Note of discussion meeting on regulation of taxis, 26 July 2024

The Policy Centre held a discussion meeting on regulation of taxis on the morning of 26 July 2024. 26 people participated - members of the Centre’s Advisory Council and representatives of business and government.

The discussion followed the publication of the Centre’s Policy Brief Regulation of taxis.

The meeting was chaired by Simon Soar, Director of the Centre. Opening comments were made by Sir Mark Boleat, the Centre’s Senior Adviser.

There was then an open discussion.

Summary of comments by Sir Mark Boleat

• The market for taxi services is a subset of a much wider market.
• Current regulation is under a 1935 law as amended and regulations made under the law.

• Current policy is to maintain the number of taxis as close to 310 as possible. However, the number has fallen to 272.
• Taxi numbers have fallen because regulation requires that a potential holder of a licence must commit to be a full-time driver, be affiliated to a specified company/booking entity and spend 18 months as a driver for a recognised company.

• The number of licensed drivers has fallen from 488 in 2014 to 363 in 2023. Of the individual owners of vehicle licences, 66% are 60 or over and 28% are 70 or over.
• There are three Jersey-specific Apps: Jersey Taxi App, Yellow Cabs and Ryde. The current regulations are not compatible with Uber’s business model.
• Jersey Lifts is a predictable effect of regulation, meeting the demand that in the UK is met by minicabs, including Uber. It is not illegal unless for “hire and reward”.
• Public policy issues –
  • Restriction on the number of taxis.
  • Availability of taxis.
  • Fares, which are, on average, are much higher than minicab fares in England
  • Requirements that potential licence holders must meet.

• The regulation of taxis reflects the market as it used to be.
• Case for reforming regulation –some text
  • In line with government policy of reducing red tape.
  • Creating a regime which recognises how people now wish to use a taxi service – choice, ease of access and use and value for money.

Comments made in open discussion

• Transport should be seen as a triumvirate: parking, buses and taxis. The position in respect of taxis needs to be seen in context of developments in other forms of transport - replacement of Paycards for parking with PaybyPhone (now used for 80% of transactions) and Liberty Bus acceptance of credit and debit contactless cards. There has been some progress on taxis but automatic payment is vital. The payment function on the Jersey Tax App was disabled, which is not customer friendly.
• Uber does not operate in the Isle of Wight and many other smaller areas. People should be able to quickly look up what the local service is. A black cab driver in London said it was their own fault that they had Uber because they had resisted customer demand, for example for card payment.
• Better use of technology by taxis would expand the business.
• Jersey Lifts is used because it is convenient, not because of price. It cannot be ignored.
• Regulation of taxis needs to be viewed in the context of policy on sustainability.
• 2015 reforms followed extensive consultation and work by a specialist UK consultancy [summarised in the Policy Brief]. The public was confused by the two types of taxi. The outcome was a unified system.
• Rank taxi fares are regulated by the Government and increased in line with a “taxi RPI”. There is no restriction of charges by private hire vehicles.
• The reduction in number of drivers was partly caused by Covid, which substantially reduced demand. The reason for the drop in numbers and a threat to regulated taxi service in Jersey is the proliferation of illegal and unregulated lift services.
• It is not difficult to get a licence to drive a public service vehicle. There is a requirement to be a better than average driver, to have a good Island knowledge and to have a medical and DBS check.To drive their own taxi a wheelchair accessible vehicle must be purchased.
• Taxi drivers in Jersey formed the Jersey Taxi App. 92 drivers use it and last year it covered 62,000 jobs.
• The reason for paying at the end of the journey is that the money goes to the driver not the taxi company.
• Paying at the end of the journey automatically is a main attraction of Uber; if taxi drivers think otherwise they should do some market research.
• Policy Centre should be looking at licensing laws which are holding the Island back, not the taxi service.
• Although new holders of vehicle licences are supposed to work for a nominated company for 18 months some want to become self-employed before then, which is costly to the businesses.
• The driver and knowledge tests are not easy. One person has failed three times, in one case simply for going to the wrong pub in an area. People are being failed on technicalities.
• Regulation should be principles-based – and facilitate innovation. DVS has prevented innovative variations on the design of roof signs.
• The current regulations are not transparent and seem to be changed regularly without any publicity. There is no document setting out current policy.
• Current regulations have been published for the first time in the Policy Brief. Information can be obtained from DVS only by FoIs. There is a government website page headed “taxis fares and regulation”, but which says nothing about regulation.
• The requirement that taxi drivers must have this as their main source of income is restrictive. It is also unenforceable.
• The requirement for all vehicles to accept wheelchairs is unnecessary and costly. Many passengers will not get into a wheelchair accessible cab. Wheelchair accessible taxis should be a specialist service not a general requirement.
• The lack of availability of cabs at the Airport in Sunday evenings is unacceptable. It has been argued that the problem could be solved by people pre-booking cabs – but this would not solve the problem of there not being enough cabs.
• The high cost of taxis means that instead of people getting a cab to the airport they are driven to and from the airport by family members, which is contrary to sustainability objectives.
• A lot has been heard about what taxi drivers want, not what consumers want. Has there been a public survey?
• A propercurrentsurvey of public opinion is needed; the last one was in 2015. A taxi service in 2024 cannot be run on the basis of a 2015 survey.
• A long stay car park is needed at the airport.
• Ports of Jersey is committed to giving passengers the service they need. Arrangements are being made for a dedicated space for pre-booked cabs at the Airport.
• It is unfair to compare Jersey and the UK on fares. Costs are much higher in Jersey.

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