TWELFTH REPORT
4th February 1998
By the Select Committee appointed
to report whether the provisions of any bill inappropriately delegate
legislative power, or whether they subject the exercise of legislative
power to an inappropriate degree of parliamentary scrutiny; to
report on documents laid before Parliament under section 3(3)
of the Deregulation and Contracting Out Act 1994 and on draft
orders laid under section 1(4) of that Act; and to perform, in
respect of such documents and orders, the functions performed
in respect of other instruments by the Joint Committee on Statutory
Instruments.
PROPOSAL FOR THE DRAFT
DEREGULATION (TAXIS AND PRIVATE
HIRE VEHICLES) ORDER
1998
Introduction
1. The draft order[1]
which was laid before the House of Lords on 9 December 1997 relates
to two separate issues linked only by their connection with taxis
and private hire vehicles. The Department consulted about four
proposed changes of which only two featured in the draft order
which was laid before Parliament. These were to:
(i) permit the use
of licensed private hire vehicles as well as taxis and buses when
train services have been discontinued;
(ii) recognise driving licences
issued in Northern Ireland as meeting part of the qualifications
required for a licensed taxi or private hire vehicle driver in
England and Wales.
Consultation
2. The Department
of Transport opened consultations on four proposals on 16 October
1996, requesting replies by 13 December 1996. The Department received
80 replies by the due date, of which 48 referred to the proposal
that licensed private hire vehicles should be able to be used
for substitute rail services, and 21 referred to the Northern
Ireland driving licence proposal. All the responses on the Northern
Ireland part of the proposal were in favour, and the Committee
considers that part of the consultation entirely satisfactory.
3. The same can
not be said about the consultation on the part of the proposal
relating to substitute train services. The Department received
48 substantive responses concerning this proposal, 27 in favour
and 21 either against or with reservations. The Department's consultation
list focused on licensing authorities, the railway operating industry
and taxi and private hire vehicle interests.
4. To the Committee's
surprise, no passenger group was included in the Department's
consultation list. This was curious on two grounds. First, such
groups might have been expected to have a view to express on the
question of the maintenance of necessary protection under the
proposal. Second, the explanatory memorandum suggested that "the
main beneficiary [of the proposal] may well be the public which
gets a better service",[2]
again without consulting any of the Rail User Groups to see whether
they thought that this would be the case.
5. The Committee's
initial discussion of this aspect of the proposal therefore focused
on the issue of the maintenance of necessary protection for passengers,
particularly that of potentially vulnerable groups of passengers,
including women and disabled people (who might not be easily accommodated
in private hire vehicles). In the light of the limitations of
the Department's consultation list it invited a number of organisations
to submit written evidence on this subject. These responses are
printed in the Annex to this report.[3]
6. One of those
whom the Committee invited to submit evidence was the Office of
the Rail Regulator. The letter dated 16 January which the Committee
received from the Director, Passenger Services Group of that Office
concluded that the proposal would have no practical effect and
therefore no necessary protection would be lost as a result. This
letter prompted the Department to review the need for the proposed
order relating to private hire vehicles being used for substitute
rail services. On 28 January - seven weeks after the proposal
for the draft order had been laid before Parliament - the Committee
received notification that the Minister had decided not to proceed
with this aspect of the proposal.
7. In the Committee's
view, the Department's preparation of the substitute rail services
part of the proposal provides a catalogue of mistakes for Departments
to avoid in future. First, the extent of the Department's consultation
was inappropriately limited, concentrating on licensing authorities
and those with a vested business interest in the supposed burden
which the proposal might remove and not focusing on user groups.
Secondly, the Department's legal advice at the time that the proposal
was laid before Parliament appears not to have been up-to-date.
The Committee considers that in the circumstances the Department's
decision not to proceed further with this part of the proposal
was the best course of action for it to take.
8. The remainder
of this report concentrates with the single remaining proposal,
dealing with the recognition of driving licences issued in Northern
Ireland.
Burden
9. The explanatory
memorandum explains that the proposed change would remove a burden
on people who wish to become taxi or private hire vehicle drivers
in England (outside London) or Wales and who now hold Northern
Ireland car driver licences. They would no longer have to wait
12 months before they can be given a taxi or private hire vehicle
driver licence. In addition, any taxi owner or radio circuit owner
who wished to employ such a person would be able to do so as soon
as the licensing authority granted the necessary licence or licences,
and there would not have to be a delay of at least 12 months.[4]
10. The Committee
is satisfied that the Northern Ireland part of the proposal would
reduce a burden.
Consultation
11. As outlined
in paragraph 2 above, all the responses on the Northern Ireland
part of the proposal were in favour. The Committee is satisfied
that there was adequate consultation on the Northern Ireland part
of the proposal.
Necessary protection
12. The Committee
agrees with the Government's view that nothing in the Northern
Ireland part of the proposal "would remove or reduce necessary
protection. A licensing authority will still be required, under
both sections of the Local Government (Miscellaneous Provisions)
Act, to satisfy itself that "the applicant is a fit and proper
person to hold a driver licence"."[5]
The Northern Ireland part of the proposal would bring provincial
areas into line with London and Scotland where there is no such
barrier.
13. The Committee
does not consider that the Northern Ireland part of the proposal
raises any difficulties in the maintenance of necessary protection.
Recommendation
14. The Committee
is satisfied that the Northern Ireland part of the proposal for
the Draft Deregulation (Taxis and Private Hire Vehicles) Order
1998 meets the requirements of the Deregulation and Contracting
Out Act 1994 and is appropriate to be made under it. We accept
the Government's decision to amend the proposal to delete the
part relating to substitute train services, and consider that
this decision, which was taken following evidence submitted to
this Committee, shows that consultation on this part of the proposal
was inadequate.
Request for evidence
The Committee requests submissions
in writing no later than Monday 16 February on the following proposal
for a draft deregulation order laid before the House on the date
shown. Copies of the proposal and accompanying Explanatory Memorandum
are available to Peers from the Printed Paper Office-
Draft Deregulation (Methylated Spirits Sale by Retail) (Scotland) Order 1998
(26 January 1998)
1 The proposal was laid before Parliament in the form of a draft of the Order and an explanatory memorandum from the Department of the Environment, Transport and the Regions. Back
2 Explanatory memorandum paragraph 1.6. Back
3 The Committee also received a number of written submissions on the Department's original consultation document, including matters which were not included in the proposal laid before Parliament. These have not been printed. The Committee is grateful to everyone who submitted evidence, whether printed or not. Back
4 Explanatory memorandum, paragraph 2.5. Back
5 Explanatory memorandum, paragraph 2.7. Back
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