Taxi Trade

Cat Smith Excerpts

Tuesday 18th July 2017 Westminster Hall

[Cat Smith (Lancaster and Fleetwood) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Wilson, and to speak in this important debate on the future of the taxi trade. I congratulate my hon. Friend the Member for Ilford North (Wes Streeting) on securing it. I also congratulate him and the all-party parliamentary group on taxis on publishing the report, “Lessons from London: The future of the UK taxi trade”.

I draw hon. Members’ attention to my declaration in the Register of Members’ Financial Interests regarding my membership of the GMB, which organises in this area.

As has been mentioned, all too often debates about the taxi trade in the past have been wrongly framed as innovation versus tradition. It is not the case that there is a trade-off between innovations that improve the taxi trade and regulations that provide protections to the existing trade and deliver improved safety and accessibility for passengers. Sadly, however, the Government’s hands-off approach to taxis and private hire vehicles means that in too many areas we are seeing a race to the bottom on quality, accessibility and, perhaps most worryingly of all, safety.

As technology and the industry have evolved, our regulation of the taxi and private hire industry has failed to keep pace. To address that, the Law Commission published recommendations and a draft Bill in May 2014. The commission recommended significant regulatory changes. The report found that the

“balance struck between national and local rules lacks an overarching rationale, resulting in duplication, inconsistencies and considerable difficulties in cross-border enforcement...The outdated legislative framework has become too extensive in some respects, imposing unnecessary burdens on business and artificially restricting the range of services available to consumers; and insufficiently comprehensive in other ways, undermining the fundamental goal of protecting the travelling public.”

The Government have not responded to that report to date. I ask the Minister when he intends to do so, or whether the Government ever intend to respond. We are now at the point at which the Government risk waiting so long to respond that elements of the Law Commission’s work become outdated, and at present the Government have no plans to introduce a taxis Bill.

One significant challenge facing the taxi trade that has yet to be addressed by Ministers is cross-border working by private hire vehicles. There have been increasing concerns about private hire vehicles operating outside their licensed geographical areas. We have heard about that practice in this debate. It puts taxis at a competitive disadvantage, as they have to return to their licensed area after taking a fare outside their borough, unlike private hire vehicles, and some councils in this country hand out too many licences, clogging up the streets and worsening congestion and air quality. Because of the lack of national standards, there are implications for quality, safety and accessibility, which cross-border licensing undermines.

If a private hire driver has obtained a licence by having to pass a local knowledge test in one area, but primarily operates elsewhere, there is no guarantee that they will know the local roads well. There is almost no way a potential customer can know that at the time of booking. The implications for safety are worrying. Local authorities are currently permitted to set their own “fit and proper” criteria for licensing; there is no minimum national standard. Private hire drivers are therefore able to operate in an area with stringent safety criteria, but can legally fail to meet those criteria by obtaining a licence elsewhere. Concerns have been raised about that occurring in Rotherham and Oxford, where strict safety measures were put in place following instances of child sexual exploitation.

The questions of what steps should be taken to ensure passenger safety and how to prevent sexual assaults should not be for each licensing authority to decide, but should be decided at national level on the basis of what regulations would best protect passengers. Rather than addressing the problem, measures in the Government’s Deregulation Act 2015 permitting subcontracting have made the situation worse. Those make enforcement by local licensing authorities more difficult, in addition to stripping customers of their right to choose which operator they wish to travel with. I therefore ask the Minister what steps the Government will take to combat the problems associated with cross-border working. One obvious measure to mitigate the problem would be the introduction of national standards for licensing authorities—something that the Labour party has repeatedly called for. Will the Minister now commit to introducing such standards? The Government have previously stated that many of these issues should be the responsibility of licensing authorities, but issues such as disabled access and safety standards should not be at the discretion of localities, varying greatly across the country.

While the industry has changed significantly throughout the years, and continues to do so, increasingly spurred on through technological change, legislation has not. As a consequence, the distinction between taxis and private hire vehicles is increasingly confused, in part because of the imprecise concept of plying for hire, which is not defined in statute. The Law Commission’s 2014 report supported this distinction remaining in place; however, we have seen a growing number of apps, such as Uber, that allow users to see the position of available vehicles at any particular moment—in effect, virtually plying for hire. The result has been a reduction in the number of people taking the geographical training for licensed taxi drivers.

The former Mayor of London identified the need for action and planned to introduce a minimum five-minute wait for customers requesting a car and beginning a journey. That was motivated by concerns about the impact that Uber’s business model has had on the city, including Uber’s contribution to rising congestion. Those plans were abandoned, reportedly after intense lobbying by the then Prime Minister and Chancellor of the Exchequer. As reported in the Daily Mail, the then Prime Minister and Chancellor enjoyed close relationships with Uber and were hostile to the idea that the company should be subject to further regulation. The advent of smartphone apps is changing the industry and presents many clear benefits to passengers, but companies such as Uber can enjoy unfair competitive advantages because they do not have to follow the same regulation and compliance as incumbent businesses. The current Mayor of London has committed to supporting a legal definition of plying for hire, and the Law Commission supports a statutory definition of pre-booking. I hope the Government are no longer acting as a paid lobbyist for Uber, and that the Minister will today outline what steps he intends to take to ensure a level playing field between operators.

Everyone in this room wants to see the future of the taxi trade, and indeed the private hire industry, accessible to all. It should therefore concern us all that 42% of assistance dog owners were refused a journey by a taxi or private hire vehicle, despite that being illegal. That has a devastating impact on the confidence and independence of disabled people, and I would like to praise the work of Guide Dogs on this issue. Will the Minister commit to mandatory disability equality training for all taxi and private hire vehicle drivers?

Finally, we have seen real progress in London towards zero emission vehicles. What steps will the Minister take to secure a greener trade across the whole country in future?