Deregulation Bill

Debate between Lord Curry of Kirkharle and Viscount Ridley

Tuesday 21st October 2014 Lords Chamber

[Lord Curry of Kirkharle]

My Lords, I have some sympathy with the comments just made by the noble Lord, Lord Greaves, but let us be clear: these are deregulatory measures. The annual licence fee for a taxi is a cost on business, and extending the period would be deregulatory and welcomed by taxi firms.

I challenge the assertion that under Clause 12 individuals will be placed at greater risk. Of course, those of us who use taxis prefer to use our regular firms. As someone who has a very keen family interest in disability, the last thing I would wish would be for any individual to be put at greater risk. However, we are not suggesting in Clause 12 that unlicensed taxis be used. These are taxi firms that have been licensed by a neighbouring authority, so they have been subject to the same licensing process as the firms to which the request for a cab has been made. In my own case, like other noble Lords I use taxis from time to time. If my preferred taxi firm is unable to transport me to the station or the airport, I have to go further afield and find another firm. That taxi firm then loses that business and maybe will lose my future business because I have transferred my allegiance to another firm.

This is an opportunity to free up the market for taxi firms and to allow them to operate outside their immediate geographic area. It is something that we should support.

[Viscount Ridley (Con)]

My Lords, I apologise to the Committee for not being present at Second Reading, but perhaps I may be allowed to comment on Clause 12, which I believe is a fair and reasonable measure that will bring improvements for customers.

At the moment it is only outside London that a private hire operator cannot subcontract a booking in a different district. Is there something peculiarly wicked about provincial private hire firms that does not apply in London? A London-based private hire firm can subcontract, as can a foreign unlicensed company, and this gives it a huge advantage. It puts private hire firms outside London at an iniquitous disadvantage, but it also leads to perverse, inconvenient and even unsafe consequences for customers. I shall give your Lordships a real example.

There is a private hire firm in Birmingham that has a contract to transport any staff with minor injuries from Jaguar Land Rover’s plants to hospital. As the firm cannot subcontract a booking to an operator in another district, if the injury occurs in the Wolverhampton plant, the car does a 55-mile return journey to take the person to a hospital 2.6 miles from the plant. For most of that round trip the car is empty. Jaguar Land Rover wants to deal with a single operator, but this is the result.

Another real example is of a private hire operator in Derby asked by a customer to collect an important client in another district. It must refuse the job, and refuse to arrange it with another firm in that district. The firm appears unhelpful to its customer. I have a third real example. A private hire firm in north Tyneside has a member of staff with a terminal illness. He would like to continue working, but from home. Since he lives just outside the north Tyneside border, that is illegal. I have another example. People often hire private minibuses to do long journeys for groups of up to six or eight people—to an airport, for example. That vehicle must return empty. If it breaks down en route, the operator is breaking the law if he asks another firm in the district where the breakdown happens to take the customer on. This measure would reduce congestion, pollution and noise a little, too.

Please note that the beneficiaries of this change in the law would include people with disabilities. That is because a wheelchair-enabled vehicle that has taken a customer from his home in district A to a hospital in district B would now be able to collect a different customer at the hospital and take him back to district A. As far as I can tell from Hansard, when exactly these measures were discussed and passed in this House in 1998 for London, one organisation that was widely praised in the debate for its support of the measures was the Suzy Lamplugh Trust. It therefore surprised me to hear today that it is against this measure. If this rule is good for London, it is surely good enough for the rest of the country. Can it be that London-based private hire firms are worried about competition from firms based outside London? This is an excellent and sensible measure that has benefits for customers.