TAXI LAW CROSS-BORDER HIRING
them the discretion to refuse licences in the way Newcastle wanted it to do (i.e. based on where drivers predominantly operate).
In the last PHTM issue (March 2018) I wrote about a recent case involving Delta Taxis and Uber challenging an intended use poli- cy adopted by Knowsley Metropolitan Borough Council which was the council’s attempt to address cross-border hiring in its locality.
The issue of cross-border hiring continues to be a high profile and important matter nationally for both the trade and regulators. It has divided opinion as very few taxi and private hire issues have in the past, even amongst the trade itself.
In this article I would like to consider the wider issue of cross-border hiring, look at what is happening on the national level and finally what the Government’s likely response will be.
CROSS-BORDER HIRING
“Cross-border hiring” as a term and a con- cept is not one found in law. The term is generally used in the trade to describe a practice where taxis or private hire vehicles that are licensed by one licensing authority work wholly or predominantly in another licensing authority area.
The issue of cross-border hiring first arose most prominently in the case of Newcastle City Council, Regina (on the Application of) v Berwick-upon-Tweed Borough Coun- cil and others. This was the first case of its kind where the lawfulness of cross-border hiring was tested in a court of law.
In the Newcastle case the High Court found that the purpose of the licensing system was to ensure safety but where taxi drivers predominantly operated outside their licensing authority’s area, the supervision necessary to ensure safety was weakened.
Berwick-Upon-Tweed Borough Council had argued that the legislation did not give
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Whilst the High Court held Berwick-upon- Tweed were not acting unlawfully, it did labour the point that the nature of the licensing system was local in character, with public safety in mind, and it could be open to a local authority, in determining whether to grant a licence under the said section 37, to require an applicant to submit informa- tion pursuant to section 57 Local Government (Miscellaneous Provisions) Act 1976 in order to ascertain the intended usage of the vehicle.
Legal arguments both in support and against cross-border hiring have continued consistently since the Newcastle case in 2008 culminating in the most recent case which found, on merit, an intended use pol- icy to be unlawful (see “Where do you draw the line” PHTM March 2018).
THE NATIONAL PICTURE
As I mentioned, the debate about cross- border hiring has been raging on since it came to a head in 2008 and the profile of the issue has reached national proportions. Consequently there has recently been a great amount of activity and developments in relation to cross-border hiring which is certainly worth the trade taking note of.
Licensing of Taxis and Private Hire Vehicles (Safeguarding and Road Safety) Bill
One of the main arguments against cross- border hiring advanced, particularly by licensing authorities, is that of the safe- guarding implications of the practice. In response to this, a Private Members Bill, the Licensing of Taxis and Private Hire Vehicles (Safeguarding and Road Safety) Bill, has been laid before Parliament by Daniel Zeich- ner MP.
Section 5 of the Bill (“Duty to report con- cerns about out-of-area drivers”) will place a statutory duty on licensing authorities to report conduct and safety issues, relating to out of town drivers working in their area, to the licensing authority where they are licensed. In turn the receiving licensing authority will be under the same statutory duty to act upon receipt of relevant infor- mation. The test will be whether “the first authority is satisfied that, had it granted
the licence, it would have considered sus- pending or revoking it in reliance on the information.”
The Bill is due to have its second reading in the House of Commons early Autumn this year.
Cross Border Hiring – Proposals for Legislative Change (TfL)
In response to Parliamentary debates in July last year, the Department for Transport set up a Taxi and Private Hire Task and Finish Working Group (more on this later). In giv- ing evidence, Transport for London recently (March 2018) submitted a comprehensive report to the task and finish group setting out its proposals for legislative change to address particularly issues around cross- border hiring. Whilst the report was published by TfL, it included engagement and input from other licensing authorities around the country.
In the report, TfL made a number of legisla- tive change recommendations to the Government including:
1. Introduction of a start or finish require- ment, meaning that all taxi and private hire journeys either start or end in the area in which the driver and vehicle (and operator in respect of private hire) are licensed.
2. National minimum standards set at a high level, to provide a consistent approach to customer safety and acces- sibility.
3. National enforcement powers, to allow enforcement officers to enforce the national minimum standards in their areas regardless of where the operator, driver and vehicle are licensed, support- ed by a provision for data sharing.
4. We would also recommend that the impact of these issues in Scotland and Wales are considered by the respective Governments, as not to undermine any future requirements to address cross border hiring in England.
Safeguarding
There has recently been a number of high profile safeguarding scandals around the country. A number of subsequent enquiries
APRIL 2018
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