BOROUGH OF POOLE

LICENSING COMMITTEE

7 APRIL 2010

PROPOSED TAXI FARES INCREASE AND ADOPTION OF A FARES CALCULATION FORMULA

PART OF THE PUBLISHED FORWARD PLAN: NO

  1. PURPOSE

1.1To consider the requests received from the Poole Taxi Trade for an increase in maximum Hackney Carriage fares and to changes in the start time for Tariff 2 (Unsocial Hours).

1.2To consider the suggestions received for formulas to calculate fare increases in future years.

  1. DECISION(S) REQUIRED
2.1It is recommended that Members consider the introduction of the following changes as proposed by the taxi trade:-

A)An increase in the maximum Hackney Carriage Fares for 2010 – 3 different options have been received from the trade.

B)A change to the tariff times so that Tariff 2 (Unsocial Hours) starts earlier at either 23:00 hours or 23:30 hours instead of midnight.

C)The introduction of a specific formula for calculating changes in fares – three options have been received from the trade.

  1. BACKGROUND/INFORMATION

3.1Taxis are an integral part of the area’s public transport network. The Borough of Poole has the power to regulate the maximum fares that may be charged for taxis. The setting of fares for hackney carriages is governed by the Local Government (Miscellaneous Provisions) Act 1976.

3.2Requests for changes to the maximum hackney carriage fares must alwaysoriginate from the Trade itself. Previously these requests have been considered by the Transportation Advisory Group (TAG). However, following discussions with the Portfolio Holder for Delivering Major Projects (including Schools for the Future) and Transportation and the Portfolio Holder for Protecting the Environment, in consultation with the Head of Legal and DemocraticServices, it was agreed that this item will now be considered by the Licensing Committee as it falls within its Terms of Reference.

3.3A report was produced for the TAG in 2009 detailing proposals for changes to fares received from the trade. This report was withdrawn at the review stage following concerns from the Portfolio Holder for Delivering Major Projects (including Schools for the Future) and Transportation that there was insufficient evidence to justify the proposed 5% increase and other changes to tariffs.

3.4 To help facilitate the process of calculating fares increases the trade were requested to adopt a formula for calculating future changes in fares. Once agreed, this could be applied annually and would allow changes to be readily justified and introduced on an agreed date. However, the trade did not resubmit a formal application and therefore no increase was advertised in 2009.

3.5 In January 2010, the Taxi Licensing section received a request from the taxi trade that they wished to discuss changes tofares. A specific Fares Forum was arranged and representatives of all aspects of the trade were invited to attend. Unfortunately, despite three such meetings no single proposal for a fares increase for 2010 has been agreed. The taxi licensing section has subsequently received three different options for fares increases, based on 3 different formulas, and 2 requests for a change in the times for Tariff two (unsocial hours rate). A summary of the current fares and the proposed increases is attached as Appendix A. Details of the formulae are attached as Appendices C, D & E.

3.6 Consultation

To gauge support for the different options to increase maximum faresand changes in times for tariff two, hackney carriage proprietors and metered private hire operators were contacted in writing and asked to indicate their support. 65% of theHackney Carriage owners responded, representing50of the 78vehicles. The results wereweighted according to the number of vehicles operated by each respondent. The result of this survey was as follows:

Survey of Hackney Carriage Vehicle Owners
Question / %
For / %
Against / %
No Response
1 / Do you think that there should be an increase in fares at this time? / 56% / 8% / 36%
2 / Which of the fares increase proposals would you support?
Option 1
Option 2
Option 3 / 9%
18%
35%
3a / Would you support a change in the times for Tariff 2 to start earlier in the evening? / 46% / 18% / 36%
3b / If yes, would you support a change to
Tariff 2 to run from 23:30 to 06:00
Tariff 2 to run from 23:00 to 06:30 / 11%
36%

3.7As can be seen from the above table, 56% of hackney owners were in favour of an increase in fares at this time and the preference was for Option3. Appendix B shows the current fares and three proposed options for Poole in comparison to neighbouring Local Authorities and other Councils in the South.

3.8Only46%of hackney carriage ownerswere in favour of changes to Tariff 2 times, with a preference for it to run from 23:00 hrs to 06:30 hrs. This would produce asignificant increase in the cost of journeys taken between 23:00 hours and midnight at the Option 3 rate, shown in the table below.

Effect on introducing Option 3 Tariff 2 rates on the cost of Journeys taken between 23:00 hrs & midnight
Current Cost / Proposed Cost / Increase - £ / % Increase
1 Mile / £3.35 / £4.88 / £1.53 / 46%
2 Miles / £5.27 / £7.45 / £2.18 / 41%
3 Miles / £7.19 / £10.02 / £2.83 / 39%
5 Miles / £11.03 / £15.16 / £4.13 / 37%

3.9The 30 private hire companies with metered vehicles were asked the same questions as above and the responses were weighted according to the number of vehicles on their circuits. Twelve companies responded representing 165 of the 201 vehicles. The results showed a 60% preference for an increase in fares, with 52% preferringOption 2, 27% for Option1 and 3% for Proposal 3. There was a 74% response against a change to Tariff 2 times.

3.10If the introduction of one of the options is agreed by the Licensing Committee, the new rates and changes would be advertised in the press for written objections for further consideration by the Head of Transportation Services. The revised fares would potentially be introduced in May 2010.

3.11 Formula Proposals

To simplify the calculation of fares changes in the future, the taxi trade was asked by the Portfolio Holder for Delivering Major Projects (including Schools for the Future) and Transportationto adopt a fares change formula. Such a formula should aim to include elements directly relevant to the taxi trade, and be easily verifiable and understandable. A number of other areas (including Bournemouth) already use such a formula withcombinations of factors such as changes in national wage levels, RPI, licensing fees and the cost of motoring. These are generally readily verifiable national indices, such as the AA cost of motoring and theOffice for National Statistics' Annual Survey of Hours and Earningsand are combined to calculate an overall percentage change in costs which can be applied to taxi fares.

3.12Three options for formulae have been received from the trade and these were used to calculate the suggested fares increases already considered in this report. The details are attached as Appendices B, C & D andthe members of the trade who have put forward these proposals have been invited to attend the Licensing Committee to explain their formulae.

  1. FINANCIAL IMPLICATIONS

4.1.Changes to taxi fares must be advertised in the local press. This will cost approximately £600 for which a budget is available.

  1. LEGAL IMPLICATIONS

5.1Objections may be received when the proposed changes are advertised. These would be considered by the Head of Transportation Services.

6.RISK MANAGEMENT IMPLICATIONS

6.1None

7.EQUALITIES IMPLICATIONS

7.1According to a MORI survey, taxis and private hire vehicles are used more frequently by disabled people (on average 67% more than non-disabled people). In addition disabled customers use these services differently and are more likely to use them for essential actives such as shopping and medical appointments.

8.CONCLUSIONS

8.1Members are asked to consider which, if any, of the options for an increase in fares for 2010 should be advertised and whether there should be a change in the times that Tariff 2 is applied.

Members are also asked to considerwhich, if any, of the options for a formula to calculate future fares increase should be adopted.

Julian McLaughlin

Head of Transportation Services

Appendix A - Comparison of Proposals for Maximum Hackney Carriage Fares Increase

Appendix B - Comparison of Hackney Carriage Maximum Fares with Other Local Authorities

Appendix C – Formula Option 1

Appendix D – Formula Option 2

Appendix E – Formula Option 3

Report Author: Karen Fry

Contact officer: Karen Fry

Background Papers:

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