Motor Traffic (Cabs - Fares and Charges) (Jersey) Order 2008: Amendment: Law drafting instructions

DEPARTMENT FOR INFRASTRUCTURE

MOTOR TRAFFIC (CABS – FARES AND CHARGES) (JERSEY) ORDER 2008 –

AMENDMENT

PURPOSE OF THE REPORT

To seek the support of the Minister for Infrastructure, in accordance with his powers under Articles, Article 38(1) and (2)(a) of the Motor Traffic (Jersey) Law 1935 which provides that –

“(1) It is the duty of the Minister to prescribe by Order such matters as it is necessary or convenient to prescribe to ensure that, insofar as it is practicable to do so, there is an adequate, efficient and reasonably priced cab service available throughout Jersey at all times.

(2) The Minister may, in particular, prescribe –

(a) The fares and charges payable for the hire of cabs;”.

to amend or replace, the Motor Traffic (Cabs - Fares and Charges) (Jersey) Order 2008.

BACKGROUND

In September 2015 the Minister set out in Ministerial Decision MD-T-2015-0079 ‘Taxi-Cab Regulatory Reforms Programme’ the areas of change which were required to achieve the reform programme to provide a more flexible and safer taxi-cab service to the public. The Ministerial Decision directed the Inspector of Motor Traffic to draft Orders under the Motor Traffic (Jersey) Law 1935 and make the necessary administrative changes to put the taxi-cab regulatory reform programme into effect.

Following the Ministerial Decision, engagement with the industry and officers took place to establish how the core objectives of the reform programme could be introduced within the timescales set. These objectives being under the headings: Uniform Industry, Fair Fares, Quantitative Controls, Quality Controls and Vehicle Requirements.

To deliver the Fair Fare objective it is considered that the following principles need to be achieved:

• The customer should know what they are expected to pay for a journey
• The customer should know what the differential cost is for hiring a Taxi or Private Hire cab for the same journey
• Tariffs should be generally inclusive
• Transparency

DISCUSSION

To achieve the Fair Fares objectives, it is considered that changes to the existing fare structure are required. The areas of change being:

• Standardising fares for all taxi-cabs not just rank vehicles  
• Reducing the number of tariffs
• Reduction in additional charges
• Calculating fares on equal divisions of a mile

Current Situation

Currently the Tariffs are only set for Taxis and not Private Hire Cabs. There are currently four tariffs, each of which are based on different fare yardage, times and days of the week.  In addition, additional charges are allowed for articles or packages as well as each additional passenger over the age of three years old.

Taxi-cab fares for any journey are calculated on a number of pre-set variables which take both distance and time into account. These being:

• Initial flag (first fare yardage cost)
• Subsequent fare yardage (drops)
• Waiting time (compensation drop for not travelling at set speed)
• Crossover speed (speed at which the waiting time drop commences and accumulates)

The existing Taxi tariffs (rank fares) have not been increased or changed since June 2014.

Historically, private hire cab fares have been based loosely on the Taxi tariffs. However, over the years this has resulted in each private hire cab company using different yardage, times and days of the week to establish their own unique tariffs without any recourse. This has meant that it is almost impossible for the public to know, accurately, what fare is going to be charged by different Private Hire Cabs for the same journey, at the same time of day and day of the week.

There is therefore a need to regularise the current situation in the public’s interests.

The new proposed Tariffs

It is proposed that a common taxi-cab tariff is established to provide a benchmark for customers and a more transparent system for the public. The new proposed taxi-cab fare structure will comprise three tariffs instead of the existing four. These being:

1. Tariff 1 –Any day of the week after 07.00 and before 23.00hrs

2. Tariff 2 – Any day of the week after 23.00 and before 07.00 hrs and all day on Sundays and Public Holidays except Tariff 3 below

3. Tariff 3 - starting after 19.00 on Christmas Eve and before 07.00 the morning after Boxing Day and after 19:00 on New Year’s Eve and before 07.00 the morning after New Year’s Day

These tariffs will apply to all taxi-cabs whether Private Hire Cabs or Taxis.

To ensure greater transparency for the public it is proposed that each mile travelled should be calculated using the same yardage drops. It is therefore proposed that both the initial flag yardage and the subsequent fare yardage (drops) are based on 1/10th of a mile eg 176 yards for all proposed tariffs.

Therefore, the cost of the journey’s first mile and subsequent miles would be the same across the industry. However, where a journey is pre-booked, an additional charge above the taxi-cab tariff may be charged by the entity that is responsible for dispatching the journey (dispatching entity). This may be a fixed amount or a percentage above the prescribed taxi-cab tariff but it will have to be declared to the customer in advance of them accepting the booking or included in the dispatching Entities tariffs.

It is intended that fares for journeys (excluding waiting time) will be published for each dispatching entity and Taxis. A separate regulation will be issued to cover the specific requirements of a dispatching entity in due course.  

How have the new Tariffs been calculated?

The basis of the proposed 2017 tariffs would be the current rank tariff plus taxi-cab RPI since the last increase between March 2014 and March 2017 which is calculated as 4.6%. See table below provided by the States of Jersey (SOJ) Stats Unit.

In addition, and as set out in the taxi-cab reform programme the fare charged should be inclusive and not be subject to extras for luggage, articles, parcels or additional passengers travelling in a standard four passenger licensed taxi-cab. To compensate taxi-cab drivers for these changes, it is proposed that the current additional charges are consolidated into the initial journey flag yardage. Data has been obtained from a sample group of Taxis by both DVS and the Jersey Taxi Drivers Association (JTDA). This data was analysed in conjunction with the SOJ Stats Unit. The conclusion of the analysis is to remove these additional charges and consolidate them into the initial journey flag by increasing it by 20p per journey.

As part of the taxi-cab reform programme it was agreed that any additional equipment required to meet the reform requirements would be taken into account in a review of the tariff structure. To date, these comprise Booster seats and Electronic payment devices. All taxi meters will be required to meet an Industry standard by 1 January 2018. It is considered that the cost for providing a taxi meter (fare calculation device) to meet the future PSV vehicle licencing requirements is already included in the existing tariffs. The requirements for a fare calculation device is subject to a separate Ministerial Decision and Order change.

Based on the average purchase price of the two additional pieces of equipment, the additional average cost equates to £20.40 per annum. This being based on the average booster seat costing £30 and an electronic payment device £72. Based on a taxi-cab undertaking 22,000 miles per year and a five-year life span of the equipment. This equates to 9/100th of a penny per mile. Therefore, the amount is considered insignificant when included in the proposed tariff calculations.

It is recognised in MD-T-2015-0079 that taxi-cabs that carry more than four passengers should charge for those additional passengers as the vehicles will be larger than a standard four passenger licensed taxi-cab. It is therefore proposed that a charge of £1 per passenger for the fifth, sixth and seventh passenger could be levied and prescribed in the Order to encourage larger vehicles to be used as taxi-cabs i.e. those which are licensed to carry more than four passengers.

It is also recognised that the use of non-cash methods of payment for journeys is becoming the preferred method of customers paying for goods and services and that the introduction of electronic payment devices should be introduced as soon as possible for every taxi-cab. While this will be the subject of a separate Ministerial Decision, it is considered that a maximum charge for using such devices should be introduced as part of the new Fares and Charges structure.

An exercise has been independently undertaken to review what charges are being currently levied by industry suppliers of the equipment. Based on the information provided and discussions with the Industry it is proposed that an optional maximum fixed convenience charge of 50p per transaction is adopted in the Order.

While it has been agreed that a soiling charge will be introduced its introduction is subject to a separate Ministerial Decision as a change in regulation is required.

As mentioned earlier, to cover the overhead cost of pre-booked journeys undertaken via a dispatching entity, it is proposed that a maximum declared percentage (%) or a fixed sum above the proposed taxi-cab tariffs maybe charged by the dispatching entity to cover its costs. The passenger must be aware of the amount above the prescribed taxi-cab tariff before they pre-book the journey. It will be a requirement that the Inspector of Motor Traffic is advised in writing of the amount that each dispatching entity is to charge so that the amount can be published accordingly. It will also be a requirement that any change to the amount charged is advised to the Inspector of Motor Traffic in writing within six weeks of such changes commencing.

Tariff Comparisons

Based on a 4.6% Taxi-cab RPI uplift & 20p on the initial flag to the existing tariffs the following table shows the new yardage tariffs compared to the existing ones.  

Based on the above but using the new proposed tariff structure based on 10th mile drops and the consolidation cost the Tariff rates it is proposed that the following tariffs should be used:

Tariff 1 = 21p drop and £3.00 Flag.

Tariff 2 = 31p drop and £3.10 Flag

Tariff 3 = 34p drop and £5.40 Flag

RECOMMENDATION

The Minister is asked to:-

1. Agree to prescribe the new proposed taxi-cab tariffs and charges as set out in the attached report and approved the amendment of the Motor Traffic (Cabs - Fares and Charges) (Jersey) Order 2008 accordingly.

REASON(S) FOR DECISION

In compliance with Ministerial Decision MD-T-2015-0079 ‘Taxi-Cab Regulatory Reforms Programme’:

1. To provide a common core set of maximum taxi-cab tariffs across the Industry.
2. To provide greater transparency to the public
3. To introduce new methods of payments
4. To remove extra charges for additional passengers carried except for where more than four passengers are carried in a larger capacity vehicle.
5. To remove extra charges for luggage, articles or parcels
6. Introduction of an optional Pre-booked journey charge when made via a dispatching entity.

ACTION REQUIRED

Head of DVS:

1. To instruct the Law Officers to amend the Motor Traffic (Cabs – Fares and Charges)  (Jersey) Order 2008 to reflect the amended tariff structure and charges.

 2. To advise the Taxi-Cab Industry of the Minister’s decision and arrange for appropriate  public information to be provided.

3. To instruct DVS to produce revised tariff cards for display in all taxi-cabs and advise all  taxi-cab licence holders to present their taxi-cabs to the Department at a convenient time               after the Order takes effect to have their meters checked.