Taxi drivers’ fury at 134% licence fee hike

by News admin on April 6, 2011

in Fares, Tariffs & Fees, Licensing

Source: South Wales Argus

TAXI drivers in Newport say council proposals to increase vehicle licence fees by up to 134 per cent could see their businesses go under.

Newport Hackney Drivers Association chairman Lionel Morris, branded the plans “ridiculous” and said drivers were already struggling to cope with falling trade and the rising price of fuel without having to incur further costs.

Newport City Council is proposing to raise the amount drivers pay to licence themselves and their cars, as well as operators fees for taxi firms.

The plans are currently out for consultation, but if agreed drivers of private hire vehicles aged more than three years old could see their vehicle licensee fees rise from £67.90 every six months to £159 – a 134 per cent increase.

Drivers of Hackney carriage vehicles over three years old could see a similar rise from £71.90 to £169 for a six-month licence. Vehicles under three years old also face a 67 per cent rise.

City taxi drivers said they were outraged by the proposed hikes, branding them “ludicrous” in a time when the industry was struggling and trade is low.

Dennis Griffiths, who owns a fleet of 30 cars at Servu Taxis, said: “I cannot see how they can justify that, it’s very quiet at the moment.”

Taxi driver of 18 years, Talib Hussain, 54, said: “We cannot survive as it is. It’s getting harder and harder to make a living and with them (the council) pushing it the way they are with prices we won’t last.”

Mr Morris is now calling for an urgent meeting with licensing chiefs to discuss the proposals.

He said drivers would not be able to meet the rise given that most have only one fare an hour at an average rate of £4.

He said: “I cannot see how they can be thinking of something like this, it’s ridiculous.”

There are currently 670 licensed drivers in Newport who also face a 48 per cent hike for their personal licence from £63 to £93.

Firms which operate more than five vehicles currently pay £265 for an operator’s licence but this too could increase to £475 for owners of up to 25 vehicles, and £665 for firms with bigger fleets.

A report to councillors says the authority needs to increase fees to meet an £85,000 yearly shortfall in the cost of providing the service, which was likely to rise to £126,000 if the fees remained unchanged.

The authority added fees had not increased since 2009 and the proposed increases were not out of line with neighbouring authorities.

Newport Hackney Drivers Association won a judicial review against Newport council in 2009 to overturn its decision to impose a ban the use of Hackney carriages in the city over 12 years old.

South Wales Argus

EDITORIAL COMMENT: Taxi licence hikes unfair

WE have every sympathy with Newport taxi drivers who are facing a significant hike in charges from the city council.

Under plans currently being considered by the council, drivers of private hire vehicles, which are more than three-years-old old could see their vehicle licensee fees rise from £67.90 every six months to £159 – a 134 percent increase.

In the case of drivers of hackney carriage vehicles, again over three years old, they could see a rise from £71.90 to £169 for a six month licence.

As well as their vehicle licence drivers must hold a personal licence which could increase by 48 per cent from £63 to £93.

The council says that in recent years it has funded an £85,000 shortfall in the cost of administering and providing the licences and without the rises being suggested, this would rise to £126,000.

We can understand councils are currently having to watch every penny but to pass on such a huge increase in one go seems unfair.

With the taxi drivers’ well-publicised legal battle with the council a couple of years ago over the age of vehicles on the road, this must seem like another kick in the teeth.

At a time when they are struggling with increased fuel costs and lower demand for taxis, these extra charges will make life incredibly tough.

Taxi drivers have already told us that they fear for the future if the new charges are approved.

With this in mind, and given their already difficult trading conditions, we hope the council’s consultation exercise results in a less draconian solution.

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