Meeting documents

The responsibility for the setting of the maximum fares that the drivers of licensed Hackney Carriages could charge the public had been delegated by the Cabinet to the Head of Health and Housing in consultation with the Licensing and Regulation Committee.

The Fares were reviewed annually, and the Licensing and Regulation Committee were asked to consider a request from the Chiltern District Driver’s Association (CDDA) to increase the Table of Fares, as detailed in the report.  Any recommendation to increase fares would require a period of consultation with the public and trade.  One driver was in attendance at the meeting, but advised that he was there to listen to the debate rather than make representation.

The Committee were reminded that fares had last been increased on 1 November 2008 - a 10% increase resulting in a cost of £5.20 for a two-mile journey.

The report detailed tables showing: petrol and diesel prices over time; the comparative costs of a 2 mile journey in neighbouring authorities; and, the existing tariff charged and the proposals made by the CDDA and other alternatives (including increases in line with the Retail Price Index and the Baxter formula).  The national league Table of Fares was circulated at the meeting, highlighting Chiltern’s position.

Detailed information from the Office of National Statistics (ONS) was also included in the report, illustrating movement of the Consumer Prices Index (CPI) and Retail Price Index (RPI) since 2008.  The Retail Price Index indicated a 4.1% change in retail prices between April 2008 and April 2010.  The Baxter formula (developed for use in civil engineering and construction contracts), which took into account labour, fuel and vehicle costs, suggested a 5% increase in costs over the same period.

Members were also advised of the need to also take into account the effect on those persons less able to afford the fares and who might not to able to access other forms of transport.  The Council’s taxi card scheme assisted in lowering the cost of a journey - although licensed vehicles required card readers to accept to taxi cards - but any increase in fares would reduce the ability of those on low income to travel.

It was acknowledged that nationwide comparisons with other authorities were difficult since Chiltern was unique.  However, the Committee noted that without any additional increase, Chiltern would remain more expensive than each of the other Buckinghamshire authorities.

It was also noted that the price of diesel was significantly less than the peak of June 2008 when the last fare increase had been agreed; petrol prices were similar to the June 2008 peak.

Concerns were expressed that increasing the fares further could decrease trade in the District as customers looked for cheaper alternatives across the district boundary; this would be detrimental to the drivers.

Regarding the CDDA’s request to increase fares - as reproduced in the Appendix to the report - the Committee noted that increased fuel costs and other running costs had been referred to in support of the increase, but there was no supporting evidence.  It was suggested that the CDDA needed a full business case demonstrating why the Table of Fares should be increased.  One Member added that the Committee also required information such as the average car costs per mile, and the hourly rates of drivers.

The Head of Health and Housing confirmed that there had been no significant changes to the Council’s Licensing Policy which would have financially impacted on drivers.  Regarding the introduction of side plates for private hire vehicles, it was confirmed that if these were introduced for Hackney Carriage vehicles they would be within the current cost of the licence.

The Committee acknowledged the potential impact on fuel of the planned increase in VAT, and the potential impact of the exchange rate on fuel costs.  It was also considered that freezing the Table of Fares might require a larger increase in future; small incremental increases might be preferable to periodic large increases.

A Member suggested that drivers in neighbouring districts seemed able to run their vehicles on lower fares despite fuel and other running costs.  The Committee also noted that there did not appear to be a shortage of taxi drivers in the Chiltern District.

Councillor Mrs Burton formally proposed that no change be made to the Table of Fares; Councillor Miss P A Appleby seconded the motion.  Following a vote, the Chairman declared the motion carried.  However, the Committee also agreed that it would be appropriate to review the Table of Fares in 12 months if requested to do so by the CDDA.

Note: Councillor Miss P A Appleby re-entered the meeting at 6.48pm.