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. And you won't be shelling out so much each month on interest to repay a loan. But it's only better value if your mileage is low – under 10,000 miles a year. Your repair and maintenance bill will be higher and less predictable the older your car is and these costs will increase as your mileage goes up’. Source: http://www.theaa.com/motoring_advice/car-buyers-guide/cbg_depreciation.html

4.6.4 It is considered that lowering the maximum age of first licence could improve the quality of the vehicles that enter the fleet as they will be newer vehicles. However, concern has been raised by other members of the Trade that the age restriction may force vehicle proprietors to purchase lower quality vehicles with high mileage in order to meet the age restrictions depending on their budget.

4.7 Maximum Licensable Age

4.7.1 The proposal at the meeting was to allow saloon/MPV vehicles to be licensed up to the age of 10 years in line with the current maximum licensable age for prestige and purpose-built vehicles. However the trade representatives made it clear that once a vehicle reaches 10 years old, proprietors should not be permitted to apply to the Public Protection Committee for an extension to the licence.

4.7.2 The majority of vehicles in the existing fleet are purpose-built or prestige and are therefore already licensed until 10 years. This proposal is likely to have little effect on the majority of vehicle proprietors. However around 40 vehicles a year are presented to the Public Protection Committee for an extension to their maximum licensable age, the majority of which are granted despite the provision only being intended for vehicles in exceptional condition. The Committee may wish to consider how this aspect of licensing might be more robustly managed in future.

4.7.3 The case of R V Hyndburn BC ex parte Rauf & others (1992) signifies that it is not unlawful to have a blanket age policy provided only that it is not wednesbury unreasonable.

4.7.4 According to the Motor Vehicles Dismantlers’ Association, the average lifespan of an ordinary domestic car is 13.5 years. There is no evidence to demonstrate the average lifespan of a taxi or private hire vehicle. This is possibly reflected in the varying age restrictions imposed by local authorities. However, the vehicle manufacturing industry suggests that the lifespan of a vehicle is generally attributable to the way the vehicle is used and maintained.

4.7.5 It is feasible to suggest that the average lifespan of a taxi will be significantly less that a domestic car due to the excessive use and high mileage undertaken, and therefore a 10 year maximum licensable age seems reasonable.

4.8 Frequency of testing

4.8.1 The proposal from the meeting with the Trade in October 2012 is that all licensed vehicles are tested annually. Currently, the test required by Cardiff Council is a standard MOT plus additional items based on the safety and comfort of passengers. See the Declaration of Fitness Form in Appendix E for further details. Vehicles are tested annually, but saloon/MPV & prestige vehicles are tested every 6 months once they reach 4 years old. Around 54% of hackney carriages are tested annually as the majority of hackney carriages are purpose-built. Only around 12% of private hire vehicles are currently tested annually, the vast majority require bi-annual testing.

4.8.2 There is presently a small disparity in the frequency of testing of vehicles as newer vehicles (under 4 years old) and purpose-built vehicles are only tested annually but there is no difference in the use of a purpose-built vehicle and a standard saloon.

4.8.3 It is not unusual for a taxi to undertake 100,000 miles a year, and they often perform more arduous driving than the average domestic vehicle. In the interests of the safety of passengers and other road users a stringent maintenance and testing regime is required. Some of the individual responses from the consultation have suggested increasing the frequency of testing of older vehicles as opposed to applying vehicle age restrictions. They draw the point that the maintenance of the vehicle is vital and more significant than the age of the vehicle.

The initial report that was bought to Committee in October 2011 contained observations from the Licensing Section, who had noticed deterioration in the quality of the licensed vehicle fleet. Officers continue to have concerns about the condition of older vehicles and believe that these vehicles should be tested more frequently. Under the Local Government (Miscellaneous Provisions) Act 1976 the Council is not permitted to request a vehicle to be tested more than 3 times in a period of 12 months. The DfT guidance suggests that it is reasonable to increase testing frequency as a vehicle gets older, and gives the example of testing a vehicle over 5 years old twice a year.

4.8.4 Removing the disparity of testing frequency depending on the vehicle type would be rational as the use of the vehicles is likely to be similar regardless of the type of vehicle.

5. Summary

5.1 A number of proposals have been made by the Trade from the meeting with the Trade representatives in October 2012 and individual consultation responses.

5.2 It is important to remember that overall the aim of the Taxi Licensing Policy and conditions of licence are to protect the safety and comfort of drivers and the public.

6. Achievability

This report contains no equality personnel or property implications.

7. Legal Implications

7.1 The Council may attach to the grant of a vehicle licence such conditions as it considers reasonably necessary. Whilst the legislation differs in respect of hackney carriages and private hire vehicles, in general the Council should be considering issues such as the suitability of a vehicle in type, size, and design; appearance; mechanical condition; safety; and comfort.

7.2 Any applicant aggrieved by the refusal of a vehicle licence or the imposition of a condition may appeal to the Courts. Also, in some circumstances policy decisions made by the Council may be challenged in the Administrative Court by way of judicial review. Whatever the avenue of challenge, a clear rationale for the Council’s decision will be necessary, with consideration having been given to the views of all parties, including central government guidance.

7.3 All decisions taken by or on behalf of the Council must (a) be within the legal powers of the Council; (b) comply with any procedural requirement imposed by law; (c) be within the powers of the body or person exercising powers on behalf of the Council; (d) be undertaken in accordance with the procedural requirements imposed by the Council eg. standing orders and financial regulations; (e) be fully and properly informed; (f) be properly motivated; (g) be taken having regard to the Council’s fiduciary duty to its taxpayers; and (h) be reasonable and proper in all the circumstances

8. Financial Implications.

The licensing service is required to be self financing with all expenditure being met from fees and charges which are reviewed annually.

9. Recommendation

It is recommended that Committee:

a) Set a maximum age for the first licensing of saloon/mpv type vehicles and consider whether this should also apply to purpose-built vehicles

b) Set a maximum age of licensing for saloon/mpv vehicles, and purpose built vehicles of 10 years.

c) Set a testing frequency for all vehicle types (including purpose-built) of annual testing until a vehicle is 4 years old and bi-annual thereafter.

d) Remove the ‘Prestige’ classification

e) Decide when any changes to the Policy should be implemented and apply to newly licensed vehicles, retaining current age limits for existing licensed vehicles.

Dave Holland 26 October 2012 HEAD OF REGULATORY AND SUPPORTING SERVICES

Background Papers: Report to Public Protection Committee 4/10/11 ‘Review of Hackney Carriage and Private Hire Vehicle Requirements’

CARDIFF COUNCIL Agenda No. CYNGOR CAERDYDD

PUBLIC PROTECTION COMMITTEE: 4 October 2011

Report of the Head of Regulatory and Supporting Services

REVIEW OF HACKNEY CARRIAGE AND PRIVATE HIRE VEHICLE REQUIREMENTS.

1. Background

1.1 The Authority’s vehicle licence conditions have substantially been in place for many years but have been subject to many piecemeal minor amendments. In recent times concern has been expressed by responsible authorities and the public of Cardiff about the standard of hackney carriages being used in the City. It has therefore been thought appropriate to review the issue.

1.2 Licensing legislation gives local authorities the duty to ensure that the vehicles it licences for the purpose of hire and reward are of a suitable type to provide a safe and comfortable service.

1.3 The report details the findings following a review of vehicle conditions for the information of members and provides a number of options for possible further consideration.

2. Cardiff Hackney Carriage and Private Hire Vehicle Conditions.

2.1 Under the Council’s current vehicle licence conditions for Hackney Carriages and Private Hire Vehicles, three different standard classes of vehicles are recognised for the purpose of licensing:  Saloon cars or MPVs;  Prestige vehicles;  Purpose built vehicles.

Purpose built hackney carriages include those vehicles which meet the Metropolitan Conditions of Fitness and one off suitably adapted vehicles which are licensed on their individual merits. All vehicles must be right hand drive with four doors and must meet certain criteria and licence conditions. The differences between the standard classes are summarised in the following table:

Specification Saloon Car Prestige Purpose Vehicle Built

Maximum age at first application 25 months Under 10 Under10 years years Maximum permitted age 6 years 10 years 10 years Age at which it may be annually Until 4 years Until 4 years 10 years tested Headroom Minimum 32 Minimum 32 N/A inches inches Rear Leg room Minimum 30 Minimum 30 N/A inches inches Rear Seat Depth Minimum 18 Minimum 18 N/A inches inches Rear Seat Width Minimum 54 Minimum 54 N/A inches inches Central Door Locking System No No Yes Required

2.2 On application for recognition of a new vehicle type, Licensing Enforcement Officers inspect the vehicle to ensure that they meet standards and a list of approved vehicle types is maintained by the licensing authority.

2.3. Purpose Built Vehicles

In order to be classified as of a purpose built type a vehicle type must be type approved as a passenger carrying vehicle by the relevant type approval national authority in accordance with EEC legislation. It must be capable of carrying a passenger in a wheelchair in comfort and safety. A vehicle of the type must also be inspected by members of the Committee to determine if it is suitable for use as a purpose built type vehicle in Cardiff. In considering the appropriateness of a vehicle as purpose built for use as a hackney carriage the Committee consider the safety and suitability of the vehicle for the purpose and in particular consider the:

 type, size and design of the vehicle  ease of access and egress to and from the vehicle  use of the vehicle by passengers in wheelchairs  the storage of any necessary equipment such as ramps  suitability and comfort of the seating arrangement  provision for fitment of a taximeter  suitability of the roof sign  capacity and suitability of the luggage compartment

Currently there are a number of vehicles classified as purpose built for the purposes of licensing as hackney carriages in Cardiff which are detailed in section 7.4 of this report.

2.4 Saloon/MPV Vehicles A list of approved vehicles is maintained at the Licensing Office. Vehicles not on the list may only be approved if they meet the specifications summarised in the table in 2.1. In the case of applications for minibus type vehicles, in calculating passenger capacity, only one seat in the front row should be utilised for the conveyance of members of the public, so as to ensure the safety and comfort of both the public and the driver.

2.5 Prestige Vehicles

The prestige vehicle classification was introduced to encourage prospective vehicle purchasers to obtain vehicles which would provide the public with the most appropriate vehicle for the purposes of hire and reward. The prestige class does not mean that the vehicle is classed as what the motor trade may regard as prestige, but simply that it is of a type that would make it good for use for hire and reward. Before being awarded prestige status the vehicle is inspected by Committee Members and assessed against the following criteria:

 ease of access and egress to and from the vehicle;  external appearance;  internal passenger space and comfort;  Quality of the interior seating, fitments and equipment; and  capacity and suitability of the luggage compartment

Details of those vehicle types which have been granted prestige status are attached as Appendix A.

Only 13 vehicle types have been refused prestige status and none have been refused since 5 July 2005.

3. Composition of Cardiff’s Fleet of Licensed Vehicles (As at August 2011)

3.1 Currently 244 vehicle types are approved suitable for a grant of a licence. Of these vehicles, 114 are classified as prestige, 45 are classified as purpose built, and the remaining 85 are saloon/MPV type vehicles.

3.2 The current hackney carriage fleet is comprised of around 50 different types of vehicles, details of the most popular of which are provided in the following table.

Make Model Number %age Volkswagen Passat 188 19.6 Peugeot E7s 176 18.4 Fiat Doblo 151 15.8 London Taxis TX 37 3.8 Ford Mondeo 32 3.3 Fiat TW220 28 2.8 Vauxhall Vectra 28 2.8 Toyota Avensis 28 2.8 Volkswagen Sharan 24 2.5 Fiat Scudo 19 1.9 Peugeot Eurobus 16 1.7 Rover 600 series 13 1.3 Vauxhall Omega 12 1.2 Mercedes CSeries 11 1.1 Skoda Octavia 11 1.1 Other vehicles 196 20.5

3.3 The fleet of private hire vehicles is comprised of over 60 different types of vehicles details of the most popular of which are provided in the following table.

Make Model Number %age Volkswagen Passat 150 18.1 Ford Mondeo 126 15.1 Vauxhall Vectra 100 12.0 Volkswagen Sharan 55 6.6 Skoda Octavia 36 4.3 Ford Galaxy 33 3.9 Seat Alhambra 28 3.3 Skoda Superb 26 3.1 Toyota Avensis 23 2.7 Vauxhall Omega 20 2.4 Mercedes C Class 18 2.1 Mercedes E Class 17 2.0 Fiat Doblo 16 1.9 Rover 75 14 1.7 Audi A4 12 1.4 Other Vehicles 180 21.7

3.4 The age profile of the fleet of licensed vehicles is detailed in the following table.

Hackney Carriage Private Hire Vehicles 2011 2010 2011 2010 Age No. %age %age No. %age %age Up to 1 year of age 6 0.6 3.8 19 2.3 4.2 2 years of age 21 2.3 7.0 34 4.1 7.1 3 years of age 38 4.1 9.1 42 5.1 11.5 4 years of age 126 13.5 13.6 98 11.8 12.7 5 years of age 107 11.4 18.7 119 14.4 15.3 6 years of age 175 18.7 14.4 120 14.5 16.5 7 years of age 129 13.8 13.5 133 16.0 14.8 8 years of age 141 15.1 7.9 120 14.5 10.5 9 years of age 100 10.7 7.6 74 8.9 5.2 10 years of age or over 89 9.5 4.4 70 8.4 2.3

4. Current Issues with Cardiff’s Fleet of Vehicles.

4.1 The table in 3.4 demonstrates that the majority of both hackney carriage vehicles and private hire vehicles are 6 years old or more. When comparing this year’s figures to last years, it indicates that the overall age of the fleet is increasing, with nearly 10% of hackney carriages now over the age of 10 years old compared with 4.4% the previous year. There has also been an overall reduction in the number of newer vehicles being licensed, with the current percentage of hackney carriages under a year old being 0.6% compared to 3.8% the previous year.

4.2 Cardiff’s Marketing and Tourism Service receive numerous complaints about hackney carriages operating in the City from tourists and visitors to the city who are used to different standards. The complaints concern the condition of hackney carriage vehicles.

4.3 Officers of South Wales Police have also expressed concern about the condition and age of hackney carriages in use in the city. In particular officers identify the continued use of aging Rover vehicles as not being appropriate to the needs of the Capital City of Wales.

4.4 Concern has been expressed by Licensing Enforcement Officers that many of the hackney carriages they are inspecting are in poor condition. In the last 6 months, 388 warnings have been issued in respect of taxis, many of which relate to poor vehicle conditions such as damaged bodywork, missing wheel trims and defective headlamps. This compares to 295 warnings in the same period last year.

4.5 Licensing Enforcement Officers intermittently perform joint taxi operations with South Wales Police, whereby vehicles are stopped and thoroughly checked. During the last operation in May 2011 a total of 79 vehicles were stopped and checked with the following results:

 26% were given a verbal warning  18% received a Stop Notice (prohibited to use vehicle until fault remedied and notice removed by an Officer)  15% received a Pre-Stop Notice (given a period of time to remedy the fault)  16% were referred to be considered by the Public Protection Committee  25% No Action taken

4.6 Operations such as the one described above highlight that the number of defective vehicles in the fleet is a significant problem. This could simply be that the vehicles are aging or badly maintained. The vehicle inspection regime was changed last year so that vehicles were no longer tested by Cardiff Bus but could be tested at any MOT testing station. While it is too early to assess the effects of this change, officers have been expressing concern about the poor standard of vehicles being presented for licensing in the last year.

4.7 The Draft Cardiff Night Time Economy Report produced by the Economy and Culture Scrutiny Committee, refers to research undertaken that notes that in the main taxis in Cardiff are an effective transportation service, however the reports states that: ‘research undertaken highlighted several issues relating to transportation, taxi quality and cost.’

5. Local Authority Guidance.

5.1 Licensing legislation gives local authorities a wide range of discretion over the types of vehicle that may be licensed. The Department of Transport (DfT) issued Taxi and Private Hire Vehicle Licensing: Best Practice Guidance to licensing authorities in March 2010. The guidance recommends that it is normally best practice for local licensing authorities to adopt the principle of specifying as many different types of vehicle as possible. Local authorities are encouraged to set down a range of general criteria, leaving it open to the taxi and PHV trades to put forward vehicles of their own choice which can be shown to meet those criteria. In that way there can be flexibility for new vehicle types to be readily taken into account. It is suggested in the guidance that local licensing authorities should give very careful consideration to a policy which automatically rules out particular types of vehicle or prescribes only one type or a small number of types of vehicle. For example, the Department believes authorities should be particularly cautious about specifying only purpose-built taxis, with the strict constraint on supply that that implies. But of course the purpose-built vehicles are amongst those which a local authority could be expected to license. Similarly, it may be too restrictive to automatically rule out considering Multi-Purpose Vehicles, or to license them for fewer passengers than their seating capacity (provided of course that the capacity of the vehicle is not more than eight passengers). 5.3 The guidance suggests that it is perfectly possible for an older vehicle to be in good condition. So the setting of an age limit beyond which a local authority will not license vehicles may be arbitrary and inappropriate. But a greater frequency of testing may be appropriate for older vehicles - for example, twice-yearly tests for vehicles more than five years old. However, Local licensing authorities may wish to note that a review carried out by the National Society for Cleaner Air in 2005 found that taxis were more likely than other vehicles to fail an emissions test. This finding perhaps suggests that emissions testing should be carried out on ad hoc basis and more frequently than the full vehicle test.

6. Comparison with other Local Authorities

In preparing the report, officers have contacted a number of other licensing authorities to establish the conditions they have adopted. The majority of local authorities choose to adopt their own criteria of vehicle age restrictions and type restrictions such as vehicles only being licensed from those on an approved list.

6.1 Hackney Carriage Type Approval Currently vehicles in Cardiff must meet size and dimension requirements in order to be included on the approved list, plus there is the prestige vehicle list as described earlier in this report. Cardiff currently has a mix of saloon and purpose built type vehicles.

A number of authorities including Reading, Liverpool, Bristol & Manchester stipulate that hackney carriage vehicles must be a London Type Cab such as a TX1, TX2, Metrocab etc.

Manchester council state that ‘black cabs’ are instantly recognisable by prospective customers as taxis. This reduces the risk of the public using unlicensed vehicles and increases the public’s confidence in using taxis. Also the tight turning circle requirement which is met by these vehicles (which meet the Metropolitan Condition of Fitness) is beneficial in manoeuvring vehicles in the way of carrying out less 3-point turns or journeys around the block and the ability to use certain ranks without mounting the pavement or reversing into traffic.

Birmingham also licence London Type cabs but in addition now also licence the Mercedes Eurocab and Peugeot Euro 7, and any vehicle meeting their ‘minimum accepted standard’. It was felt that it would be ‘Best Practice’ to allow the hackney carriage trade to use alternative vehicles as long as they meet the required criteria.

Other authorities such as Leicester & Southampton specify that the taxi must be purpose built (not restricted to London type taxi but must be wheelchair accessible).

Those authorities that do not have an approved suitable vehicle list have a set of size requirements that must be met in order to be licensed.

6.2 Maximum Age for limits Maximum age limits for vehicle licensing vary considerably between local authorities; from a maximum of 5 years in Leicester to 12 years in Manchester. Many authorities do not specify any maximum age limits as in line with the DfT’s guidance.

A relatively small number of authorities have separate age limits for private hire and hackney carriage. For example Birmingham has a maximum age of 8 years on private hire and 14 years for hackney carriage.

Many authorities have established an age limit over which new vehicles will not be licensed for the first time and this also varies between authorities. Some authorities do not specify a limit, whereas Leeds and Sheffield specify 8 years.

A number of authorities including Swansea, Birmingham and Bristol are now requiring that hackney carriages at first licence must be brand new but not all specify a maximum age limit. This could not be applicable in Cardiff at present as no new hackney carriage licences are being issued due to the imposed limit.

6.3 Vehicle Testing Frequency At present, in Cardiff purpose built taxis are tested annually and non-purpose built vehicles are required to be tested annually until 4 years when they are then tested every 6 months. A vehicle licence is therefore only issued for 6 months for non-purpose built vehicles over the age of 4 years.

Bury Council have chosen not to stipulate age restrictions, however once a vehicle reaches 10 years old it must be tested 3 times a year and for each subsequent year. Manchester has a similar 3 test policy for vehicles over the age of 7 years.

Three tests is the maximum number of tests a local authority can require in 12 months.

Coventry Council requires hackney carriages over the age of 5 years and private hire vehicles over the age of 3 years to be tested twice a year.

6.4 Emission Standards The DfT guidance mentions that a review carried out by the National Society for Cleaner Air in 2005 found that taxis were more likely than other vehicles to fail an emissions test. This guidance suggests that consideration should be given to emission testing being carried out on ad hoc basis and more frequently than the full vehicle test.

Due to poor air quality standards in London all taxis are tested to ensure that they meet the Euro 3 emissions standards for nitrogen oxide and particulate matter 10. For many this has meant fitting the vehicle with an emission reduction system, or converting the vehicle to run on alternative fuels.

Manchester also have an emissions policy whereby vehicles currently licensed which are manufactured as Euro 1, Euro 2 or Euro 3 compliant, must maintain that emissions standard. Any hackney carriage vehicle which is over the age of 10 years must be Euro 3 complaint and remain complaint for as long as it is licensed.

6.5 Local Authority Comparison Conclusion It is clear that local authorities differ greatly in their approach to taxi licensing. There is little consistency amongst authorities with regards to vehicle age restrictions, frequency of testing or the type of vehicles that they licence. A summary of this comparison is detailed in Appendix B.

7. Possible Options to Improve the Hackney Carriage Fleet. At present the following points represent officer opinion, and do not include any observations from the trade or taxi representatives, which will be vitally important in any discussion on changes in relation to vehicle conditions/restrictions.

7.1 Amending current vehicle age restrictions Some people might argue that there is no need for the current maximum age of 25 months for the initial licensing of any new vehicle. Vehicle licences can of course be subsequently renewed and the vehicles used as hackney carriages and private hire vehicles well beyond that age. Consideration could be given to removing this restriction to therefore allow a vehicle to be capable of being licensed at any time up to the maximum permitted age.

Alternatively it could be argued that keeping the restriction as it is or lowering the initial licensing age restriction would have a positive effect on improving the vehicle fleet. Consideration could be given to lowering the age at first licence to ensure that newer vehicles, which are more likely to be in a better condition, are licensed.

As vehicles age they become more prone to mechanical failure, require greater levels of maintenance, and the bodywork condition deteriorates due to wear and tear. Taxis are also generally accepted as undertaking much higher mileage that domestic vehicles It therefore seems more appropriate to maintain a maximum vehicle age.

At present there is a distinction between the maximum age for licensing between prestige vehicles at 10 years and non- prestige (saloon/MPV vehicles) at 6 years. There is little evidence of differences in the durability between particular classes of vehicles. Consideration could be given to standardising the maximum age restriction across all vehicle types or perhaps just all saloon/MPV type vehicles.

With regard to purpose built vehicles (vehicles capable of carrying a passenger in a wheelchair), it is generally agreed that these vehicles are more robust as specifically designed to be taxis. It may therefore be feasible to grant a longer licence for these types of vehicles. Although in general these types of vehicle are more robust there are presently a large number of vehicle approved as ‘purpose-built’ which vary considerably in terms of durability and performance. Caution would need to be exercised if it were to be decided to extend the maximum licensable age of this class of vehicle as a whole.

Overall, in respect of vehicle age restrictions, the Committee have a number of options to consider:  Maintain the existing age restrictions  Remove all age restrictions  Lower or raise the maximum age of first licence  Lower or raise the maximum licensable age  Standardisation of age restrictions across the whole of the fleet  Apply separate age restrictions to different types of vehicle e.g. saloon or purpose built, private hire or hackney carriage.

7.2 Reviewing the frequency of vehicle testing Currently vehicles are tested annually, but saloon/MPV & prestige vehicles are tested every 6 months once they reach 4 years old. Under the Local Government (Miscellaneous Provisions) Act 1976 the Council is not permitted to request a vehicle to be tested more than 3 times in a period of 12 months. The DfT guidance suggests that it is reasonable to increase testing frequency as a vehicle gets older, and gives the example of testing a vehicle over 5 years old twice a year.

The Committee may wish to consider the following options:  Retain the existing testing frequency  Lower or raise the age at which the vehicle is tested more than annually.  Increase the frequency of testing vehicles over a certain age e.g. over 10 years to be tested 3 times a year.

7.3 Removal of the current ‘prestige’ classification Vehicle manufacturers have greatly improved vehicles in terms of quality and reliability in recent years and it is clear that the majority of currently manufactured four door vehicles are capable of use for hire and reward. The prestige classification is now therefore of little value in assessing vehicles for use as hackney carriage and private hire vehicles. This is indicated by the fact that members have not refused the classification to any vehicle in the previous five years. Thought may be given to abandoning the prestige classification.

7.4 Reviewing the current Hackney Carriage vehicle type approval A number of local authorities require their hackney carriages to be a London Type cab (meets Metropolitan Conditions of Fitness) or purpose built only. Vehicles of this type must be able to carry a passenger in a wheelchair safely. In Cardiff only vehicles which have been approved as of a purpose built type can be used to replace hackney carriages with vehicle plate numbers above 401. Any type of vehicle can be licensed on plate numbers below 401. Hackney Carriage plates are currently limited at 957.

The purpose built approved vehicle list includes vehicles which meet the Metropolitan Conditions of Fitness. This is the standard by which the Metropolitan Police judge the suitability for use as hackney carriages in the City of London. The standards are designed to ensure that vehicles which meet them are in every way suitable for use in the narrow and complex streets of a busy tourist orientated city such as London. The vehicles are well known and clearly distinctive from all others. Vehicles which do not comply with the standard may not be licensed as hackney carriages by the Metropolitan Police. Vehicles on the purpose built approved list which meet the Metropolitan Conditions of Fitness include the FX4, TX4, TX1

PURPOSE BUILT VEHICLE

EC Whole Vehicle Type Approval or Metropolitan Condition of UK Low Volume Type Approval Fitness Mercedes Eurocab London Taxis International FX4 Fiat Scudo Eurocab Reliant Metrocab Volkswagen Accessible Sharan London Taxis International TX1/2 Peugeot Euro 7 London Taxis International TX4 Fiat Dakota Cab Mercedes Benz Vito Taxi Volkswagen Unique Cab SWB Ford Transit Unique Cab SWB Mercedes Vito Unique Cab SWB Peugeot Eurobus Fiat High Roof Doblo Freedom Wheelchair Accessible Vehicle Fiat Mont Blanc Taxi European TW200 Taxi SVA Citroen Taxi Volkswagen Eurocab Taxi Citroen Le Cab Noir Peugeot Le Cab Noir Mercedes M8 Peugeot E7se SVA Peugeot Taxi Mercedes Benz T1 Eurocab Taxi Fiat Doblo Eurocab Taxi Scot Cab Mansell Mercedes Taxi and Mansell Volkswagen City 7 Taxi Peugeot E7 Series II Short Wheelbase Version New TW200 Taxi short and long wheelbase Versions Peugeot E7 Series II Long Wheelbase Version New Scot Cab Sentinel Taxi Renault Traffic Hackney Correct as of August 2011

Converted vehicles approved as purpose built by the Committee must have either EC Whole Vehicle Type Approval or UK Low Volume Type Approval.

It is important that disabled people have the same access to transport to ensure social inclusion, in particular that a disabled person should be able to hire a hackney carriage on the spot with the minimum delay or inconvenience, and having accessible hackney carriages makes this possible.

Consideration could be given to whether all hackney carriage vehicles could be restricted to purpose built only, either as approved on the current list or restricted to vehicles complying with the Metropolitan Condition of Fitness.

7.5 Review Vehicle Inspection Regime

All vehicles are required to be tested on a frequency determined by age of vehicle (see table in 2.1). This is by means of a MOT plus additional items based on the safety and comfort of passengers, see Declaration of Fitness Form in Appendix C for further details. The MOT test sets a minimum standard which operators have to meet. While such standards are appropriate for ordinary passenger vehicles a higher standard is required of hackney carriages and private hire vehicles which are in constant use and cover very high mileages.

Historically testing was carried out at the Cardiff Bus Testing Station on Sloper Rd. However the facility was struggling to cope with the demand, and the Trade wanted to have choice, so at its meeting in March 2010 the Public Protection Committee resolved to allow testing to take place at any of Cardiff’s MOT centres.

Concerns have been raised as to the quality of some of the testing for the additional items. The testing facilities do not charge for these items, and there is concern that the ‘Declaration of Fitness’ form which lists these items is just ticked and signed. Licensing Enforcement Officers are aware that some of the premises do not have the equipment necessary for performing checks such as window tint.

Officers have furthermore expressed concern over the condition of vehicles that arrive to be licensed having just passed the test but have damaged bodywork or interiors.

A complaint has also been received from a neighboring Authority which received a taxi for licensing that had been just been tested in Cardiff, and subsequently failed that Authority’s test for a number of defects.

Verifying that the Declaration of Fitness has been fully checked at each testing facility is impractical, and there is the possibility that there are inconsistencies between testing facilities with regards to these checks.

Consideration could be given to the following:  Restricting testing to a number of approved facilities to ensure that a consistent standard is applied.  Retain the existing testing regime  Looking into feasibility of testing being undertaken by the local authority’s testing facilities

8. Trade Representation

Mr Mathab Khan, Chairman of the Hackney Carriage Association, has requested that the current maximum age restriction for hackney carriages is extended from 10 years to 14 years due to improvements in the robustness of modern vehicles.

There have also been previous requests from Private Hire Operators for the maximum age of first licence to be raised to 36 months, and for the six year maximum age limit on saloon cars to be raised to seven years.

Mr Khan has made comparisons with Birmingham and Newport Councils which do not have age restrictions. However it should be noted that Newport attempted to adopt a policy to introduce vehicle age restrictions in 2009 but this was rejected by the Court under judicial review for further consultation with the trade.

Further detailed consultation with the trade would need to be completed if proposals to change vehicle specifications or age restrictions are to be considered.

9. Engagement with Cardiff Access Group

Meetings have taken place between the Licensing Section and Cardiff’s Access Officer with regards to taxi vehicle type. Concern has been expressed that some purpose-built vehicles are not accessible for certain wheelchair users e.g. the rear access Fiat Doblo. Also wheelchair users have had difficulty in accessing rear access vehicles when they are queuing on the rank as there is not always enough space to deploy the ramps.

Further discussion on this matter is planned to take place at the next Access Focus Group Meeting in October 2011.

10. Consultation

The report was issued to trade representatives in September 2011 and the trade consultation procedure was undertaken in accordance with the consultation procedure on any policy changes. The draft reports intended for consideration were made available at City Hall and the Sloper Road offices for any interested party to provide written submissions. Any response received during the consultation period will be provided in this report

Clearly significant change could result and extensive consultation on any proposals would be needed with the trade, public and Cardiff Access Focus group.

Should the Committee agree to amend the licence conditions attached to the grant of a hackney carriage or private hire vehicle licence it would be necessary to formally consult with all existing licence holders about the matter. Additionally any proprietor who is aggrieved by a new condition would have the right of individual appeal to the Courts against the imposition of the condition following renewal or issue of the licence.

11. Achievability

This report contains no equality, personnel or property implications.

12. Legal Implications

12.1 The Council may attach to the grant of a vehicle licence such conditions as it considers reasonably necessary. Whilst the legislation differs in respect of hackney carriages and private hire vehicles, in general the Council should be considering issues such as the suitability of a vehicle in type, size, and design; appearance; mechanical condition; safety; and comfort.

21.2 Any applicant aggrieved by the refusal of a vehicle licence or the imposition of a condition may appeal to the Courts. Also, in some circumstances policy decisions made by the Council may be challenged in the Administrative Court by way of judicial review. Whatever the avenue of challenge, a clear rationale for the Council’s decision will be necessary, with consideration having been given to the views of all parties, including central government guidance.

12.3 All decisions taken by or on behalf of the Council must (a) be within the legal powers of the Council; (b) comply with any procedural requirement imposed by law; (c) be within the powers of the body or person exercising powers on behalf of the Council; (d) be undertaken in accordance with the procedural requirements imposed by the Council eg. standing orders and financial regulations; (e) be fully and properly informed; (f) be properly motivated; (g) be taken having regard to the Council’s fiduciary duty to its taxpayers; and (h) be reasonable and proper in all the circumstances.

13. Financial Implications

There are no financial implications arising directly from this report. The Licensing Service is required to be self financing with all costs being met from licence fees and charges which are reviewed annually. Vehicles which meet the requirements can be licensed and the appropriate licence application fee will be paid at that time. Should the authority amend the licence conditions, vehicle owners would have the right to challenge a resulting refusal to licence the vehicle in the courts which may result in additional expenditure the extent of which can not be estimated at this time.

14. Recommendation

It is recommended that the Committee note the content of this report and indicate in principle the areas that the Head of Regulatory and Supporting Services should, in conjunction with the trade, investigate and further report on the following issues, namely:

a) Amending the current maximum age a vehicle can be first licensed and/or maximum age of vehicle licensing (see 7.1) b) Reviewing the frequency of vehicle testing (see 7.2) c) Removing the prestige classification (see 7.3) d) Reviewing the type approval of hackney carriage vehicles (see 7.4) e) Reviewing the current vehicle testing regime with regards to testing facilities (see 7.5) f) Considering any other relevant matter with regards to vehicle licensing identified by the consultation with relevant parties

Dave Holland 8 August 2011 HEAD OF REGULATORY AND SUPPORTING SERVICES

This report has been prepared in accordance with procedures approved by Corporate Managers. Background Papers: None CARDIFF COUNCIL Agenda No. CYNGOR CAERDYDD

PUBLIC PROTECTION COMMITTEE: 04 September 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 At its meeting of 4th October 2011 the Committee received a Report entitled “Review of Hackney Carriage and Private Hire Vehicle Requirements.” Members should refer to the Report for background information and detail concerning the fleet of vehicles in Cardiff and licensing issues associated with it. Amongst other things, 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; and

(b) the frequency of testing for such vehicles;

(c) the possible removal of the prestige classification.

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.

As regards the frequency of vehicle testing, the Committee view was that this should remain as it is. However, during consultation with the Trade regarding changes to the age limits, the Trade suggested changing the frequency of the testing. Their observations are contained in the main body of this Report.

At its October 2011 meeting, the Committee also favoured the removal of the ‘prestige’ vehicle type classification.

1.2 This report outlines the options available with regard to:

• Amending taxi and private hire vehicle age restrictions, • Taxi and private hire vehicle testing frequency and • The possibility of removing the prestige classification for taxi and private hire vehicles.

2. Licensed Vehicle Age Limits

2.1 The existing age restrictions are detailed in the table below:

Specification Saloon/MPV Prestige Purpose Vehicle Vehicle Built Maximum age at first application 25 months Under 10 Under10 years years Maximum permitted age 6 years 10 years 10 years Age at which it may be annually Until 4 years Until 4 years 10 years tested

2.2 At present the Council’s vehicle licensing conditions stipulate that the maximum age at first licence for a saloon/MPV vehicle to be used as a taxi or private hire vehicle is 25 months, and they can remain licensed until they reach 6 years, unless they then successfully apply for prestige status.

2.3 Despite the current maximum age limit there are presently a number of licensed vehicles over 10 years old as a result of owners applying to the Public Protection Committee for an extension of their licence.

2.4 As at December 2011, the majority of the fleet was made up of prestige vehicles at 47%, followed by saloon/MPVs at 35% and purpose-built at 18%.

2.5 The Department of Transport (DfT) issued Taxi and Private Hire Vehicle Licensing: Best Practice Guidance to licensing authorities in March 2010. The Guidance states that the setting of an age limit beyond which a local authority will not license vehicles may be arbitrary and inappropriate. But a greater frequency of testing may be appropriate for older vehicles - for example, twice-yearly tests for vehicles more than five years old.

2.6 According to the Motor Vehicles Dismantlers’ Association, the average lifespan of an ordinary domestic car is 13.5 years. There is no evidence to demonstrate the average lifespan of a taxi or private hire vehicle. This is possibly reflected in the varying age restrictions imposed by local authorities. However, the vehicle manufacturing industry suggests that the lifespan of a vehicle is generally attributable to the way the vehicle is used and maintained.

2.7 The majority of taxis and private hire vehicles undertake far greater mileage than the average domestic car and can be on the road 24/7 as vehicles are usually rented and various drivers cover shifts throughout the day. It is therefore conceivable that the lifespan of a taxi, in terms of wear and tear on the vehicle, may be considerably less than a domestic car.

2.8 Consequently, the Committee will want to consider these issues, and the Trade representations, as part of their deliberations on the matter of setting vehicle age limits for taxi and private hire vehicles.

3. Frequency of testing

3.1 A licensing authority should ensure that hackney carriage and private hire vehicles are of a suitable type, comfortable, and in suitable mechanical condition so as to be safe for the purpose for which they are used. Therefore in the interests of passenger and other road user’s safety a stringent maintenance and testing regime is required.

3.2 A licensing authority may require the proprietor of any hackney carriage or private hire vehicle to present such vehicle for inspection and testing by or on behalf of the Authority within such period and at such place within the area of the Authority as they may by notice reasonably require. A licensing authority may not however require a proprietor to present the same hackney carriage or private hire vehicle for inspection and testing on more than three separate occasions during any one period of twelve months.

3.3 The frequency of vehicle testing is currently controlled through the current vehicle licensing conditions and the main criteria revolve around the age and type of vehicle. Purpose built taxis are required to be tested annually, but all other vehicles must be tested annually up to 4 years old, and every 6 months after they are 4 years old.

3.4 The Department for Transport’s Best Practice Guidance states that an ‘annual test for licensed vehicles of whatever age seems appropriate in most cases, unless local conditions suggest that more frequent tests are necessary. However, more frequent tests may be appropriate for older vehicles.’ The Guidance also makes reference to the fact that a review carried out in 2005 by the National Society for Cleaner Air found that taxis and high mileage vehicles were more likely to fail an emissions test than other vehicles. The review states that a study in Westminster demonstrated that 27% of taxis were presented for testing with low oil levels, leaking injectors or faulty engine speed limiters, and this compared to 5% of domestic cars and 19% of light goods vehicles. The DfT Guidance suggests that perhaps emissions testing should be carried out more frequently than the full vehicle test.

3.5 Once again, the Committee will want to consider these matters as part of their deliberations on the matter of testing frequency in conjunction with Trade representations.

4. Prestige status

4.1 The prestige vehicle classification was introduced some time ago to encourage prospective vehicle purchasers to obtain vehicles which would provide the public with the most appropriate vehicle for the purposes of hire and reward. Currently, the prestige classification does not mean that the vehicle has the status that the motor trade may regard as a superior higher class vehicle, but simply that it is of a type that would make it good for use for hire and reward. To be awarded prestige status the vehicle is inspected by Committee Members and assessed against criteria regarding quality and comfort.

4.2 Vehicle manufacturers have greatly improved vehicles in terms of quality and reliability in recent years and it is clear that the majority of currently manufactured four door vehicles are capable of use for hire and reward. The prestige classification is now therefore of little value in assessing vehicles for use as hackney carriage and private hire vehicles. This is indicated by the fact that members have not refused the classification to any vehicle in the previous five years. It is also a major factor in the increasing age of the taxi fleet in Cardiff.

4.3 The Committee will need to consider the merits of retaining the prestige vehicle classification, taking into account the representations of the Trade.

4.4 It is worth noting that prestige vehicles make up the largest licensed vehicle type with almost half of all licensed vehicles having prestige status.

5. Local Authority Guidance.

5.1 Licensing legislation gives local authorities a wide range of discretion over the types of vehicle that may be licensed. The Department of Transport (DfT) issued Taxi and Private Hire Vehicle Licensing: Best Practice Guidance to licensing authorities in March 2010. The guidance recommends that it is normally best practice for local licensing authorities to adopt the principle of specifying as many different types of vehicle as possible.

5.2 Local authorities are encouraged to set down a range of general criteria, leaving it open to the taxi and PHV trades to put forward vehicles of their own choice which can be shown to meet those criteria. In that way there can be flexibility for new vehicle types to be readily taken into account.

5.3 It is suggested in the guidance that local licensing authorities should give very careful consideration to a policy which automatically rules out particular types of vehicle or prescribes only one type or a small number of types of vehicle. For example, the Department believes authorities should be particularly cautious about specifying only purpose-built taxis, with the strict constraint on supply that that implies. But of course the purpose-built vehicles are amongst those which a local authority could be expected to license. Similarly, it may be too restrictive to automatically rule out considering Multi-Purpose Vehicles, or to license them for fewer passengers than their seating capacity (provided of course that the capacity of the vehicle is not more than eight passengers).

5.4 The guidance suggests that it is perfectly possible for an older vehicle to be in good condition. So the setting of an age limit beyond which a local authority will not license vehicles may be arbitrary and inappropriate. But a greater frequency of testing may be appropriate for older vehicles - for example, twice-yearly tests for vehicles more than five years old. However, Local licensing authorities may wish to note that a review carried out by the National Society for Cleaner Air in 2005 found that taxis were more likely than other vehicles to fail an emissions test. This finding perhaps suggests that emissions testing should be carried out on ad hoc basis and more frequently than the full vehicle test.

6. Industry data

6.1 The table and graph below show the depreciation of 4 cars from new based on average annual mileage of 10,000 miles. These type of cars were selected as are popular taxis in Cardiff.

Year 0 Year 1 Year 2 Year 3 Year 4 (12 mths) (24 mths) (36 mths) (48 mths)

Toyota Avensis £19,445 £11,951 £9,826 £8,050 £6,876 Saloon 2.0 D-4D T2 4dr

Skoda Superb £22,830 £12,999 £10,675 £8,776 £7,500 Estate 1.8 TSI 152 SE Plus 5dr

Fiat Doblo MPV 2.0 £17,800 £9,174 £7,551 £6,200 £5,301 Multijet Eleganza 5dr

Volkswagen Passat £20,390 £11,349 £9,324 £7,650 £6,525 Saloon 1.8 TSI 160 S 4dr

Source: What Car : http://www.whatcar.com/car-depreciation- calculator/results?edition1=38021&edition2=33098&edition3=36172&makeId=23978&modelVersionId=24628&editionId=39349 accessed 4/4/12

6.2 The figures above show that the price of a new car depreciates significantly in the first year e.g. The Volkswagen Passat loses 44% of its list price 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.

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. And you won't be shelling out so much each month on interest to repay a loan. But it's only better value if your mileage is low – under 10,000 miles a year. Your repair and maintenance bill will be higher and less predictable the older your car is and these costs will increase as your mileage goes up. Source: http://www.theaa.com/motoring_advice/car-buyers-guide/cbg_depreciation.html

7. Consultation

7.1 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.

7.2 On the 27th October 2011 officers from the Licensing Section met with Trade representatives from Dragon Taxis, Capital Cabs & the Union of Taxi Drivers to discuss the proposed changes to the vehicle licensing arrangements mentioned in the October Committee report.

7.3 In addition to this details of the trade consultation meeting and the October Committee report were displayed on the Council’s website and Public Carriage Office from 16th December 2012 until 24th February 2012. Feedback forms were available for any comments. Following a request to the Public Protection Committee from a member of the licensed trade on 3rd July 2012 a further consultation period took place in July/August 2012. All licensed vehicle proprietor were written to detailing the proposals and how to comment on the report, and a subsequent period of the report being displayed on the Council website and at the Public Carriage Office between 7th July and 28th August 2012

7.4 Vehicle Age Limits

7.4.1 At the October meeting, the trade were against the suggestion of lowering the maximum age at which a saloon/MPV vehicle could be first licensed. It was suggested that new vehicle list prices and finance fees are unaffordable for the majority of drivers and this could create hardship.

7.4.2 A 42 month limit was proposed. This would allow drivers to afford a better quality vehicle rather than a cheap newer vehicle that may not be of good quality or make a good taxi. The price of many vehicles reduces at 36 months, so a 42 month limit would allow a driver time to purchase a vehicle at a more affordable price.

7.4.3 It was also suggested that the maximum licensable age of a saloon/mpv type vehicle should be increased to 8 years. The justification for this was that if a vehicle is purchased at around 3 and one half years old, it would get around 5 years use as a taxi due to the high mileage and wear and tear. This would then take the maximum up to 8 years.

7.4.4 Certain types of purpose-built taxis such as the London-type TX4’s are designed to be taxis and so are more durable and could possibly have an extended lifespan compared to other vehicles. It was therefore suggested by the Trade that the maximum age limit of purpose-built taxi is retained at 10 years.

7.4.5 There was an alternative proposal that the current maximum age limits should be amended to 36 months at first licence and a maximum of 7 years old for licensable lifespan, as this would allow for an economical purchase of the vehicle whilst maintaining a high standard of vehicle available to the Cardiff public.

7.4.6 The majority of the other trade responses from the extended consultation period were similar to each other and along the lines of retaining the status quo with regards 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.

7.4.7 Many of the individual responses claim that the proposals go 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.

7.4.8 Another suggestion is that 48 month maximum age of first licence for saloon/mpv vehicles would be more appropriate than 42 months as car prices tend to change on a 12 monthly basis. A 48 month limit would also make it easier for proprietors and Licensing Officers to calculate when issuing licences.

7.5 Frequency of vehicle testing

7.5.1 At the October meeting the trade generally proposed that after 4 years of age all vehicles (including purpose built) are tested twice annually. They felt this was important to ensure customer safety and maintain high standards due to the considerable mileage and use of taxis. At present purpose built vehicles are only tested annually, although there is no disparity between the use of these vehicles and saloon vehicles. The view was that they are subject to the same wear and tear and therefore the testing regime should be the equivalent for both.

7.5.2 It was pointed out that domestic cars are tested once a year and taxis can in some cases complete ten times the number of miles completed by a normal car user. It is inevitable that parts of the car are subject to increased wear and therefore additional testing is necessary to ensure that the vehicle remains safe and in good condition.

7.5.3 With regard to the frequency of testing Premier suggests that testing should be changed to annually up to three years old and every 6 months thereafter, which would be more stringent than the existing regime.

7.5.4 Some of the individual responses from the consultation have suggested increasing the frequency of testing of older vehicles as opposed to applying vehicle age restrictions.

7.6 Prestige vehicle status

7.6.1 With regard to prestige status, the Trade representatives at the October meeting unanimously stated that it should be removed as it no longer has any meaning, as it seems that any vehicle taken to Committee obtains prestige status. It appears that the prestige classification has been used to extend the life of saloon/MPV vehicles that are coming up to their maximum 6 years.

7.6.2 However, representations from Premier Cars Ltd and the Cardiff Hackney Carriage Association took a different view.

Premier acknowledge that the prestige status has been diluted over the years by including vehicles that are not truly prestige, but feel that there is a market for truly prestige cars and would like the classification retained with the existing age limits. However they state that the category should have stricter controls to ensure truly ‘prestige’ and the quality is maintained.

7.6.3 The Cardiff Hackney Carriage Association believe that

‘Removing the prestige status of the vehicles which is currently classed as prestige vehicle by Cardiff City Council will be unaffordable and arbitrary as 50% of the fleet are over 6 years old and such changes will force the trade out of business’

See Appendix A for the full letter.

7.6.4 Many of the individual responses to the consultation were opposed to removing the prestige status classification, mainly due to the introduction of a minimum age of first licence which currently does not apply to prestige vehicles. It has been suggested that if it is determined to remove the prestige status and reducing the maximum age of first licence and maximum age of licence it would be a compromise to retain the current maximum of age of licence to 10 years as proprietors are spending more on a vehicle initially and would then be able to keep it for longer. If proprietors are having to spend more money on a newer vehicle it is more likely they will maintain the vehicle well.

7.6.5 Removing the prestige classification would mean that the same maximum age limits would be applied to all saloon/mpv vehicles. Careful consideration would need to be given to how removal of the classification would impact upon existing prestige vehicles already exceeding the maximum age limit. A phasing out period would be necessary whereby existing licensed prestige vehicles could be used up to the current maximum age limit of 10 years.

7.6.6 For new vehicles and existing licensed saloon/mpv vehicles the Committee should consider should consider preventing any further applications for prestige status from the date of this Committee.

7.6.7 A few responses have supported the proposals. All consultation responses are detailed in Appendix B.

8 Summary

8.1. Maximum Age of First Licence 8.1.1 The trade’s suggestion of a 42 or 48 month maximum age limits seems a sensible one with regards to affordability and quality. To ensure consistency and quality the age limit would need to apply to all vehicle types.

8.1.2 In addition to this, if the Committee resolves to remove the prestige classification the maximum age of first licence limit will automatically ensure that newer vehicles are added to the fleet.

8.1.3 Overall, looking at the figures in the table an graph in paragraph 6.1 cars become more affordable at 36months. At this age the car is still relatively new and is likely to have many of the latest safety features and should in theory be of a good condition. The Trade has raised the point that time is needed to purchase a vehicle once it has reached 36 months and they have suggested a maximum limit of 42 months which seems a feasible figure. Other suggestions of 48 months have been made and this and would aid the administration processes for the Licensing Team.

8.1.4 The table in paragraph 6.1 shows that between 36 and 48 months there is little difference in price between a Fiat Doblo (£5301) and VW Passat (£6525), whereas the Passat is generally seen as being a superior vehicle. This demonstrates the Trades’ argument that raising the maximum age limit of first licence to all vehicles would allow better quality vehicles to be purchased.

8.1.5 Currently purpose-built vehicles can be first licensed at anytime up to 10 years, and it is suggested that this retained.

8.2 Maximum Age of Licence 8.2.1 The Trade have suggested that all saloon/MPV type vehicles have a maximum licensable age of 8 years old, and that purpose-built vehicles have a maximum licensable age of 10 years. Again, these limits seem to be sensible suggestions. As stated in paragraph 2.5 the average lifespan of a domestic car is 13.5 years, but there does not appear to be an average lifespan of a taxi documented. It is feasible to conclude that the average lifespan of a taxi will be significantly less than a domestic car due to the high use and excessive mileage.

8.2.2 As mentioned in paragraph 6.3 above the AA states that a car’s value has done most of its depreciating by the time it is 8 years old. If a car is purchased between 36 -42 months on low/average annual mileage (30,000) and is then used as a taxi or private hire vehicle for 5 years it is likely to have done much higher than average mileage by the time it is 8 years old and it is conceivable to suggest that there is little life left in the vehicle and repair costs will be significant.

8.2.3 Currently prestige vehicles (standard saloons/MPVs) can be licensed until 10 years, and this seems a little excessive given the figures above. It seems sensible that purpose built taxis retain a 10 years maximum age limit, but all other taxi and private hire vehicles have a maximum licensable age limit of 8 years.

8.2.4 Consideration should however be given to the suggestion that the maximum age of licence of all vehicles should be 10 years. This would simplify the process if the same restrictions apply to all vehicles types. Based on current percentages of licensed vehicle types, if the maximum age limit of first licence for all vehicles is 42 or 48 months a large proportion of existing proprietors (nearly half) will being buying a newer vehicle when they come to replace their vehicle. Due to higher purchase costs it seems probable that proprietors will maintain that vehicle well in order to keep it longer.

8.3 Vehicle testing 8.3.1 There does seem to be some general consensus with the trade that older vehicles require more frequent testing to ensure that they continue to be safe to transport the public.

8.3.2 There is a disparity at the moment that purpose built hackney carriages are only tested annually, where as all other vehicles are tested 6 monthly after they are 4 years old. There is no difference in the use of these vehicles and it would be sensible if the frequency of testing was consistent across all vehicle types with 6 monthly testing being a requirement after 4 years.

8.4 Prestige Status 8.4.1 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 way for vehicle owners to extend the life of their vehicle or purchase an older vehicle.

8.4.2 Suggestions have been made that the classification could be tightened and restricted to a small number of high quality vehicles. However this would be difficult to apply as ‘luxury’ is subjective and what may be considered a luxury/high quality vehicle may not necessarily make a good taxi or private hire vehicle. There would also be the problem as there is now that as new vehicles emerge and are approved the classification could become diluted.

9. Achievability

This report contains no equality personnel or property implications.

10. Legal Implications

10.1 The Council may attach to the grant of a vehicle licence such conditions as it considers reasonably necessary. Whilst the legislation differs in respect of hackney carriages and private hire vehicles, in general the Council should be considering issues such as the suitability of a vehicle in type, size, and design; appearance; mechanical condition; safety; and comfort.

10.2 Any applicant aggrieved by the refusal of a vehicle licence or the imposition of a condition may appeal to the Courts. Also, in some circumstances policy decisions made by the Council may be challenged in the Administrative Court by way of judicial review. Whatever the avenue of challenge, a clear rationale for the Council’s decision will be necessary, with consideration having been given to the views of all parties, including central government guidance.

10.3 All decisions taken by or on behalf of the Council must (a) be within the legal powers of the Council; (b) comply with any procedural requirement imposed by law; (c) be within the powers of the body or person exercising powers on behalf of the Council; (d) be undertaken in accordance with the procedural requirements imposed by the Council eg. standing orders and financial regulations; (e) be fully and properly informed; (f) be properly motivated; (g) be taken having regard to the Council’s fiduciary duty to its taxpayers; and (h) be reasonable and proper in all the circumstances

11. Financial Implications.

11.1 The licensing service is required to be self financing with all expenditure being met from fees and charges which are reviewed annually.

12. Recommendation

It is recommended that Committee:

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

e) Decide when any changes to the Policy should be implemented and apply to newly licensed vehicles, retaining current age limits for existing licensed vehicles.

Dave Holland 17 August 2012 HEAD OF REGULATORY AND SUPPORTING SERVICES

This report has been prepared in accordance with procedures approved by Corporate Managers.

Background Papers: Report to Public Protection Committee 4/10/11 ‘Review of Hackney Carriage and Private Hire Vehicle Requirements’

Page 1 of 1

Hartrey, Claire

From: Cardiff Hackney Associationsk [[email protected]] Sent: 04 October 2012 20:01 To: Hartrey, Claire Subject: Extension of age limit for Purpose built vehicles and General consensus on on prestige status and testing. Hi Ms Hartrey and Mr Walters,

Just a quick summery of general consensus of the trade:

At the consultation meeting toady, we the trade representatives agreed to propose to the licensing committee to approve the following; (1) the prestige status should be removed.

(2) any vehicle ( saloon car or estate car ) five years old or under five years old should be acceptable as a P/H vehicle or Hackney Carriage vehicle as long as Hackney carriage license condition allows to do so.

(3) we also agreed that all the vehicles ( similar to purpose built vehicles ) should be tested annually, as the Department of the Transport best practice guidance recommends.

( 4) The proposal for extension of purpose built vehicle's was not in the agenda, as it was a separate application made by myself on behalf of my members, therefore would please kindly include this application to be considered in the agenda for December meeting.

By the way the Birmingham City Council allow up to 14 years old purpose built vehicles in Hackney Carriage fleet, although their vehicles does much more mileage than our vehicles in Cardiff, therefore we would like our purpose built vehicle to be allowed up to 15 years old, as purpose built vehicles are much more robust and expensive than saloon cars.

Regards Mathab Khan P.S. please note I will also copy this e- mail to Councillor Morgan, as he is the honourable chairman of the licensing committee.

20/11/2012

From: Cardiff Hackney Associationsk [mailto:[email protected]] Sent: 24 November 2012 17:55 To: Hartrey, Claire Subject: Re: December

Hi Ms Hartrey,

Thank you for the copy of the draft report, however you may not know the fact that the proposal for reducing the age limit of Saloon Cars emanated from South Wales Police Chief inspector Mr Stephen Murray at the meeting on 7th August 2009, at the meeting Mr Murray expressed concern about old Rover 600 as most of them was reaching the maximum age limit and was looking pretty tired, however the situation have changed completely over last three and half years as all of the Rover 600 has phased out completely and have been replaced by much more expensive and better class of vehicles such as VW Passat's, Mercedes, BMW's, Audi's, Ford Mondeo's Skoda Octuvia's and VW Sharan's. And having seen the responses from some 1,240 individual drivers and considering the current economic climate I totally agree with their comments and I hope that the Councillors will take these responses very seriously.

Secondly, as you know there have been a major problem with private hire vehicle's drivers working illegally in every towns and cities throughout the country, and the contributory cause of the problem is the stickers with the Name of the Private Hire Operators which is used to attract members of public by exposing the vehicles in crowded areas of the city, therefore unless these stickers are removed completely and the PHVs drivers are driven out of the City centre unless they have pre booked jobs recorded in Data of the Company, the danger of public safety will always remain in question, hence would you please kindly request the Members of the Licensing & public Protection committee to consider my proposal, which I have made about two months a go.

Moreover, the application for extension of age limit for purpose built vehicle have been going on for last three years, hence would appreciate if my proposal is considered by the committee by bearing in mind that these vehicles are very expensive to buy compare to normal saloon cars plus these vehicles are arguably much more robust in terms of durability.

Finally, the recommendation made by the regulatory services with regards to the application for Roof signs does make lot of sense and I totally agree and support this recommendation wholeheartedly considering the difficulties we are facing as it is.

Regards

Mathab Khan P.S. Please note I will also copy this email to our Lord Mayor and the Chair Cllr Morgan as a matter of course.

DECLARATION OF FITNESS Vehicle

Reg.

Plate

The above vehicle may be mechanically examined for use as a Hackney Carriage or Private Hire Vehicle at any VOSA approved MOT testing station within the City of Cardiff, subject to an MOT inspection and completion of this inspection form.

The hackney carriage and private hire vehicle licensing test has additional items to that required by the MOT motor vehicle test. The following table details the additional items that will need to be inspected.

No. Testable Item Comments 1. Electrical and In good condition and repair, secure and correctly positioned. Wiring Equipment 2. Driver Controls In sound condition and operating correctly without signs of excessive wear. 3. Speedometer The speedometer must be operational. 4. Licence Plates Licence plates must be fitted on the outside rear of the vehicle in a clear and conspicuous manner either directly above or directly below or directly to the left or right hand side of the vehicle registration number plate. The plate must be securely fixed directly onto the vehicle by either nuts and bolts, self tapping screws or rivets, or indirectly by means of a bracket that is similarly fixed to the vehicle. The interior plate shall be fixed on the inside of the vehicle in such a position as to be easily observed by the passengers. 5. Paintwork Hackney Carriages must be black with a white bonnet. Purpose built vehicles which meet the Metropolitan Police Conditions of Fitness, such as London Cabs, may be all black Private Hire Vehicles may be of any colour other than that adopted for hackney carriages, so they may NOT be black with a white bonnet, but they must be of a uniform colour as described in the vehicle V5 registration document. If the vehicle has been re-sprayed this must be done professionally including the boot, door edges and frames. All paintwork must be in good condition and with an excellent finish. 6. Condition of Panels, wings bumpers to be in good condition, free from rust, holes, broken Wings and Wheel metal or any other visible damage. Arches 7. Security of Body Safe and in good condition, free from dents and rust. 8. Passenger and Doors to be in good condition, free from rust, holes, broken metal or any other Drivers Doors visible damage. Hinges to be in good order, all working, and doors to be seated correctly when closed. 9. Interior and No fittings or signs to be attached inside or outside vehicle unless approved by Exterior Fittings the Council. 10. Clutch and In good condition Footbrake Pedal Rubbers 11. Floor Coverings To be in good condition, clean and free from any contamination. 12. Interior lights, To be in good condition, clean and free from any damage, grease or any other mirror and trim contamination. 13. Passenger and To be in good condition, clean and free from any tears, damage, grease or any Driver Seats other contamination. 14. Bumper Present and in good condition. 15. Fuel Tanks and Securely fitted and in good condition, appropriate filler cap suitable and fitted. System including other facilities Cardiff Licensing Section, Room 161 City Hall, Cardiff. CF10 3ND Tel: 02920871651 No. Testable Item Comments 16. LPG Tank (if An LPG tank installed within the luggage compartment of the vehicle as a result fitted) of fuel conversion must have a maximum volume capacity no larger than 100 litres, and be positioned between the wheel arches. Only with written approval of the Council may a larger size be fitted. 17. Windscreen and To be in a good clean condition and free from damage. The windscreen must Windows allow at least 75% of light to pass through with all other windows allowing 70% of light to pass through. Window winders to be in good condition and all working correctly. 18. Transmission In good condition. Shafts 19. Engine and There should be no oil or water leaks Transmission Mountings 20. Luggage To be clean and free for the accommodation of passengers luggage. Compartment Nothing done to the vehicle must compromise the existing arrangements for the carrying of a spare wheel, and there should remain sufficient space for adequate luggage or a folded wheelchair to be carried. 21. Spare Wheel Unless the vehicle is fitted by the manufacturers approved run flat tyres a spare Carrier wheel of full or compact design (space saver) in good condition must be carried together with the appropriate tools to change a wheel.

22. Taxi Meter The taximeter must be positioned so that all letters and figures on the face Location thereof are at all times plainly visible to any person being conveyed in the carriage and in such a way as to make it impracticable for any person to tamper with them except by breaking, damaging or permanently displacing the seals or other appliances. 23. Wheelchair Mounting points and all necessary straps to be in good condition and ramps and Accessibility winches provided as necessary. 24. Camera Interior CCTV equipment of a type previously approved by the Authority may be Recording fitted in accordance with the manufacturers instructions, subject to: Equipment a) a sign indicated that recording equipment is in use being clearly displayed within the vehicle, and; b) all images downloaded from the camera being made available to the Police and Authorised Officers, upon request. 25. Fire Extinguisher A fire extinguisher in good condition should be carried in an easily accessible and first aid kit position on the vehicle. A first aid kit should be available within the vehicle which meets the minimum standard recommended by the Health and Safety Executive in its guidance “First Aid at Work.”

Taximeter Fitted: YES NO

Vehicle Make: ______Mileage Reading ______

Vehicle Registration Index: ______Date: ______

Station Stamp : The above vehicle has today been inspected and found to be fit for use as a Hackney Carriage / Private Hire Vehicle.

Tester Signature: ______Name: ______

Cardiff Licensing Section, Room 161 City Hall, Cardiff. CF10 3ND Tel: 02920871651