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LTDA’s McNamara warns Government taxi reforms could leave cross-border working unresolved
Licensed Taxi Drivers’ Association (LTDA) general secretary Steve McNamara has criticised the Government’s response to the Transport Select Committee’s taxi and private hire licensing report, saying ministers appear reluctant to tackle cross-border hiring.
In a column published in Taxi Newspaper, McNamara said some recommendations in the Government’s response were welcome, particularly those relating to national minimum standards. But he said the response to proposals on cross-border hiring (CBH), also referred to as out-of-area working, caused him the most concern.
The Government has said drivers should ordinarily be licensed by the authority in the area where they intend to undertake most of their work. It is considering measures to discourage out-of-area licensing, while also noting that restrictions could affect service availability and passenger waiting times.
McNamara said: “The UK Government has finally published their response to the Transport Select Committee’s report into the taxi and PH industry, titled, ‘Raising the standard: licensing of taxi and private hire vehicles’.
“The response details each of the committee’s recommendations and follows it with their response and, almost straight away, it’s clear where both the Select Committee and the government’s response get it wrong: it’s when they both reference the Law Commission’s draft bill from 2014.
“The Law Commission’s inquiry and research was all carried out before taxi and private hire apps were in their infancy and prior to them playing the pivotal role they now do in our everyday operations and, as such, should have been completely disregarded.
“The only detailed work carried out since apps became mainstream was the Task and Finish group, which examined and addressed with clear recommendations the problems that have come about because of the apps.”
The Government’s response, published in October, set out plans to examine options during pre-legislative scrutiny of a proposed Taxis and Private Hire Vehicles Bill. It did not commit to a statutory requirement that drivers be licensed in the area where they do most of their work, or specify how sustained out-of-area activity would be distinguished from legitimate cross-border journeys.
McNamara continued saying: “Having said that, some of the recommendations will work and should be welcomed, specifically those around national minimum standards.
“The one that caused me most alarm when I read it was the response to the recommendation on tackling Cross Border Hiring (CBH), that, rather bizarrely, both the Select Committee and the government like to call Out of Area Working (OOAW).
“The response rambles on about passenger safety but there are several references to ‘service availability’ and ‘not negatively impacting supply’, which I read as “we won’t be grasping the nettle on this one and will do very little”.
“The only way that licensing will, once again, come under local control and prevent CBH is via the ABBA solution, proposed by the Task and Finish group. This is where a driver can take a passenger from their area of licence, A, to anywhere else, B, and also pick up from anywhere at B and take them back to their area of licence, A.
“Needless to say, this would massively impact on the likes of Uber and Bolt who set their own business areas and decide who works where. They do so regardless of who they are licensed by and it is already clear that their lobbying machine has swung into action to ensure their business model is protected over and above any safety or licensing concerns.
“Yet another opportunity to regulate the Wild West of app licensing and improve public safety will be sidestepped and, unfortunately, I fear little will change. Mark my words.”
The Government has said it will consider different licensing structures, including transferring responsibilities to local transport authorities and options offering greater national consistency. Its wider reform programme also includes national licensing standards, stronger enforcement powers and development of a national licensing database.
McNamara described the reform process as a “golden opportunity” to regulate app-based licensing and improve public safety. He warned that the opportunity could be missed if ministers do not act on cross-border hiring.
At this stage the Government’s response leaves key questions unresolved, including how any new measures would define a driver’s principal working area, what limits would apply to cross-border operations and how enforcement would be funded.
