Select Committee on Deregulation Second Report


ANNEX (continued)

Letter from the Chairman of the London Taxi Board to the Clerk of the Committee

DRAFT TAXI AND PRIVATE HIRE VEHICLES DEREGULATION ORDER

The London Taxi Board represents over 90% [of] the drivers, owners and manufacturers of the London Taxi trade. Members of the Board are the Joint Radio Taxi Association, London Motor Cab Proprietors' Association, Licensed Taxi Driver's Association, London Taxis International, Metrocab and the Transport and General Workers' Union. More than 23,000 licensed taxi drivers operate in London ensuring that more than 2 million passenger journeys are completed each week. The licensed taxi trade is proud of its long history of public service, and worldwide reputation for high standards of customer service and safety.

We noted with interest the two draft orders that the Department of the Environment, Transport and the Regions put forward to the Deregulation Committee last month.

NORTHERN IRELAND DRIVING LICENSES

The proposal to recognise Northern Ireland driving licenses as qualifying towards a taxi or private hire vehicle drivers' license would seem entirely reasonable. An anomaly has existed for a number of years and this would seem an opportune means by which to rectify this strange irregularity. The Board fully supports the Department's proposal on this issue.

RAILWAY SUBSTITUTION SERVICES

The proposal to allow private hire vehicles to be used for railway substitution services concerns the London Taxi Board as it would compromise current standards of customer safety, reliability and accessibility in London - thereby removing 'necessary protection'.

Disabled Accessibility

There is a requirement for all London's licensed taxis to be wheelchair accessible by the year 2000. At present more than 70% of the fleet is wheelchair accessible and this ensures that the disabled will have full access to our vehicles. This piece of legislation was implemented on the basic principle that disabled people should have equal access to all forms of transport services - specifically without having to make special arrangements. Private Hire Cars are not required to meet such criteria. It is not anticipated that they should have to, even when licensed in London.

Passengers on a train do not have a choice - they have to accept the service which is given by the train operating company, ie the situation is analogous to when a customer hails a cab in the street - and they should therefore be able to expect the highest reasonable levels of safety. The principle when providing a railway substitution service is thus equivalent to the requirements for plying for hire.

We understand that the Government is due to stipulate that all new trains and buses should also be 100% wheelchair accessible, taxis have already been regulated in this fashion. As the entire integrated transport network becomes 100% wheelchair accessible it would seem to be a backward step in necessary protection to allow railway substitution services to utilise a non accessible means of transport.

It seems unreasonable to impose a 100% wheelchair accessible fleet on the licensed taxi industry in London and then jeopardise one of its key market segments. The Disability Discrimination Act was specifically amended so that those who are disabled need not worry with regard to the availability of a transport service. This order would remove that guarantee should a train be terminated between stations. This would appear to go against the principle and intentions of the Disability Discrimination Act.

Passenger safety

The licensed taxi industry is highly regulated and has a world renowned reputation for providing a safe and reliable service to all customers. All drivers in the industry are required to undertake training which involves a criminal record check, a medical, a rigorous topographical examination (the knowledge) and a driving test to police standards - if private hire cars are licensed in London it is unlikely that they will be required to meet all these rigorous standards. The safety of the public who have no choice of service is an important requirement and it would be compromised should this order be implemented in its current format.

The well publicised physical attacks which those utilising minicabs have suffered in recent months should not be allowed to also threaten those who originally intended to travel by rail, but whose service has been terminated.

Topographical training

Licensed taxis are required to undertake intensive topographical training. Minicab drivers in London may not be required to undertake such rigorous training and as a result would be unable to safely, reliably and quickly transfer passengers in the event of a rail substitution requirement. Passengers, already late due to a rail failure, should be able to reach their destination as soon as is feasible - licensed taxis are clearly able to do this - private hire cars without parallel standards of training would be unable to do so.

Furthermore, rail passengers stranded short of their final destination may not be able to guide a minicab to its ultimate destination, as they may not have detailed knowledge of the area.

London issues

Although this will not affect London until minicabs are licensed (we are supporting Sir George Young's Private Member's Bill to do so) we believe that this legislation should not be amended in any circumstances prior to the licensing of London's Private Hire trade.

GOVERNMENT CONSULTATION DOCUMENT - BOARD'S COMMENTS

Point 4.6

In explaining the rationale behind the order the Department, whilst referring to journeys outside the District in which taxis are licensed, stated that '[for a private hire car] a fare can be established in advance; the contract being made at the time of booking.' This is also the case for licensed taxis - contracts already exist with the train operating companies, airports and corporations establishing agreed fares (which are often below the meter fares) with licensed taxi operators in London.

When travelling outside their licensed areas the agreed fare for a journey is made in advance - in the same way in which a private hire fare is agreed.

Only when plying for hire can a licensed taxi refuse a fare that goes outside of the metropolitan area and only providing the driver has good reason to do so. Rail substitution services are provided by the radio circuit taxi industry and thus are booked for the job by telephone. Drivers who provide the service are therefore committed to the destination.

Healthy competition already exists and charges are set at appropriate levels commensurate with passenger safety, economy and government policy on wheelchair accessibility. The train operating companies place substitution services out to competitive tender.

Point 4.7

Benefits exist only if the issue is reduced to the lowest common denominator - cost savings. However, passengers already bear the costs of training, safety and accessibility when they use trains, buses or licensed taxis now, or in the future.

The Board would like to see the Department's evidence to justify the statement that 'allowing private hire vehicles to be used in this way is unlikely to make any financial difference to taxi drivers.' It will be impossible for the licensed taxi industry in London to compete with the private hire industry, who do not carry the running costs inherent with accessible vehicles, fully trained drivers and PCO inspections etc, etc.

We are currently assessing the financial impact on the licensed taxi industry and will advise the Committee of our findings as soon as possible.

However our case is fundamentally based upon principle rather than finance.

The principle being that customers utilising rail substitution services do so involuntarily and are a completely random cross section of the community who have no choice in the type of substitution service chosen by the operating company. These principles form the basis of the regulation of the licensed taxi trade in London and operating conditions and costs imposed upon it by the Government. It cannot be reasonable or in public interest to make an exemption in this instance.

Point 4.9

The Departmental consultation document stated that there was nothing in the order which has the effect of removing or reducing necessary protection.

However, it is clear that necessary protection would be removed from passengers - as they would not be guaranteed the necessary levels of safety or accessibility that they currently enjoy.

CONCLUSION

We believe that the current rail substitution regulations provide passengers with necessary protection and ensure that customers reach their intended destinations as safely and as quickly as is possible. The Board feels that this order would remove this protection and potentially put the travelling public at risk.

Our proposal is that, at the very least, London be exempted from the order at this time. The issue of its application in London should be addressed once the conditions of licensing minicabs in London is confirmed in legislation. Only at that time will it be possible to judge its effect on passengers and the licensed taxi trade.

This order goes against the established principle of Government policy of ensuring a comprehensive wheelchair accessible transport network.

I enclose an executive summary of our main points. In our haste to make a representation to the Committee we have not yet been able to provide full substantiation for every point and would welcome an opportunity to give oral evidence.

We have not doubt that, if asked, those who use rail services in London would view this order as a removal of a protection and service they currently benefit from in the event of having to use substitution services.

  

LONDON TAXI BOARD'S POSITION
EXECUTIVE SUMMARY

We oppose the proposal for private hire cars to be used as railway substitution services because necessary protection would be removed as:

  • Licensed taxis in London can cater for disabled passengers due to statutory requirements to be 100% wheelchair accessible by the year 2000, private hire cars are not currently anticipated to be required to comply with such criteria.

  • Passengers on a train do not have a choice - they have to accept the service which is given by the train operating company. This situation is directly comparable to when a customer hails a cab in the street - and they should therefore be able to expect the highest reasonable levels of safety and accessibility. The principle when providing a railway substitution service is thus equivalent to requirements for plying for hire.

  • We understand that the Government is due to stipulate that all new trains and buses should also be 100% wheelchair accessible, taxis have already been regulated in this fashion. As the entire integrated transport network becomes 100% wheelchair accessible it would seem to be a backward step in necessary protection to allow railway substitution services to utilise a non accessible means of transport.

  • Standards of passenger safety would be at risk due to the uncertainty as to whether private hire car drivers, when licensed in London, will match the standards currently expected of London's licensed taxi drivers.

This order would not give the necessary protection to consumers if applied and specifically would be premature in London, where the conditions under which the minicab industry will operate have yet to be determined. It should be reconsidered after the issue of licensing London's private hire cars has been resolved, and dependant on a requirement for wheelchair accessibility for all private hire cars.

Our proposal is that, at the very least, London be exempted from the order at this time. The issue of its application in London should be addressed once the conditions of licensing minicabs in London are confirmed in legislation. Only at that time will it be possible to judge its effect on passengers and the licensed taxi trade.

7 January 1998



 
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