London Black Cabs

Andrew Jones Excerpts

Tuesday 15th September 2015 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Andrew Jones)]

It is always a pleasure to serve under your chairmanship, Sir Edward. I congratulate my hon. Friend the Member for Richmond Park (Zac Goldsmith) on securing this debate on London’s famous and wonderful black cabs. This topic has been the subject of a previous debate secured by my hon. Friend the Member for Broxbourne (Mr Walker), so I praise my hon. Friend the Member for Richmond Park for continuing to highlight the contribution of London taxis to the economy and transport network of this great city and the issues that the industry faces.

As my hon. Friend 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 in London rests with TfL. It is TfL’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 for ensuring that all its licensees comply with the rules and regulations that govern the industry. I understand his desire to raise his concerns in the House but, as licensing is TfL’s responsibility, some of the points raised today are TfL’s responsibility, so I might not be able to address all those points.

[Grahame M. Morris]

Will the Minister acknowledge the contributions made by Members on both sides of the Chamber? We have highlighted problems that are likely to manifest in other parts of the country and, in fact, are already manifesting in the midlands and in some northern cities. Similar problems are likely to arise in Scotland. Do the Government not have a responsibility to legislate in anticipation of those problems to introduce appropriate redress?

[Andrew Jones]

I recognise the excellent contributions made by Members on both sides of the Chamber. Some of those points will apply across our country, but this debate is about the future of London’s black cabs. The hon. Gentleman makes a fair point, and I will address the Law Commission later in my speech.

[Zac Goldsmith]

I thank the Minister for his remarks. I have one question on the Government’s role. My understanding is that if TfL was minded to cap the number of new licences at some 2,000 a month, it would require legislative support from the Government. Will he clarify whether that is the case?

--- Later in debate ---

[Andrew Jones]

Indeed, I can. A few Members have mentioned the number of licences, and there is currently no legislation in London, or anywhere else in England and Wales, to allow the number of private hire vehicles to be limited. Equally, officials are working closely with TfL on whether legislation needs to change—we need to consider that issue and develop the required evidence. The situation is changing rapidly due to the numbers, as Members have highlighted today, and I will return to that later. As things stand, there is no legislation in place.

The traditional London taxi or black cab is, as hon. Members have said, an icon of this city. For many years the taxi industry has played a key role in keeping London moving, and the industry has a history and reputation of which drivers are rightly proud. The black cab is the gold standard across the world, and its quality is internationally recognised. All the vehicles are of a high standard, fully wheelchair-accessible and driven by skilled and knowledgeable drivers. I admire the time and dedication that prospective drivers put into learning the world-famous knowledge of London. It is an enormous commitment, involving up to four years of work on top of a day-to-day job. The drop-out rate is high, between 70% and 80%, meaning that those who complete training in the knowledge are the most committed. From a customer’s perspective, their knowledge brings a sense of utter reliability and security. As a visitor to London—my home is 200-plus miles away—I rely on it. Learning the knowledge rewards taxi drivers with the unique right to ply for hire on the streets of our capital.

In the 1960s, minicabs began to appear in London, and the private hire vehicle industry, as it came to be known, was finally regulated following the introduction of legislation in 1998. Licensing and regulation have ensured that the public have the same assurance of safety as when using a taxi and have raised standards throughout the private hire sector. Transport for London now licenses more than 22,000 taxis and 69,000 private hire vehicles. Between them, those vehicles make 300,000 trips every day, making a vital contribution to London’s economy and helping to keep the city moving 24 hours a day, seven days a week.

The availability of both taxis and private hire vehicles offers the travelling public choice. They can instantly hire a taxi in the street or at a taxi rank; alternatively, 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 Londoners as possible can be met.

As my hon. Friend the Member for Richmond Park recognises and as Members from different parties have highlighted, the market is changing. New technology is providing new ways of engaging taxis and private hire vehicles. Smartphone booking apps are now available for both taxis and private hire vehicles, offering passengers easy access to services, more choices, faster pick-ups and options for sharing that can reduce the cost for travellers.

It is encouraging that the London taxi trade has been at the forefront of those technological changes. There are now numerous apps through which one can book a taxi, and more and more drivers are embracing cashless payment options, a customer benefit highlighted earlier in this debate. However, such new technology is challenging traditional operating boundaries between the taxi and private hire trades. I understand that it is straining the relationship between Transport for London and the industry, but I hope that by working in partnership, they can deliver a modern industry that continues to provide both choice and high standards.

The evolution of the private hire sector has helped to ensure that that form of transport is available to all in a cost-effective manner, particularly supporting those who cannot rely on other public transport services. The importance of local minicab firms, often small local businesses, was well outlined by the right hon. Member for Tottenham (Mr Lammy). Such companies are often established in their communities and have served them well for many years, providing a valuable service that needs to be maintained. That point was clear.

Uber and other new entrants to the market present major challenges to established business models, and I can understand the concern of London’s taxi drivers. Uber London Ltd has been licensed by TFL 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. 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, that its operating model meets the requirements of private hire legislation and that it keeps such records as the law requires.

[Mr Charles Walker (Broxbourne) (Con)]

I apologise to colleagues for being late to this debate. There is something slightly sinister about Uber’s business practices. My hon. Friend might be aware that in America, the board of Uber met to discuss how to discredit and destroy the career of an IT journalist concerned about its business practices. I hope that he is aware of such conduct by Uber and will take it into consideration when developing his thoughts on the company.

[Andrew Jones]

I thank my hon. Friend for that intervention. I have absolutely no sympathy for any company that behaves in such a way as to discredit others. Other colleagues in the House have highlighted poor practice, such as on taxes. I have no sympathy for any company that dodges its responsibilities, including on taxes.

[Mr Walker]

Basically, the company bullies local authorities and national Governments. It will not and should not be allowed to bully the Government of the United Kingdom.

[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.

[Sadiq Khan]

I thank the Minister for giving way again. I have been listening patiently to his speech, in which he has run through a range of issues. He has heard from the hon. Members for Romford (Andrew Rosindell), for Broxbourne (Mr Walker) and for Richmond Park (Zac Goldsmith), and from my right hon. Friend the Member for Tottenham (Mr Lammy), my hon. Friend the Member for Easington (Grahame M. Morris), the Opposition Front-Bench spokesman and me. He has heard that black cab drivers are going out of business every week. He has heard that private hire minicabs in areas such as Tottenham, Poplar and Canning Town, and Tooting are going out of business every week. He has confirmed that the legislation and regulations are “outdated”—made in the 19th century and not fit for purpose in the 21st century. Yet there is no sense of urgency from the Government. It beggars belief that the Minister can come to the second debate on this issue in the space of a number of months, and speak for 18 minutes without telling us what action the Government will take.

[Andrew Jones]

That smacks of a mayoral hustings debate rather than a Westminster Hall debate. The legislative framework is complicated and technology is changing. The Government took action by commissioning this complicated work from the Law Commission. That work is currently being digested and the Government will respond shortly. I cannot provide a date for the response, but the work is important and will provide security and clarity not only for TfL, but right across the country. That has been understood, and voices from across the House have made that clear this morning.

My hon. Friend the Member for Richmond Park may be aware that TfL recently completed its own consultation on the regulations that govern private hire vehicles in the capital. That came in response to developments in the industry that I have described, including advances in technology and changes in how people engage and use private hire services. The proposed revisions to the regulations will be known later this year, and some of TfL’s proposals may address concerns raised this morning.

I was asked several specific questions, which I will try to address now, although I have already answered some of them. On whether plying for hire has been defined, the Law Commission addressed creating such a statutory definition, but it came to the view, after careful consideration, that a statutory definition would not be a practical improvement on the current position. As for Ministers meeting celebrities, the Minister responsible for transport in London is in a Delegated Legislation Committee this morning, which is why I am covering this debate—

[Grahame M. Morris]

Will the Minister take a brief intervention on his previous point?

[Andrew Jones]

I am slightly running out of time, but I will give way.

[Grahame M. Morris]

Regarding the Minister’s remark about the Law Commission and the statutory definition of plying for hire, given rapid technological advancements such as the Uber app and the complications that they are causing, does he recognise that the Law Commission advice is perhaps out of date? Is it not worth the Government considering the matter again?

[Andrew Jones]

There may be ways of addressing some of those issues, such as providing a definition of a lawful pre-booking, which will perhaps achieve the same objective. The Government’s response to the Law Commission is still a work in progress. We recognise its importance, and I am happy to commit to maintaining the Department’s energy in delivering it.

I cannot comment on Ministers meeting celebrities— I have not met any—so I cannot really add to that. Do I agree with the comments about TfL’s actions as a licensing authority? That is up to TfL and the scrutiny of Assembly Members. My hon. Friend the Member for Richmond Park mentioned price surging, and I will certainly write to TfL to highlight that point and to ask it to investigate. The same applies to the points made about predatory pricing. The key thing will be to start collecting evidence—if, indeed, this practice is taking place—so that we can make insightful comments. I have already commented on capping numbers.

On the regulation of fares, TfL is the licensing authority and has the power to set fares for London taxis. That regulation is an important element of consumer protection in the hail-and-rank market. TfL has no power to set private hire fares, which are set by the licensed operators. When booking a private hire vehicle, customers can shop around in advance and obtain a quote or estimate for a journey, which is why the regulatory authority sets no price constraint.

In conclusion, the Government are fully aware of the changes and challenges affecting the taxi and private hire vehicle industry in London and elsewhere in the country. The challenges include not only new technology and increased competition, but the need to ensure that vehicles play their part in improving air quality. The London taxi trade has rightly recognised such challenges, and I have recently been advised of a new campaign launched by trade bodies to promote London’s taxis. I believe the reputation of the London taxi trade and its high-quality service mean that it is well placed to continue to compete in this changing market and have a strong and healthy future. That is what I want, and that is clearly the view of the House this morning.

Question put and agreed to.

Resolved,

That this House has considered the future of black cabs in London.