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A decision made 11 June 2010 regarding: Motor Traffic (Cabs - Fares and Charges) (Amendment) (Jersey) Order 2010.

Decision Reference: MD-T-2010-0055
Decision Summary Title :	Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010		Date of Decision Summary:	08 June 2010
Decision Summary Author:	Head of DVS & Inspector of Motor Traffic		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010		Date of Written Report:	08 June 2010
Written Report Author:	Head of DVS & Inspector of Motor Traffic		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010
Decision(s): The Minister made the Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010 which will increase controlled taxi fares with effect from 28 June 2010.
Reason(s) for Decision: To allow an increase in controlled taxi-cab fares so that a reasonable service can continue.
Resource Implications: Advertising Order, printing tariff cards and inspecting meters all covered in DVS revenue budget.
Action required: To notify the Greffier of the States and the Law Draftsman that the Order has been made, and forward the signed and sealed Order to the Publications Editor, States Greffe, for notification to the States. Notice to be placed in the Jersey Gazette advising that the Order has been made. The Department to produce revised tariff cards for display in controlled taxi-cabs. The Department to advise controlled taxi-cab licence holders to present their taxi-cabs to the Department at a convenient time after the Order takes effect to have their meters checked and sealed.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Motor Traffic (Cabs - Fares and Charges) (Amendment) (Jersey) Order 2010

TRANSPORT AND TECHNICAL SERVICES

MOTOR TRAFFIC (CABS – FARES AND CHARGES) (AMENDMENT)

(JERSEY) ORDER 2010

Purpose of the Report

To consider the Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010, which will increase controlled taxi-cab tariffs.

Background

Controlled taxicab tariffs are set by the Minister, under the Motor Traffic (Jersey) Law, 1935. In recent years, increases in taxi tariffs have been based on RPI (Taxi), an index established by the States Statistics Unit which reflects more accurately, the factors affecting increased costs for taxi drivers. There was no increase in tariffs in 2009 as RPI (Taxi) was zero. The last increase in 2008 amounted to 7.5%, which included 5% RPI weighted for taxi costs (RPI (Taxi), 1% for fuel increases that had taken place since the March 2008 RPI figures were calculated and 1.5% to remove the supplement for picking up at the Airport or Harbours. The increase came into effect on 16 June 2008.

In March 2010, the Jersey Taxi Drivers Association applied for an increase in tariffs requesting an average increase in tariffs of 12%.

Discussion

Two meetings have taken place with representatives of the Taxi Drivers Association to discuss the claim.

At both meetings on 23 April and 14 May, the Minister made it plain to the JTDA that the claim would not be met.

The JTDA representatives pleaded that fuel costs and other motoring costs had continued to rise and that prices of food had soared. The fact there had been no rise in 2009 was also a serious concern.

The Minister indicated that on the basis of the weighted RPI (Taxi) provided by the Head Statistician, which covered the running costs of operators and the general cost of living and which had been used for previous discussions on fare rises, no rise was warranted in 2009. RPI (Taxi) had been used to agree fare rises of 3.1% in 2006, 4.5% in 2007 and the 7.5% in 2008. RPI (Taxi) should be the basis for any change in tariffs not just when a significant increase is indicated as warranted.

The JTDA representatives contended that there remained a downturn in trade due to fewer holidaymakers, fewer business visitors and a reduction in flights to / from the Island. This has had a significant impact on drivers’ income and drivers are finding it very hard to make a living. The JTDA also stated that controlled taxicab fares were 20 to 30 percent cheaper than restricted taxicab fares which were not controlled by the Minister. The representatives also pointed out that the taxi service receives no subsidy whereas the buses are heavily subsidised.

While the JTDA recognised that States workers had been subject to a pay freeze last year it pointed out that the States had increased charges by 2.5% in January. The Minister noted that his department had not increased charges for public service vehicles and operators in line with last year’s freeze on taxi fare increases.

The Minister observed that the industry could make its services more user friendly, including integrating it with bus services, having a uniform livery, standard dress, better communication with the public when queues form and marketing the services provided. This would generate additional business.

At the reconvened meeting on 14 May, the Head of Statistics was able to provide the latest inflation figures and confirmed that RPI (Taxi) was currently running at 6%.

The Minister confirmed that he could not support the requested 12% increase in tariffs, however, he was minded to agree to a six% increase in line with RPI (Taxi). He also intimated that he would wish to look at the rationale behind additional charges for luggage, additional passengers and waiting time. The Minister wrote to the JTDA accordingly.

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 2010 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 28 June 2010.

The Department will make the necessary arrangements with the controlled taxi-cab 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 2010 and request the Department to take the necessary action to implement the Order.

Reason(s) for Decision

To make the Motor Traffic (Cabs – Fares and Charges) (Amendment) (Jersey) Order 2010, to allow an increase in controlled taxi-cab fares.

Action Required

To notify the Greffier of the States and the Law Draftsman that the Order has been made and to forward the signed and sealed Order to the Publications Editor, States Greffe, for notification to the States.

Notice to be placed in the Jersey Gazette advising that the Order has been made.

Request the Department to produce revised tariff cards for display in controlled taxi-cabs.

Advise controlled taxi-cab licence holders to present their taxi-cabs to the Department at a convenient time after the Order takes effect to have their meters checked and sealed.

Written by:	Head of Driver and Vehicle Standards

Approved by:	Acting Director of Transport