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Market Study on Taxis
Introduction
The Office of Fair Trading (OFT)
published a report into the market for taxis and private hire
vehicles on 11 November 2003. The report makes the following
recommendations:
• that the legislative
provisions allowing licensing authorities to impose quantity
controls should be repealed. In the meantime, OFT recommends that
LAs with quantity controls remove them;
• that the Department for
Transport promote and disseminate local best practice in applying
quality and safety regulations involving the Scottish Executive
and the Department of the Environment (NI) in this process. The
purpose of this would be to assist LAs to apply standard quality
and safety attributes in a proportionate manner. Department for
Transport should publish best practice guidance on quality
controls;
• that throughout the UK LAs
should only set fare tariffs which represent the maximum that can
be charged, and not set fixed or minimum fares. It should be made
clear to consumers that they are able to negotiate on fares, for
example, when ordering a taxi over the telephone. OFT also
recommends that, where possible, LAs actively facilitate more
price competition in the market, particularly in the rank and hail
sectors of the market.
The relevant regulations are
devolved in Scotland and Northern Ireland, but reserved in relation
to Wales. A joint press notice by the Secretaries of State for Trade
and Industry and Transport and Scottish Executive Ministers
announced that Government would now consider the report and its
contents and recommendations and will publish a response.
Background
The Office of Fair Trading (OFT)
released on Tuesday 11 November 2003 to the Secretaries of State for
Trade and Industry and Transport and Scottish Executive Ministers a
report into the UK market for taxis and private hire vehicles and
whether consumers are best served by the current regulatory regime
under which they are licensed.
The Department of Trade and
Industry (DTI) has a general interest in OFT's market studies and
co-ordinates Government responses where those studies make
regulatory recommendations.
Responsibility for legislation on
taxis and private hire vehicles in England and Wales falls to the
Department for Transport. In Scotland it is devolved to Scottish
ministers and falls within the responsibility of the Minister for
Finances & Public Services. Responsibility for taxi regulation
in Northern Ireland is also devolved.
DTI will be working closely with
the relevant Government departments to make sure that the
government's response to the report takes account not only of
competition and consumer interests but wider public policy
objectives.
Stakeholders in England, N.
Ireland, Scotland and Wales who wish to comment on the OFT's
findings, should contact the appropriate department. Contact details
may be found in the DTI press notice on this issue.
Market Study on Taxis (link to OFT
site)
Joint
Press Notice
Contacts
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