Taxi and Cab Fare Increases.

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A decision made (07/07/2006) regarding Amendment to the Motor Traffic (Cabs - Fares and Charges) (Jersey) Order 2006, which will increase Controlled Taxicab tariffs.

Subject:	Amendment to the Motor Traffic (Cabs – Fares and Charges)(Jersey) Order 2006, which will increase Controlled Taxicab tariffs.
Decision Reference:	MD-T-2006-0055		Exempt clause(s):
Type of Report: (oral or written)	Written		Person Giving Report (if oral):
Telephone or e-mail Meeting?			Report File ref:	I:Minister:2006:Ministerial Decisions:MD0055 Taxi Fare Increase
Written report – Title	Motor Traffic (Cabs – Fares And Charges)(Amendment)(Jersey) Order 200- Taxi Fare Increase 2006
Written report – Author (name and job title)	Alan Muir Head – Driver and Vehicle Standards
Decision(s): To make the Motor Traffic (Cabs – Fares and Charges)(Amendment)(Jersey) Order 2006 and request the Department to take the necessary action to implement the Order.
Reason(s) for decision: To amend the Motor Traffic (Cabs – Fares and Charges)(Jersey) Order 2006, to allow an increase in controlled taxicab fares.
Action required: Minister to sign, seal and date the Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2006. Request the Publications Editor to publish details of the Order in the Gazette. Request the Department to produce revised tariff cards for display in controlled taxicabs. Advise controlled taxicab licence holders to present their taxicabs to the Department at a convenient time after the Order takes effect to have their meters checked and sealed.
Signature: (Minister/ Assistant Minister)		Date of Decision: 7 July 2006

Taxi and Cab Fare Increases.

TRANSPORT AND TECHNICAL SERVICES

MOTOR TRAFFIC (CABS – FARES AND CHARGES)(AMENDMENT)( JERSEY ) ORDER 200-

TAXI FARE INCREASE 2006

Purpose of the Report

To consider an amendment to the Motor Traffic (Cabs – Fares and Charges)(Jersey) Order 2006, which will increase Controlled Taxicab tariffs.

Background

Controlled taxicab tariffs are set by the Minister, under the Motor Traffic (Jersey) Law, 1935. The last increase (6 percent) occurred in May, 2005. This increase included a one percent increase to cover a significant increase in the cost of the Certificate of Fitness examination fee for taxicabs. In February, the Jersey Taxi Drivers Association applied for an increase in tariffs which would have meant an average increase in fares to the public of 5.6 percent.

Discussion

A series of meetings has taken place with representatives of the Taxi Drivers Association to discuss the claim.

At the last meeting on 23rd June, the Minister made it plain to the JTDA that the claim would not be met and that the offer of an average of 2.9 percent on tariffs was as much as would be considered. Such an increase is below the requested increase from the JTDA but can be considered reasonable in the light of the running costs of the operators and the general cost of living.

The JTDA representatives were adamant that this figure would not be acceptable, particularly to those drivers who mainly worked during the day charging tariff 1. A compromise was discussed whereby most of the increase in tariffs would be applied to tariff 1. In addition, due to the delay in implementing the increase, it was accepted that since any increase was unlikely to take place before late July and taxi fares could not be backdated in the same way as wage increases, it was considered reasonable to make an allowance for a further 2 months of inflation.

The JTDA was provided with two options both of which amounted to an average increase of 3.1 percent on tariffs. The JTDA Secretary confirmed by e-mail on 26th June that the option of all the main increase in tariffs being applied to tariff 1 was acceptable. This provides an average increase of 3.1 percent across the weighted tariffs but means an increase in tariff 1 averaging at 5.2 percent with no increase on the other tariffs except 3.1 percent on waiting time. A copy of spreadsheet showing the agreed option is attached.

The Law Draftsman was asked to prepare the necessary changes to the Order on the basis of a brief provided by the Department.

The Motor Traffic (Cabs – Fares and Charges)(Amendment)(Jersey) Order 2006 is attached for the Minister to make the Order. Making the Order will implement the increase in charges described above and will come in to force on 24th July, 2006.

The Department will make the necessary arrangements with the Controlled Taxicab licence holders to present their vehicles at Driver and Vehicle Standards to have their taxi-meters checked and sealed.

Recommendation

The Minister is recommended to make the Motor Traffic (Cabs – Fares and Charges)(Amendment)(Jersey) Order 2006 and request the Department to take the necessary action to implement the Order.

Reason(s) for Decision

To amend the Motor Traffic (Cabs – Fares and Charges)(Jersey) Order 2006, to allow an increase in controlled taxicab fares.

Action Required

Minister to sign, seal and date the Motor Traffic (Cabs – Fares and Charges)(Amendment)(Jersey) Order 2006.

Request the Publications Editor to publish details of the Order in the Gazette.

Request the Department to produce revised tariff cards for display in controlled taxicabs.

Advise controlled taxicab licence holders to present their taxicabs to the Department at a convenient time after the Order takes effect to have their meters checked and sealed.

Written by:	Alan Muir
Approved by:	Caroline Anderson, Director of Transport

Attachments:

Copy of spreadsheet Fares Taxi Ready reckoner 2006-07 3.1 percent on tariff 1 only.

Draft Motor Traffic (Cabs – Fares and Charges)(Amendment)(Jersey) Order 2006.

ASM

30 June 2006