The Parliamentary Under-Secretary of State for Transport (Andrew Jones)
I congratulate the hon. Member for Denton and Reddish (Andrew Gwynne) on securing the Adjournment debate this evening. I know that the topic of taxi and private hire licensing issues has been covered in previous debates in the House. Colleagues are very interested in the subject, but I doubt whether many colleagues could match the historical knowledge that the hon. Gentleman brought to the debate this evening.
As hon. Members will appreciate, although the Government are responsible for creating the legislative framework within which local licensing authorities license taxis and private hire vehicles, responsibility for licensing rests with the local authority. It is the local 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. The local authority is responsible for ensuring that all its licensees comply with the rules and regulations that govern their industry.
I understand the hon. Gentleman’s desire to raise on the Floor of the House his concerns about what is happening locally in his area—he obviously has an inside track on the situation in his council—but as licensing is the responsibility of the local authority, I may not be able to address all his points.
Let me start by emphasising the importance of the taxi and private hire vehicle industry. The traditional taxi has become an icon of passenger transport in the UK and around the world. The taxi industry has played a key role in keeping Britain moving for many years, and has a history and reputation that drivers are rightly proud of. The UK’s taxi industry is recognised as one of the best in the world. All the vehicles are of a high standard and are driven by skilled and knowledgeable drivers. I admire the time and dedication that prospective drivers put into becoming taxi drivers—perhaps most famously London cabbies, who have to learn the world-famous “knowledge” of London. That brings the reward of having the unique right to ply for hire on the streets.
In the 1960s, minicabs began to appear in London and the private hire vehicle industry began growing across the UK. Licensing and regulation have ensured that when using such services the public have the same assurance of safety as when using a taxi, and have raised standards throughout the private hire sector. As of March 2015, there were 242,200 licensed taxi and private hire vehicles in England—an increase of 9.3% in just two years—and 69% of those vehicles are private hire vehicles. The availability of taxis and private hire vehicles offers the public real choice: they can instantly hire a taxi in the street or at a taxi rank, or they can pre-book a taxi or a private hire vehicle. When pre-booking, passengers can make an informed choice based on factors such as price, availability and quality. The combination of taxi and private hire ensures that the needs of as many customers as possible can be met.
Andrew Gwynne
If a licensing authority such as Tameside or Stockport in my constituency decides for perfectly legitimate reasons that somebody is unsuitable to be a taxi operator in its area, should it not have the power to enforce that to prevent that person from getting a licence from another local authority and operating on the streets of Tameside or Stockport?
Andrew Jones
I am coming to cross-border working and licensing. We have had some terrible cases across the country, which have clearly shown that the system has failed in certain areas. We all know these cases, and they are positively shocking.
The industry is seeing real change as new technology provides new ways for the public to engage taxis and private hire vehicles. Smartphone booking apps are now available for taxis and private hire vehicles, offering passengers easy access to services, more choice, faster pick-ups and options for sharing, which can reduce cost. It is encouraging that the London taxi trade has been at the forefront of that technological change. There are now numerous smartphone apps for booking a taxi, and more drivers are embracing cashless payment options. However, that new technology is challenging the traditional operating boundaries between the taxi and private hire trades. That is straining the relationship between local authorities and the industry, but by working in partnership they can deliver a modern industry that continues to provide choice and high standards.
I would like to say a few words about an issue that is particularly important to me. The Government are committed to building transport networks that work for everyone, ensuring that disabled people have the same access to services, and the same opportunities to travel, as other members of society. Disabled people are heavily reliant on buses and particularly on taxis and private hire vehicles, which are critical. That is why the Government intend to commence sections 165 and 167 of the Equality Act 2010 this year. That will impose duties on the driver of a taxi to accept and assist a wheelchair user and not to charge extra for doing so.
I would also like to mention the Government’s ongoing work to improve air quality and reduce emissions in the taxi and private hire sector. In March 2015 the Government launched a £20 million scheme to support the roll-out of ultra-low-emission taxis across the UK. A further £25 million was set aside specifically for the Greater London area, to help taxi drivers cover the cost of upgrading to a greener vehicle. Our aim is for almost every car and van to be a zero-emission vehicle by 2050. The transition to ultra-low-emission taxis is especially important to help improve air quality in our towns and cities.
The hon. Gentleman made specific points about working across areas, and I would like to address those now. The issue involves taxis and private hire vehicles licensed in one area working in another. I appreciate the concern here, but while standards vary between authorities, all taxis and private hire vehicles and their drivers should have been licensed by their home authority, thereby ensuring that the driver is a fit and proper person and that the vehicle is safe.
Local licensing authorities have a duty to ensure that any person to whom they grant a taxi or PHV licence is a fit and proper person to hold such a licence. The term “fit and proper” is not defined in legislation, but the procedure for assessing a driver’s fitness will typically involve criminal record and medical checks. In an instance where a driver commits an offence in a jurisdiction in which he is not registered, the local authority where the offence was committed can prosecute.
The points raised about protecting more vulnerable users are incredibly important in this regard. Some of the cases we have seen in different parts of the country are shocking. I therefore take this opportunity to address the issue of child sexual exploitation related to the taxi and private hire vehicle industry. Let me start by reiterating the Government’s commitment to eradicating the risk to children and vulnerable people from taxi and minicab drivers who seek to abuse their position of trust. I would also like to make it clear that local authorities are responsible for background and safety checks on all employees, including drivers, who work with children and vulnerable people. They have a duty of care to ensure that young people are protected.
The Government expect those who exercise licensing functions routinely to use the powers available to them to keep young people safe. We encourage all local authorities to carry out an enhanced criminal record check on everyone who applies to drive taxis and minicabs. We want to ensure that our licensing arrangements provide the strongest possible protection to children and vulnerable people. We are drawing on lessons learnt in Oxfordshire, Rotherham and other places. I know that there is currently a very topical issue in Lancashire in a neighbouring authority. We are drawing on these lessons to reform and strengthen the law. I have been meeting Home Office Ministers and will continue to work on this.
The hon. Gentleman asked about the Law Commission. The Law Commission undertook a very comprehensive review and published its final report, which contained recommendations for a modern and simplified structure. The legislation that governs this industry goes back hundreds of years and is convoluted. The Law Commission’s report provided not only crucial analysis of the problems posed by the current law but solutions designed to make a difference to the travelling public and to those who work in the industry, either from a driving or a licensing perspective. As a Government, we are considering the Law Commission’s recommendations. I recognise the hon. Gentleman’s point about getting a move on with this. That is very timely, as we are working on it. I cannot yet give him a date for when the scrutiny will be complete. We will respond as soon as we can, and I recognise the requirement to do so.
The hon. Gentleman raised other points that I will mention briefly. I am happy to take ideas from all sides as to how we can improve the service, but it might be quite restrictive to operate only within a council area—for example, in the airport taxi service market. There are some difficulties there. However, I am happy to consider all sorts of interesting ideas.
Andrew Gwynne
One of the benefits of an area such as Greater Manchester is that it is a big city region, so perhaps we could have a specific regulatory framework for Greater Manchester taxis.
Andrew Jones
I am happy for local authorities to work together to set high standards in their areas, and there is nothing stopping them from doing so. We should all be seeking to raise standards.
The issue of Rossendale’s performance has been raised. I suggest that I write to Rossendale to highlight the concerns that Members have expressed and make sure that it is aware of them. There are quite significant differences between the fees charged in Rossendale for a licence and those charged in Greater Manchester. That might reflect the different standards. It might also reflect the bulk purchasing that Rossendale may be able to do because it processes so many applications. In any case, I will raise the issues with Rossendale and come back to the hon. Gentleman when I get its reply.
The Government are fully aware of the changes and challenges affecting the taxi and private hire vehicle industry across the country, including in and around Denton and Reddish. There are the challenges not only of new technology and increased competition but of the need to ensure that vehicles play their part in improving air quality and accessibility. I believe the reputation of the British taxi trade to be high, and the quality of service it can offer means that it should be well placed to continue to compete in this changing market and have a strong and healthy future. Taxis are an important part of the transport mix in all areas. It is now our responsibility to make sure that they have the regulatory regime among local councils to ensure that they can continue to ply their trade profitably, but securely, for the people whom they serve.
Question put and agreed to.