Request for Taxi Fare Increase 2009.

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A decision made (23/06/2009) regarding: Request for Taxi Fare Increase 2009.

Decision Reference: MD-T-2009-0063
Decision Summary Title :	Request for Taxi Fare Increase 2009		Date of Decision Summary:	11 June 2009
Decision Summary Author:	Head of DVS & Inspector of Motor Traffic		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Request for Taxi Fare Increase 2009		Date of Written Report:	11 June 2009
Written Report Author:	Head of DVS & Inspector of Motor Traffic		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Request for Taxi Fare Increase 2009
Decision(s): The Minister confirmed there is to be no increase in controlled taxi-cab tariffs at this time.
Reason(s) for Decision: In the current economic climate an increase is not warranted.
Resource Implications: None
Action required: No action is required in respect of a fare increase but the Minister and Head of Driver and Vehicle Standards will investigate the following matters raised by the taxi representatives: The annual minimum mileage expected; The control of restricted taxi-cab fares; and Future increases in fees applied by the States.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Request for Taxi Fare Increase 2009.

TRANSPORT AND TECHNICAL SERVICES

REQUEST FOR TAXI FARE INCREASE 2009

Purpose of the Report

To consider a request from the Jersey Taxi Drivers Association for an increase in Controlled Taxicab tariffs.

Background

Controlled taxicab tariffs are set by the Minister under the Motor Traffic (Jersey) Law, 1935. The last increase amounted to 7.5 percent, which included 5 percent RPI weighted for taxi costs, 1 percent for fuel increases that had taken place since the March 2008 RPI figures were calculated and 1.5 percent to remove the supplement for picking up at the Airport or Harbours. The increase came into effect on 16 June 2008.

In May, the Jersey Taxi Drivers Association applied for an increase in tariffs requesting an average increase in tariffs of 4 percent.

Discussion

Two meetings were held on 14 and 22 May with representatives of the Taxi Drivers Association to discuss the claim which was substantiated by continuing increases in fuel and other motoring costs as well as food prices.

The Minister indicated that, on the basis of the weighted RPI (Taxi) provided by the Head Statistician which covered the running costs of operators and the general cost of living and which had been used for previous discussions on fare rises, very little if any rise was warranted. This figure has been used to agree fare rises of 3.1 percent in 2006, 4.5 percent in 2007 and 7.5 percent in 2008. The 4 percent claim for 2009 could not be justified.

The JTDA representatives contended that there had been a significant downturn in trade due to fewer holidaymakers, fewer business visitors and a reduction in flights to and from the Island. The Airport had reported that arrivals were 11 percent down on last year.

The JTDA also stated that controlled taxicab fares were 20 percent cheaper than restricted taxicab fares which were not controlled by the Minister.

The JTDA recognised that the States had intimated that States workers would be subject to a pay freeze this year but also pointed out that the States had increased charges by 2.5 percent in January.

The Minister could not reconcile the requested increase with the current economic climate, suggesting that keeping rates as they are or even offering special fares would generate more business. Neither could using the RPI (Taxi) as the basis for the increase be restricted only to when it favoured increases in tariffs. The likelihood is that over the coming months, the RPI (Taxi) will be negative.

Concern was expressed by the JTDA about a number of factors that affected members’ income, including:-

Restricted taxicabs being allowed to stand (illegally) outside places such as Chambers in Mulcaster Street and the Pomme d’Or;

Taxicab companies closing their switchboards in the late evening so that the restricted taxicabs could work the streets rather than attend bookings.

There was also concern that the department had been issuing letters to members warning them that if the condition of licence in respect of minimum mileage wasn’t met, their licence might be withheld. The JTDA believes that licence holders should be allowed to continue to work as long as they are fit and able but should be able to reduce the amount of time worked as they get older.

At the reconvened meeting on 22 May, the Minister re-iterated that he could not support any increase in tariffs in the current climate. However, he undertook to investigate the matters raised by the industry representatives of minimum mileage expected, control of restricted taxi-cab fares and increases in fees applied by the States.

Recommendation

The Minister is recommended to confirm that there is to be no increase in controlled taxi-cab tariffs at this time.

Reason(s) for Decision

In the current economic climate an increase is not warranted.

Action Required

No action is required in respect of a fare increase but the Minister and Head of Driver and Vehicle Standards will investigate the following matters raised by the taxi representatives:

The annual minimum mileage expected;
The control of restricted taxi-cab fares; and
Future increases in fees applied by the States.

Written by:	Head of Driver and Vehicle Standards

Approved by:	Director of Transport