Department's statutory advisers on disability issues. DPTAC expressed no overall view on the matter.

As to representations about cover by licensed taxis the draft order had its origins in a complaint from a TOC. It felt it was being overcharged by some taxi drivers, because the cost of a taxi for a journey in one direction was markedly higher than for the other direction. (Once a taxi leaves the area for which it is licensed, the fare is not legally determined by what is shown on the meter.) The intention of the order is to enable TOCs to call upon a wider range of vehicle operators to meet their requirements, and thus possibly keep prices more stable by introducing an element of competition.

It is perhaps worth adding that when a TOC arranges for a road service to substitute for a train service, it will mostly use buses, simply because that is the most economical way of moving quantities of passengers by road. (The transport provisions of the Disability Discrimination Act extend to buses and coaches, and regulations will be introduced to ensure that in future those vehicles are fully accessible.) Taxis tend to be used where only small numbers of passengers are involved.

As to the supply of taxis, in many places the number of taxis licensed is strictly limited by the local licensing authority. It was considered in principle reasonable that a TOC should be able to call upon the services of the usually greater number of licensed PHVs.

The Committee asked about the relative safety of taxis and licensed PHVs with particular reference to checks on criminal records for applicants for drivers' licenses. It is the responsibility of the licensing authority to ensure that the people they licence are "fit and proper" (in the words of the Local Government (Miscellaneous Provisions) Act 1976) for the task, and the Department therefore does not have precise details for every local authority. But all our information indicates that the only difference between the two licences is that some local authorities require a different topographical knowledge test for taxi drivers as compared with PHV drivers. There would be no difference on matters such as criminal record checks.

The Committee raised the question of the use of unlicensed drivers for PHVs. It is in fact a criminal offence for unlicensed drivers to drive licensed PHVs, and it is a requirement of the Local Government (Miscellaneous Provisions) Act 1976 that a licensed driver shall wear a badge, so that the matter may easily be checked by passengers among others. Any evidence of unlicensed drivers being used by operators of PHVs can be sent to the licensing authority so that action can be taken against both the offending driver and the operator. It is not clear to the Department that the use of licensed PHVs by TOCs would increase the risk of passengers being carried by unlicensed drivers.

The Committee also enquired about relative standards of maintenance of taxis and PHVs where both are licensed. As mentioned in the Explanatory Memorandum, the responsibility for licensing these vehicles rests with the appropriate local licensing authority. Again, the information available to the Department indicates that each licensing authority requires the same standards of maintenance for both the taxis and the PHVs it licences. There may be in principle differing standards between authorities, but of course all taxis and private hire vehicles are required to meet the appropriate roadworthiness standards prescribed by law for cars and other motor vehicles. Taxis and PHVs will be tested against these standards in MOT tests, although it is common for local authorities to require both taxis and PHVs to be tested more often than a private car, because of the relatively high mileages they run.

As to insurance, all motor vehicles, including taxis and PHVs, have to have a minimum of third party insurance, which to be valued has to cover their hire and reward activities. In the case of PHVs the Local Government (Miscellaneous Provisions) Act 1976 requires licensing authorities to be satisfied that there is in force a policy of insurance (or security) complying with the legal requirements before they issue a PHV licence. There is no equivalent provision in the case of taxis, but Councils are able to require an insurance policy to be produced before they issue a taxi licence.

The Committee asked which councils outside London do not licence PHVs. The only licensing authority in England and Wales not to do so is Broxbourne, although I understand that a few Scottish authorities do not exercise their licensing power in some rural areas.

There is one final point of which perhaps the Committee should be aware. The provisions of section 4A of the Transport Act 1962, which the order would amend, refer to the British Railways Board. The powers of the BRB are now concurrently exercisable by the Director of Rail Franchising, by virtue of section 47 of the Railways Act 1993, but although the Board exists, it no longer operates passenger train services. However, there is some uncertainty as to the extent to which the limitations of the Board's powers under section 4A bite on the TOCs, so some TOCs may consider themselves able to use PHVs anyway.

In conclusion, it might be helpful if I were to repeat that the Order would only be enabling rather than mandatory. It would increase the options open to TOCs in arranging replacement services, but would leave the choice with the TOCs. In the light of the overall policies, the order would not override any statutory obligations to which the TOCs were subject, and would permit the use of only licensed PHVs, which would thus be subject to all the relevant local authority safety checks.

Relevant section of "agreement template" annexed to letter

8.2  Disruptions to Passenger Services

    (a)  In the event of a disruption to the Passenger Services the Franchise Operator shall use all reasonable endeavours to provide or secure the provision of such alternative transport arrangements as are reasonably feasible (having regard to safety and cost) such that passengers who would otherwise have travelled on the Passenger Services are transported by such alternative transport to (or as near as reasonably practicable to) the end of their intended journeys on the Passenger Services.

    (b)  Where any Passenger Services are required to be cancelled or delayed or short formations are required to be operated, the Franchise Operator shall use all reasonable endeavours to ensure that any such cancellations, delays or short formations are not concentrated on a particular route on which the Passenger Services are operated save where such concentration either:

    (i)  would be in the overall interest of passengers using the Passenger Services and would not result in disproportionate inconvenience to any group of passengers; or

    (ii)  is reasonably necessary as a result of the cause or the location of the cancellation, delay or short formation.

13 January 1998


 
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