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A decision made 19 July 2012:

Decision Reference: MD-T-2012-0055
Decision Summary Title :	Motor Traffic (Cabs – Fares and Charges) (Amendment No 3) (Jersey) Order 2012		Date of Decision Summary:	11 July 2012
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 No 3) (Jersey) Order 2012		Date of Written Report:	11 July 2012
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 No 3) (Jersey) Order 2012
Decision(s): The Minister made the Motor Traffic (Cabs – Fares and Charges) (Amendment No 3) (Jersey) Order 2012 which will increase controlled taxi-cab fares with effect from 30 July 2012.
Reason(s) for Decision: To make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 3) (Jersey) Order 2012, 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 Publications Editor and the Law Draftsman that the Order has been made, forward the signed and sealed Order to the Publications Editor, States Greffe, and request the Greffier of the States to arrange for its notification to the States. The Department to produce revised tariff cards for display in controlled taxi-cabs and 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.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Motor Traffic (Cabs - Fares and Charges) (Amendment No. 3) (Jersey) Order 2012

TRANSPORT AND TECHNICAL SERVICES

MOTOR TRAFFIC (CABS – FARES AND CHARGES) (AMENDMENT No 3)

(JERSEY) ORDER 2012

CONTROLLED TAXI-CAB FARE INCREASE 2012

Purpose of the Report

To consider the Motor Traffic (Cabs – Fares and Charges) (Amendment No 3) (Jersey) Order 2012, which will increase controlled taxi-cab tariffs.

Background

Controlled taxi-cab tariffs are set by the Minister, under the Motor Traffic (Jersey) Law 1935. In recent years, increases in taxi-cab 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. The last increase in 2011 amounted to four percent, in line with RPI (Taxi). The increase came into effect on 25 July 2011.

At the end of May, the Jersey Taxi Drivers Association (JTDA) wrote to the Minister in respect of controlled taxi-cab tariffs for 2012-2013.

Discussion

In its submission, the JTDA representatives acknowledged that in the present economic climate any wage rises are contentious, however, the Head Statistician had provided the latest inflation figures and confirmed that RPI (Taxi) was currently running at 5 percent.

RPI (Taxi) uses the normal retail price index, which follows the changes in price of all the goods and services Islanders use, weighting more heavily those goods and services that are particularly relevant to the running costs of a taxi service, including higher mileages. The motoring elements such as servicing, insurance, tyres, etc., are weighted by a factor of three and fuel costs weighted by up to a factor of ten. Between March 2011 and March 2012, RPI (Taxi) increased by 5 percent when RPI, the retail price index increased by 4.7 percent, RPI(X), the retail price index excluding mortgage costs increased by 4.9 percent and RPI(Y) the retail price index excluding mortgage costs and indirect taxes increased by 3.5 percent, in the same period.

The JTDA initially proposed to keep fares at current levels but only on condition that no new controlled taxi-cab licences were issued. This condition was expected to cover any situation where a controlled taxi-cab licence would be issued to a person who has not held a controlled licence previously. In other words, there had to be a freeze on issuing any controlled taxi-cab licence, even those handed or taken back for whatever reason.

The Minister responded to the JTDA, reminding them of the current Taxi Review. However, he agreed to freeze, meantime, the number of permanent controlled licences at that currently issued but due to the potential impact on the taxi-cab service, he would not agree to put a hold on re-issuing licences or issuing licences on compassionate grounds.

At a meeting on 29 June 2012 between representatives of the JTDA and the Minister, a compromise was proposed of an average increase in tariffs in line with the States inflation target of 2.5 percent while, meantime, freezing the number of permanent controlled licences at that currently issued.

The JTDA representatives agreed to put the Minister’s proposal to its members. The JTDA President subsequently confirmed that the proposal was acceptable. The 2.5 percent average increase is to be applied to yardages and waiting time in tariffs 1, 2 and 3 with no increase in the first charge or other charges and no increase to tariff 4, bringing an overall weighted increase of 2.5 percent.

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 No 3) (Jersey) Order 2012 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 30 July 2012.

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.

Recommendation

The Minister is recommended to make the Motor Traffic (Cabs – Fares and Charges) (Amendment No 3) (Jersey) Order 2012 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 No 3) (Jersey) Order 2012, to allow an increase in controlled taxi-cab fares.

Action Required

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

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 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.

Written by:	Head of Driver and Vehicle Standards

Approved by:	Director of Transport