Deregulation Bill

Lord Bradshaw Excerpts

Tuesday 21st October 2014 Lords Chamber

[Baroness Thornton]

My Lords, I am very grateful to the Minister for withdrawing Clause 10 and I hope she will feel that Clauses 11 and 12 deserve the same treatment, given that the Law Commission has been asked to look into the current legislation. We are very glad that Clause 10 has been pulled from the Bill, but Clause 11 has problems and Clause 12 is just as dangerous as Clause 10.

Clause 11 will end annual licence renewal and set a three-year standard duration for licences. The annual licence renewal helps licensing authorities to recognise changes in a driver’s convictions or medical status. The reform is likely to make it more difficult for licensing officers to monitor behaviour, ensure that drivers are fit and proper to drive and take action when necessary. Effective implementation of this clause will require local authorities to sign up to the Disclosure and Barring Service’s updates service and receive information about convictions during a licence term. This is a relatively new service and it is not yet known how it will work in practice. It is clearly important, so I hope that the Minister will explain why this matter cannot also wait.

Clause 12 will enable PHV operators to subcontract a booking to another operator who is licensed in a different area. We and many others believe that passenger safety will be undermined because only licensing officers from a licensing authority where a vehicle and driver are registered currently have the power to take enforcement action. The Law Commission has recommended that licensing authorities would have the power to enforce standards in respect of out-of-area vehicles, which will be crucial for their safety. The public, and vulnerable passengers in particular such as women or disabled people, may call specific operators because they feel that that operator is reliable and safe to travel with. This reform means that the public will lose their right to choose which operator they travel with. If someone calls operator A, their preferred choice, operator B may turn up.

The Law Commission’s work was undermined in January 2014 when the Government announced a 10-day consultation on these three measures of PHV deregulation. In March, they were introduced as last-minute amendments in Committee in the Commons. The clauses aim to meet the Red Tape Challenge. The challenge is not about putting people in unsafe situations and Clause 12 does just that.

Richard Burden MP’s office contacted the Department for Transport on 1 October to ask whether an impact assessment had been prepared. The impact assessment was published online on 2 October and was signed off by the noble Baroness. Page 11 revealed many of the issues that have allowed Clause 10 to be withdrawn. Page 16 of the impact assessment states:

“There has been minimal analysis”,

due to what has happened. The analysis, it continued, was,

“based on the data provided by the PHV trade associations. Due to time constraints there has not been a significant amount of analysis”,

to justify these clauses being in the Bill. The Government have tripped over themselves to fulfil, as I said earlier, the Red Tape Challenge of bringing in deregulation. In this case, it means that they are putting people’s safety at risk.

The reason that Clause 12 is so important has been brought to our attention by a number of organisations, including some student bodies, Milton Keynes Council and Alexis Jay in her report into child sex abuse in Rotherham, in which she highlighted significant concerns about taxi licensing. We have spoken to her personally about this and she is very worried about the implications that these changes have. Her report says that, at a number of council meetings,

“One of the main items for discussion … was safe transport”.

When asked about minicabs,

“there was an immediate and consistent response from … young women and men”,

on all occasions. In fact, all of them avoided taxis “if at all possible”. People do not have any choice in remote areas late at night but to use taxis. If someone finds a safe taxi company—there are ones who focus particularly on women—they do not want someone to turn up whom they do not know and who may not be the appropriate person to drive them.

Our experience in Milton Keynes, where serious errors by a sub-committee of councillors on licensing led to an inexcusable decision to allow a convicted sex offender to operate a private hire vehicle, illustrates the importance of getting the balance of this regulation right. The leader of Milton Keynes Council has written to us personally, asking us to oppose the clause.

Warwick Students Union wrote to us, saying that its primary concern on Clause 12 is the effect that it would have on preferred suppliers. It says:

“We are working with local authorities to put together a tendering document for a preferred private hire service—using our strong collective consumer power to stipulate better standards of service, safety and fares. Lots of other Student Unions do this such as Leicester and Birmingham to protect their members”.

We know that two women students were raped in Warwick because they got into a minicab—possibly they should not have done so, but that is what happened. The student union continued:

“We feel that this Clause would largely undo the work done by Students’ Unions across the country to ensure the safety of their members”.

It is quite clear that the Government need to take this away and think again. That is what we are asking them to do. I am sure that the Minister would not want to have students and disabled people finding themselves in unsafe situations, but this is what we think the impact of the clause will be.

[Lord Bradshaw (LD)]

I support what has been said by the noble Baroness, Lady Thornton. Anybody who knows anything about the taxi trade knows that some parts of the trade are of questionable integrity. The annual licensing inspection by the local authority where the taxi is based is the best safeguard that we can have.

On the Minister’s point that this saves people buying a second car, saving them £20,000 to £30,000, I can assure noble Lords that most private hire cars are nowhere near that standard. In fact, I can reminisce about my time in Manchester, when I was being driven to the airport in a private hire car. We passed a very used car depot. I said to the driver that his car was very old. He said, “Yes, it’s got a few months to run on its MOT. When its MOT is up, I just go into the car auction and buy another one with a few months on its licence”. He was talking about spending £200. I think that is much nearer the truth.

I also dispute the view that many rural areas do not or cannot get taxis. I live in a rural area with big rural surroundings and there are plenty of opportunities to get taxis if one thinks about it and phones them up beforehand and that sort of thing.

Students and all women are very vulnerable when they get into a taxi where the driver has not been properly licensed and had his credentials inspected—indeed, if the vehicle itself has not been properly inspected. When I was on Oxfordshire County Council, Oxford City used to call in its taxis or private hire cars every six months because they have a high mileage and the annual check does not show up the defects. If we are talking about people having a licence to operate a taxi, an awful lot of things can happen in three years. Extending the situation so that a taxi could operate in an area where the driver is not licensed is potentially dangerous.

I do not see this as much in the way of deregulation. Local authorities do not spend a huge amount doing this work and the drivers have to pay a fee for it. However, I think it raises considerable dangers, to which the noble Baroness, Lady Thornton, has referred, and it would be far more sensible if the Minister were to take this away and carry out some more work on it. The Bill has some time to run. The protests I have received from local authorities and organisations that are concerned with the welfare of people—notably, the Suzy Lamplugh Trust but lots of others—are that people are genuinely concerned about safety. That is what I believe should be taken properly into account.

[Lord Skelmersdale (Con)]

My Lords, before the noble Lord, Lord Bradshaw, sits down, I wonder whether he can educate me. If the hired car driver of which he has just spoken replaces his car for a short period, surely that replacement car would also need to be licensed. It would be very helpful for me and perhaps the rest of the House if he could explain that point.

--- Later in debate ---

[Lord Bradshaw]

I think that most people who are in this position make proper provision to have their car serviced so that it is safe. It is their responsibility to provide a safe car. If he is unable to produce one, I do not think he should be carrying passengers. I have had experience of this in Oxford, where the inspectors—there are not many of them—find a car with defective tyres. Well, I am sorry, but if the driver has chosen to drive a defective car, it is hard luck if he has to wait for it to be repaired. He is supposed to keep the car in a good and safe condition in which to carry people.

[Lord Skelmersdale]

My Lords, I really must protest. That was a beautiful answer, but unfortunately not one to which I was addressing my question, which was whether the council would or would not license the driver in the new car.

[Lord Bradshaw]

The answer to that is yes, it would. If the driver was able to produce a better car—it may not be a new one—and he went to the local authority and says he has given up using car A and is going to use car B, yes, it would. Local authorities are not, as sometimes painted in your Lordships’ House, absolutely unfeeling and draconian bodies.

[Lord Greaves]

My Lords, like my noble friend Lord Bradshaw I can see a great deal of merit in these clauses, but like him I hope, since we are at an early stage in the Bill, that the Minister will say some soothing words and agree to consider these matters further. It would be unfortunate to take this to a vote today and simply reject these clauses and not be able to bring things back later. There are really serious concerns here on the part of lots of reputable organisations, and local authorities and their representatives around the country.

I should declare an interest as a member of a taxi licensing authority, Pendle Borough Council. I should also say that taxi licensing and taxi operator licensing is something I keep as far away from as possible because it is one of the biggest cans of worms in local politics, especially in an area such as mine. I do not have direct, hands-on experience of this and I have not prepared anything to say today so I may be wrong in what I am saying. Would the Minister agree with me that there is some confusion about the discussion here?

As I understand it, Clause 11 refers to the licensing of people—either operators or drivers—and not the licensing of the vehicles themselves. Therefore, there are two separate things here. The Minister is nodding, so I shall continue with more confidence than I had when I started my speech. There is the question of whether individuals are sufficiently proper, upstanding and reputable to run a taxi business and whether individuals are appropriate to drive a car in the very intimate circumstances of taking passengers whom they do not otherwise know. That is obviously a situation where people have to be proper and upstanding.