§ Mr. BendallTo ask the Secretary of State for Transport whether he has concluded his review of taxi and private hire car legislation; and if he will make a statement.
§ Mr. PortilloLast year the Department of Transport completed an internal review of taxi and private hire vehicle legislation for England and Wales. My predecessor invited comments from the taxi and PHV trades, licensing authorities and consumer bodies on problems and possible solutions. Specific areas for discussion included the distinction between taxis and hire cars, vehicle design, knowledge examinations, quantity control and fares. I am most grateful for all the responses sent to the Department; we have studied all of them very carefully.
The Transport Act 1985 introduced changes outside London designed to increase business opportunities and to limit the restrictions on entry into the taxi trade. I am disappointed that some district councils still appear to be rationing the issue of taxi licences, which distorts competition and interferes with the operation of a free market. The Act clearly states the exceptional circum stances in which quantity control may be considered, and licensing authorities should look very carefully at all evidence on supply and demand, not least the price at which existing licences change hands, before restricting the issue of licences. I believe that more time should be allowed for the new opportunities introduced by the 1985 Act to develop, and I have concluded that it is too early to propose further legislation. I would also remind applicants for licences that the 1985 Act already makes provision for appeal to the courts against unreasonable decisions by a licensing authority, and I am not convinced that the full scope of action in the courts has yet been explored.
In the case of London, it has become clear that the high standards of service and propriety offered by taxis are highly valued by respondents and the public. London passengers enjoy a quality of service based on purpose-built vehicles developed to enhance driver and passenger comfort. Their roadworthiness and cleanliness are ensured by standards set by the Public Carriage Office, and drivers must pass through rigorous driver testing. I therefore do not propose to legislate to change the present arrangements concerning the black cab or the knowledge of London examination. Neither do I intend to alter the present distinction between the taxi and hire car trades.
Since 1980, the fares chargeable by London taxis have been adjusted by reference to an index of cost changes in the previous year. This index reflects the movement of earnings and the range of costs involved in cab ownership and operation, including replacement parts, garaging and servicing, fuel, insurance, depreciation etc. In line with the movement in that index last year, from 9 June 1989 the maximum fares chargeable by London taxis will increase by an average of 11.1 per cent. This rise takes into account, among other things, the increase in quality of new taxis coming into service and higher costs associated with the requirement that new taxis be accessible to passengers in wheelchairs. I have today made an order increasing London taxi fares with effect from Friday 9 June 1989.