TRANSPORT AND TECHNICAL SERVICES
MOTOR TRAFFIC (CABS – FARES AND CHARGES) (AMENDMENT No 5)
(JERSEY) ORDER 2014
CONTROLLED TAXI-CAB FARE INCREASE 2014
- Purpose of the Report
1.1. To make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 5) (Jersey) Order 2014, which will increase controlled taxi-cab tariffs.
- Background
2.1. Controlled taxi-cab tariffs are set by the Minister, under the Motor Traffic (Jersey) Law, 1935. In recent years, increases in taxi-cab tariffs have been based on RPI (Taxi), an index established by the States Statistics Unit which reflects more accurately the factors affecting increased costs for taxi drivers.
2.2. Following discussions with the Jersey Taxi Drivers Association (JTDA), the last increase in 2013 amounted to 1.6 percent, consisting of 0.4 percent RPI (Taxi) for 2013 and 1.2 percent, half of the balance of RPI (Taxi) not taken in 2012. The Minister, in light of the continuing taxi review, also decided to freeze the number of permanent controlled licences at that currently issued until the end of the 2013 .The increase came into effect on 24 June, 2013.
2.3. Representatives from the Jersey Taxi Drivers Association (JTDA) submitted a proposal for an increase in controlled taxi-cab tariffs for 2014-15 of RPI (Taxi) 1.7 percent plus the other half of the balance, 1.2 percent, of RPI (Taxi) not taken in 2012, giving a total proposed increase of 2.9 percent.
- Discussion
3.1. The Head Statistician had provided the latest inflation figures and confirmed that RPI (Taxi) was currently running at 1.7 percent.
3.2. RPI (Taxi) uses the normal retail price index, which follows the changes in price of all the goods and services Islanders use, weighting more heavily those goods and services that are particularly relevant to the running costs of a taxi service, including higher mileages. The motoring elements such as servicing, insurance, tyres, etc are weighted by a factor of three and fuel costs weighted by up to a factor of ten.
3.3. Between March 2013 and March 2014:
(a) RPI (Taxi) increased by 1.7 percent;
(b) RPI, the retail price index increased by 1.7 percent;
(c) RPI(X), the retail price index excluding mortgage costs increased by 1.9 percent; and
(d) RPI(Y) the retail price index excluding mortgage costs and indirect taxes increased by 1.8 percent.
3.4. The JTDA representatives acknowledged the continuing difficult economic climate and that any wage rises are contentious, however, takings have continued to drop and as taxi drivers have no basic wage, this has meant a reduction in earnings for most drivers.
3.5. In recognition for continuing support in improving services and not taking the full amount of increase due in 2012, the JTDA proposed an increase of 2.9 percent.
3.6. As an alternative, RPI (Taxi) of 1.7 percent and in light of the continuing difficult trading conditions, not issuing any further plates where drivers over 65 do not meet the minimum mileage requirement.
3.7. The Minister confirmed that RPI (Taxi) of 1.7 percent and not issuing any further plates where drivers over 65 do not meet the minimum mileage requirement met with his approval.
3.8. On 04 June, the Inspector of Motor Traffic provided the JTDA with a spreadsheets showing the effect an average weighted increase of 1.7 percent would have on fares. The two basic options were:-
(a) an increase applied to yardages and waiting time in tariffs 1, 2, 3 and 4 with no increase in the first charge or other charges;
(b) a 10 pence increase in the first charge and an increase applied to yardages and waiting time in tariffs 1, 2, 3 and 4 with no increase in other charges.
3.9. The President of the JTDA confirmed acceptance of option (b) to the Inspector on 06 June.
3.10. The Law Draftsman was asked to prepare the necessary changes to the Order on the basis of a brief provided by the Department.
3.11. The Motor Traffic (Cabs – Fares and Charges) (Amendment No 5) (Jersey) Order 2014 is attached for the Minister to make the Order. Making the Order will implement the increase in charges described above and will come in to force on 14 July 2014.
3.12. The Department will make the necessary arrangements with the controlled taxi-cab licence holders to present their vehicles at Driver and Vehicle Standards to have their taxi-meters checked.
- Recommendation
4.1. The Minister is recommended to make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 5) (Jersey) Order 2014 and request the Department to take the necessary action to implement the Order.
- Reason(s) for Decision
5.1. To make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 5) (Jersey) Order 2014, to allow an increase in controlled taxi-cab fares.
- Action Required
(a) To notify the Greffier of the States and the Law Draftsman that the Order has been made, forward the signed and sealed Order to the Publications Editor, States Greffe, and request the Greffier of the States to arrange for its notification to the States.
(b) The Department to produce revised tariff cards for display in controlled taxi-cabs and advise controlled 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.
Written by: | Head of Driver and Vehicle Standards |
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Approved by: | Director of Transport |
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Attachments | Motor Traffic (Cabs – Fares and Charges) (Amendment No 5) (Jersey) Order 2014 |
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