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Public report
Report to
Licensing and Regulatory Committee
15 July 2008
Report of
Director of City Development
Title
Hackney Carriage Fares Review 2008
1
Purpose of the Report
1.1
To propose a hackney carriage fare adjustment for introduction in August/September 2008.
2
Recommendations
The Committee is recommended to:
2.1
approve the proposed fare structure, set out at Appendices B and C to this
report, for introduction in August/September 2008; and
2.2
authorise the Director of Customer & Workforce Services to carry out the
procedure for advertising the proposed new fare structure.
3
Information/Background
3.1
Hackney Carriage fares are regulated by the City Council. The last increase was
implemented in June 2006 following a two year agreement with the Coventry Taxi
Association (CTA). Although the City Council has no power to directly regulate private
hire fares, it is custom and practice in Coventry for private hire fares to reflect hackney
carriage fares.
3.2
Since 2000 a formula has been used to calculate a percentage figure that more
accurately reflects the changes in costs to the trade than other measures. The formula
uses information supplied by hackney carriage drivers and proprietors, which is
validated against national data. The fares formula has been run and calculates an
increase of 12.9% between February 2006 (i.e. the point to which the 2006 increase
was calculated) and May 2008. The Consumer Price Index for the period from
February 2006 to May 2008 was 7.33%.
Page 1 of 10
3.3
The CTA has requested an increase in fares of 25% and the reintroduction of the 20p
extra charge for each additional passenger above one, limited to a maximum of 80p.
The CTA's request is attached at Appendix A.
3.4
Hackney carriage drivers were allowed to charge the following extras prior to their
abolition in June 2006.
Each Additional Passenger:
Each Dog:
Each Package:
20p (excluding babies in arms)
20p (excluding dogs assisting disabled people)
20p (other than normal hand luggage)
These charges were unpopular with many passengers and were used inappropriately
by some drivers. Also, some drivers did not apply these charges while others did. This
resulted in different fares for the same journey. The Taxi Licensing Office and some
operators received complaints from passengers regarding these charges. The CTA
agreed in 2006 to abolish these extra charges, and drivers were compensated for this
and the increase in running costs, by changes made to the tariffs introduced in June
2006.
3.5
The justification provided by the CTA to re-introduce the 20p extra charge for each
additional passenger above one, is not considered substantial enough to outweigh the
reasons for the abolition of the extra charges in 2006. Therefore, it is proposed not to
re-introduce any of the 20p extra charges.
3.6
It is proposed to apply the output from the fares formula of 12.9%, rather than either
the Consumer Price Index of 7.33% for the same period, or the requested 25% from
the CTA, because it is considered to reflect more accurately the increased operational
costs to the trade.
3.7
It is proposed to apply the increase of 12.9% to the fares by reducing the current initial
distance travelled from 1.387 Km to 1.229 Km and the initial waiting time charge from 6
minutes 46 seconds to 6 minutes. The current subsequent distance travelled would
reduce from 0.183 Km to 0.162 Km and the waiting time charge from 54 seconds to 48
seconds.
3.8
These proposed changes would result in a reduction in the distance travelled for a
given fare as shown in the example table below, and set out in more detail in
Appendices B, C and D.
Example
Fare
Minimum Charge
Average Fare
City Centre to Boundary (approx.)
£
£
£
£
£
£
£
£
2.80
3.00
4.00
5.00
5.40
6.00
7.00
8.00
Page 2 of 10
Miles Travelled for
Fare
Existing Proposed
0.862
0.976
1.544
2.113
2.340
2.681
3.250
3.818
0.764
0.864
1.368
1.871
2.072
2.374
2.878
3.381
3.9
In the June 2008 edition of the "Private Hire and Taxi Monthly" magazine, Coventry
came 129th in the fare league table out of 375 local authorities listed. Position 1 is the
highest fare. If the proposed increase is approved Coventry would move up to
approximately position 52.
The league positions of nearby local authorities are:
Birmingham
8
Solihull
11
Nuneaton & Bedworth 68
Rugby
145
North Warwickshire
187
Warwick
153
London is in position
3
Adur is in position
1
4
Proposal and Other Option(s) to be Considered
4.1
It is proposed to introduce the hackney carriage fare adjustment, as shown in
Appendices B and C, in August/September 2008.
5
Consultation
5.1
The Coventry Taxi Association have been sent a copy of this report. Their response is
included at Appendix E.
6
Other specific implications
Implications
(See below)
Best Value
Children and Young People
Climate Change & Sustainable Development
Comparable Benchmark Data
Corporate Parenting
Coventry Community Plan
Crime and Disorder
Equal Opportunities
Finance
Health and Safety
Human Resources
Human Rights Act
Impact on Partner Organisations
Information and Communications Technology
Legal Implications
Neighbourhood Management
Property Implications
Race Equality Scheme
Risk Management
Trade Union Consultation
Voluntary Sector - The Coventry Compact
Page 3 of 10
No Implications
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7
Finance
7.1
There are no implications on Council budgets.
8
Legal
8.1
The Local Government (Miscellaneous Provisions) Act 1976 lays down a statutory
procedure for varying fares charged by hackney carriage drivers. This procedure
involves giving public notice of the proposed changes and a 14 day objection period. If
objections are made they must be considered by the Committee before the proposed
fare changes or any alternative can be implemented.
9
Monitoring
9.1
The monitoring of the impact of changes to fares is carried out on a continuous basis
by your officers.
11
Timescale
11.1 If this report is approved, the proposed fare structure will be advertised in the Coventry
Telegraph on 17 or 24 July. Any objections received can be considered at your
meeting on 23 September. If no objections are received, it is planned to introduce the
proposed fares during August/September 2008.
11.2 Following this review it is intended to review fares on an annual basis.
Yes
Key Decision
Scrutiny Consideration
Council Consideration
LIST OF BACKGROUND PAPERS
Proper Officer:
Director of City Development/Director of Finance and Legal Services.
Author:
Frank Barlow, Manager, Taxi Licensing Office, City Development Directorate.
Telephone 024 7683 2297
(Any enquiries should be directed to the above)
Other Contributors:
Ted Hiscocks, Transportation Group Manager, City Development Directorate.
Jasbir Bilen, HR Manager, Customer and Workforce Services.
Graham Clark, Lead Accountant, Finance and Legal Services Directorate.
Mark Smith, Senior Solicitor, Finance and Legal Services Directorate.
Papers open to Public Inspection
Previous reports on fees - contact Frank Barlow, Taxi Licensing Office,
Telephone 024 7683 2297.
Page 4 of 10
No
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Appendix A
Page 5 of 10
Appendix B
Current and Proposed Hackney Carriage Fares
Current Rate
Proposed Rate
Initial Charge
£2.80 up to and
including the first
1387 metres
(or 6 mins 46 Secs)
£2.80 up to and
including the first
1229 metres
(or 6 mins)
Distance Charge
20p each
additional
183 metres
(or 54 sec)
20p each
additional
162 metres
(or 48 secs)
£3.60 up to and
including the first
1387 metres
(or 6 mins 46 Secs)
£3.60 up to and
including the first
1229 metres
(or 6 mins)
20p each
additional
183 metres
(or 54 sec)
20p each
additional
162 metres
(or 48 secs)
£3.90 up to and
including the first
1387 metres
(or 6 mins 46 Secs)
£3.90 up to and
including the first
1229 metres
(or 6 mins)
30p each
additional
183 metres
(or 54 sec)
30p each
additional
162 metres
(or 48 secs)
£40
£40
Day-Time rate (tariff 1)
Night-Time rate (tariff 2)
Between 10 p.m. and 6 a.m.
Initial Charge
Distance Charge
Christmas, New Year,
Public & Bank Holiday rate (tariff 3)
Christmas
(between 6 p.m. on 24 December
and 6 a.m. on 27 December)
New Year
(between 6 p.m. on 31 December
and 6 a.m. on 2 January)
Easter Sunday & Monday
May Day Bank Holiday
Spring Bank Holiday
Summer Bank Holiday
Initial Charge
Distance Charge
Extra Charges:
Soiling/cleaning Charge
Page 6 of 10
Appendix C
PT5/35
HACKNEY CARRIAGE
FARES IN COVENTRY
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1. For journeys commencing and ending within the City of Coventry
Unless a lower fare is agreed before the journey starts:
For the first 1.229 Km (Approx.8/10 mile)
Day-Time
Night-Time
Holidays
(6am to 10pm)
(10pm to 6am)
(See below)
£2.80
£3.60
£3.90
or 6 minutes (or part)
Then for every 0.162 Km (Approx.1/10 mile)
20p
20p
30p
or 48 seconds (or part)
When the speed is below approximately 8 miles per hour only the time charge applies.
Soiling/Cleaning Charge:
£40
---------------------------------------------------------------------------------------------------------------------------------------------------------------
Holidays
Christmas
(6pm 24 Dec to 6am 27 Dec)
New Year
(6pm 31 Dec to 6am 2 Jan)
Easter Sunday & Monday
May Day Bank Holiday
Spring Bank Holiday
Summer Bank Holiday
(For 24 hours starting at 00.00am on the day)
2. For journeys ending outside the City of Coventry
The law does not permit a taxi driver to charge more than the price shown on the meter
(which will be calculated at the rates shown above) unless the journey ends outside the City
boundary and you and the driver have agreed a different fare BEFORE the journey
commences.
IN CASE OF COMPLAINT - Note the driver's badge number & taxi
number and write to the Taxi Licensing Office, Whitley Depot, 259 London Road, Coventry
CV3 4AR or email: [email protected]
Page 7 of 10
SEPTEMBER 2008
Appendix D
FARE GUIDE
TLO/082
The fares below are approximate.
September 2008
If the taxi speed is below 8mph (e.g. because of traffic or signals) the fare on the meter will increase
by an additional 20p for every 48 seconds. E.g. Stopped in traffic for 2½ minutes - add 60p.
There are no extra charges for additional passengers, packages or dogs etc.
The maximum fare you should pay is the fare on the meter unless the journey ends
outside the city boundary (see fare chart).
COVENTRY
½
1
1½
2
2½
3
3½
4
4½
5
£2.80
£3.40
£4.40
£5.40
£6.40
£7.40
£8.40
£9.40
£10.40
£11.40
£3.60
£4.20
£5.20
£6.20
£7.20
£8.20
£9.20
£10.20
£11.20
£12.20
Holiday
£3.90
£4.80
£6.30
£7.80
£9.30
£10.80
£12.30
£13.80
£15.30
£16.80
Kms
0.8
1.6
2.4
3.2
4
4.8
5.6
6.4
7.2
8
Miles
Day
6am - 10pm
Night
10pm - 6am
Page 8 of 10
Appendix E
CTA Fares Report
Coventry Taxi association have decided to change the proposal after consulting their
members. The association now feel that the latest proposal is fair and reasonable.
Background
Since 2006 the trade feels there has not been an increase in taxi fares. With petrol prices
increased from 89p a litre to £132 at present. The previous association accepted a two year
deal without consulting their members. The Extras were also removed as part of the
agreement.
2008 Offer
Coventry Taxi Association cannot accept the 12.9% offer which has been generated from
the formula. The trade feels this offer is not good enough to meet the cost of living.
CTA New Proposal
After consulting the trade CTA now feel the new proposal is fair and reasonable, the trade
would like Option 1 increase the offer which has been recommended from hackney carriage
licensing office from 12.9% to 15% and reinstate the extras back. Or Option 2 increase the
offer from 12.9% to 15% and also increase the daytime flag from £2.80 to £3.00 and evening
rate from £3.60 to £4.00. CTA will only accept a year deal if agreed.
Current fare
1.387 KM
6 minutes 46 seconds
Then for every 0.183 KM
Or 54 seconds
Councils New offer
1.229 KM
6 minutes
Then for every 0.162 KM
Or 48 seconds
D time
£2.80
N Time
£3.60
20p
20p
D time
£2.80
N Time
£3.60
20p
Holidays
£3.90
30p
Holidays
£3.90
20p
30p
CTA NEW Proposal (option 1) D time
N Time
1.079 KM
£2.80
£3.60
5 minutes 45 seconds
Then for every 0.156KM
20p
Or 45.9 seconds
CTA NEW Proposal (option 2)
1.079 KM
5 minutes 45 seconds
Then for every 0.156KM
Or 45.9 seconds
D time
£3.00
Holidays Ext (max 80p)
£3.90
20p
20p
N Time
£4.00
20p
Page 9 of 10
20p
30p
Holidays
£3.90
30p
These rates will compensate drivers who work nights and who pick up more than 1
passenger. Since 2006 drivers have not been given an increase for short journeys for an
example if you picked 4 passengers up from the station and drove them to City Centre the
fare would have been between £3.40 to £360 and now in 2008 the fare would only be £2.80.
So therefore, there has not been an increase in fact there has been a decrease.
Licensing office also claim many drivers were over charging passengers with extras, it was
the council job to investigate these complaints and bring the drivers in front of the licensing
committee, not to remove the extras and punish all trade. CTA only want extras for
passengers not for luggage or bags. This will help to solve majority of the problem.
Furthermore, it is also very difficult to work with percentage as the fares only increase by 20p
at a time. An example if the metre with the increase came to £2.89 than it will fall back to the
nearest 20p and it would be £2.80 so therefore, you cannot get an accurate figure by
increasing the fares by percentage. So therefore, if the flag was increased it would be fair
and reasonable. The trade will not accept any other offer.
An average taxi driver earned approximately £15.000 in 2006 and now the average driver is
earning approximately £13,000 a year. Therefore, drivers expect an increase which they
have not had since 2006. Many feel they have totally been let down by the previous CTA
committee.
The City of Coventry has one of the best fleets of Hackney carriage vehicles out there, to
maintain this standard it is vital we have a good reasonable increase to sustain this position.
Regards
Alias Yousef
Chairman CTA
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