Taxis and Private Hire Vehicles

Debate between Richard Burden and Stephen Hammond

Tuesday 29th April 2014 Westminster Hall

[Stephen Hammond]

I thank my hon. Friend for that intervention. He is absolutely right. The measures that we are introducing via the Deregulation Bill will apply in England outside London and Wales. They represent the first part of a longer journey towards a deregulated trade. As I said, my hon. Friend is right. I remember in the last Parliament arguing in this very Chamber that pedicabs should be regulated and the member of the Government saying that they should not be. Perhaps there has been a change of view on regulation. I see this as the first part of a journey that my hon. Friend is right to say is likely to take longer than the lifetime of this Parliament, because of the necessary review of the Law Commission report. Let me just state this on the record. I do expect there to be more comprehensive reforms. We have asked the Law Commission to undertake extensive consultation, and it has done that. I referred earlier to the more than 3,000 responses that there have been already. It is worth stating on the record that each of the measures that we propose we have already discussed in detail with the Law Commission.

[Richard Burden]

If I am reading the Minister correctly, he is saying, “Why hang around if there are simple things you can do now?” In that case, may I put to him one of the proposed changes, which is removal of the requirement for annual licensing? We know—we heard this from my hon. Friend the Member for Bolton West (Julie Hilling)—that a number of drivers do not always do what they should do, which is to report criminal convictions, bans and so on. The Institute of Licensing has said that if we move away from annual licensing and the licence period is

“extended to 3 years…a great many unsuitable and potentially dangerous persons would remain licensed for longer.”

That surely is not something simple and uncontentious. It requires rather more scrutiny than the Government are giving us today.

[Stephen Hammond]

The whole issue about people who choose to put their licence at risk is about enforcement. I will come on to that direct point in a moment, but I want to set out exactly what these three measures are designed to do. We want to work with private hire operators to help businesses to flourish and grow; we want to make life easier for passengers; and we certainly want to ensure that safety is at the forefront of all that is being done. Private hire operators have said that the existing restriction on sub-contracting such that people can subcontract only to operators based in the same district is frustrating for many of them and artificial. It means that often they have to tell passengers that they cannot take their booking.

Allowing private hire operators to subcontract to operators licensed in a different district is a simple change. It will have a huge impact on the ability of operators to meet passenger needs and to grow their businesses, and it should help to make the passenger’s experience much more convenient. In short, it is a liberating measure. It will allow the private hire trade to operate in the way that it sees fit, not just in the way that the current legislation dictates.

There has been some talk about accountability. It is absolutely clear that there is no compromise to the liability in respect of passengers. The Bill makes it absolutely clear that the onus is on the original operator, who accepts the booking and subsequently passes it on, to retain liability for the satisfactory completion of that journey. It is also clear there is a duty on the operator who takes the booking to keep a full record and to report the full record of that journey.

The second measure proposed in the amendments to the Deregulation Bill will save the private hire trade many thousands of pounds. At the moment, private hire vehicles can only ever be driven by a licensed private hire driver. That creates a substantial burden for the trade, as in many cases people have to buy a second car for family members to drive. That is an unacceptable restriction, particularly in the current economic climate. It came about only because of an unexpected interpretation of the law in a legal judgment back in 1997. At a stroke, that meant that thousands of families had to buy a second car in order to remain within the law. That is a burden too far and one that is ideal for reform using the Deregulation Bill. Therefore, we propose to change the law so that any person with the appropriate driver’s licence and insurance can drive a private hire vehicle when it is off-duty—when it is not in use in connection with a hiring for the purpose of carrying a passenger and not immediately available to an operator to carry out a booking. In that way, private hire vehicle owners and their families stand to make substantial savings.

There is a precedent for the change that we are introducing The judgment was made in 1997. Parliament took account of that judgment when framing the much newer legislation governing private hire vehicles in London. The Private Hire Vehicles (London) Act 1998 allows a person who does not hold a private hire driver’s licence to drive a licensed private hire vehicle while it is off duty.

Quite rightly, some concerns have been expressed about safety and the effective enforcement of the measure. That is why in the clause that introduces it, we introduce a reverse burden of proof. If a driver without a private hire vehicle driver’s licence is caught driving a private hire vehicle with a passenger, the clause puts the onus on that person to show that the vehicle was not being used as a hire vehicle at the time when it was being driven. That reverse burden of proof will make things substantially easier for enforcement officers and overcome a number of the concerns about enforcement that are being raised. Of course, in most cases, it will be abundantly clear in a matter of seconds that the passenger is in the vehicle as part of the general domestic use. It will also become apparent very quickly if the driver’s sole reason for being in the vehicle is to undertake private hire work. It seems absolutely reasonable to put the burden of proof on the driver to show that they are not driving for private hire purposes. That reverse burden of proof is significant and it enhances the enforcement powers. If people consider it carefully, they will see that that safeguard goes a long way towards meeting the concerns about safety and enforcement.

The third measure relates to taxi and private hire vehicle driver and operator licence durations. Again, there has been much talk about cost, but there are also savings. This measure will save about £9 million for the trade, as well as a great deal of administrative hassle. At present, the law allows local authorities to grant taxi and private hire vehicle driver’s licences for a maximum of three years. However, far too many authorities are opting for shorter periods. Therefore, three years will be the standard duration for all taxi and private hire vehicle drivers. That seems to me to be a perfectly sensible standard to move to.

I appreciate that some concerns have been expressed about adverse safety implications from allowing drivers to have a licence for three years. The safety of the general public is of course paramount. The licensing system, though, should be proportionate. It should recognise that where there is a requirement, there is also a cost. It is a question of striking a balance. As the hon. Member for Wansbeck said, 99.9% of drivers are safe and responsible. The licensing of those drivers should be proportionate.

I hope that in the few minutes available to me I have been able to demonstrate that the Government have considered the measures carefully. They are pragmatic amendments to the Deregulation Bill. They will allow substantial scrutiny in Committee and will reduce the burdens on the taxi and private hire trade. They are effective and safe steps along the longer deregulatory journey.