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MAIDSTONE BOROUGH COUNCIL

Licensing Committee

Thursday 14 November 2013

REPORT OF THE HEAD OF HOUSING AND COMMUNITY SERVICES

Report prepared by Lorraine Neale 

1.                    Hackney Carriage Fare Increase

1.1                 Issue for Decision

1.1.1            To consider the Maidstone Taxi Proprietor Association’s request for an increase in fares.

1.2                 Recommendation of the Head of Housing and Community Services       

1.2.1            That the table of fares set out in Appendix C to this report be agreed.

1.2.2            That the Head of Housing and Community Services be authorised to      give public notice of the Council’s intention to fix this table of fares for Hackney Carriage vehicles in accordance with Section 65(2) of the Local Government (Miscellaneous Provisions) act 1976 to take effect from 7 December 2013.

1.3                 Reasons for Recommendation

1.3.1       A request has been received from the Maidstone Taxi Proprietors’ Association for an increase in fares, by means of a 3% decrease in the distance on the meter,(Appendix A).  This will lead to an increase in fares of 2.07% for customers travelling a 2 mile journey on all 3 tariffs.

1.3.2       It is usual practice to review fares on receipt of such a request.  The Association has made their request because of increases to the cost of living and also the maintenance of their London style cabs. The change in fares relates to the distance travelled and the waiting time with no change to the flag drop.

1.3.3       Attached as appendices to this report are the following:-

               B Current Fare Chart

               C Proposed Fare Chart

1.3.4       A comparison of all the Kent authorities for Tariff one as published by Private Hire Monthly (November 2013) for a two mile journey is as follows:-

1.3.5       The increase is in line with the level of inflation as measured by the consumer prices index (CPI), which remains unchanged at 2.7% and as can be seen from the table the increase requested is not disproportionate to the fares charged in other Kent areas.  Whilst Maidstone will be one of the higher fare levels it still remains competitive with other authorities. The last request for a fare increase was received in October 2012, where the trade asked for a 10% decrease in meterage, this resulted in a 6.7% increase overall. This meant that customers travelling over 2 miles found their fare increased from £6.00 to £6.40.

               Therefore, it is considered that agreement to the request can be recommended and the scheme of Hackney Carriage fares amended accordingly.

1.4                 Alternative Action and why not Recommended

1.4.1            It is necessary for the Council to consider this request and to set the rates for fares.  To refuse to do so would leave the Council open to challenge.

1.5                 Impact on Corporate Objectives

1.6                 The increase in fares seeks to support the local business economy.

1.7                 Risk Management

1.7.1            The undertaking of this exercise is in compliance with legislation. Not to consider this request would leave the Council open to challenge.

1.8        Other Implications

1.8.1    

1.8.2            Financial and Legal – Under Section 65 of The Local Government (Miscellaneous Provisions) Act 1976, the Council may fix the rate for fares for Hackney Carriage vehicles within the Borough, for time, distance and all other charges in connection with hire of the vehicle.  To meet the requirements, it is necessary to advertise the agreed variation and allow for 14 days for any objections to be made.

1.9                 Relevant Documents

1.9.1            Appendices

1.9.2            Appendix A -  MTPA’s request for an increase in fares.

               Appendix B – Current Fare Chart.

               Appendix C – Proposed Fare Chart

1.9.3            Background Documents

1.9.4            None

IS THIS A KEY DECISION REPORT?                  THIS BOX MUST BE COMPLETED     Yes                                               No     If yes, this is a Key Decision because: ..   .     Wards/Parishes affected: ..   ..