The dreaded Law Commission appears to have come to its senses, at least in terms of removing its threat to ban quantity restrictions on taxi license numbers.
Like many other respondents to the Commission’s consultation, Cab Direct argued that removing limits on numbers was a guaranteed route to ruining the local taxi trade – resulting in an erosion of service standards for cab users.
Taxi Threat
Cab Direct chairman, Gerry Facenna, commented: “Too many cabs chasing too few taxi customers is a recipe for disaster for the hard-working cab trade.
“Deregulation has already been seen to have a detrimental impact on the trade in many areas and it’s important that local authorities have the discretion to set a sensible limit on the number of hackney taxis required in their area.
“I’m pleased that our evidence on this key point, together with many other submissions, appears to have helped persuade the Law Commission to change tack on license numbers.”
Green Light for Taxi License Caps
The Commission initially proposed abolishing the right of licensing authorities to restrict the number of taxis permitted to operate in an area. Now it says it’s convinced that the benefits of change are outweighed by the advantages of continuing to allow restrictions.
The Commission says it accepts that restrictions can have a place in combating congestion and over-ranking and supporting a viable taxi trade to maintain high standards. It also says it has found no compelling evidence that de-restriction reduces fares or has a significant effect on waiting times.
Plate Values
The Commission will recommend that areas, where numbers of taxis are now limited, should be able to retain their traditional ‘plate value’ systems. If new areas regulate numbers, however, licenses would not be transferrable, preventing plate values from accruing.
A Law Commission spokesperson said: “The legal framework governing the taxi and private hire trades is complex and inconsistent. The purpose of our review is to improve and simplify it and ensure it is fit for its purpose.
“We listened to a great many people during our consultation – drivers, operators, licencing authorities and passengers. They convinced us that the trade and its passengers will benefit if licensing authorities continue to have the power to limit taxi numbers.”
The Commission is halfway through its review and expects to make final recommendations for reform to the Government at the end of the year. In light of the consultation, which brought in more than 3,000 responses, it has reached a number of other early decisions on what it will recommend, including:
•Applying a national set of standards for mini-cabs
•Introducing compulsory disability discrimination training for all drivers
•Making it a licence condition that drivers should not discriminate against disabled passengers.
Disability groups, however, argue that access training for taxi drivers is of little practical use if a passenger’s wheelchair does not fit properly in the cab. Drivers may also be placed in an impossible position if they are, on the one hand, required to accommodate wheelchair users but, on the other, are unable to do so safely.
Turning Circle Bias?
The Commission’s recently released ‘interim statement’ says nothing about free-market choice for cab owners in the handful of licensing areas which still cling to the antiquated ‘turning circle’ requirement. Taxi owners in these areas pay thousands of pounds more, on average, for a new cab than those in every other part of the country.
The fact that the Law Commission so far appears unwilling to challenge the vested interests which seek to cling on to the turning circle perhaps comes as little surprise. Although the Commission is supposed to be an independent and impartial body, Frances Patterson, the Law Commissioner leading its taxi review, was the QC who unsuccessfully sought to defend the turning circle at the High Court in London. Her client, Liverpool City Council, lost a Judicial Review brought by Allied Vehicles and Alma Lunt.