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A decision made 14 June 2013:

Decision Reference: MD-T-2013-0057

Decision Summary Title :

Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013

Date of Decision Summary:

04 June 2013

Decision Summary Author:

Head of DVS &

Inspector of Motor Traffic

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) Jersey) Order 2013

Date of Written Report:

04 June 2013

Written Report Author:

Head of DVS &

Inspector of Motor Traffic

Written Report :

Public or Exempt?

Public

Subject: Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013

Decision(s): The Minister made the Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013 which will increase controlled taxi-cab fares with effect from 24 June 2013.

Reason(s) for Decision: To make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013, to allow an increase in controlled taxi-cab fares so that a reasonable service can continue.

Resource Implications: Advertising Order, printing tariff cards and inspecting meters all covered in DVS revenue budget.

Action required: 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.

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.

Signature:

Position:

Date Signed:

Date of Decision (If different from Date Signed):

Motor Traffic (Cabs - Fares and Charges) (Amendment No. 4) (Jersey) Order 2013

TRANSPORT AND TECHNICAL SERVICES

MOTOR TRAFFIC (CABS – FARES AND CHARGES) (AMENDMENT No 4)

(JERSEY) ORDER 2013

CONTROLLED TAXI-CAB FARE INCREASE 2013

Purpose of the Report

1.1. To make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013, 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 2012 amounted to 2.5 percent, the States inflation target and half the 5 percent that was due under RPI(Taxi). The increase came into effect on 30 July 2012.

2.3. On 20 May, representatives from the Jersey Taxi Drivers Association (JTDA) met the Minister to propose and discuss an increase in controlled taxi-cab tariffs for 2013-14.

Discussion

3.1. The Head Statistician had provided the latest inflation figures and confirmed that RPI(Taxi) was currently running at 0.4 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 2012 and March 2013:

(a) RPI(Taxi) increased by 0.4 percent;

(b) RPI, the retail price index increased by 1.4 percent;

(d) RPI(Y) the retail price index excluding mortgage costs and indirect taxes increased by 1.3 percent.

3.4. In the discussions, the JTDA representatives acknowledged the continuing difficult economic climate and that any wage rises are contentious. However, takings continued to drop and as taxi drivers have no basic wage, this meant for most drivers a reduction in earnings in excess of £3,000 last year.

3.5. In recognition for improving services and not taking the full amount of increase due last year, the JTDA initially proposed an increase of 7-8 percent. In addition, the JTDA requested that the number of taxi licence plates should be reduced.

3.6. The Minister advised the JTDA that most Islanders would be experiencing a reduction in take home earnings due to taxes and pay freezes. Acknowledging the commitment shown to improving services, the Minister reminded the representatives that he had agreed to freeze the number of permanent controlled licences while the taxi review took place. The Minister stated he would be minded to maintain this approach but considered that RPI(Taxi) was the appropriate means of establishing any fare increase.

3.7. Further discussion, including a breakout meeting, took place, following which the JTDA representatives agreed to take the Minister’s final offer of 1.6 percent back to their members. The final offer consisted 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, proposed freezing the number of permanent controlled licences at that currently issued until the end of the year.

3.8. Following a meeting with his members, the JTDA President proposed in an e-mail to the Minister on 21 May, drivers:-

(a) accept the 2.4% that was not claimed in 2012.

(b) do not take up the 0.4% RPI(Taxi) increase on offer for 2013.

(c) seek assurance from the Minister that he holds back the plates that could have been issued for the drivers over 65 who have not completed their agreed mileage and not issue any of the same during the next 12 months.

3.9. The Minister rejected the JTDA’s proposal and re-stated his final offer which was made in the light of last year’s agreement and the current RPI of 1.4 percent.

3.10. On 22 May, the Inspector of Motor Traffic provided the JTDA with a spreadsheet showing the effect an average weighted increase of 1.6 percent would have on fares.

3.11. The Secretary of the JTDA confirmed acceptance of the final offer in an e-mail dated 23 May.

3.12. The 1.6 percent increase is to be applied to yardages and waiting time in tariffs 1, 2, 3 and 4 with no increase in the first charge or other charges, bringing an overall weighted increase of 1.6 percent.

3.13. The Law Draftsman was asked to prepare the necessary changes to the Order on the basis of a brief provided by the Department.

3.14. The Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013 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 24 June 2013.

3.15. 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 4) (Jersey) Order 2013 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 4) Jersey) Order 2013, to allow an increase in controlled taxi-cab fares.

Action Required

To notify the Publications Editor 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.

Request the Publications Editor to publish details of the Order in the Gazette.

Request the Department to produce revised tariff cards for display in controlled taxi-cabs.

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

Approved by:	Director of Transport

Attachment:	Motor Traffic (Cabs – Fares and Charges) (Amendment No 4) (Jersey) Order 2013