Cabbies from York in the north to Chelmsford in the south are among the latest to face the threat of even more competition on the ranks.
York – Again
Back in 2008, York City Council met with storms of protest when it announced plans to completely abandon the limit on hackney taxi numbers. Fortunately, the Council was eventually persuaded to adopt a policy to release 15 new hackney taxi licences, followed by two more every six months.
Faced with the growing impact of recession the Council then agreed, last summer, to reconsider whether these periodic increases were still needed. However, licensing officers eventually decided to recommend that the taxi license growth policy should continue, arguing that it will benefit the local economy.
Taxi operators and drivers point to a recent study, carried out by consultants Halcrow, which showed that average passenger waiting times had dropped by several minutes, while the time taxis spent parked at the city’s ranks had risen.
According to taxi trade representatives, these findings provide clear evidence that there is no ‘un-met demand’ in the city. This in turn means that the Council is justified, under Department for Transport Guidelines, in maintaining a cap on license numbers. Taxi owners have therefore argued that there is no need to keep adding the two additional licenses, especially in view of the damaging effects of the recession on demand for taxis.
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However, taxi licensing officials’ report to the Council claimed that, since the issue of the new vehicle licences, there have been no complaints from the public about the over-provision of taxis, nor of a deteriorating service. It also noted that “There still remains a healthy trade in the sale of existing vehicle licences, which attract high premiums.”
The report concluded that controlled expansion of taxi license numbers will increase business opportunities, therefore supporting York’s economy and the Council’s goal of being a thriving city.
Challenge
Even more worryingly, Council taxi chiefs noted that they also face an official complaint made to the Local Government Ombudsman about the taxi license waiting list. This has been made by a long-standing hackney driver, who claims he was not given enough opportunity to reapply for a licence and has now dropped down the order.
Head of licensing, Richard Haswell, warned: “If the Ombudsman finds in the driver’s favour, we will have to re-examine our policy in its entirety, as he is not the only one who claims to be in that position.”
Effectively it seems that if the going gets tough, the Council may revert back to its original idea of complete deregulation of license numbers – with potentially ruinous consequences for everyone currently involved in the taxi business in York.
Chelmsford Dismay
Essex Protests
In Essex, Chelmsford Council responded to operators’ protests over the issue of new licenses by agreeing to hold a special meeting with stakeholders to hear their views on taxi provision in the borough.
The move met with a lukewarm response from taxi operators and drivers, who took protest action to underline their long-standing campaign to get the Council to stop issuing new taxi licenses until a survey to establish if there is any ‘un-met’ demand for taxis has been undertaken.
Terry Michel, chairman of the Chelmsford Taxi Association, responded by saying: “We’re holding a mass meeting of drivers to see what our next move will be.
“One of the councillors at the meeting did suggest a temporary freeze on issuing taxi licences, which we have asked for, but the committee was told this would be illegal.”
“It is open to challenge, but not illegal,” added Mr Michel.
Mr Michel said he feared the timescale following the review would be such that no decisions would finally be made until March 2011. He added: “If they have a review and an unmet needs survey – which is what we’re calling for – we could be looking at a final decision in March 2011, which will be too late for some drivers.”
Taxi operators’ protests included Saturday night strike action. Council taxi chiefs say the main objectives of the review will be to examine the number of taxis operating in the borough, review taxi provision and fare structures within Essex and identify the effects a policy of limitation may have on the taxi trade.
The council’s cabinet member for safer communities, Cllr Ian Grundy, commented: “The council constantly monitors the number of licences issued to taxi and private hire operators in the borough to ensure the shortage of taxis, as experienced before the limit on the number of taxis was removed in 2005, is not repeated.”
Trade Split
As the dispute escalated, splits began to emerge between taxi operators. With strike action threatened, a rival driver association – the Chelmsford Hackney Carriage Association – issued a statement saying members of the association had voted not to take part in any further withdrawal of taxi services and to continue to offer as normal a service as possible.
Chairman Gary Day commented: “We felt we didn’t have a voice and so the association was formed. There are about 30 in the group.
“We do agree there are too many taxis in Chelmsford – there is no disagreement there.
“We felt there was the need for another association but there is no animosity between us.”
But Mr Michel, on behalf of the existing taxi trade association, responded: “We’re disappointed they are not willing to take a stand. Sadly, they want to undermine us. It is a small splinter group.”