Review of Licensed Hackney Carriages and Private Hire Vehicles - Maximum Age Limits, Testing Frequency, and Prestige Status
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CARDIFF COUNCIL Agenda No. CYNGOR CAERDYDD PUBLIC PROTECTION COMMITTEE: 4 December 2012 Report of the Head of Regulatory and Supporting Services REVIEW OF LICENSED HACKNEY CARRIAGES AND PRIVATE HIRE VEHICLES - MAXIMUM AGE LIMITS, TESTING FREQUENCY, AND PRESTIGE STATUS 1. Background 1.1 On 4 th October 2011, the previous Administration’s Public Protection Committee received a Report entitled “Review of Hackney Carriage and Private Hire Vehicle Requirements.” - The report is attached at Appendix A. Consequently, the Committee commissioned further investigation and a report back on the following issues: (a) Possible amendment of the current maximum age at which a vehicle can first be licensed and/or the maximum age that a licensed vehicle may be permitted to attain. The Committee suggested at the time that its preferred option would be to lower the maximum age at which a vehicle is first licensed, and that advice should be sought on the potential lifespan of taxis and private hire vehicles with regard to fixing a maximum licensable age limit. (b) The frequency of testing for such vehicles (c) The possible removal of the prestige classification. 1.2 On 4th September 2012 the current Public Protection Committee received a report on this matter following a period of trade consultation. The full report is detailed in Appendix B. The Committee were asked to resolve the following: a) Set a maximum age for the first licensing of saloon/MPV type vehicles b) Set a maximum age of licensing for saloon/MPV vehicles and purpose built vehicles. c) Determine the frequency of a testing regime for all taxi and private hire vehicles. d) Consider removing the ‘Prestige’ classification 1.3 Representatives of the Trade were present at the meeting and it was apparent to the members of the Committee there was not a consensus of opinion regarding the proposals. The Committee asked officers to convene a further trade consultation meeting to ascertain whether consensus within the trade could be achieved. The outcome of this meeting would be reported to Committee at its December 2012 meeting. 1.4. This report outlines the proposals made by the Trade representatives as a result of the consultation meeting, and other additional consultation responses from the Trade received since October 2012. 2. Proposals from Trade Meeting 2.1 A meeting took place on 4 th October 2012 with representatives from Cardiff Council’s Licensing Section, and the following representatives from the taxi trade: • Mathab Khan, Cardiff Hackney Carriage Association • Mohammad Nabi, Cardiff Hackney Carriage Association • Tim Mahoney, Premier Cars • Sharyn Donnachie, Supatax 2000/Primeoutlet Ltd • Paul Horton, licensed Taxi driver • Ryan Owen, Dragon Taxis • Gareth Owen, Dragon Taxis • Matt Triscler, Dragon Taxis • Peter Renwick, Premier Cars • Abdi Segulle, Union of Taxi Drivers 2.2 It was proposed that ‘prestige’ status be removed and that all saloon/MPV vehicles should have a maximum age of first license of 5 years, be licensed to a maximum age of 10 years, and be tested annually for the duration of their licence. It was proposed that purpose built vehicles retain their existing age conditions 2.3 The Trade also proposed that the Public Protection Committee bring an end to the provision whereby vehicle proprietors can apply to extend the maximum licensable age of their vehicle. The provision was originally intended for vehicles that were in very good condition to be considered in exception by the Committee. The trade representatives felt that this provision has been diluted over the years and the majority of proprietors that apply receive an extension regardless of whether or not the vehicle is in ‘exceptional condition’. 2.4 On 4 th October 2012 the Licensing Office received an email from Mr Khan confirming the consensus of the meeting, but also making a proposal with regard to the age restrictions of purpose built vehicles. He proposed that purpose-built vehicles are licensed to a maximum age of 15 years as he claims they are more robust that saloon cars. The full email is detailed in Appendix C of this report. 3 Other consultation responses 3.1 The Trade consultation procedure was undertaken in accordance with the consultation procedure on any policy matters. The draft reports intended for consideration were made available at the licensing offices for any interested party to provide written submissions. 3.2 In addition to this details of the trade consultation meeting and the October 2011 Committee report were displayed on the Council’s website and Public Carriage Office from 16 th December 2011 until 24 th February 2012. Feedback forms were available for any comments. Further consultation took place in July/August 2012 in writing to every licensed vehicle proprietor, with a subsequent period of the report being displayed on the Council website and at the Public Carriage Office between 7 th July and 28 th August 2012 3.3 The majority of responses were similar and along the lines of retaining the status quo with regard to the age restrictions. A 78 signature petition was received opposing the removal of the prestige status due to the current financial climate. Many of the other responses also detailed high hire-purchase costs and insurance costs that make it difficult for drivers to make a living 3.4 Many of the responses claim that the imposing of age restrictions goes against the DfTs advice that setting an age limit may be arbitrary and inappropriate, and also that other neighbouring authorities such as Newport do not have age restrictions. An alternative suggestion is to increase the frequency of testing of older vehicles rather than applying an age limit. 3.5 It has also been noted that a number of the responses claim that previous meetings that have taken place with the Trade are not representative of the Trade. There are in fact 623 individual private hire vehicle proprietors and 617 hackney carriage vehicle proprietors (correct as at 22 nd October 2012) 3.6 A letter was received from a licensed driver claiming to have surveyed other drivers with regard to the affordability of 5 year old cars. The letter claims that many drivers say that they cannot afford newer vehicles as they have difficulty in obtaining finance, and rising costs such as fuel prices, insurance and rental costs are making it difficult to make a living. 3.7 Full consultation responses are detailed in Appendix D of this report. 4 Implications of the Proposals 4.1 The current vehicle age restrictions are detailed in the table below: Specification Saloon/MPV Prestige Vehicle Purpose Built Maximum age at first application 25 months Under 10 years Under10 years Maximum permitted age 6 years 10 years 10 years 4.2 If the proposals made by the trade representatives at the October 2012 meeting were approved by Committee the age restrictions would be as follows: Specification Saloon /MPV Purpose Built Maximum age at first application 5 years Under10 years Maximum permitted age 10 years 10 years 4.3 The majority (96%) of the licensed vehicle fleet is made up of prestige vehicles and purpose built vehicles (some are approved as both). A total of 41 private hire vehicles and 20 hackney carriage vehicles are licensed as standard saloon/MPV type vehicles, which is only 4% of the total fleet. 4.4 Under the Trade’s proposals, a prestige vehicle will need to be replaced with a newer vehicle once it reaches its maximum licensable age. A standard saloon/MPV could be kept for longer and replaced by an older vehicle once it has reached the maximum age of vehicle; this would address some of the concerns expressed about the cost of purchasing vehicles. 4.5 Removal of Prestige Status It seems to be generally accepted within the Authority and across the taxi trade that the current prestige status has little value and does not represent high quality/luxury vehicles. It is used as a method for vehicle owners to extend the life of their vehicle or purchase an older vehicle. It is therefore the opinion of the Officer that the prestige status classification should be removed. 4.6 Maximum Age of First Licence The proposals made by the Trade representatives present at the October 2012 meeting in relation to the maximum age of first licence for saloon/MPV vehicles seems reasonable. This would denote that all saloon/MPV vehicles could be first licensed up to 5 years old, and this is on the basis that the prestige status classification is removed. 4.6.1 Many current ‘prestige vehicles’ will need to be replaced by newer vehicles when they reach their maximum licensable age and this could raise standards. At present proprietors are able to first licence “prestige vehicles” just under 10 years old and can apply to Committee for an extension to the maximum licensable age. 4.6.2 The price of a vehicle depreciates significantly in the first year. The reduction in price continues year by year and starts to stabilise at 48 months. The percentage of the reduction differs slightly depending on the vehicle, but on average the vehicles depreciate around 43% between years 0 and 1, 17% between years 1 and 2, 17% between years 2 and 3 and the 14% between years 3 and 4. It is important to note that depreciation is also affected by the vehicle’s condition and mileage. 4.6.3 According to the AA once a car gets to 8 years old it is likely to have depreciated as much as it can. With regard to buying a 5 year old car it states: ‘You won't get the latest features, but it won't lose so much in value.