Alan Tolley Senior Licensing Officer Sandwell MBC

Reforming Taxi and Private Hire Licensing

A Licensing Officer’s view 2 - tier system of licensing Confusing for the public ? Town Police Clauses Act 1847 Local Government (Miscellaneous Provisions) Act 1976 Cross border issues Local or national licensing? Integrating transport links Bringing the profession into the 21 st century The importance of retaining local control

2011 was a pretty good year ! The Kings Speech won the Oscars There was a Royal Wedding Estonia officially adopted the Euro Champions League Final at Wembley Late night levy and EMROs introduced Transport Select Committee report on the road to reform for taxis and private hire vehicles DFT ask Law Commission to review the law relating to taxis and private hire vehicles

Transport Select Committee Report ‘The Road to Reform’ July 2011 Key principles : Listen to the views of users Keep it simple Keep it local Tighter restrictions on cross border hirings Development of national standards Not in favour of Law Commission being involved Preferred Govt to work with users, the trade and local authorities to bring forward new legislation

Justification for Law Commission’s Proposals Taxis and private hire services are an essential part of the transport network Also an important part of the economy No significant reform of the main legal framework for at least 200 years A complex and fragmented licensing system Local decision-making results in a variable national picture Considerable difficulties in cross border enforcement Fundamental goal of protecting the public

So, what did we get? Retention of the 2 tier system Quantity controls to remain for taxis The trade in plates to continue Taxi radio circuits still not subject to licensing Taxis being ‘operated’ for private hire purposes in other areas Private hire still regarded in some way as a ‘lower’ standard than taxis Private hire vehicles to be ‘banished’ from the streets when not working Plying for hire v ‘there and then’ hirings

The argument put forward for the retention of the 2 tier system “It is our view that this structure promotes consumer choice and the provision of a wide range of services. Furthermore, the different ways in which taxis and private hire vehicles are engaged make different levels of regulation appropriate, so that a single system would lead to over or under regulation” There is a common misconception about how taxis and private hire operate north of the M25 In many areas 90% of journeys, by taxi or ph, are ‘pre-booked’ via a radio circuit

Comments from the consultation process Licensing Authorities (the Regulators) were largely in favour of a one tier system, on the basis that the current system is outdated and the distinction is purely historical. The National Association of Taxi Users noted that the speed with which consumers can book vehicles was blurring the distinction between the hail and rank sector and the pre-booked sector, and argued that the distinction would soon no longer be tenable.

Plying for Hire A statutory definition had been proposed It had ‘near unanimous’ support Widespread dissatisfaction with the lack of clarity New offence now of a ‘then and there’ hiring No real understanding of how private hire works Vehicles shouldn’t have to ‘hide’ until needed As long as the vehicle is ‘pre booked’ why should it matter? Does it impose an ‘artificial’ restriction on the PH trade? Enforcement won’t be any easier

Cross Border licensing Taxis may undertake pre-booked journeys anywhere in the country. We do not propose to change this Private hire operators should no longer be restricted to accepting or inviting bookings only within a particular locality ; nor to only using drivers or vehicles licensed by a specific licensing authority

Cross Border Licensing Taxis/Hackney Carriages Business pretty much as usual Still no licence needed by the ‘operator’ Fares may well differ from the area in which the taxi is licensed Taxis will be allowed to charge a booking fee on top of the fare Who will the public complain to? Existing case law remains largely in place Berwick / Newcastle situation to continue

Cross Border Licensing Private Hire Existing case law has been completely ignored What was illegal before would become ‘lawful’ Operators able to operate wherever they like Any combination of operator, vehicle or driver can be used What happened to the will of Parliament about keeping it ‘local’? It will effectively be a ‘national’ licensing regime with local authorities being asked to ‘mop up’ the problems caused by those licensed elsewhere

North Tyneside v Shanks Could an operator operate in any district provided he had obtained a licence authorising him to operate in one district? “that would, in my view, drive a coach and horses through what appears to me to be a central principle of the legislation, which is that authorities responsible for the granting of licences should have the ability to exercise full control over the operation of private hire vehicles within their area”

Enforcement Powers to stop vehicles to check compliance Powers to impound vehicles for ‘touting’ Touting is not a major issue outside London Fixed penalties for minor offences Dealing with ‘out of town’ vehicles and drivers Suspending or revoking out of town licences and proposing sanctions to the ‘home’ authority Drivers who have been refused a licence in one area still able to work in that or another area

Enforcement Powers to ‘stop’ out of area vehicles Is a Primary Authority role envisaged? Who will be responsible for enforcement? Common standards a good thing? Fixed penalties Penalty points systems New powers to impound vehicles Where do enforcement costs come from?

Law Commission’s Recommendation 9 Local authority ‘stopping’ officers should have new powers to require licensed vehicles to move on where the officer considers that: a) there is a reasonable likelihood that the public may believe the vehicle is available for immediate hire b) the vehicle is causing an obstruction to traffic flow, or c) the driver is attempting to take work away from ranked taxis

What do National Standards mean for the ‘fit and proper’ test? 12 months or 2 years driving experience Minimum age of 21 Ability to drive Enhanced criminal record checks? Medical fitness Knowledge test Literacy and numeracy/ability to speak English Right to live and work in the country Disability awareness training Awareness of child sexual exploitation

We’ve been here before … Select Committee Report 1994 : National 2 tier system of licensing National minimum criteria for suitability Prohibit the use of ‘taxi’ and ‘cab’ by private hire Drivers to speak English and be trained in disability awareness Abolish numerical controls over a 10 year period All radio circuits to be licensed Drivers to be at least 21, with 3 years driving experience and a clean licence

Localism... just words? Power should belong at the lowest level Government does not have a monopoly of wisdom Strong local government has a vital role to play Too much central government interference in the affairs of local authorities Ministers must reign in their interventionist instincts for localism to be credible Nationally elected politicians should not be denied the right to express their opinion on matters which affect public life, including decisions made by local authorities Central Government cannot have it both ways

Deregulation Bill Allow private hire operators to sub-contract bookings to operators in another district Allow anyone to drive a private hire vehicle when it is ‘off duty’ Standard duration of 3 years for driver licences 5 years for private hire operators Government involvement in licence conditions Information gathering exercise from trade Will this affect our powers to attach conditions?

Additional measures proposed by the Department for Transport ‘we want to consider the case for Government involvement in the licence conditions set by local authorities’ ‘we will give licensing authorities the opportunity to explain why they consider the conditions to be important and necessary’ ‘we will weigh up the case for changing the law in such a way as to qualify local authorities’ powers to attach conditions to licences’ So much for localism then?

Could some of the Law Commission’s recommendations have been included in the Deregulation Bill ? The term ‘hackney carriage’ to be replaced by ‘taxi’ (4) Operators required to give an estimate of the fare (6) Powers for local authority ‘stopping officers’ (9) All drivers to undergo disability awareness training (62) Extending the power to suspend licences immediately on grounds of public safety, as is the case in London (76) Licensing officers able to take enforcement action against out of area licensees, but ‘Home Authority’ principle to remain? (77) Operators knowingly passing bookings to unlicensed businesses to be guilty of an offence (14)

What do we want the future to hold ? Harmonisation between the 2 trades National ‘minimum’ standards for all licences LA2003 and GA2005 the ‘model’ for the future A national ‘operators’ licence Dispatchers to hold a personal licence Licences to last indefinitely Subject to review, suspension or revocation Annual maintenance fee to cover compliance Powers to review licences

Rewiring Licensing Existing legislation is inconsistent, fragmented and outdated Clear licensing objectives to be set out in statute Statutory obligation to have a local policy A single licence for each business A licence for life? LA2003 / GA2005 setting the model A simpler administrative approach Local flexibility and accountability must be at the heart of any future framework, ie: Keep it simple Keep it local