National Taxi Association

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Report from Cranfield Univercity

(please Note the following report in pdf format click file and open)

Review of Taxi Accessibility Regulations:Effects of Compliance',

RESTRICTED - POLICY & COMMERCIAL

Forecast of changes in the taxi parc

Roadsense

NATIONAL TAXI ASSOCIATION STATEMENT
IN RELATION TO RECENT LOCAL AUTHORITY DECISIONS
TO DE-LIMIT HACKNEY CARRIAGE NUMBERS

The National Taxi Association are concerned at the number of Local Authorities that are choosing to de-limit hackney carriage numbers throughout the country.

For many years, it has been the NTA view that the question of de-limitation is best dealt with on a local basis. Only at that level can the specific requirements of an area be reliably ascertained. Each area has differing needs. A policy that would suit a large city would obviously be out of place in a rural district. This approach was vindicated last year when the Government announced their view of the Office of Fair Trading report into taxis and private hire vehicles. The main outcome was that the Government effectively agreed with the view of the NTA and agreed that Local Authority control should remain.

The NTA, when looking at the issue, has believed that undersupply of taxis is just as bad as oversupply. It is the taxi user that ultimately suffers from a poor service. This is obviously not good for the trade, the local authority and, above all, the taxi user.

However, as an association, the NTA believes that local authorities, when considering the issue of supply and demand, should readily consider the guidance issued by the Department for Transport.

It is the opinion of the NTA, and it is believed to be beneficial to all concerned, that local stakeholders views should be given fair and proper consideration during any deliberations. It is only through the correct consultation and consideration of the facts that local authorities will arrive at a decision that is supportable. That is what the government seem to be looking at and what they are asking local authorities to do is to consider the position and to justify a policy of limitation of numbers if that is what is thought appropriate in a particular area. That is not the same as saying that Local Authorities are encouraged by the Government to de-limit. This seems to be a construction that has been put on the Government guidance and it is a construction that us simply not to be found within that document.

In the opinion of the NTA a Local Authority that issues taxi licenses without due consideration of the effects of doing so are not acting as responsibly as might be wished. On the other hand, those who choose not to issue licenses when there are good grounds for doing so would be equally culpable. The decisions made by the local authorities should be based on the factual material that is before them. It should be borne in mind that the policy of blanket de-limitation has been specifically rejected by the Government in considering the OFT recommendations.

In the view of the NTA, a local authority should regularly consider its licensing policy. That is what the government guidance suggests. Their objective should be to work with the trade to produce a situation that is best for the travelling public. To suggest that such an objective would be met by simply de-limiting on all occasions is logically unsustainable especially in light of the Government guidance that has been given and in the Government rejection of the core proposal of the OFT which was, of course, blanket de-limitation.

The Directors of the National Taxi Association

RESPONSE BY DIRECTORS OF
NATIONAL TAXI ASSOCIATION
TO OFFICE OF FAIR TRADING
REPORT

The National Taxi Association (NTA) is by far the longest established of all bodies that represent the taxi trade in general. It has always had a constitution dealing with the rights of the members and, since its subsequent incorporation, its memorandum and articles continue to fulfil that function.

Over the years the NTA has not spent a good deal of time blowing its own trumpet but it would seem appropriate, at this time, to comment on recent happenings in relation to the report of the Office of Fair Trading (“OFT”) into the taxi trade. The OFT Report is an extremely substantial one. The Report was effectively looking at three matters all essential to the trade:

Far and away the most important of these three items was, of course, the question of deregulation. Putting it simply, the OFT were looking to create a situation where all Local Authorities would be obliged to issue as many Hackney Carriage licences as any one wished to seek. The result of this would have been quite disastrous to the taxi trade but, more to the point, it would have been disastrous to the public. What the NTA anticipated was a taxi trade that would become of a “part time” nature. Experienced taxi drivers would find it difficult to continue to make a living against the influx of new licences and would therefore be left in a position where they might well be forced to take on other employment. That would be a very unfortunate situation as, effectively, experienced drivers would be replaced by drivers who might not have any particular experience. Moreover to make money, owners would have to work at the busiest! times leaving little cover at many other times.

The NTA provided a response to the report of the OFT. That report was said, before the House of Commons Select Committee, to have cost some £250,000. It was a formidable document but it was possible to show that the report was statistically flawed in that no proper evidence had been produced that cities which had deregulated were producing shorter waiting times for journeys. Indeed the figures provided by the OFT seem to suggest quite the contrary!

The key legislation here, of course, is Section 16 of the Transport Act 1985. Effectively the OFT were trying to overturn this. What that Section effectively does is to create a situation whereby Local Authorities could refuse to grant additional licences if they were not satisfied that there was significant unmet demand. It was therefore possible for a person who believed that there was such demand and who was refused a licence to challenge the Local Authority under the Act. The reverse was not the case. It was not possible for any one within the taxi trade who felt that no further licences should be issued to challenge the Local Authority under this legislation. The route to doing that was effectively judicial review which, from an economic point of view, was effectively a non-starter. When this sort of challenge has been mounted, Local Authorities have generally instructed Counsel at a senior level and created a situation where the trade, in challenging them, were priced out of the market.

Be that as it may, the view of the NTA has always been that the status quo in these matters should be retained. The NTA sees no reason for any change in the legislation and thus is at variance with some other bodies apparently representing the taxi trade.

Whereas the NTA believes that changes in the law relating to taxis are needed simply because these matters continue to be governed by Acts passed as long ago as 1847 and 1976, it is the belief of the NTA that the present legislation in relation to taxi numbers is perfectly adequate.

NTA would certainly acknowledge the contribution made by others who made representations to the Government and who, like the Chairman and the Secretary of NTA, Dennis Conyon and Tim Gray, appeared before the House of Commons Select Committee. They believe, however, that some of those representations were, to an extent, misguided.

There appeared to be an effort to use the response to the Report of the OFT which related to competition issues only, as a method of looking at whether there should be new legislation in taxi matters generally. That was, of course, inappropriate.

Another view put forward related to the fact that it was perceived that surveys should be undertaken by Local Authorities and that the result of those surveys should be pivotal in deciding what Local Authorities should do. In fairness, the final recommendations of the Government do anticipate surveys being carried out on a regular basis. One wonders who is going to pay for them. We think we all know.

On the question of surveys, where the NTA differ from other groups is that they believe that, whereas surveys may be useful in some respects, they should not be the sole governing factor. Local Authorities are aware of all of the matters that have to be taken into account in their areas in deciding whether numerical restrictions should be imposed. It is always going to be the case that surveys will reveal that there are relatively short periods of time on a Friday and a Saturday night when it is more difficult to obtain a taxi than at other times. That can hardly be the basis of issuing a large number of new plates when, at other times, they are going to be virtually redundant.

The NTA has always believed that the question of vehicle specification was best dealt with at local levels. Really it has to be. Areas differ in their terrain and their topography and although the requirements of wheelchair users, in particular, need to be considered, these matters are best dealt with by Local Authorities perhaps with the guidance of the Department of Transport and the organisations representing the disabled.

In relation to pricing structures, the view that the NTA have taken is that the legislation at the present time makes it perfectly possible for Hackney Carriage drivers to charge less than the recommended tariff. What they cannot do is charge more. The public are thus already protected in that regard.

The role of the NTA in bringing about the present result whereby the OFT recommendation that their be complete deregulation in all areas, has been rejected has been of crucial importance.

The trade will be aware that the government are asking Local Authorities to consider the question of numerical restrictions and to justify their reasons for restricting the number of taxi licences issued. They are also to:

a) Commission effective surveys to measure demand including latent demand for taxi services. How one ever measures latent demand is a moot point.

b) Consult with those involved in the market in deciding what steps to take.

The NTA is a consultee of the Government on most transport matters and all matters involving the taxi trade. The NTA has good relations with the Department of Transport and the specialist advisers in that Department. These relations are of considerable benefit to the trade because it is always possible to talk constructively to the officers concerned about matters relating to taxis. This is based upon the fact that consultation has always been the order of the day rather than confrontation. The NTA does not support the general principle of demonstration which can often alienate key persons. What the NTA have found over a period of more than 40 years is that their approach has yielded much better results than the more aggressive approach that is advocated by some others representing the taxi trade.

Dennis Conyon is the Chairman of the NTA. He has been a taxi driver for 40 years and is a member of Maidstone Taxi Proprietors Association which is affiliated to the NTA. He was chairman from 1985 to 2002.

He has been an executive of the NTA for 12 years and Chairman for the last 7 years. He and his other directors have been actively involved in numerous meetings with the Department of Transport and other government officials on matters relevant to taxis and amongst other things has:

a) Represented the NTA on the D.P.T.A.C. Taxi Committee where the framework for the relevant provisions of the 1995 Disability Discrimination Act relating to taxis was set up.

c) Been involved in the response to the OFT Report mentioned above and appeared as a witness of the Transport Committee of the House of Commons on 28 January 2004 which Committee, of course, rejected out of hand the representations of the OFT in relation to numerical restrictions.

In addition the directors of the NTA, as well as contributing substantially, as mentioned, to the successful representations against the OFT report have been consulted upon and have had substantial input into all legislation involving taxis over the past 40 years and particularly the relevant provisions of the Local Government (Miscellaneous Provisions) Act 1976 and the Transport Act 1985.

The NTA does, of course, need and welcome new members. The view that it takes is that it is critical that there is a cohesive body representing the entire taxi trade. It is not beneficial to the taxi trade to have a number of organisations who may have different policies and who do not therefore generate one comprehensive policy. Of course the NTA would seek only to fix its policy as a result of the democratic processes within it where its members will vote on resolutions which will then be adhered to by the NTA.

The NTA holds its AGM in London, usually in October. The Transport Minister and other relevant parties are always invited. Last year Tony McNulty accepted an invitation and was the key speaker. This is indicative of the status of the NTA at Government level.

Such is the apparent apathy in the taxi trade that it has been found that a large number of taxi drivers do not even know what has been going on in relation to the OFT. They certainly would have known what was going on had the representations made by the OFT been implemented. There is no cause however for any further apathy. The Government have made it clear that they expect the whole issue of numerical restrictions to be re-visited in three years time. The OFT are unlikely to give up their efforts to release those restrictions although it is difficult for the NTA and its members to see on what basis it will ever be in the public interest to do so.

If you are a taxi proprietor or driver or in any way engaged in the taxi trade then the NTA would be pleased to speak to you about membership. Although other organisations will aspire to the level of consultation with the Government presently enjoyed by the NTA it is self-explanatory that such status has been enjoyed by the NTA for many years. There are so many issues affecting the taxi trade from time to time that it is imperative that a united front is maintained. If the trade think that these issues can be dealt with without action on the part of its members then they are mistaken. The only way forward is to join the leading association representing the taxi trade. The cost against the benefits enjoyed is minimal.

Wayne Casey
National Taxi Association
Infirmary Street
Newtown
Carlisle
CA2 7AA.

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