Taxi Trade

Jim Cunningham Excerpts

Tuesday 18th July 2017 Westminster Hall

[Wes Streeting (Ilford North) (Lab)]

I beg to move,

That this House has considered the future of the taxi trade.

It is a pleasure to serve under your chairmanship, Mr Wilson. The black hackney carriage is one of the great icons of our capital city, the knowledge of London produces the most qualified taxi drivers in the world and the licensed taxi trade is a mainstay of public transport systems in towns and cities across the UK, but unless action is taken, London’s famous black taxi risks being driven off the road altogether.

The taxi and private hire industry is, in many respects, at the cutting edge of an industrial revolution that is sweeping the world at unprecedented scale and pace. Breakthroughs in technology offer unlimited potential to improve our quality of life and revolutionise the way we travel, but we have seen on the streets of London and other major cities around the world how technological advances can be exploited by multinational companies that seek to drive competitors off the road with a business model based on poor pay and conditions for drivers, exploitation of regulatory loopholes and predatory pricing that is made possible by huge venture capital and aggressive tax avoidance.

[Mr Jim Cunningham (Coventry South) (Lab)]

I am sure my hon. Friend knows that black cabs are actually manufactured in Coventry and on its outskirts. A lot of investment—Chinese investment, actually—has gone into black cabs over the past few years. The developments that he describes may have a consequence for the production of black cabs, meaning that a lot of jobs could be at stake. I studied the Taylor report, and I noticed that it is actually very weak in dealing with that situation. A lot of people—not least taxi drivers themselves—are quite concerned about the consequences.

[Wes Streeting]

I wholeheartedly agree. My hon. Friend can be proud of the role that Coventry’s manufacturing plays in the licensed taxi industry. My argument is that there are two possible futures, both for the manufacturing of vehicles and manufacturing jobs, and for other areas of the taxi and private hire industry: a bright future or an existential crisis. The Government have a clear role in ensuring that we head towards a bright future rather than a bleak future.

The all-party parliamentary group on taxis, which I am proud to chair, was founded with that in mind, to ensure that the trade has a strong voice in Parliament. For the past six months we have conducted a wide-ranging inquiry on the future of the trade, which led to the publication of our report, “Lessons from London: The future of the UK taxi trade”. I will focus on that report and its recommendations.

I am glad to see the Minister here. I know that he takes an interest in the future of the trade and in these issues, and I look forward to working with him. He will be pleased to know that, during our inquiry, we engaged with a wide range of stakeholders in and around the industry to look at issues such as passenger and public safety, the effectiveness of regulation, and the future of the taxi trade. I was delighted that an APPG inquiry, as opposed to a Select Committee inquiry, generated such interest. We received 115 pieces of written evidence and heard from a wide range of witnesses at three oral evidence sessions.

I want to place on the record my thanks to that wide range of stakeholders, which included the Licensed Taxi Drivers Association; United Private Hire Drivers; Transport for London; the GMB and Unite trade unions; Addison Lee; Gett; mytaxi; the London Taxi Company; Guide Dogs UK; and the Chair of the Select Committee on Communities and Local Government, my hon. Friend the Member for Sheffield South East (Mr Betts). I also want to say a particular thank you to my constituents. It would take some time to name all the constituents I have had conversations with about this issue—as many people know, Ilford North still has a reputation for being “green badge valley”—but I particularly thank Danny Fresco, Jim Ludlow, Steve Kenton and Sean Harris for the time they have taken to engage with me throughout my time as their Member of Parliament. It is a source of regret that, although Uber was invited to give evidence, it chose not to, because it has a direct role and responsibility in many of these issues. I hope that its level of engagement will change.

[Wes Streeting]

My hon. Friend is absolutely right, and I really welcome his engagement with the inquiry as a Cardiff Member. In many respects, London bears the brunt of these issues, but many other towns and cities across the country are equally—if differently—affected. Our intention when producing the report was to ensure that we learned lessons from London but also addressed issues that apply across the UK.

[Mr Jim Cunningham]

I am sure my hon. Friend realises that the regulations were actually eased some years ago, under the coalition Government. That makes local authorities powerless to do anything about these issues—Coventry, for example, has the same problem with Uber. Like my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), I have consulted trade unions and taxi drivers themselves, and they are very concerned.

[Wes Streeting]

My hon. Friend leads me neatly into the inquiry’s first theme: the effectiveness of regulation. Some taxi and private hire vehicle legislation is more than 100 years old. It includes the Town Police Clauses Act 1847 and, in London, the Metropolitan Public Carriage Act 1869 and the London Cab Order 1934. I should probably declare that I am a vice-president of the Local Government Association and an elected member of the London Borough of Redbridge. I strongly agree with the Local Government Association and the Law Commission that we need a taxi and private hire vehicle licensing reform Bill. There have been sweeping changes across the taxi and private hire industry, and legislation and regulation have not effectively caught up. That is causing a wide range of issues.

--- Later in debate ---

[Wes Streeting]

I am grateful to my hon. Friend for that point, and I will pick it up when I talk about passenger safety. He is quite right that driver safety is something we should take seriously.

We heard compelling calls from a range of stakeholders, particularly people from London, about the need for local licensing authorities to have the power, to be exercised when they need it, to cap the number of private hire vehicles on the streets of a particular town or city. In London, we have seen an explosion in the number of private hire licences to around 120,000—up from 60,000 in, I think, 2010, which is a huge increase. Those private hire vehicles contribute to the congestion on the streets of London, which is filling our air with toxic emissions that result in the preventable deaths of more than 9,000 Londoners each year.

A report by the London Assembly, “London Stalling”, found that the number of private hire vehicles entering the congestion zone had increased by 54% since 2013, and that private hire vehicles are a cause of rising congestion. Those are not necessarily the most polluting vehicles on the streets of London, but the congestion to which they contribute means that more toxic fumes are being pumped into the air. There are two aspects to that. One is that Transport for London and the Mayor of London have been clear that they would like to cap the number of private hire vehicles on the streets of London to tackle the problem, but that they do not have the power to do so. The Government should be permissive in this area, trust local authorities to make appropriate decisions and give them the power to cap the number of private hire vehicles where appropriate. Of course, such a cap would only work if the Department for Transport also tackled cross-border hiring. I hope we will see effective action in both of those areas.

On passenger safety, I have already talked about cross-border hiring and the flouting of local licensing rules, but there is also the issue of insurance, which has already been referred to. All taxis and private hire vehicles are required to hold hire and reward insurance whenever they are carrying a passenger. However, we found during our inquiry that licensing authorities had no way of confirming whether a private hire vehicle had a hire and reward policy in place after its initial licensing, and that police and enforcement officers were only able to tell whether a vehicle was insured or not, rather than what type of insurance the driver held. We recommend that the Government legislate to require all private hire vehicles to have full hire and reward insurance for the duration of a licence, and explore the potential for private hire vehicle operators to have their own hire and reward fleet insurance, to cover all their registered drivers and vehicles.

We also heard powerful evidence on accessibility. I am proud that black hackney carriages are accessible and are a key part of the disability transport network of this city and many others across the country. However, there is still further to go on this. Some 42% of assistance dog owners were refused by a taxi or private hire driver in a one-year period, so although I strongly welcome the action that the Government have already taken in this area—introducing a £1,000 fine for taxi and private hire vehicle drivers who refuse to transport wheelchair users—there is a lot further to go.

First, we need to make sure that all drivers can communicate with passengers and understand their disability access requirements. That is why I strongly support the measures that the Mayor of London is trying to introduce on English language testing for drivers before they are able to take a licence. Secondly, the Government and the licensing authorities should require all private hire and taxi drivers who are given a licence to undertake mandatory disability equality training and take an associated test to make sure that they can properly support disabled passengers.

[Mr Jim Cunningham]

Will my hon. Friend give way?

[Wes Streeting]

I will have to make progress, otherwise I will encroach on the time for other Members to speak. I have talked about the need for taxi and private hire drivers to undergo topographical training, so that they are better drivers and have better skills.

However, my hon. Friend the Member for Bedford—he is no longer in his place; he has another commitment—made a powerful contribution on driver safety, and we really need to look at that, particularly since card payment machines have been put in the back of black taxis. Drivers in my constituency feel more vulnerable than ever if something goes wrong with that machine, because they have to get out of the vehicle to deal with an issue in the back. I have heard stories of drivers being abused or people not paying their fare. Drivers put themselves at risk, and we might want to look at increasing the penalties and sentences for people who abuse taxi drivers in the way we are considering for other public sector workers.

On the future of the taxi trade, it is often said that taxi drivers are not interested in modernisation and are stuck in the past, but I have not found that to be the case. Drivers are keen to drive the new zero emission capable taxis and are excited about the opportunity to reduce polluting emissions from their vehicles. To ensure that they are able to drive them, we hope that the Government will put in place an adequate rapid charging infrastructure to support their use. We also need to make sure that those cabs are affordable. I know that the Government are already looking at grants, as is the Mayor of London, but we also need to look at exemptions from vehicle excise duty. I know that we will have to make that case to the Chancellor and the Treasury, but exemptions would make a real difference to drivers’ ability to take up that challenge.

We also need to have a serious discussion on the fares regime, particularly in London, and the extent to which taxi drivers are heavily disadvantaged by fares, which are often set without adequate consultation with the trade. We also need a discussion about the extent to which competitors—particularly Uber—are able to offer artificially low prices and flood the market with drivers in order to drive their competitors off the road. That affects not just licensed taxi drivers but private hire drivers, including Uber drivers, who have seen their incomes fall in recent years because it is in Uber’s interest to flood London with as many drivers as possible to maximise its revenues, even if that is at the expense of fast journeys and decent pay and conditions for both taxi drivers and private hire drivers. We need to approach this from the point of view of fair competition, rather than the elimination of competition.

Action by Ministers is long overdue. The debate about the future of the taxi trade has often been unfairly characterised as a debate between those who support competition and innovation and those who want to cling to the past. That is a lazy analysis. As I have demonstrated this afternoon, the taxi drivers I represent are not afraid of innovation or competition; increasing numbers of drivers are embracing new platforms such as Gett and mytaxi. Many cab drivers also accepted card payments long before it was mandatory, and a great many more are keen to get behind the wheel of the new generation of carbon neutral, electric-capable taxis to play their part in improving air quality and protecting our environment.

However, the consistent theme I found as a constituency MP during our inquiry was that taxi drivers find it increasingly difficult to compete with both hands tied behind their backs in a changing marketplace. Our challenge now is to make sure that the trade enjoys a bright future as well as a proud history. I strongly believe that, with smart and effective regulation and new national standards, the taxi and private hire industries can succeed. I say to the Minister, who is a good man, that many small businessmen and businesswomen and their families are counting on Ministers to act.