Taxi and Private Hire Licensing Reform

Jon Cruddas Excerpts

Thursday 3rd October 2019 Commons Chamber

[Wes Streeting]

I strongly endorse what the right hon. Gentleman has said. There is a real need to act, whether on the introduction of new rules to govern cross-border hiring so that people cannot flout safety terms and conditions, on finally providing a working statutory definition of plying for hire to prevent abuse of the two-tier system, or on ensuring that all drivers have disability training, recognising the concerns that Guide Dogs and other disabled passengers’ groups have raised about the inaccessible nature of too many journeys.

The Department cannot have failed to notice that Professor Abdel-Haq said at the end of his foreword:

“I look forward to the Government’s prompt response to this report in order to maintain the momentum for improvement.”

His final and clear word on the matter was:

“Undue delay would risk public safety.”

I am afraid that that is where we are now. We are in a position where passengers are made unnecessarily unsafe because the Government have been too slow to act, even though we have a clear cross-party consensus.

The Government and all Members of Parliament are held in low esteem by the general public because of the deadlock on Brexit. While the Government try to move through that deadlock, and we all try to work constructively to break the deadlock so that we can turn our attention to other issues, Wednesday’s debate on the Domestic Abuse Bill showed that the House does an enormous amount of good for the country. There are so many areas where we could build cross-party consensus for the benefit of our constituents and the country. The good news for the Minister, the Government Whips and the Prime Minister in looking forward to Her Majesty’s Gracious Speech and in thinking how they might legislate is that the votes exist for a taxi and private hire Bill. I hope that the Minister, even if he cannot pre-empt the Gracious Speech, can drop a significant clue about what might be in it.

There are also city-specific issues. As a Greater London MP, I am well aware of the impact that private hire vehicles have had on congestion in the streets of our capital city.

[Jon Cruddas (Dagenham and Rainham) (Lab)]

I must put on record my hon. Friend’s extraordinary work since becoming an MP on the regulation of the taxi industry. Does he agree that it is a democratic right that Transport for London and the Mayor should have the power to set—and, if necessary, limit—the number of private hire vehicles on London’s streets?

[Wes Streeting]

My hon. Friend has anticipated the point that I was about to make. Clearly, capping the number of private hire vehicles would not be appropriate in every town or city in the UK. However, the Mayor of London and Transport for London have made a compelling case to enable Transport for London to use a cap if that is deemed necessary and appropriate. Although I hear the objections from some parts of the industry, particularly those using vehicles with lower emissions, it is not just about the emissions of those vehicles. If those vehicles are clogging up the streets of London and the gas-guzzling lorries or other polluting vehicles are pumping out toxic fumes, that congestion is as big a contributor to poor air quality as those individual vehicles. For the first time in history—although perhaps not even the last—we have a former Mayor of London in No. 10. I hope that he will not be there for too long, but while he is, I hope that the Prime Minister, based on his experience as Mayor, might look on that proposal favourably. We have a huge area of consensus and a huge opportunity to legislate with cross-party support, so I hope that the Minister will give us some good news about how the Government will respond to our pleas for urgent action.

I want to raise a related issue, particularly in the light of Transport for London’s decision to grant a two-month licence extension to Uber: namely, the conduct of that operator. I recently met with Uber in London for the first time in many years. I also met with Uber when I visited its headquarters in San Francisco with the all-party group on the fourth industrial revolution, which is reflected in the Register of Members’ Financial Interests. I am not from the luddite wing of the House of Commons; in fact, I have yet to find the luddite wing. [Interruption.] It is being suggested that the right hon. Member for South Holland and The Deepings (Sir John Hayes) and my hon. Friend the Member for Dagenham and Rainham (Jon Cruddas) might fit into that category. I think that is rather uncharitable and would never let it be said.

I have no problem at all with the way in which technology is going to change our society. Technological change is inevitable—it is coming; it is happening—but let me say to this Minister in particular, who is often at the cutting edge of political thinking on the centre right of British politics, that we have to think carefully about how we respond to this technological revolution, which is going to change the landscape of this country in terms of our work, our interactions, our relationships and our relationship with the wider world.

It is particularly important to learn the lessons of what we got wrong with globalisation. Just as globalisation has been a fantastic force for good in the world, bringing about peace and prosperity and lifting millions of the world’s poorest out of poverty, we cannot be ignorant of the fact that it has had enormous downsides, which have led to rapid deindustrialisation, the hollowing-out of towns and cities and the degradation of people’s working conditions and quality of life. Our failure— by which I mean the failure of the champions of globalisation—to recognise those downsides and mitigate them has led to a huge backlash, which is upending the peace, prosperity and stability that we have enjoyed in western liberal democracies since the end of the second world war, whether it is the referendum result to leave the European Union or the election of Donald Trump as the President of the United States of America. There may be something ironic about a global movement against globalisation, but it is none the less there, and if the champions of globalisation had recognised the downsides and worked with those communities to ensure that everyone reaped the benefits, our politics, our country and our world would be in a better place.

We are now on the cusp of a new technological revolution that offers enormous opportunities for how we live, work and relate to the wider world, but there are downsides, and we see that in the case of Uber. Sure, people find it convenient to call Uber at the touch of a button—I should add that they will also find it convenient to call an iconic licensed London taxi at the touch of a button—but it cannot be right that a multinational corporation based in San Francisco that is effectively a glorified minicab app can undercut other competitors in the industry through aggressive tax avoidance, by not recognising their workers as employers, with standard employment rights, terms and conditions, by not paying them their fair share and by playing fast and loose with passenger safety.

I recognise that Uber has taken some steps, following rigorous enforcement from Transport for London, to clean up its act. It is now subjected to an additional 20 licence conditions on its London licence. However, I am afraid to say that it still has to be dragged through the courts to recognise basic employment rights and conditions. When it floated, its own report to the Securities and Exchange Commission said:

“Our workplace culture and forward-leaning approach created significant operational and cultural challenges that have in the past harmed, and may in the future continue to harm, our business results and financial condition.”

It mentioned in that report its

“focus on aggressive growth and intense competition, and…failure to prioritize compliance”.

Whether Uber is having to be dragged through legal action to comply with data standards and to give drivers access to the data they have requested, or whether it is being dragged through the courts by trade unions and Uber drivers—I really do pay tribute to GMB and United Private Hire Drivers—I am afraid that it is not yet acting in the way I would expect a forward-thinking, forward-looking, responsible technology provider to behave. I therefore hope that Transport for London scrutinises very carefully the case for renewing Uber’s licence.

Let me conclude on that point by saying this. If a licensed London taxi driver had breached their conditions in the way that Uber has, or if the minicab office up the road from my home had flouted its operating conditions, they would have lost their licences, and they would no longer be operating. We cannot send a message to big multinational corporations that we deem them too big to fail. It is important that the Government and Transport for London hold Uber rigorously to account.

I hope the Minister will take those messages on board. The taxi drivers, minicab drivers and Uber drivers I represent are looking to the Government to make sure we have a level playing field, fair competition and a diverse taxi and private hire industry in this city and in other towns and cities across the country that works in the interests of drivers and passengers and that, most of all, prioritises safety. That is what is at stake here.

Taxi Trade

Jon Cruddas Excerpts

Tuesday 18th July 2017 Westminster Hall

[Jon Cruddas (Dagenham and Rainham) (Lab)]

This is a hot-button issue for many of my constituents, and it will continue to be so, as it was during the general election campaign, until we sort out a basic framework of fair competition. In my view that would include the capping and regulation of taxis in London, which has been mentioned, the powers afforded to the Mayor of London, and wider issues to do with cross-border hiring and minimum standards across the sector.

Like other hon. Members, I congratulate my hon. Friend the Member for Ilford North (Wes Streeting) on securing the debate and on all his hard work on the matter since he was elected. Like him, I have many constituents who are black cab drivers, and there is frustration about the effects of deregulation and the lack of effective licensing. There are implications for passenger safety in this city and across the country. There has been a dramatic effect on the livelihoods of many of my constituents and their families. Many cab drivers I know have had their income slashed in the past few years, and many are considering leaving the trade for good. That is tragic for some of the most qualified taxi drivers on the planet, and for the iconic black hackney carriage in this city. This is a big debate.

One point in the introduction to my hon. Friend’s report that is worth mentioning is that there is a tendency to simplify the debate as being about the past versus the future and innovation. In my experience that is not the case. The cab drivers I know and represent have not been afraid of technology or innovation. On the contrary, they have embraced it, but there is a need for a fair, level playing field. Technological innovations cannot be used to destroy drivers’ conditions and residents’ protections. Moreover, big multinational companies cannot be allowed to ride roughshod over our democracy and to undermine, through lobbying and personal connections, attempts to create minimum standards and effective protections in cities such as London.

I want to make three basic points, which have been made earlier and will no doubt be made in the Front-Bench speeches. The first is about the number of minicabs in the capital, and the implications for congestion and pollution. As we have heard, it is estimated that in seven years the number of private hire car drivers has doubled to 120,000. As things stand, TfL is legally obliged to issue a licence to any driver who meets the criteria. We should put a cap on that.

That leads to my second point, about the general licensing environment. The simple reality is that drivers can dodge areas with more robust licensing by gaining a licence from an authority with weaker regulations. So standards designed to keep residents safe are being dodged through the avoidance of other licensing regimes. Minicab drivers should not be able consciously to acquire licences in areas with less stringent conditions.

On the more specific question of cross-border hiring, private hire vehicles are currently not restricted from taking bookings anywhere in England and Wales, provided that the vehicle driver and operator are licensed by the same licensing authority and the booking is accepted within that authority. There is little that licensing authorities can do about drivers who work outside the area for which they are licensed. The obvious question is how licensing authorities can effectively regulate and enforce private hire activity in the areas in question. They cannot. As we have heard, a significant number of London-licensed private hire vehicles appear to be working solely in areas outside the capital, so there appears to be a clear need for the Government to legislate to create a statutory definition of cross-border hiring. Should a journey have to begin or end in the licensing authority area where the licence was issued? That appears to me a pretty sensible suggestion. It would allow flexibility for private hire operators to fulfil passenger requests.

My final point is about national minimum licensing standards. The problems associated with cross-border hiring are linked with variations in licensing standards across the country. In some areas, drivers do not need even a Disclosure and Barring Service check to receive a licence, so drivers are not necessarily screened for criminal convictions before being allowed to carry passengers. Surely we need new minimum licensing standards for all licensing authorities to impose.

Overall, the proposed reforms are pragmatic and sensible. I very much welcome them and support the work of my hon. Friend the Member for Ilford North and the coalition that he has assembled.