London’s Licensed Taxi Trade

Jim Shannon Excerpts

Wednesday 15th July 2015 Commons Chamber

[Mr Charles Walker (Broxbourne) (Con)]

It is a great honour to have secured this debate. I am also delighted to see you in the Chair, Madam Deputy Speaker, as I know that in your capacity as Member of Parliament for Epping Forest you have done a great deal for the licensed taxi trade, and particularly the black cab licensed taxi trade. Indeed, you and I have worked closely together on this matter over a number of years, and we will continue to do so.

The much-loved London black cab is not an overnight sensation. Hackney coaches first appeared in London during the reign of Queen Elizabeth I, and Captain John Baily, a veteran of Sir Walter Raleigh’s expeditions, is thought to have established the first Hackney rank by the Maypole on the Strand—a site from which four coaches worked. The first laws governing what is now known as the taxi trade were introduced nearly four centuries ago, with London’s cab trade being continuously licensed since 1694. Control is now in the hands of Transport for London. The practice of displaying an identification number goes back to 1654 and despite a number of modifications, the principle of that practice remains consistent to this day—isn’t tradition a wonderful thing?

At the age of 45, James Howe, an experienced cabbie, was chosen to drive London’s first motor taxicab. He enjoyed a long association with both horse-drawn and motor cabs and, in 1933, at the age of 75, he was awarded a special badge commemorating a career that began when he earned his licence in 1884. You and I love the concept of hands across history, Madam Deputy Speaker, and at least two Members of this House were alive at the time that James Howe received his long-service medal. Is that not a wonderful thought?

The fitting of taximeters was made compulsory in 1907 and the inventor of these meters was a German noble called Baron von Thurn und Taxis. A taximeter is by definition what makes a cab a taxicab, and taximeters in London calculate the fare payable as a combination of time and distance. I thought that it would be useful in my opening remarks to set the scene for the House.

Transport for London licenses taxis and their drivers under the Metropolitan Public Carriage Act 1869 and the London Cab Order 1934, so there is not a lot of modernity there. The minicab trade in London is licensed by regulations made under the Private Hire Vehicles (London) Act 1998, which is very recent history. I thank Addison Lee for the useful briefing it provided me on the regulation of its private hire business and those of its competitors.

As we know in this place, all licensed London black cab drivers are required to do the knowledge. We see those amazing men, and now women, beetling around London on their scooters with a clipboard in front of them, learning all these wonderful routes around our wonderful capital city. That is a gruelling three, four or five-year exercise undertaken by aspirant black cab drivers, most of them while holding down a full-time job. They show extreme dedication. It is an extremely gruelling process, with drop-out rates between 70% and 75% on average, and those that pass the test have covered approximately 20,000 miles worth of routes. These men and women are the best of the very best that London has to offer. Having passed the knowledge, a newly qualified driver needs to buy or lease a cab. The cost of new taxis is quite high, often in excess of £42,000, so that is a major investment.

No vehicle over 15 years of age is licensed and the Mayor is keen to see that number reduced to 10 years, as he wants to promote a clean air environment in our capital city. The Mayor has a duty to ensure that he only grants licences to those people who are “fit and proper” to drive a taxi. Drivers are required to be insured and CRB checked and to have a financial standing check. How many of us in this place could cope with the level of scrutiny needed for a financial standing check? My word!

All London taxis—this is very important—are wheelchair accessible and have been required to be so since January 2000. That 100% accessibility compares with only 3% of private hire vehicles. Importantly, licensed black cabs are the only taxi service permitted to pick up passengers without advance booking and the only service permitted to use a meter, with Transport for London setting the level of fares that can be charged. Of course, there are problems. If there were not, we would not be here this evening. This is not a totally good news story.

In its recent review of taxi and private hire vehicle licensing, the Law Commission called for the retention of the two-tier licensing system, and I strongly endorse that.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way, and I sought his permission to intervene before the debate. My introduction to the London taxi was when I became a Member. Taxi drivers in London—I am sure that they are the same across the whole United Kingdom of Great Britain and Northern Ireland—have an opinion on all the things that are happening in the world. It is obvious to me from conversations with the London taxi drivers that they are very concerned about the changes to licensing. Does the hon. Gentleman share my concerns on their behalf and agree that a full consultation must take place with the Licensed Taxi Drivers Association to find a way forward that can bring them on board?

[Mr Walker]

The hon. Gentleman makes a precise intervention. The Law Commission also called for significant changes to the legal distinction between taxis and private hire vehicles on the grounds that the current system relies too heavily on an imprecise concept of “plying for hire”, which is not defined in statute and has become the subject of a body of case law that is not wholly consistent. In that lies a multitude of problems.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

I congratulate my hon. Friend the Member for Broxbourne (Mr Walker) on securing this debate on London’s licensed taxi trade, which he presented in his usual passionate way. I know that many taxi drivers reside in his constituency, as indeed they do in yours, Madam Deputy Speaker. By the way, before we get any further, may I make it clear that I will be travelling home tonight on two wheels? The only carbon dioxide I will be producing will have come from my own lungs.

Before I respond to the points raised by my hon. Friend, it is perhaps worth taking the opportunity to set out the Government’s position on regulating the taxi and private hire vehicle industry. The Government are responsible for creating the legislative framework within which local licensing authorities license taxis and private hire vehicles. In London, responsibility for licensing rests with Transport for London. It is Transport for London’s responsibility to decide who is a suitable person to hold a taxi or private hire vehicle driver’s licence, or a private hire operator’s licence.

[Jim Shannon]

Just last Thursday, in the middle of the tube strike, I took a taxi from here to Paddington. The taxi driver informed me that on eBay it is possible to purchase a driver’s licence and permit without any regulation. The hon. Member for Broxbourne (Mr Walker) said the same in his speech. Is the Minister aware of this and, if so, what steps can be taken to stop it?

[Mr Goodwill]

That would be illegal. Criminal record checks, and all the other checks that need to be made before somebody can ply their trade as a private hire driver, need to be carried out, so that would certainly be an illegal transaction.

It is the job of Transport for London to ensure that all its licensees comply with the rules and regulations that govern their industry. I understand my hon. Friend’s desire to raise these concerns on the Floor of the House, but as licensing is the responsibility of TfL, while I might be able to address his points, it is within TfL’s remit to act if necessary.

The taxi industry has played a key role in keeping London moving for many years and has a fine heritage. The addition of the private hire sector has helped to ensure that this form of transport is available to all, particularly supporting those who cannot rely on other public transport services. TfL licenses some 22,200 taxis and 66,200 private hire vehicles making 300,000 trips every day. These vehicles make a vital contribution to London’s economy and help to keep the city moving 24 hours a day, seven days a week. The availability of both taxis and private hire vehicles offers the travelling public real choice. They can either instantly hire a taxi on the street or at a taxi rank, or they can pre-book a taxi or private hire vehicle. When pre-booking, passengers can make an informed choice based on factors such as price, availability and quality.