The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)
My Lords, I join other noble Lords in thanking the noble Lord, Lord Bradshaw, for securing this debate in a timely fashion. Perhaps he had some foresight of what was going to happen elsewhere. This is an important issue for the here and now. I also thank all other noble Lords for their valuable contributions, which were often based on not just user experience but their experiences of a very important industry.
Although the Government are ultimately responsible for creating the legislative framework within which local licensing authorities license taxis and private hire vehicles, noble Lords will appreciate that responsibility for licensing rests with local licensing authorities. This question was raised by the noble Lord, Lord Bradshaw, and, on a couple of occasions, by the noble Lord, Lord Rosser. I will come on to the specifics in a moment. It is the licensing authority’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 and to ensure that all licensees comply with the rules and regulations that govern the industry. However, I of course recognise—and the Government recognise—that it is the responsibility for the legislative framework that forms the actual basis of licensing. The noble Lord, Lord Bradshaw, for example, asked the question relating to criminal record checks. They are carried out by the Disclosure and Barring Service at the request of the licensing authority, and it is the responsibility of the local authority to scrutinise that particular check.
The noble Lord, Lord Bradshaw, also raised the issue of understanding English. I think that my noble friend, with his experience of Brussels and Holland, also highlighted the fact that you can get, with the applications that we now see, drivers speaking different languages; but there is a recognition that a language test would be the responsibility of the licensing authority. However, I totally take on board the noble Lord’s point. I am sure that I speak for all noble Lords when I say that, wherever you go in the country—especially if you arrive in a place that is new—a taxi driver is often the source not just of taking you to the right place but of local information and knowledge as well. I am sure that we have all had those conversations in great detail.
My noble friend Lord Borwick, the noble Lords, Lord Rosser and Lord Bradshaw, and the noble Baroness, Lady Randerson, all rightly raised the issue of accessibility. Accessible vehicle provision is again, of course, a matter for the licensing authorities and they are best placed to determine the vehicle fleets in their area. Currently, with regard to London, TfL requires all hackney carriages—as noble Lords will be aware—to be wheelchair accessible, but does not have similar requirements for private hire. I will come on to the Law Commission recommendations in a moment, but one of those recommendations was mandatory disability awareness training for drivers, which would be part of the consideration.
The taxi and private hire industry are a vital part of the public transport story. As well as keeping cities moving 24 hours a day, they are a vital lifeline for those who are unable to use other forms of public transport or their own vehicle. The availability of both taxis and private hire vehicles across the country offers the travelling public real choice. They can either instantly hire a taxi in the street or at a taxi rank; alternatively, they can pre-book a taxi or private hire vehicle. When pre-booking, passengers are able to make an informed choice based on factors such as price, availability and quality. This combination of taxi and private hire ensures that the needs of as many people as possible can be met.
Of course—and several noble Lords made this point—passenger safety must be at the heart of the regulatory regime around the industry, and this must be the top consideration when looking at how the industry evolves and how it is changing. This includes the importance of insurance cover, which was highlighted by my noble friend Lord Crickhowell.
As several noble Lords have pointed out, in London, the traditional London taxi or black cab has become an iconic symbol of the city and the industry as a whole, and continues to play a key role in keeping London moving. It has a history and reputation that drivers are rightly proud of. London’s taxi service is recognised as one of the best in the world. The noble Baroness, Lady Randerson, called it the gold standard. All the vehicles are of a high standard and are fully wheelchair accessible; they are driven by skilled and knowledgeable drivers, a point well made by my noble friends Lord Selsdon and Lord Borwick. We all admire the time and dedication that prospective drivers put into learning the world-famous knowledge of London. This brings the reward of having the unique right to ply for hire on the streets of our capital city.
As all noble Lords recognise, the market is changing. New technology is providing new ways of engaging taxis and private hire vehicles. As my noble friend Lord Callanan pointed out, smartphone booking apps are now available for both taxis and private hire vehicles, not just here in the UK but across Europe as well. They offer people easy access to services, more choice, faster pick-ups and options for sharing, which can reduce the cost for travellers. It is encouraging that the London taxi trade has been at the forefront of this technological change. One can now book a taxi through numerous smartphone apps and more and more drivers are embracing cashless payment options, which again addresses issues around the security and safety of passengers. However, I accept that this new technology is challenging traditional operating boundaries between the taxi and private hire trades. I understand that it is straining the relationship between licensing authorities and the industry, but by working in partnership they can deliver a modern industry that will continue to provide both choice and high standards, focused on customers—a point well made by my noble friend Lord Callanan.
On Uber, the evolution of the private hire sector has helped to ensure that this form of transport is available to all in an inexpensive manner, particularly supporting those who cannot rely on other public transport services. Uber and other new entrants to the market are presenting major challenges to established business models, and I can understand the concern of taxi drivers.
My noble friend Lord Selsdon raised the issue of what Uber is. Uber London Limited has been licensed by Transport for London as a private hire vehicle operator in London since 2012. The company has now applied for and been granted licences in 25 other licensing authority areas in England. As the noble Lord, Lord Rosser, rightly pointed out, Uber is not just an application or a service in London.
To inform noble Lords, although many may well already be aware, in order to be granted a licence, Uber must meet the same standards as any other private hire vehicle operator in the local authority area. Therefore, 26 different authorities have decided that Uber is a “fit and proper” company, its operating model meets the requirements of private hire legislation, and it keeps such records as the law requires.
I know that the London taxi trade fundamentally disagrees with the view of Transport for London on how Uber calculates a fare. Many members of the taxi trade consider Uber’s smartphone app to be essentially a taximeter, which are of course forbidden in London’s private hire vehicles. TfL recognised that the law in respect of this issue was unclear and applied to the High Court for a declaration. The High Court has recently made its judgment that Uber’s smartphone app is not a taximeter and therefore it is not breaching the legislation.
On the question of low emission vehicles raised by the noble Lord, Lord Bradshaw, many areas are concerned about meeting their air quality requirements. Therefore, to assist with these concerns, in April this year the Office for Low Emission Vehicles announced the launch of a £45 million fund to support the rollout of ultra-low emission taxis across the United Kingdom. £20 million of this fund has been identified to encourage a new generation of ultra-low emission taxis. Eight cities have been shortlisted, and the winning schemes will be announced in April next year.
I will briefly address the Law Commission review. While I recognise the standard and commitment of this industry, I also realise that there are areas of concern within the regulatory regime, which was rightly raised by several noble Lords. Noble Lords will be aware that in 2012 the DfT asked the Law Commission to conduct a review of taxi and private hire vehicle legislation throughout England and Wales, including London. This was against the backdrop of the Government’s Red Tape Challenge and legislation that dates back to the first half of the 19th century, as the noble Lord, Lord Bradshaw, pointed out, and the age of horse-drawn hackney carriages.
Despite the more recent legislation to allow for the regulation of private hire vehicles, the recent innovations that I have described 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 very comprehensive review and last year published its final report, which contained recommendations for a modern and simplified structure. The Law Commission’s report not only provided crucial analysis of the problems posed by the current law but also has provided solutions designed to make a difference to both the travelling public and those who work in the industry. Updated and simplified legislation will provide a modern and simple framework, which in turn will ensure public safety and provide the trade with certainty, therefore making growth and competition easier.
The Law Commission has made several suggestions about how the law may be reformed, including one, to pick up on a point raised by the noble Lord, Lord Rosser, that companies and drivers should be allowed to operate across boundaries without the current restrictions. A vital part of this proposal would be the introduction of national standards for drivers and vehicles. I see national standards as having the potential to resolve some of the existing cross-border concerns that are being raised at the moment. I am also aware, however, that some licensing authorities feel restricted in their ability to carry out enforcement actions against vehicles and drivers who are not licensed in their area. National standards would remove the incentive for drivers to go far from home to get a taxi or private hire licence.
The Law Commission has made extensive law recommendations, and these need to be carefully studied before deciding whether to go ahead and what the Government will do next. In this regard I can inform noble Lords that we are already engaged, including the Secretary of State and the Mayor of London, in discussing the implementation of the recommendations from the Law Commission. I can assure noble Lords that the Government will formally respond to the Law Commission and announce its intentions once this scrutiny is completed.
In conclusion, the Government are fully aware of the changes and challenges that are affecting the taxi and private hire vehicle industry, not just here in London but around the country. Not only are there the challenges of new technology and increased competition but also the need to ensure that vehicles play their part in improving air quality. The Government wish to see taxi and private hire form part of the wider public transport agenda, with thriving competitive markets to make sure that we make the best use of emerging technologies while protecting the passengers that travel in them.
I thank noble Lords for their contributions. This is an area and a question to which I am sure we will return. However, I assure noble Lords that it is an area that the Government are considering very carefully, and I suppose at this late hour my concluding remarks are that, however noble Lords choose to travel home this evening, be it a black cab, a private hire vehicle, or indeed public transport, I hope they do so safely and securely.