Turning Circle in a Spin

14/09/2009

               A High Court ruling under European free trade laws could have wide-ranging implications for the black cab trade.

For decades the old-fashioned ‘turning-circle’ has helped preserve a virtual monopoly for Coventry-based cab maker London Taxis International (LTI).  However the new court judgement opens the way for cabbies in cities like Liverpool, Manchester and London to enjoy a wider choice of vehicles for operators and passengers.

In a case brought against Liverpool City Council, Mr. Justice Blake found that the turning circle requirement infringes European law on the free movement of goods by restricting the use and sale of Cab Direct’s E7 black cab. 

Purpose-built by Cab Direct in conjunction with Peugeot, the E7 hackney taxi is already sold across 95% of the UK’s licensing authorities. 

Quashed

Mr Justice Blake found that the restriction on use of the E7 taxi is contrary to Article 28 of the European Community Treaty.  He also ruled that the Council had acted contrary to the Disability Discrimination Act 1995.  Given that the E7 operates successfully across most of the UK without difficulty, the judge found that the restriction was not justified on safety grounds. 

He ordered that Liverpool’s decision be quashed; that the Council reconsider licensing the E7 taxi; and that it pay Cab Direct’s legal costs. 

Legal experts now expect that the few remaining licensing authorities which still apply ‘London conditions’ will need to review their own taxi licensing policies and practices, in light of the ongoing discrimination under both UK and EU law highlighted by the Liverpool judgement.

The High Court ruling – which looks set to sweep away the turning circle requirement for good – also provides a further headache for already hard-pressed LTI.  It was noticeable that a senior LTI advisor was present throughout the court hearing and was seen to be actively briefing Liverpool City Council’s legal team, despite the fact the case had no direct impact on the licensing of LTI’s cab.

Over the past nine years Cab Direct has fought successfully for the right to sell its cabs across most of the UK.  Earlier this year Nottingham became the latest major conurbation to welcome the E7, joining the likes of Birmingham, Leeds, Leicester, Sheffield, Newcastle, Bristol, Cardiff, Southampton, Portsmouth, Belfast and Glasgow. 

Cab Direct finally gained access to the UK’s second largest black cab market, Edinburgh, in 2006 and last year outsold LTI, taking 58% of the new cab market in the Scottish capital.  The potential implications of a similar outcome in London, which represents more than 70% of LTI’s business, are self-evident.

Discrimination

In addition to improving choice and competition for the taxi-buying cabbie, the High Court ruling could well be good news for tens of thousands of wheelchair users living in the remaining ‘London conditions’ markets. 

Liverpool City Council was also found to have breached the Disability Discrimination Act (DDA).  In a landmark judgement the Court found that, contrary to the Council’s claims, its existing hackney taxi fleet – composed mainly of LTI’s ‘London-style’ cabs – was not safely accessible to all wheelchairs.  By failing to take steps to improve matters by licensing the E7 - which has a larger flat floor area for manoeuvring and securing wheelchairs - the Council had failed in its legal duty and discriminated directly against a significant number of wheelchair users.

A delighted Gerry Facenna, chairman of Cab Direct, commented: “All we’re seeking is freedom of choice for taxi owners and our right to compete on a level playing field across the UK. 

“It seems ridiculous that we’ve had to go all the way to the High Court to fight our way through red tape but hopefully the end is now in sight and we look forward to the competitive challenge ahead.” 

Facenna added that the news raises hopes of a further expansion of manufacturing jobs at the company’s 300-strong manufacturing plant. 

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