5. Statement by the Minister for Economy, Transport and North Wales: Taxi and Private Hire Vehicle Reform

Part of the debate – in the Senedd at 4:05 pm on 24 November 2020.

Alert me about debates like this

Photo of Ken Skates Ken Skates Labour 4:05, 24 November 2020

Last week, I met with trade unions who updated me on the current challenges faced by the taxi and private hire vehicle industry due to the pandemic. We've endeavoured to provide assistance throughout this period where possible. In addition to the UK Government's financial support schemes, I've made available funding through phase 3 of our £200 million economic resilience fund, which includes a £25 million lockdown discretionary grant scheme administered by local authorities.

A number of the taxi and private higher vehicle industries have already benefited from the lockdown business fund and also the discretionary assistance fund. In addition, I can say that officials are urgently exploring options to provide high-quality PPE to assist the industry in protecting themselves and their passengers from COVID-19. We've also set up a dedicated page on our website to provide advice to the industry on ways to reduce the transmission of coronavirus and the available financial support.

Officials, Dirprwy Llywydd, are currently developing a number of pilot schemes with local authorities that will allow drivers to try zero-emission vehicles before they buy, so that they can better understand the potential financial and environmental benefits. And they're also exploring options for incentive schemes to assist those drivers interested in using these vehicles in the longer term.

Taxi and private hire vehicles are undoubtedly a vital form of public transport. They deliver a practical, direct transport solution and they provide an essential service to people living in rural communities where other forms of public transport may be insufficient or indeed absent; to the night-time economy, supporting many of our hospitality businesses; and, of course, to passengers with disabilities, as well as playing an important role in facilitating social inclusion. It is for these reasons that our Llwybr Newydd, the new Wales transport strategy, which was launched just last week, includes a supporting plan for taxis and private hire vehicles.

The current taxi and private hire vehicle legislation, though, is outdated, with the main framework dating back to 1847 and 1976. This framework has resulted in inconsistent policies, standards and licence conditions across local authorities in England and Wales. Taxi and private hire vehicle regulation, of course, is now a devolved matter under the Wales Act 2017. We currently have accountability, but until such time that we legislate, we are unable to mandate any change. Now, there are a number of problems associated with the current licensing legislation, which include safety concerns for both drivers and passengers, inconsistent licensing standards, which contribute to problems of cross-border hire, poor customer service and public confusion around vehicle types and fare structures. And the existing problems, I'm afraid, are going to continue to increase as the industry continues to evolve.

The UK Government first identified that reform was required back in 2011 when the Law Commission undertook a review of the current regime. And then, in addition, in 2018, a task and finish group reported recommendations for improving the taxi and private hire vehicle licensing regime. These reviews have created, I think it's fair to say, very high expectations with both regulators and the taxi and private hire vehicle industry that change will happen. However, apart from a few small amendments and the recent publication of the Department for Transport's statutory taxi and private hire vehicle standards, the UK Government has not actually reformed taxi legislation.

Since taxi and private hire vehicle regulation was devolved to Welsh Government, we have undertaken two major consultations. In response to the 'Improving public transport' White Paper, we recognised that there was general support for the proposals relating to national standards, to improved enforcement powers and information sharing. But, we also accepted, as a result of the consultation, that there was a strong feeling that the proposals did not go far enough to effectively address the current challenges faced by the industry and regulators.

So, in light of this, I made a commitment that the taxi and private hire vehicle proposals would be further developed and work has already begun on drafting policy proposals that build on the work undertaken in the White Paper. We focused these proposals around improving four areas: first of all, safety, secondly, equality, thirdly, environmental standards and then, fourthly, customer service. And we aim to introduce primary legislation that supports passengers as well as supporting the industry itself. New legislation is required to make taxis and private hire vehicles safe and part of an integrated transport system right across Wales and to professionalise the industry and ensure that drivers can make a decent, fair living. We seek to achieve this through developing and consulting upon new legislative proposals and will replace the confusing two-tier hackney carriage and private hire vehicle regimes with a single taxi regime.

We'll continue to work with local government to explore the merits of changes to licensing authorities where vehicles can operate nationally, except in restricted zones where there's evidence of oversupply, for example, here in Cardiff, and we'll create national licensing standards for drivers, vehicles and operators, with an emphasis on maximising public safety and professionalising the industry. In addition, enforcement powers will be increased and assisted by a national database and register.

As a starting point, ahead of legislative change, officials have undertaken work with the Welsh Local Government Association and representatives of local authorities right across Wales to identify areas of licensing policy that can be improved and made more consistent. This has resulted in agreement on a set of recommendations for taxi policy alignment. There are limitations to this work, as licensing policies vary greatly across Wales, and officials were mindful to ensure that adoption of the recommendations would not incur any significant cost to local authorities or, indeed, the industry ahead of broader legislative change. Nonetheless, these recommendations will be a stepping stone towards national licensing standards and the professionalisation of the industry, and I will keep Members updated on progress.