Agenda Item No______6______ REVISION OF THE TAXI LICENSING POLICY, HANDBOOK, LICENCE CONDITIONS AND ASSOCIATED LICENCE FEES Summary: This report is being submitted to the Licensing & Appeals Committee providing an update on consultation feedback from the taxi trade. Conclusions: In approving the proposed revised licence fee table for 2012/13 the income from fees will increase but there will still be a shortfall to cover the costs of the licensing function necessitating continued subsidy from general taxation Recommendations: Licensing & Appeals Committee consider the additional consultation feedback in detail and if appropriate revise their recommendation to Full Council. Cabinet Member(s) Councillor Trevor Ivory Licensing Committee Chairman Councillor Richard Price Contact Officer, telephone number and email Ward(s) affected: All Chris Cawley Licensing Manager 01263 516252 chris.cawley@north-norfolk.gov.uk : 1. Introduction 1.1 At its last meeting on 26 March 2012 the Licensing and appeals Committee considered a revised draft of the Councils taxi licensing policy, handbook and licence conditions which had been prepared following a 12 week consultation exercise. Members discussed the proposals, made further amendments then approved a final draft to be recommended for adoption by Full Council on 18 April 2012. 1.2 As a parallel exercise, officers had undertaking a costing exercise on the licensing fee levels for taxi drivers licences and for vehicle licences which needed to be levied by the Council for the coming year. This was undertaken on the basis of setting fee levels to achieve full cost recovery of all the Councils costs in this area of licensing through licensing fees rather than at a level which achieved only partial cost recovery (as in previous years) such that the licensing function is effectively subsidised from general taxation. 1.3 The proposed licensing fees had been published in the press for the required 28 day consultation on 10 March 2011 prior to being considered (subject to consultation feedback) and approved by Full Council on 18 April 2012. 1.4 During the fee consultation period representations were received by the Council from the taxi trade concerning the proposed new fees and elements of the proposed new policy and handbook associated with the fee increase. On that basis decision on adoption of the new policy and fees was postponed from Full Council on 18 April 2012 till the next meeting on 30 May 2012 giving more time for consideration of the issues raised. 1.5 The matter is therefore being referred back to the Licensing & Appeals Committee to consider the additional consultation feedback points in detail and if appropriate revise their recommendation to Full Council. 2. Further consultation feedback 2.1 Several letters and emails have been received stating concern that the increase in Vehicle licence fee of 37.5% and driver licence fee of 16% in one year will cause serious problems for the taxi trade given the current financial climate and fuel increases. The proposal for all new and existing drivers to undertake a separate DSA assessment would impose additional costs for drivers 2.2 Many of the North Norfolk licensed drivers and operators have now formed a Taxi and Private Hire Association to represent their collective interests. A meeting between representatives of the Council and the association took place on 12 April 2012 at which the foregoing points were explored in some detail. 2.3 It was confirmed to the association that the proposed increase in fees did not reflect an increase in Council costs this year but resulted from the Council’s policy to remove subsidies from the licensing function (which have existed for several years) so that the fee income covered appropriate costs as provided for in legislation. The Council is committed to reducing costs where possible through reductions in bureaucracy and efficiency savings wherever possible. To that end a move from annual to a three-year driver licence regime had been proposed which would reduce the administrative burden on both drivers and the Council. In practical terms the checks which have to be undertaken to establish a driver’s fitness and propriety to hold or renew a taxi driver’s licence are the same whether the licence period is for 1 year or 3 years. 2.4 The taxi trade generally have welcomed the move to a three-year driver licence regime but feel the proposed transitional arrangements are a financial burden at the current time. 2.5 Officers have therefore developed an alternative proposal to offset some of the effects of this transition period whilst ensuring the essential safeguards required by legislation to protect the public are maintained. 3. Proposed revised transitional arrangements 3.1 That the Council offer applicants the ability to apply for either a 1 year licence or a 3 year licence. The fees for a 3 year licence (new or renewal) would be set at a level that covers the council costs (£170) 3.2 The cost of processing and issuing a new or renewal for a 1 year licence is the same as that for a 3 year licence. However, in recognising that some drivers may only want a 1 year licence and that there are financial pressures on the trade, the Council will consider a preferential subsidised rate for 1 year licences. Committee are asked to consider the following options o Option 1 The fee for 1 year licences would be set at a level to provide preferential transitional arrangements for drivers on a stepped incremental basis ( ie 1 year licence would increase to £90 this year, £130 next year then to £170 the year after to be in parity with 3 year licences). o Option 2 The fee for 1 year licences would be fixed at £90 for the next 3 years on a subsidised basis and the situation reviewed after that time 3.3 That the requirement for a Driving Standards Assessment is introduced on a voluntary (rather than compulsory) basis at the present time with the ability for the Licensing authority to make it a mandatory requirement in cases where concern over a particular driver or applicant has been raised. The Council encourage all taxi drivers to obtain recognised professional training and qualifications throughout their career to assist with probity checks. 3.4 That in introducing the requirement for all drivers and applicants to have a group 2 medical on a three yearly basis, that flexibility be given for those individuals who currently hold alternative driving qualifications ( such as PSV or HGV drivers licences) to submit their medical reports on a five yearly cycle unless medical contraindications exist. 3.4 Proposed revised licence fee structure for 2012/13 LICENCE TYPE Licence to Drive Hackney Carriages or Private Hire Vehicles Licence to Drive Hackney Carriages or Private Hire Vehicles Licence to Drive Hackney Carriages or Private Hire New licence valid for1 year option Existing fee new fee 2012 likely fee 2013 likely fee 2014 £102.38 £90 £130 £170 £90 £90 £90 1 option 2 New licence valid for 3 years Not applicable £170 £170 £170 Renewal of licence valid for 1 year £48.82 £90 £130 £170 £90 £90 £90 option 1 option 2 Vehicles Licence to Drive Hackney Carriages or Private Hire Vehicles Hackney Carriage Vehicle Licence Private Hire Vehicle Licence Private Hire Operators Licence Renewal of licence valid for 3 years Not applicable £170 £170 £170 New or renewal – valid 1 year New or renewal – valid 1 year New or renewal – valid 5 years £138.43 £190 £190 £190 £138.43 £190 £190 £190 £145.33 £150 £150 £150 3.5 These fees relate to the costs of issuing and administering driver’s licences and for the grant of vehicle and operators licences including the cost of vehicle inspections as provided for under section 53(2) and 70 of the Local Government (Miscellaneous Provisions) Act 1976. 3.6 As stated the fees do not include all the costs of an applicant for a driver’s licence in meeting the licence prerequisites and conditions. As at present they will be required to separately pay the costs of a medical examination and a Criminal Record Bureau Check (and where required a Driving assessment) direct to the organisations undertaking those services. 3.7 In accordance with legal requirements the originally proposed fees have been published in the local press and on the Councils website and subject to 28 days public consultation. The proposals have been modified in the light of objections received. On that basis in accordance with legal requirements the revised fees (subject to adoption by Full Council) will take effect with the new policy and handbook on 1 July 2012. 3.8 The Council has also revised the charges payable for lost or damaged licences; plates; badges etc as follows (subject to adoption by Full Council) to be effective from 1 July 2012. ITEM Replacement badge (inc name or address change) Replacement Drivers badge holder with lanyard Windscreen pouches (additional or replacement) Replacement plate for vehicle Vehicle Inspection full initial test (if undertaken other than at time of licensing or relicensing vehicle) Vehicle Inspection re-test following failure of initial test CHARGE £19.06 £3.00 £1.50 £36.05 £44.00 + vat £10.00 + vat Meter Test or retest undertaken separate to full vehicle inspection £20.00 + vat 3.9 For the avoidance of doubt there is need to amend the proposed Penalty Points System table “using a mobile phone, radio hand set, eating or drinking whilst the vehicle is in motion” by adding the expression “ unless specifically exempted by law”. 4. Conclusion In approving the proposed revised licence fee table for 2012/13 the income from fees will increase but there will still be a shortfall to cover the costs of the licensing function necessitating continued subsidy from general taxation 5. Implications and Risks The proposals in this report are consistent with the Council fulfilling its statutory duty as licensing authority and do not pose any additional risks to the Council or public 6. Financial Implications and Risks In setting licensing fees at a level below that which ensures full cost recovery then the Council will continue to subsidise the licensing function through general taxation. Given the current number of licensed drivers if all renew on an annual basis this year this shortfall is predicted to be £20,800 for the financial year 2012/13. In moving to a system of processing licences on a three year cycle it is expected resources from this function will be released for reallocation elsewhere within the licensing function. 7. Sustainability There are no issues arising specifically from this report 8. Equality and Diversity There are no issues arising specifically from this report 9. Section 17 Crime and Disorder considerations There are no issues arising specifically from this report