Department of Transport

Highways Division

Report on the Consultation on the effects of the proposed Road Transport Act 2001

Schedule 2 Revocation Order

February 2009

INDEX

  1. Introduction
  1. Executive Summary
  1. Consultation Process
  1. Consultation Results
  1. Recommendations
  1. Appendices

  1. INTRODUCTION

To The Hon Noel Cringle, President of Tynwald and the Hon Council and Keys in Tynwald assembled

During the Tynwald sitting in May 2008, Mr Callister MLC successfully proposed an adjournment, for the debate on the Motion in respect of the Road Transport Act 2001 (Revocation of Schedule 2) Order to be postponed until the December sitting of Tynwald.

Further to that debate and the adjournment, the Department was requested by the Chief Minister to undertake further consultation on the effects of the proposed Revocation Order.

A panel was assembled to manage the consultation, undertake personal hearings and prepare a report on the consultation for Tynwald and publication.

The panel consists of:

Hon D M Anderson MHK Minister for Transport

Mr T Crookall MHK

Mr D Callister MLC

Mr B O Friel Chair Travelwatch Isle of Man

Officer assistance to the panel was provided by Department of Transport and the panel have been meeting since June 2008.

February 2009Hon D M Anderson MHK

1.1Background Information

The Islands taxi industry is regulated for under the Road Transport Act 2001. The Road Transport Licensing Committee (RTLC) is an independent tribunal body appointed by the Council of Ministers, and approved by Tynwald, the RTLC is empowered to discharge and enforce the provisions of the Act.

The Road Transport Act 2001 was intended to facilitate an Island-wide ply-for-hire taxi service, and remove the barrier to entry to the profession caused by the limitation on numbers. An interim provision of the Act (Schedule 2) was originally drafted to allow those in the trade a five-year breathing space to develop their business; in anticipation of operating under the full provisions of the new Act becoming effective. Schedule 2 was only intended to provide transitional provisions for a 5 year period;to maintain the district licensing, and impose a condition whereby the RTLC must consider unmet need before issuing any new licences. Schedule 2 was due to be revoked after 5 years; however Tynwald extended this period by a further 12 months, during which time the Department were to undertake an Unmet Needs Study; principally to aid the RTLC in its deliberations while Schedule 2 was in force. The study; completed in 2006 indicated no significant unmet need at that time. In line with previous decisions of Tynwald the Department promoted a Revocation Order to the May 2008 sitting of Tynwald to remove the provisions in Schedule 2.

1.2 Revocation Order

1.2.1 What will the Revocation Order do?

Revoke the temporary provisions contained in Schedule 2 of the Road Transport Act 2001.

1.2.2 What are the effects of the Order?

– if Schedule 2 is revoked the RTLC need only consider the requirements of the main body of the Act, i.e. that a person is of good repute and is of sufficient financial standing, this will in effect remove the cap on the number of ply for hire licences. The RTLC will not have to consider whether there exists any unmet need before they can issue a ply for hire licence.

And

- if Schedule 2 is revoked all Island licensing will become effective and a driver will be able to ply for hire anywhere in the Island.

1.2.3 What happens if the Revocation Order is not approved by Tynwald?

The transitional provisions in Schedule 2 will remain in force

1.2.4 Who will be affected by the proposal?

  • Existing taxi operators
  • Existing taxi operators wishing to expand their business
  • New applicants to the trade
  • People considering a job in the industry
  • The RTLC
  • General public

1.3 Tynwald Resolution

During the sitting in May, Mr Callister MLC successfully proposed an adjournment, for the debate to be postponed until the December sitting of Tynwald

“I propose therefore the motion be adjourned until December 2008 to allow for meaningful discussions to take place between the parties, and I move

That Item 16 be adjourned to the sitting of the Court in December 2008

to allow further consideration by all parties of the implications of limitation and to review the Road Traffic Act 2001.”

Mr D Callister - TYNWALD COURT, WEDNESDAY, 21st MAY 2008

1.4 The Consultation

Further to that debate and the adjournment, the Minister for Transport was requested by the Chief Minister to undertake further consultation on the effects of the proposed Revocation Order.

A panel was assembled to manage the consultation, undertake personal hearings and prepare a report on the consultation for Tynwald and publication.

The panel at the invitation of the Chief Minister consists of:

Hon D M Anderson MHK Minister for Transport

Mr T Crookall MHK

Mr D Callister MLC

Mr B O Friel Chair Travelwatch Isle of Man

Officer assistance to the panel was provided by Department of Transport.

1.5Glossary of terms and abbreviations

RTLCthe Road Transport Licensing Committee

“the Act”the Road Transport Act 2001

DoTthe Department of Transport

MTFthe Manx Taxi Federation

PFHPly for Hire

PHPrivate Hire

WAVWheelchair Accessible Vehicle

2 EXECUTIVE SUMMARY

2.1 Duties, Aims and Objectives

Further to paragraphs 1.3 and 1.4 above, the invited Panel discussed and agreed its duties and broad Aims and Objectives, these are:

2.1.1 Duties

  • To carry out detailed further consultation with the Islands taxi industry on not only the effect of the proposed revocation order but also any improvements that Government should consider to improve the services to the public
  • To include in the consultation process the views of any interested person or body who has a view or who may be affected by this or other proposals under the Road Transport Act 2001
  • To prepare a report on the consultation to further inform any future Tynwald debate
  • To determine whether Government should pursue the Revocation Order in its entirety or whether alternative proposals should be considered

2.1.2 Aims and Objectives

To agree on a number of recommendations which will:

  • improve the service to the travelling public
  • encourage a committed and professional industry
  • improve access to the industry
  • provide a fair and strongly regulated quality service which meets the needs and aspirations of the public and taxi operators

2.2Consultation Process

The consultation was undertaken in two main parts

2.2.1 A written questionnaire

  • The Consultation Document was mailed out on 5th August 2008
  • The closing date for written submissions was 15th September 2008
  • A summary of recipients and responses to the written consultation can be found in sections 3 and 4 of this report

2.2.2 Interviews with the Consultation Panel

  • All those that requested an interview/hearing were accommodated
  • Further interviews, at the invitation of the Panel were also undertaken
  • A detailed analysis of the verbal submissions can be found in section 4.2

2.3Consultation Results

  • Results of the written and oral consultation can be found in sections 3 and 4 following.

2.4Conclusions

The Panel wished it noted that this has not been an easy task and are grateful for the frank and extensive views and advice given to them by all contributors. They would also wish to express their gratitude to the Attorney Generals Chambers for manner and speed at which their queries were dealt with.

There were interim measures which would in the Panels view have aided significantly the smooth introduction of any approved recommendations but legislatively these have not been possible, and would caution that the interim period may be fraught with difficulties.

The RTLC continue to be between a rock and a hard place, they must promote and discharge their duties under the Act but are criticised for following the letter of the law. Further understanding of their duties and the difficulties they face would aid smoother resolution of the challenges facing the industry.

The taxi trade in the Island is by and large a committed and professional group of people, but like most industries, has minority elements within it who do not act with the integrity of others. The Panel has heard evidence of behaviour which is aggressive and confrontational and possibly criminal. The Government should do all it can to introduce measures which reduce or remove the potential for criminal behaviour and activity – removing the artificial values on licences and removing the potential to rent or trade in plates would go a long way to achieving this.

  1. There has been a significant downturn in trade since the introduction of the Act and Schedule 2
  2. There are generally enough taxis to meet demand at most times
  3. Unmet demand at peak periods will exist in all areas regardless of number of taxis
  4. Service at Ports require special consideration
  5. Illegal Trading and renting of plates exists
  6. Artificial values on taxi licences/plates exist
  7. Revoking Schedule 2 would eliminate the values on plates and remove the need to rent or trade in plates instantly
  8. Approximately 80% plus of “taxi” business on the Island is private hire work
  9. The difference between private hire and ply for hire is at best confusing and could be argued to be almost the same service
  10. Mobile phone technology and proliferation has further reduced the distinction between PFH and PH
  11. Licence fees are far too low
  12. The Act does not function properly with Schedule 2
  13. The Act was intended to delimit
  14. The Act needs reviewing
  15. Ranks need reviewing
  16. PH numbers cannot be restricted under the Act
  17. Quality controls need to be enhanced
  18. Inspection and enforcement need to be enhanced
  19. A number of licences remain dormant and are not being used
  20. There is insufficient information in the public domain for access to taxi services and the regulators (the RTLC)

2.5Recommendations

The following recommendations are the views of the entire Panel and should not be viewed in isolation. These are a raft of measures which rely on the implementation of them all to secure the validity and effectiveness of them individually.

Existing Revocation Order to be withdrawn

Review of RTA 2001 to include the following provisions and amendments

Creation of a single tier taxi service for the Isle Of Man

  1. Remove the distinction between PFH and general PH cars and regulate all operators to the same quality and enforcement levels
  2. All “taxis” limited by a need/demand decision point
  3. Maintain PH “special use” vehicles(mini-buses, limousines etc) and strengthen the controls on their use

Introduce AllIsland PFH Service

  1. Revoke section 3 of Schedule 2
  2. Investigate measures to safeguardand improve services at Ports

Introduce financial commitment and quality regulations for new licences

  1. Introduce requirement for all new licences to be issued with wheelchair accessible vehicles less than 2 years old
  2. All taxis over ten years old will not be licensed for further use as a taxi and must be replaced with a vehicle as under item 1 above
  3. All taxis over five years old must be tested twice a year
  4. Introduce £10,000 surety bond
  5. to dissuade frivolous applications
  6. with regulations governing forfeiture and return
  7. Interest on bond to be retained by RTLC for improved enforcement and inspection measures
  8. Gradual inclusion of all operators into “bond” scheme – so that all operators are treated equally
  9. Introduce a bond requirement from existing licence holders at licence renewal to dissuade operators from retaining plates that are not being used
  10. Additional inspection and enforcement
  11. Increase licence fee to £150 per annum (to include meeting the costs of any surveys or unmet need controls)

Value on “plates”

  1. Investigate measures to phase out the unofficial value on plates

Renting and trading in plates

  1. Introduce further measures to prevent renting and trading in plates
  2. Improve definition of renting and consider the introduction of further punitive measures

3. CONSULTATION PROCESS

The consultation panel sat for the first time on 22nd July 2008. At this meeting Panel members were advised on the need to consult in accordance with the Code ofPractice on Consultation recently issued by the Isle of Man Government Council of Ministers. The Panel further agreed that the Consultation Questionnaire should contain yes/no questions with the further opportunity for comment after each question.

The detailed consultation document (at appendix 6.1) was agreed by the entire Panel at its meeting on the 1st of August 2008.

A press release (at appendix 6.2) was delivered to the Islands media outlets on the 31st July to give notice of the consultation exercise.

A public notice (at appendix 6.3) was placed on the Department of Transports and Isle of Man Government website home pages on the 5th of August 2008.

The same public notice (appendix 6.3) was placed in the Isle of Man Examiner, Courier and Independent in the publications in the week commencing the 7th of August 2008.

A further press release (at appendix 6.4) was issued on the 9th of September 2008 to remind people of the approaching closing date for submissions.

The Consultation Document (6.1) was mailed out on 5th August 2008 to the following people and organisations:

  • Registered PPV Drivers (772)
  • Taxi Operators (186)
  • Pending Drivers(19)
  • Pending Operators (63)
  • Manx Taxi Federation
  • Castletown and Southern Taxi Association
  • Members of Tynwald (35)
  • Chief Officers of Government Departments and statutory Boards
  • Local Authorities
  • Douglas Development Partnership
  • RTLC
  • Groups representing members of society with a disability(28)
  • Attorney General
  • IOM Law Society
  • Chamber of Commerce
  • Licensed Victuallers Association
  • Police
  • Manx Entertainment and Nightclub Association
  • IOM Steam Packet Company
  • Airlines serving the Island

Please note that there are some Taxi Operators / Drivers who appear in both categories and who may also appear in the pending operators list.

4. CONSULTATION RESULTS

4.1 WRITTEN CONSULTATION

The written element of the consultation elicited the following responses:

  • Registered PPV Drivers (772) 68 replies
  • Taxi Operators (186) 76 replies
  • Pending Drivers(19) 1 reply
  • Pending Operators (63) 10(8 of which included in other categories)
  • Manx Taxi Federation – did not respond
  • Castletown and Southern Taxi Association - replied
  • Members of Tynwald (35) 6 replies
  • Chief Officers of Government Departments and statutory Boards (16) 4 replies
  • Local Authorities (24) 8 replies
  • Douglas Development Partnership – did not respond
  • RTLC - replied
  • Groups representing members of society with a disability(28) 2 replies
  • Attorney General – did not respond
  • IOM Law Society – did not respond
  • Chamber of Commerce – did not respond
  • Licensed Victuallers Association – did not respond
  • Police – did not respond
  • Manx Entertainment and Nightclub Association – did not respond
  • IOM Steam Packet Company – did not respond
  • Airlines serving the Island (7) – no replies

A further 18 replies were received from members of the public and other

interested parties.

The consultation asked the following questions and returned the following

summary of responses and comments. The overwhelming response from the

consultation was:

  • Government should stand by the results of the Unmet Needs Study
  • “Unmet Need” should be incorporated into the Act
  • Rural districts will have a poorer service if the legislative proposals are approved
  • Drivers and operators income levels will fall and force some out of business

QUESTIONS AND RESPONSES

  1. Do you agree that an “AllIsland Ply for Hire Taxi Service” would benefit the Islands Taxi industry?

Where an answer was given the following results were obtained:

All responses: YES 30.8%NO 69.2%

Responses from existing taxi drivers/operators:YES 25.4%NO 74.6%

Responses excluding existing taxi drivers/operators:YES 54.8%NO 45.2%

COMMENTS

Of the 52 responses who agreed that an “All Island Ply for Hire Taxi Service” would benefit the Islands Taxi industry 34 were taxi operators or drivers

Existing system works well, keep as is.

Rural services will suffer as a result of All Island Licensing

All taxis will be in Douglas

Income levels will fall for Eastern District drivers/operators

All Island Licensing already exists

All Island Licensing will be good for the trade and the travelling public

  1. Do you agree that an “AllIsland Ply for Hire Taxi Service” would benefit the Islands travelling public?

Where an answer was given the following results were obtained:

All responses: YES 31.2%NO 68.8%

Responses from existing taxi drivers/operators:YES 23.9%NO 76.1%

Responses excluding existing taxi drivers/operators:YES 64.5%NO35.5%

COMMENTS

All Island Licensing will be good for the trade and the travelling public

Of the 53 responses who agreed that an “All Island Ply for Hire Taxi Service” would benefit the Islands travelling public 33 were taxi operators or drivers

  1. Do you agree that Tynwald should approve the revocation of Section 3, and invoke Section 4 of Schedule 2 and thereby create an “AllIsland Ply for Hire Taxi Service” while maintaining a limitation on numbers?

Where an answer was given the following results were obtained:

All responses: YES 27%NO 73%

Responses from existing taxi drivers/operators:YES 23.7%NO 76.3%

Responses excluding existing taxi drivers/operators:YES 41.4%NO 58.6%

  1. Do you agree that the existing limitation on “Ply for Hire” Taxi Licenses is an unfair restriction on access to the trade?

Where an answer was given the following results were obtained:

All responses: YES 20.8%NO 79.2%

Responses from existing taxi drivers/operators:YES 11%NO 89%

Responses excluding existing taxi drivers/operators:YES 64.5%NO35.5%

COMMENTS

Restriction on licenses ensures a quality fleet and committed drivers

It is a “sale” of businesses not plates

Unfettered access will lead to low quality, poorly maintained vehicles

Delimitation will lead the industry to become a part time profession

Sale and rental of licenses needs eliminated or controlled better

Retain Unmet Need criteria on the issue of additional licenses

Government should stand by the results of the Unmet Needs Study

  1. Do you agree that the existing limitation on “Ply for Hire Taxi Licenses” benefits the Islands Taxi industry?

Where an answer was given the following results were obtained: