London’s Licensed Taxi Trade — House of Commons, 2015-07-15
Topic: Transportation
Robert Goodwill (Conservative, Centre-right): Some local authorities limit the number of licences they issue, but that is not the case in London. My hon. Friend makes a valid point about how the number of vehicles circulating looking for trade can increase congestion and pollution—and let us not go into the issue of bicycle rickshaws London’s tax service is recognised as one of the best in the world, with high vehicle standards, including disabled access and skilled drivers. By learning the world-famous "knowledge" of London, London taxi drivers earn the unique right to ply for hire on the streets of the capital. Private hire vehicles offer a different service, also with high standards, but allowing the customer to choose who they travel with. This combination of taxi and private hire ensures that the needs of as many Londoners as possible can be met. Indeed, while it is easy to flag down a taxi in central London, one would have to wait a long time for a black cab to drive by in some of the suburbs The traditional London taxi, or black cab, has become an icon of the city, but time does not stand still and the market is changing. New technologies are providing new ways of engaging taxis and private hire vehicles, and the industry must adapt. Smartphone booking apps are now available for both taxis and private hire vehicles, offering passengers real choice, including faster pick-ups and options for sharing, which can reduce the cost for travellers With change, however, come challenges, and TfL, along with other licensing authorities in the country, is faced with the challenge of accommodating 21st century technology in 19th century legislation. My hon. Friend the Member for Broxbourne might be aware that TfL has recently completed a consultation on the regulations that govern private hire vehicles in the capital. This was in response to the developments in the industry I have described, including advances in technology and changes to how people engage and use private hire vehicles. The outcome of the consultation will be known later this year, and some of TfL’s proposals might address some of his constituents’ specific concerns. I hope they do I am aware of the major challenges to established businesses being presented by Uber and other new entrants to the market. I can understand the concern of my hon. Friend’s taxi-driving constituents. Like many people, I was made aware of Uber, following the taxi drivers’ protest on 11 June 2014—unfortunately providing priceless publicity for Uber. Indeed, some used Uber for the first time during that protest Uber London Ltd has been licensed by Transport for London as a private hire vehicle operator in London since 2012. The company has now applied for and been granted licences in 25 other licensing authorities in England. In order to be granted a licence, Uber must meet the same standards as any other privatised vehicle operator in the local authority area. Therefore 26 different authorities have decided that Uber is a fit and proper company. I know that the London taxi trade fundamentally disagrees with the view of Transport for London on how Uber calculates a fare. Many members of the taxi trade consider Uber’s smartphone app to be essentially a taxi meter. Taxi meters are, of course, forbidden in London’s private hire vehicles. My hon. Friend may be aware that Transport for London has recognised that the law in respect of this issue is unclear and has applied to the High Court for a declaration. We must now let the court make its decision as the next step in the process My hon. Friend may be aware that last year the London Assembly transport committee began an investigation into taxi and private hire services in London. This scrutiny resulted in the transport committee making a number of recommendations to the Mayor and Transport for London on steps they could take to improve taxi and private hire services in London The committee was in some cases critical of the role of the taxi and private hire section of Transport for London and I understand that members of both London’s taxi and private hire vehicle trades gave evidence to this committee as to their dissatisfaction with Transport for London’s actions as the licensing authority. This committee is responsible for questioning and scrutinising the actions of the Mayor, and it is not for the Government to comment on local licensing matters or the actions of the committee My hon. Friend will be aware that in 2012 the Department for Transport asked the Law Commission to conduct a review of taxi and private hire vehicle legislation. This was against the backdrop of the Government’s red tape challenge and legislation dating back to the early years of Queen Victoria’s reign and the age of horse-drawn Hackney carriages. As we have heard, the advent of the cab was very much earlier. Since that time, there has been additional legislation to allow for the regulation of private hire vehicles, but the law remains complex and outdated The Law Commission undertook a very comprehensive review and last year published its final report, which contained recommendations for a modern and simplified structure. The Law Commission’s report provided not only crucial analysis of the problems posed by the current law, but solutions designed to make a difference to both the travelling public and those who work in the industry. Updated and simplified legislation will provide a modern and simple framework, which will in turn ensure public safety and provide the trade with certainty, therefore making growth and competition easier. The Government are currently considering the Law Commission’s recommendations, and we will respond in due course It has to be said that the traditional London taxi is not the greenest or the most sophisticated vehicle on the road. Indeed, 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. This included setting aside £25 million specifically for the Greater London area to help taxi drivers cover the cost of upgrading to a greener vehicle. The Mayor of London has pledged an additional £40 million, which creates a £65 million fund to encourage the development of the cleanest and greenest taxi fleet in the world At the same time, Geely, the company that 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 Those measures demonstrate the Government’s support for the taxi trade throughout the country, and mean that the London taxi trade will play a leading role as we meet our climate change obligations The Government are aware of the changing landscape of the taxi and private hire vehicle industry, and of the impact that new means of engaging services are having on traditional business models. The Government also support innovation in all sectors of business, including new ways of running businesses, the use of technology, and the sharing economy. There is room in this industry for small and large businesses alike, but, whatever their size, all new market entrants must operate within the legislative framework, ensuring safety and security for the travelling public Question put and agreed to.