London Black Cabs

Richard Burden Excerpts

Tuesday 15th September 2015 Westminster Hall

[Richard Burden (Birmingham, Northfield) (Lab)]

It is, as always, a pleasure to serve under your chairmanship, Sir Edward. I add my congratulations to the hon. Member for Richmond Park (Zac Goldsmith) on securing the debate and on the contributions that he and many other hon. Members, on both sides of the Chamber, have made. I mention in particular my right hon. Friend the Member for Tooting (Sadiq Khan). Like him, I suspect that this is the first of many debates that he will have with the hon. Member for Richmond Park. They were in agreement on the matter, and the consensus across the Chamber has been remarkable. I hope that the Minister bears that in mind when he replies to the debate.

Today’s debate concerns something fundamental for London, as many hon. Members have said, namely the future of black cabs in the capital. It is clear that existing regulation is insufficient to deal with the changes. That point has been made by the hon. Member for Kensington (Victoria Borwick) and my right hon. Friends the Members for Tooting and for Tottenham (Mr Lammy)—he made an excellent speech—and it has been recognised north of the border by the hon. Member for Glasgow South (Stewart Malcolm McDonald). Although black cabs are regarded as having some of the highest safety and accessibility standards for taxis anywhere in the world, the phenomenon of ride-sharing schemes and taxi apps has made it clear that regulation has simply not kept pace with the changes. That gives us a choice about how we cope with those changes and regulatory challenges.

[Grahame M. Morris]

Although I acknowledge that the subject of the debate is black cabs in London, I attended, along with other hon. Members, a national lobby of Parliament expressing the concerns about the matter across the midlands and in a number of the great cities in the north. This is a problem that we will all face, even if we do not face it immediately. Is it not a good time, as a Parliament, to look at the legal definition of plying for hire and to resolve the matter not only in London, but across the whole United Kingdom?

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[Richard Burden]

My hon. Friend is absolutely right, and without wanting to stray from the focus of the debate, I hope to say one or two words about that in a while. He was also right in his earlier intervention about the need for consistency in regulation across the piece, which has to be founded on principles.

My right hon. Friend the Member for Tooting made the point, quite correctly, that we have a choice. We can look towards a future based on a race to the bottom, with all that that implies, or we can look to generalise the best standards for drivers and for passengers. I have referred to black cabs, but rising to the challenge of dealing with these changes is also important for the private hire industry. Properly regulated private hire has a role in the capital and elsewhere in getting people to the airport early in the morning, for example, and getting them home from nightclubs late at night or perhaps very early in the morning. Whether they use private hire or black cabs, passengers—across the country, not simply in London—need to know that services will be reliable and that they will be safe.

In London, about 3.5 billion passenger journeys a year are being recorded on the underground and the bus network combined, and London’s population is set to grow from 8.6 million today to around 10 million by 2030. As companies such as Uber recognise, that will have a profound effect on the nature of our transport system. With their emergence and success, Uber and other apps have made important headway in London, notably in the late-night market and the recreational market. They have been particularly successful in London’s suburbs, where the black cab network is sometimes at its thinnest. The promotions and public relations of such companies are something of a masterclass, it has to be said. Despite serious reservations about Uber, which I will say something about in a minute, it is not surprising that a recent YouGov poll found that a majority of Londoners thought that Uber was a good thing.

I want to recognise a good thing that Uber has done. It recently launched the UberGiving campaign to help to raise money for the global refugee crisis, in partnership with Save the Children. That is an innovative and worthy fundraising campaign. I suppose that the company would say that that is part of social responsibility, and I welcome that. Social responsibility goes beyond that, however, as my right hon. Friends the Members for Tottenham and for Tooting have said. If the company wants to be part of the fabric of the public transport system in its widest sense in London—I consider taxis and private hire vehicles to be part of that—and in the rest of the country, responsibilities must go with rights. Surely, an absolutely fundamental responsibility for a company is to pay its dues in taxes, which provide services in the country in which it operates.

Some of Uber’s actions give cause for genuine concern. There are regulatory disparities and issues about the use of taximeters. It is also important to ensure that the welfare of passengers is made paramount. Passengers have a right to know that when they book a journey through any operator, the service will be reliable, traceable and fairly priced. They should also know who is driving and be able to trace the vehicle’s registration and licensing details quickly and easily.

Such strengthening of safety regulation must extend to drivers as well. There are real concerns about the kind of culture encouraged by Uber and, I have to say, some private hire operators. To recruit new drivers, Uber’s website states:

“Make money on your own terms. Full-time and part-time driving opportunities for independent contractors in London give you the flexibility to access the platform as much or as little as you want. You can focus on driving your car when it works for you.”

That all sounds fine, in one way, but is it encouraging a culture—particularly as we have already heard from right hon. and hon. Members about the pay rates that Uber drivers often end up earning—of long hours, with drivers working 50 to 70 hours a week without any checks? The impact of tiredness on drivers and their passengers can be quite simply deadly. What assessment has the Minister made of the long hours that are being encouraged by not only Uber but the private hire industry more generally?

Beyond passenger and driver welfare, Labour recognises the genuine concerns of unions and private hire trade associations that Uber’s growth may be benefiting from a loose interpretation of the regulation on taximeters that I have mentioned. That is why I welcomed Transport for London’s decision to seek a High Court ruling on taximeters in May 2014. Apps such as Uber that involve a contract for vehicle hire must conform to the same standards of safety, licensing and insurance as the rest of the industry. They are neither black cab nor minicab, so it is vital that we understand and get a ruling on where they fit in the regulatory framework.

The delay in obtaining that ruling has gone on for some time, so the discrepancies persist. Does the Minister have any information about when that is likely to be resolved? Although it is clearly not for anybody here to speculate on the outcome, can the Minister confirm whether his Department has consulted with TfL to draw up contingency plans for all the possible scenarios that may result, and will he confirm what those plans are? Many hon. Members agree that any High Court ruling will address only one regulatory issue, but the kinds of problems that we are experiencing in London are being experienced not only in other parts of the country but internationally. They have come up in other European cities, in north America and even, in quite serious ways, in Mexico City.

TfL’s involvement and its announcement over the summer of a consultation on regulations have been timely. I will not go into too much detail about that at the moment, other than to ask the Minister to comment on two relevant matters: capping and off-duty driving. On capping, the transport network has to respond to the challenge of population growth, but there is real concern about where the unprecedented rise in the number of minicabs, which many hon. Members have mentioned today, is heading.

In an Adjournment debate before the summer recess, the hon. Member for Broxbourne (Mr Walker) asked the Under-Secretary of State for Transport, the hon. Member for Scarborough and Whitby (Mr Goodwill), to say whether the Government will consider a cap on numbers and what their view is on such a cap. That Minister would not be drawn, but I hope the Under-Secretary of State for Transport, the hon. Member for Harrogate and Knaresborough (Andrew Jones), will tell us today whether a cap on numbers could be appropriate.

My other question on the TfL review is about the rules on who can drive off-duty taxis and private hire vehicles and when they can be driven. The Minister will recall that, when the coalition Government tried to introduce such a measure in the Deregulation Act 2015, they were forced to withdraw part of that proposal in the House of Lords simply because too many people noticed that it opened up the possibility of illegal pick-ups and malpractice, and made things such as sexual assault far more, not less, likely. Although I recognise that the review is primarily TfL’s responsibility, will the Government say anything in response to that review given the response when the Deregulation Act was debated in the previous Parliament?

That draws me to my final point, which picks up on the point raised by my hon. Friend the Member for Easington (Grahame M. Morris). A long time ago, the Law Commission was charged with looking in detail at regulatory disparities. It was recognised a long time ago that proper consideration is needed, and we have all known for years that a proper, thorough review of taxi and private hire regulations is needed to ensure safety and consistency and to recognise changing customer demands and expectations. That is why the Government asked the Law Commission to consider such matters but, after delay after delay and coyness from the Government about when anything would happen, Ministers jumped the gun just before the Law Commission published its findings and made last-minute additions to the Deregulation Act on PHV and taxi licensing outside London that, to put it charitably, were half-baked and ill thought out.

The Government got themselves into a mess on that, as we know, so where will they go from here? Will they respond to the points that have been consistently raised in this debate on the need to have proper consolidated legislation, a Bill, that can sort out the matter, that can update centuries-old regulations, that can address the challenges facing black cabs in London and that can incorporate long-overlooked taxis of sorts, rickshaws and ride sharing, and other such things? When will they set out their response to the Law Commission’s proposals and recommendations in general? If the Minister is not able to give that response now, will he let us know when he feels he might be able to do so? How does he expect that to fit with the likely timetable for High Court rulings on Uber and TfL’s regulatory review for London?

London’s black cabs are revered as having the highest safety and accessibility standards in the world. Last month, the Local Government Association called for its taxi operators to be put in line with the high standards enforced in London. Can we have a proper Bill to regulate taxis and private hire vehicles? Will the Government take the initiative, and when will they introduce such a Bill?

My final, final point is on emissions. A number of hon. Members, particularly my right hon. Friend the Member for Tottenham, have spoken about pollution. If black cabs and the private hire industry are to help address the challenge of air quality in the capital, they need to be future-proofed. The Government’s commitment of £25 million through the Office for Low Emission Vehicles to help drivers upgrade to greener vehicles is a good step, but the Government are sending mixed messages. The Chancellor has tagged increased vehicle excise duty rates on all vehicles, including low emission vehicles. Outside of transport, we have seen the mothballing of a number of green policies since the election. May we see a bit more consistency? On taxis and private hire vehicles specifically, has the Minister received any representations from the taxi trade on the phasing in of emissions requirements? What is he doing to alleviate such concerns? Will he listen not only to the consensus in this debate on the future of taxis and private hire vehicles in the capital but to the people at the sharp end—the drivers, the trade associations and so on—who are telling him what is coming down the tracks? Something needs to be done. As well as answering the specific questions asked by hon. Members, will he confirm that he agrees that the time has come for comprehensive, thought-through legislation to get a proper taxi and private hire Bill on the statute book?

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[Andrew Jones]

I entirely agree with my hon. Friend’s point. This Government will not be bullied by any individual company. We must keep in mind the qualities of the taxi and private hire sectors and what they have delivered over many years—in some cases, over centuries—for our city. Both are strong, important players and need a protected future.

I know that the London taxi trade fundamentally disagrees with TfL’s views on how Uber calculates a fare. Many members of the taxi trade consider Uber’s smartphone app to be essentially a taximeter. Taximeters are, of course, forbidden in London’s private hire vehicles. Transport for London has recognised that the law in respect of the issue is unclear and has applied to the High Court for a declaration. Members have asked when that case will be determined. It is due to be heard in the High Court next month, so we should let the court make its decision.

Transport for London’s vision and strategy for the taxi industry is designed to maintain and enhance the high standard of service on which customers have come to rely. It will include development of the next generation of taxis, which will be environmentally clean and modern and suitable for passenger needs, particularly those of disabled people, a point consistently made by Members in this debate. The taxis will retain or enhance accessibility features to ensure a safe, smooth and comfortable ride.

The Mayor of London has announced plans to improve air quality in London, including by increasing the number of ultra-low-emission taxis. In April this year, the Office for Low Emission Vehicles announced the launch of a £45 million fund to support the roll-out of ultra-low-emission taxis across the United Kingdom. It includes £25 million set aside specifically for the Greater London area to help taxi drivers cover the costs of upgrading to a greener vehicle. The Mayor of London has pledged an additional £40 million, creating a £65 million fund to encourage the cleanest and greenest taxi fleet in the world.

At the same time, Geely, which owns the iconic London Taxi Company, announced plans for a new £250 million state-of-the-art facility to produce the next generation of low-emission London taxis in Ansty, near Coventry. Geely was awarded £17 million from the Government’s regional growth fund to build the facility, which will create 1,000 new jobs and ensure that the London taxi continues to be designed, developed and made in the United Kingdom. This shows the Government’s support for the taxi trade throughout the country and will mean that the London taxi trade will play a leading role in improving the capital’s air quality and meeting our climate change obligations.

Hon. Members may be aware that last year, the London Assembly’s transport committee began an investigation into taxi and private hire services in London. As a result of that scrutiny, the committee made a number of recommendations to the Mayor and Transport for London on steps that they could take to improve taxi and private hire services in the city. In some cases, the committee was critical of the role of the taxi and private hire section of TfL, and I understand that members of both London’s taxi and private hire vehicle trades gave evidence to the committee as to their dissatisfaction with TfL’s actions as the licensing authority. The committee is responsible for questioning and scrutinising the actions of the Mayor, so it is not for the Government to comment on local licensing matters or the committee’s actions.

My hon. Friend the Member for Richmond Park will be aware that the Department for Transport asked the Law Commission in 2012 to conduct a review of taxi and private hire vehicle legislation throughout England and Wales, including London. That was against the backdrop of the Government’s red tape challenge and legislation that dates back to the first half of the 19th century and the age of the horse-drawn hackney carriage. Despite more recent legislation to allow for the regulation of private hire vehicles, the recent innovations that I and colleagues have described this morning have demonstrated that the legislation used to regulate both the taxi and private hire trades is becoming increasingly outdated. Licensing authorities throughout England and Wales are now faced with the challenge of accommodating 21st century technology in 19th century legislation.

The Law Commission undertook a comprehensive review, its final report containing recommendations for a modern and simplified structure. The report not only provided crucial analysis of the problems posed by the current law, but provided solutions designed to make a difference to both the travelling public and people in the industry. Updated and simplified legislation will provide a modern and simple framework, ensuring public safety and providing the trade with certainty, making growth and competition easier. I cannot yet give the House a date for the Government response to the review, but the Law Commission’s work has been powerful and important.

[Richard Burden]

It is good news that the Government are looking at the legislation, but it is not enough for the Minister to say that he does not know when the Government will respond. TfL is doing a review, the London Assembly is considering such matters, and Uber is growing. If the Law Commission has been meeting since 2012, when on earth will the Government make a decision about whether they are going to do something?

[Andrew Jones]

I completely recognise the importance of this case. We are seeing technological changes that require a legislative change, but getting this right is critical. The Government are still considering the matter, and I cannot give the hon. Gentleman any more detail at this moment.