Taxi Trade

Graham Stringer Excerpts

Tuesday 18th July 2017 Westminster Hall

[Wes Streeting]

I agree. Actually, in some cases, Uber cars use taxi ranks constantly on the streets of central London. There are real issues about how the existing law is enforced and there is a need to clarify it. In our report, we strongly supported those who made representations, particularly the National Union of Rail, Maritime and Transport Workers and other trade unions, including Unite, for which Mike Hedges gave evidence to our panel. We need Ministers to clarify their position on the two-tier system by issuing a formal response to the Law Commission’s 2014 report and by introducing a legally enforceable statutory definition of plying for hire.

[Graham Stringer (Blackley and Broughton) (Lab)]

My hon. Friend is making a case for the updating and modernisation of the regulation and law applying to private hire and hackney carriages. He referred to the Law Commission report, which recommends a national system, and we have had reports from competition authorities that refer to deregulation. Does he agree that the licensing of hackney carriages and private hire vehicles should remain a local authority affair and that, when we look at the facts, deregulation nearly always leads to a worse service?

[Wes Streeting]

I strongly agree with my hon. Friend, who leads me directly on to cross-border hiring. He is correct that, although the Government have not formally responded to the Law Commission report and have not introduced as anticipated a new licensing reform Bill for taxi and private hire vehicles, the Deregulation Act 2015 meant that private hire vehicle drivers operating in one area could be licensed in a different area: an issue known as cross-border hiring. In practice, that means that where local authorities have rightly and appropriately determined specific licensing conditions suitable for their local community and population, drivers can abuse the patchwork quilt of licensing regulations across the country to flout rules.

Most alarmingly, we saw evidence of that happening in Rotherham. Right hon. and hon. Members will be acutely aware that in response to the terrible child sexual exploitation scandal, Rotherham Metropolitan Borough Council rightly introduced one of the toughest licensing regimes in the country, including the requirement for drivers to have a recording device—either a camera or audio equipment—in operation at all times when someone under the age of, I think, 16 was travelling in the vehicle. However, the council found that private hire drivers could flout those conditions by licensing their vehicle in another part of the country. They could then operate on the streets of Rotherham quite legally and the council could do nothing about it. We heard compelling evidence from my hon. Friend the Member for Rotherham (Sarah Champion) about the risks presented to the people of Rotherham because those robust standards are being undermined.

Rotherham is the most serious example, but it is not the only example. Reading Council decided not to grant Uber a licence, yet drivers from Uber license themselves in London and drive around the streets of Reading. I was struck by the evidence provided to my office by the Mayor of London about the number of TfL licences granted and where the drivers live. For example, 747 people have TfL-issued licenses but live in Birmingham, 260 people live in Manchester and yet have licences granted in London, and 378 people live in Bristol but have licences granted by TfL in London. That is clearly flagrant abuse of the system.

We set out a common-sense approach to dealing with this problem: to create a statutory definition of cross-border hiring under which a journey must begin or end in the licensing authority where the licence was issued. That would be simple and easy to enforce and would solve the problem instantly.