§ Mr. Maddenasked the Secretary of State for Transport what representations he has received from those who represent taxi proprietors about the consequences of deregulating taxis; what has been the main emphasis of such representations; and if he will make a statement.
§ Mr. David MitchellI have received many representations from the National Federation of Taxi Associations, its constituent bodies, and individual taxi proprietors opposing any curb on the powers of district councils to restrict arbitrarily the number of taxi licences. They are concerned that increased competition will reduce their earnings, result in the operation of lower quality vehicles and reduce the value of 'plates'. I have replied that quality licensing, will continue and that the purpose of taxi licensing, like that of other licensing systems, is to protect the consumer; and that it was never intended to provide a marketable asset for the benefit of the licence holder. I have indicated that I am prepared to consider applying the system currently employed in Scotland.
§ Mr. Maddenasked the Secretary of State for Transport what evidence he has to support his conclusion that the deregulation of taxis would result in a superior or cheaper service to the public.
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§ Mr. David MitchellArtificial restrictions in the supply of any commodity are inimical to the interests of the consumer. The fact that, because of their scarcity in some areas, these licences change hands for considerable sums indicates that, in such areas, there is an expectation of enhanced earnings resulting from an undersupply of taxis. The National Consumers' Council and the Consumers' Association support deregulation of taxi numbers.
§ Mr. Maddenasked the Secretary of State for Transport what inquiries he has undertaken about the impact of deregulation of controls on taxis in the United States; and what information he has received about the impact of such deregulation.
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§ Mr. David MitchellI have received reports which allege that deregulation in the way it was carried out in some cities in the United States of America has undesirable side effects. We have chosen a more measured approach.