Taxi Trade

(Limited Text - Ministerial Extracts only)

Tuesday 18th July 2017 Westminster Hall

[The Minister of State, Department for Transport (Mr John Hayes)]

Prejudice gets a worse name than it deserves. Burke said that prejudice

“engages the mind in a steady course of wisdom and virtue and does not leave the man hesitating in the moment of decision sceptical, puzzled, and unresolved.”

I seek, I strive, I emule to little more than to match the prejudice of the hon. Member for Ilford North (Wes Streeting), whom I congratulate on securing this debate, in his advocacy of the importance of London black cabs. They add quality to our kingdom and are symptomatic of the best of British and emblematic of its capital’s character. The hon. Gentleman should be aware that in anything I subsequently say that is my starting point. We can be proud of our London cabs and should be hesitant about anything that endangers their future, which is certainly not the Government’s intention.

The hon. Gentleman is right to point out that in recent years the taxi and private car hire market has experienced very significant change. That has been particularly true in our capital city. My suspicion is that it is not the end of a process but the beginning. I suspect that we will see continuing change as the ways in which people communicate and acquire services change. He said that it was important not to be stuck in the past. I spend a good deal of my life wishing that I could be, only to be dragged to the present by imperatives and drawn to the future, seduced by the promise of improvement and opportunity. Nevertheless, it is right to say that, whether we like it or not, changing communications are likely to mean that the services provided to us—in this case, by private hire vehicles and taxis—will change too. That does not mean that we should allow ourselves to be seduced—to use the word a second time in a short debate—by the Whiggish idea of progress. It is not true that all technological change is beneficial, and it is not true that all the alterations that the hon. Gentleman set out are likely to add to the quality of what is provided to people in London and elsewhere.

Let me now address some of the specifics in the excellent all-party group report and congratulate the whole of that group on producing it. It is clear to me that we share a common aim: open, safe and fair competition in the taxi and private hire car market. There will be a debate—a proper discussion—about how we can achieve that objective, but it is one to which we can all sign up. I am reassured that in the report there is an appetite to continue to encourage the best of the trade and to seek out ways to improve what is not as good as it should be.

As the hon. Gentleman argued, the Government are responsible for the legislative framework within which licensing authorities set their own standards and requirements, so have an important role to play, but those licensing authorities must play their part too. I will come back to that point, which was raised by the hon. Member for Dagenham and Rainham (Jon Cruddas) when he spoke of inconsistencies, and by my hon. Friend the Member for St Albans (Mrs Main).

[Stephen Doughty]

Obviously, that is the case; however, the Minister is aware that the law in this area dates back almost 170 years—some of it is under the Town Police Clauses Act 1847. Given that the Welsh Labour Government are now looking at introducing new legislation to deal with many of the issues we have discussed today, will the Minister make a similar commitment on the UK Government’s behalf?

[Mr Hayes]

Most of what inspires me goes back to the time of Jesus Christ, so I do not think the fact that something goes back a long way is necessarily indicative that it is inappropriate, but I certainly want to make sure that it is fit for purpose. Part of the job of government is to make sure that the legislative framework that we operate in is suitable for the changing circumstances, as I described. If they are as dynamic as the hon. Member for Ilford North and I suggest, we certainly need to review these matters regularly and thoroughly. He is right that in the light of that changing landscape, we need to look at such things closely.

I am aware of the changing landscape of the taxi and private hire market, and the impact that changes in the way people engage services have for the public and on traditional business models, which, in my own use of taxis, I personally prefer. It is right that we address some of the specific issues raised in the report, and I shall try to do that in the short time available to me. Having said all that, using an app to request a taxi or a private hire vehicle is increasingly popular with the public and has the potential to change the structure of the market significantly. There is a taste for a certain kind of access to a certain kind of vehicle. That is an undeniable fact. I see it among people I know—friends and others—although personally, I prefer to hail a taxi. I like the theatre of that, as well as the quality that it ends in, but that is not the way that everybody goes about their lives and business, and we have to face that reality. Given that appetite, the important thing is that we are mindful of the disadvantages that it might bring too.

It is the case that in addition to accepting pre-booked journeys, taxi drivers have the exclusive right to ply for hire in the area in which they are licensed. This is the fundamental difference in the licensing of taxis and private hire vehicles, and underpins the requirement for taxi drivers to have the geographical knowledge that is indicated, in London at least, by the knowledge—the acquisition of detailed understanding of the character and geography of our city.

The all-party parliamentary group recommends that the Government introduce a legally enforceable statutory definition of plying for hire. That will, of course, be considered, but the Law Commission’s view was that it was not practical to define plying for hire:

“No statutory list of factors could be sufficiently determinative to give clear guidance, leaving many of the current grey areas unresolved.”

I welcome the recent efforts of Transport for London to ensure that competition within the taxi and private hire market is fair. Private hire vehicles do not have the hard-earned right to ply for hire, and I wholeheartedly endorse action against those who break the law. As the hon. Gentleman will be aware, Transport for London has quadrupled the number of dedicated compliance officers on the street, meaning that there are now more than 250. Not only do those enforcement officers ensure fair play among legitimate parties, they play a vital role in preventing unlicensed, unvetted, uninsured and unsafe drivers and vehicles from circumventing the regulations and stealing business from the legitimate trade.

[Mrs Main]

The thing is that those officers do not come into the areas where Uber drivers licensed by TfL operate, so the one or two officers in my area have all the responsibility for driving them out.

[Mr Hayes]

Yes, that is true; my hon. Friend makes a valid point about the scope and powers of those missioned with doing what I described. I am certainly prepared to consider both of those things in direct response to this debate. If these debates are to be meaningful, they must take policy further forward; they must not simply be repetition of the status quo or an opportunity for Ministers to read out speeches written for them by other people. We will certainly consider those matters particularly.

Clearly, we place premium importance on passenger safety, and points have been made about that; again, I will re-examine those matters in some detail. The Department has undertaken to monitor the adoption of the recommendations made in the statutory guidance, and I assure all here today that I will give the matter my personal attention. I will be judged on what I do, rather than what I say, so I serve notice on all taxi and PHV licensing authorities that I will be asking those that do not adopt the recommendations made as a result of consultation and engagement why not and for what reasons. I will write to all licensing authorities accordingly as a result of this brief debate.

A point was made about access for disabled people. That point has been raised previously, and I return to it—indeed, I had a discussion this morning with the Minister responsible in my Department about this very subject. We want to say more about it quickly, and we will do so; we have been considering it for some time, as the hon. Member for Lancaster and Fleetwood (Cat Smith) will know. Again, we have been partly catalysed by the fresh opportunity that this debate gives us to consider these matters.

The other thing that I commit to is further discussion with the all-party group. I invite the hon. Member for Ilford North to come to my Department to explore each of the detailed recommendations in the report. Time does not permit me to go into them now, but I am happy to have a dialogue with him to see what more can be done. By the way, there are some contentious things in the report. I do not want to give the impression that I have read it assuming that it is all fine and dandy. The issue of the difference between licensed vehicles and licensed drivers is—I say this in the kindest, most general way possible—fudged in the report, and we need to explore it. To say that there were 88,000 vehicle licences and 120 licences issued to people is a slight misrepresentation of the facts. I could go on; there is the effect on congestion as well. Light goods vehicles and other vehicles may well do more damage in terms of congestion than the growing number of private hire vehicles, and we need to explore that. However, the report is a useful and valuable contribution to the debate, and we will discuss it and be inspired by much of what it says.

In addition to all of that, there is more work to be done. I have established a working party to look at licensing, and I am extremely keen to deal with the inconsistencies across licensing authorities. There is a strong case for considering the cross-border issues; they are not straightforward, as the hon. Gentleman knows, but we must consider them closely. As I have mentioned, I am keen to move forward on accessibility and how disabled people must sometimes, for example, endure drivers not being prepared to take guide dogs in taxis. That is not acceptable, and it cannot be allowed to continue. The checks put in place by licensing authorities must be thorough and consistent to ensure safety.

I have repeatedly stressed my admiration for black cabs, but I hope also to recognise that it is a dynamic marketplace where technology has changed, and I will continue to do so. To return to the fundamental message that I want to articulate in this short debate, it is important that the framework that we have put in place is fit for purpose, recognises those changes and preserves the best of what we have now.

There will be a working party, consideration of licensing and cross-border issues, and an urgent meeting with the hon. Gentleman to discuss the report. I am prepared to go further and meet the Mayor of London, representatives of the London taxi trade and, of course, Uber. Devising a plan for the future will require us all to work together for the common good.

I started with Burke, so I will end with Disraeli, who said:

“The secret of success is constancy to purpose.”

My purpose is to get this right, not for its own sake but for the effect that it has on all those who work in the industry and all those who use taxis and private hire vehicles. Our responsibility—indeed, I go further—our duty is to ensure that that is done thoughtfully, carefully and effectively. In securing this debate, the hon. Gentleman has aided that purpose.

[Wes Streeting]

I thank all right hon. and hon. Members for their contributions to this debate. Having listened to others’ remarks, I am minded to draw attention to my declaration in the Register of Members’ Financial Interests. I thank all members of the all-party parliamentary group on taxis, the secretariat for their hard work and the sponsors, Gett, mytaxi and the Licensed Taxi Drivers’ Association, which are reflected in our group register, for making all the work possible.

I am grateful to the Minister for how he summed up and responded to the debate. All that we can ever hope for as Back Benchers putting the case to Government on various issues is open minds and open doors. I am glad that he has offered both open-mindedness to the range of issues presented and the various challenges of solving those problems and, most importantly, an open door to discuss each of the recommendations, as he has generously offered, so that we can feed back to the thousands of drivers across the country who are following the issue. Of all the issues that I hear about as a constituency MP, there is more, and more consistent, engagement among members of the public on this issue than on any other. As the Minister acknowledged, the drivers whom I represent are more interested in what will be done; I hope that in the autumn, we will start to see some progress. I am glad that work is under way in the Department to secure progress.

I am reflecting on this debate. One ongoing concern that is still with the courts is working conditions and rights for taxi and private hire drivers. We touched on it to some degree—

[Mr Hayes]

I know that the hon. Gentleman has only a few seconds left. The Taylor review has just been published, and we will consider how it applies to the sector. That is specifically why I set up the second working party. I do not want to pre-judge the courts, but I assure him of that.

[Wes Streeting]

I agree. Similarly, we did not want to pre-judge the courts when we did our work. I am none the less glad that GMB is pursuing a test case in the courts about the legal status of many private hire drivers. Self-employment is a great thing; exploitation of self-employment rules by private operators is something else entirely. That is where the tension lies.

With just a few seconds left, I thank all right hon. and hon. Members for their contributions to this debate. I look forward to meeting the Minister, and I know that my constituents will be glad to hear about progress thereafter.

Question put and agreed to.

Resolved,

That this House has considered the future of the taxi trade.