4. 3. Topical Questions – in the Senedd at 2:22 pm on 27 September 2017.
In light of Transport for London’s decision to revoke Uber’s private hire operator licence, will the Cabinet Secretary outline the Welsh Government’s position on the firm’s presence in Wales? (TAQ0046)
Local authorities are responsible for licensing taxis and private hire vehicles in their local areas, and as part of the public transport system, the safety of passengers must be paramount. It would not be appropriate to comment on this case, but we will be tracking developments in readiness for the transfer of responsibility for licensing, which is expected in early 2018.
Thank you, Cabinet Secretary, for that answer. I appreciate licensing is a local authority issue, but obviously you have Cabinet responsibility for transport and it is important that there is a choice—a choice for consumers to actually engage with—whether it’s the more traditional taxi model or the Uber model that is available in some parts of Wales. So, is it your belief that that choice should continue to prevail here in Wales, or do you believe the actions taken by Transport for London and supported by the mayor, Sadiq Khan, should be replicated here in Wales, to withdraw that option of that choice for the consumer to engage with?
Well, we still do not know precisely what led Transport for London to reach the decision that it reached, so it wouldn’t be necessarily the proper thing to do to actually reach a decision in the way that the Member has asked. However, I have recently consulted on reforming the law in relation to the licensing of taxis and private hire vehicles, which will include the introduction of national standards. I am more than happy to recirculate the consultation that took place, together with the Government proposals that will tighten passenger security and passenger safety.
Uber’s business model is attracting quite a lot of attention: a 25 per cent return on somebody else’s capital—i.e. the drivers. I just wondered if you’d had any discussions with local authorities on how they can ensure that a company like this, which is not based in this country, can nevertheless make the appropriate contribution to the upkeep of the roads and the regulation of cars for hire, because other taxi companies are having to pay an appropriate sum, and it’s unfair competition if they are coming in and not facing this level of regulation.
The Member is absolutely right, and this point has been raised on numerous occasions during the course of putting together the consultation document that resulted in a good number of taxi firms agreeing that there should be a fair contribution. As tempting as it is to wade into the current disagreements, especially given the tribunal result last year, I haven’t seen the judgment—and this matter is between the licensing authority and the private hire company—but I can say again that our proposals for taxi reform will address some of the loopholes that Members in this Chamber have raised today.
Thank you, Cabinet Secretary.