EAST RENFREWSHIRE COUNCIL LICENSING COMMITTEE. 24 January Report by Chief Solicitor

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1 37 AGENDA ITEM NO. 11 EAST RENFREWSHIRE COUNCIL LICENSING COMMITTEE 24 January 2013 Report by Chief Solicitor CIVIC GOVERNMENT (SCOTLAND) ACT 1982 TAXI FARES REVIEW PURPOSE OF REPORT 1. For the Committee to review taxi fares. RECOMMENDATIONS 2. The Licensing Committee is asked to consider the terms of this report and to:- a. Propose new scales for the hire of taxis in East Renfrewshire and all other charges in connection with the hire of a taxi or with the arrangements for its hire (whether at altered rates or the same rates). b. Authorise the Principal Solicitor to publish those proposed scales in a newspaper circulating within East Renfrewshire:- (i) (ii) (iii) (iv) (v) Setting out the proposed scales, Explaining the effect of the proposed scales, Proposing a date on which the proposed scales are to come into effect and Stating that any person may make representations in writing until the relevant date (as defined in Section 17 of the Act) To authorise the Chief Solicitor to prepare a further report on any such representations received by the Council for the consideration of the Licensing Committee or, in the absence of any such representations to fix the scales and give further notice in accordance with the Act with delegation to set out, and explain the effect of, the scales as fixed and to set the date on which the scales as fixed are to come into effect.

2 38 BACKGROUND 3. The Civic Government (Scotland) Act 1982 ( the Act ) provides that the licensing authority must fix scales for the fares and other charges made in the connection with the hire of a taxi or with the arrangements for its hire. 4. In fixing scales, the licensing authority may:- a. alter fares or other charges, b. fix fares or other charges at the same rates 5. Before fixing fares or other charges, the licensing authority must review the scales in accordance with Section 17 (4A) of the Act. 6. In carrying out a review, the licensing authority must:- a. Consult with persons or organisations appearing to be, or to be representative of, the operators of taxis operating within its area, b. Following such consultation (i) (ii) review the existing scales, and propose new scales (whether at altered rates or the same rates), c. Publish the proposed scales in the newspaper circulating in this area - (i) (ii) (iii) (iv) setting out the proposed scales, explaining the effect of the proposed scales, proposing a date on which the proposed scales are to come into effect, and stating that any person may make representations in writing until the relevant date, and d. Consider any such representations. 7. Legal Services wrote to every holder of a taxi licence within East Renfrewshire and has therefore complied with paragraph A above. Four replies were received each requesting an increase in fare.

3 39 REPORT 8. The setting of taxi fares is not an exact science but guidance given to Councils by the Traffic Commissioner states that Councils should attempt to calculate the changes and costs that taxi operators face. The current Best Practice Guidance issued by the Scottish Government refers to guidance issued by the Secretary of State in 1982 the public interest is better served by ensuring that the maintenance of an adequate taxi service by giving the trade a fair return, than by depressing fares for social reasons, however understandable. 9. The four suggested fares received from existing licence holders are attached in Appendix The last increase in taxi fares in East Renfrewshire was in According to a report by Edinburgh City Council, the Transport Research Institute concluded that the costs of operating a taxi had risen by 10.55% in the three years from 2008 to Additionally officers from that Council carried out their own detailed analysis of costs which suggested an increase in operating costs of 13.5% over the same period. The Committee is therefore asked to consider an increase of approximately 10% across the various East Renfrewshire tariffs. Appendix 2 is a copy of the existing tariff and Appendix 3 is a copy of the proposed new tariff. The Committee is also requested to consider the following amendments to the tariff:- (i) (ii) The existing tariff 3 and tariff 4 provide for different rates over the Christmas and New Year public holiday period depending on the time of day. Most other local authorities in Scotland do not operate two separate tariffs during this period and, in the interest of clarity for the public, the Committee is requested to consider a single tariff for this period in Appendix 4 which is an average of the proposed new tariff (3) and tariff (4). If the Committee is not minded to make this amendment then it is suggested that the Committee considers the existing double Christmas and New Year tariff proposal at Appendix 2. The present distance for a flag fall is yards with subsequent payments for every yards. It is again submitted that this is not a user friendly measurement and that the use of 1 mile and 1/10 of a mile would be preferable. This is reflected in the new tariff at Appendix 2. Should the Committee prefer the existing arrangement then the equivalent figures can be substituted.

4 40 (iii) The soiling charge, sometimes referred to as a cleaning charge, varies from Council area to Council area. Some areas will refer to the soiling charge to being payable in the event of specific soiling only and a small amendment in wording is proposed in Appendix 2. It is not proposed that the soiling charge be increased as the existing charge is already at the higher end of charges across Scottish Local Authorities. For example, the soiling charge in Glasgow is 23. (iv) For vehicles licensed to carry more than 4 passengers again there is a slight amendment to the existing wording in the tariff for the Committees consideration (see Appendix 3). The Committee may also wish to consider the existing uplift in the tariff of 50% and propose to change the additional charge using one of the option below (or any other options) if considered appropriate. Option (i) Option (ii) Option (iii) Leave the existing 50% uplift of total fare in place Cap the 50% uplift at a maximum of 5 or some other figure Fixed uplift, e.g. 1 per passenger or Option (iv) Apply another percentage of total fare uplift (v) (vi) A request has been received to introduce credit and debit card payment machines for taxis. When these machines are used in private hire vehicles, an administrative charge of 1 is made. This charge cannot be made when a machine is fitted to a taxi as it does not appear on the tariff. The ability to make a similar charge does appear in other tariffs throughout Scotland and sometimes the charge is substantially greater based on a percentage of the fare. The Committee is therefore requested to consider the introduction of a 1 charge for credit and debit card payments. It is suggested that the wording regarding fares outwith East Renfrewshire should be deleted as unnecessary.

5 Private Hire and Taxi monthly magazine maintains a league table showing a level of taxi fares applying in all UK local authority areas. At present, East Renfrewshire is 345 th out of 361 authorities and joint last of all the Scottish local authority areas. East Renfrewshire fares are below the national and Scottish averages and an increase should be considered. 12. For example, a fare of 4.40 in East Renfrewshire compares with a national average for the same fare of FINANCE AND EFFICIENCY 13. The carrying out of fare reviews is incorporated within the taxi licensing budget and recovered through application fees. EQUALITIES IMPACT 14. Some may argue that an increase in taxi fares would impact disproportionately on the elderly and disabled in that they may rely on taxis particularly for shorter journeys than general users. In May 2011, the Scottish Traffic Commissioner considered this point as part of an appeal in relation to Dundee s taxi fares. The Commissioner was not persuaded that the interest of a small, albeit important, sector of taxi users should prevent an increase in fares in that case. It is therefore concluded that the Committee s decision on a fare review cannot take such arguments into account. CONSULTATION 15. The licensing section has consulted directly with every holder of a taxi vehicle licence and has considered the practices and tariffs of several local authorities within Scotland for benchmarking purposes. CONCLUSIONS 16. The Licensing Committee is therefore asked to consider the terms of this report and review the fares for the hire of taxis in East Renfrewshire. 17. It should be noted that it is now a Statutory requirement to review fares at least once every 18 months. RECOMMENDATIONS 18 The Licensing Committee is asked to consider the terms of this report and to:- c. Propose new scales for the hire of taxis in East Renfrewshire and all other charges in connection with the hire of a taxi or with the arrangements for its hire (whether at altered rates or the same rates).

6 42 d. Authorise the Principal Solicitor to publish those proposed scales in a newspaper circulating within East Renfrewshire:- (i) (ii) (iii) (iv) (v) Setting out the proposed scales, Explaining the effect of the proposed scales, Proposing a date on which the proposed scales are to come into effect and Stating that any person may make representations in writing until the relevant date (as defined in Section 17 of the Act) To authorise the Chief Solicitor to prepare a further report on any such representations received by the Council for the consideration of the Licensing Committee or, in the absence of any such representations to fix the scales and give further notice in accordance with the Act with delegation to set out, and explain the effect of, the scales as fixed and to set the date on which the scales as fixed are to come into effect. REPORT AUTHOR Report by: Chief Solicitor, Gerry Mahon, Tel: gerry.mahon@eastrenfrewshire.gov.uk Report author and further information from: Joe Abrami, Principal Solicitor, joe.abrami@eastrenfrewshire.gov.uk Tel: , Licensing Committee Convenor Councillor Tommy Reilly, tommy.reilly@eastrenfrewshire.gov.uk Tel: KEY WORDS Civic Government (Scotland) Act 1982 Taxi licence, licensing, taxi tariff, taxi fare review.

7 43 APPENDIX 1 OPTION 1 Tariff 1 Tariff 2 Tariff 3 Tariff 4 Raise Flagfall to 3.50 for the first mile. All other charges to Raise Flagfall to 4.00 for the first mile. All other charges to Raise Flagfall to 5.25 for the first mile. All other charges to Raise Flagfall to 6.00 for the first mile. All other charges to Additional Charges to remain the same. OPTION 2 Tariff 1 Tariff 2 Tariff 3 Tariff 4 Raise Flagfall to 3.30 for the first mile. All other charges to Raise Flagfall to 3.90 for the first mile. All other charges to Raise Flagfall to 5.00 for the first mile. All other charges to Raise Flagfall to 6.00 for the first mile. All other charges to Additional Charges Waiting time increase to OPTION 3 Tariff 1 Soil Charge increase to Reduce yardage to retain 2.80 flagfall but in fact increase to Increase mileage to 1.50 from 1.40 Tariffs 2, 3 & 4 in line with tariff 1 Additional Charges no change. OPTION 4 Tariff 1 Tariff 2 Tariff 3 Tariff 4 Raise Flagfall to 3.30 for the first mile. All other charges to Raise Flagfall to 3.80 for the first mile. All other charges to Raise Flagfall to 5.00 for the first mile. All other charges to Raise Flagfall to 5.75 for the first mile. All other charges to Additional Charges no change.

8 44 APPENDIX 2` Taxi Licence No: Make & Model: Vehicle Reg No: Name(s) of Operators: Operator s Licence Valid Until: EAST RENFREWSHIRE COUNCIL Maximum Fares For The Exclusive Hire of a Licensed Taxi Effective from 1 August 2008 JOURNEYS MADE WITHIN EAST RENFREWSHIRE TARIFF 1 For Journeys beginning after 6.00am until midnight. (1) For a distance not exceeding ( yards), or waiting time not exceeding 8 minutes (2) For each additional and subsequent (125.7 yards) or part thereof, or additional waiting time of 26 seconds TARIFF 2 For Journeys beginning after midnight until 6.00am. (1) For a distance not exceeding ( yards), or waiting time not exceeding 8 minutes (2) For each additional and subsequent (125.7 yards) or part thereof, or additional waiting time of 26 seconds TARIFF 3 For Journeys beginning after 9.00pm until midnight on 24 & 31 December, and from 6.00am until midnight on 25 & 26 December and 1 & 2 January. (1) For a distance not exceeding ( yards), or waiting time not exceeding 8 minutes (2) For each additional and subsequent (125.7 yards) or part thereof, or additional waiting time of 26 seconds TARIFF 4 For Journeys beginning after midnight until 6.00am on 25, 26 & 27 December, and on 1, 2 & 3 January. (1) For a distance not exceeding ( yards), or waiting time not exceeding 8 minutes (2) For each additional and subsequent (125.7yards) or part thereof, Or additional waiting time of 26 seconds ADDITIONAL CHARGES (1) Where a taxi has been arranged, but not used by the hirer, the applicable tariff will apply. (2) Waiting time (per hour) (3) Soiling Charge a fee is chargeable for any soiling which necessitates a taxi being removed from service for cleaning (4) For vehicles able to carry more than 4 passengers on those occasions where more than 4 passengers are carried the fare will be Tariff plus 50%. JOURNEYS MADE OUTWITH EAST RENFREWSHIRE Such a fare, prior to the acceptance of the hire, may be proposed to the hirer and accepted by him. These are the maximum fares that may be charged by any licensed East Renfrewshire Council Taxi. Any complaints should be submitted in writing to the Licensing Section, East Renfrewshire Council, Eastwood Park, Rouken Glen Road, Giffnock, G46 6UG.

9 45 APPENDIX 3 Taxi Licence No: Make & Model: Vehicle Reg No: Name(s) of Operators: Operator s Licence Valid Until: EAST RENFREWSHIRE COUNCIL Maximum Fares For The Exclusive Hire of a Licensed Taxi JOURNEYS MADE WITHIN EAST RENFREWSHIRE Effective from 2013 TARIFF 1 For Journeys beginning after 6.00am until midnight. (1) For a distance not exceeding 1 mile, or waiting time not exceeding 8 minutes (2) For each additional and subsequent 1/10 th of a mile or part thereof, or additional waiting time of 36 seconds TARIFF 2 For Journeys beginning after midnight until 6.00am. (1) For a distance not exceeding 1 mile, or waiting time not exceeding 8 minutes (2) For each additional and subsequent 1/10 th of a mile or part thereof, or additional waiting time of 36 seconds TARIFF 3 For Journeys beginning after 9.00pm until midnight on 24 & 31 December, and from 6.00am until midnight on 25 & 26 December and 1 & 2 January. (1) For a distance not exceeding 1 mile, or waiting time not exceeding 8 minutes (2) For each additional and subsequent1/10 th of a mile or part thereof, or additional waiting time of 36 seconds TARIFF 4 For Journeys beginning after midnight until 6.00am on 25, 26 & 27 December, and on 1, 2 & 3 January. (1) For a distance not exceeding 1 mile, or waiting time not exceeding 8 minutes (2) For each additional and subsequent 1/10 th of a mile or part thereof, Or additional waiting time of 36 seconds ADDITIONAL CHARGES (1) Waiting time (per hour) (2) Soiling Charge (3) For vehicles licensed to carry more than 4 passengers on those occasions where more than 4 passengers are carried the fare will be (option to be decided). These are the maximum fares that may be charged by any licensed East Renfrewshire Council Taxi. Any complaints should be submitted in writing to the Booking office for this taxi or Licensing Section, East Renfrewshire Council, Eastwood Park, Rouken Glen Road, Giffnock, G46 6UG.

10 46 APPENDIX 4 SINGLE CHRISTMAS AND NEW YEAR TARIFF TARIFF = pm on 24 December to Midnight on 26 December and 9pm on 31 December to Midnight on 2 January TARIFF 4 Deleted