Advertising on Taxicabs

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A decision made (03/09/2008) regarding: Advertising on Taxicabs - Trial.

Decision Reference: MD-T-2008-0079
Decision Summary Title :	Advertising on Taxicabs - Trial		Date of Decision Summary:	29 August 2008
Decision Summary Author:	Alan Muir 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 :	Advertising on Taxicabs - Trial		Date of Written Report:	28 August 2008
Written Report Author:	Alan Muir Head of DVS & Inspector of Motor Traffic		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Advertising on Taxicabs - Trial
Decision(s): The Minister approved a year’s trial of permitting advertisements on controlled and restricted taxi-cabs subject to organisations providing the Minister with details of:- The proposed advertisement; Where and how it will be displayed; On/in which licensed taxi-cabs; The contribution to be made by the applicant to the taxi marshal scheme.
Reason(s) for Decision: To permit an experiment to determine the benefits or otherwise of third party advertising on taxi-cabs.
Resource Implications: To be assessed as part of the trial.
Action required: Head of Driver and Vehicle Standards to arrange for a notice to be placed in the Evening Post inviting expressions of interest in submitting proposals for advertising on controlled and restricted taxi-cabs.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

Advertising on Taxicabs - Trial.

TRANSPORT AND TECHNICAL SERVICES

ADVERTISING ON TAXICABS - TRIAL

Purpose of the Report

To approve a trial for one year of permitting advertising, under certain circumstances, on and in controlled and restricted taxicabs.

Background

Under the Motor Traffic (Jersey) Law 1935, the Minister is responsible as far as practicable for ensuring an adequate cab service. To date, it seems to have been the view that permitting third party advertising on and in taxicabs would not improve the cab service and may even be detrimental to the service. The taxi marshal scheme appears to have been successful and improved the service for the public, however, it requires funding and advertising on taxicabs may be a means of funding this scheme and other improvements in the taxicab service.

Discussion

Taxi-cabs are public service vehicles regulated, by the Minister, under the Motor Traffic (Jersey) Law 1935. Subordinate legislation includes the:-

Motor Traffic (Taxi-Cabs – General) (Jersey) Order 2002;

Motor Traffic (Public Service Vehicles (Conditions of Fitness)) (Jersey) Order 2003;

Motor Traffic (Cabs – Fares and Charges) (Jersey) Order 2008;

The Minister grants a licence to a person to operate a taxi-cab as a controlled taxi-cab, a restricted taxi-cab or a limousine taxi-cab. Each licence has conditions attached to the licence. These conditions “shall be such, as in the Minister’s opinion, are necessary or desirable to ensure the proper operation of the vehicle and the public service to be provided by the vehicle.”

A current condition on all taxi-cab licences is “No third party commercial advertising to be displayed”.

Advertising is accepted on buses, however, there are some distinct differences between advertising on taxi-cabs and advertising on buses. The revenue from advertising on buses benefits the bus user and tax payer by directly subsidising the service. The service is not compromised and control of the advertising is straightforward as there is a single operator to deal with and the bus fleet comprises of similar vehicles.

A variety of vehicles operate as taxicabs and there are around 300 different licence holders. It is unlikely that all licence holders will wish to display advertising on their vehicles nor will there be a single advertising agency or advertiser involved. Similarly, the additional income generated would invariably benefit the licence holder with less likelihood of this additional income improving services or reducing costs to the fare paying public. There is an argument that it may detrimentally affect the service as some licence holders who benefit from additional advertising income would work fewer hours yet maintain their level of income, albeit the minimum mileage requirement would remain a condition of licence.

Unless all licence holders are involved to a similar extent in advertising, it will be difficult for the Minister to include advertising revenues in any calculations to set fare tariffs.

Different forms of advertising can be used from a leaflet dispenser or tip-up seat advert inside a vehicle to panel adverts on doors, full length side adverts and full livery on the exterior of vehicles. These different forms of advertising will generate significantly different levels of income.

The Safer St Helier Community Partnership (SSHCP) set up a taxi marshal scheme, at the Weighbridge rank, late last year. To date it has been funded by SSHCP through grants and subsidies from various public bodies (including the Community Safety Fund) but no long term funding has yet been identified. The taxi marshal scheme costs in the region of £25,000 per year to operate.

SSHCP has been discussing funding the taxi marshal scheme with representatives from the Jersey Taxi Drivers Association (JTDA), including the possibility of receiving a proportion of any advertising income that taxi-cab operators might receive, to support the taxi marshal scheme. A Statement of Intention has been agreed between SSHCP and the JTDA (copy attached).

SSHCP approached the Minister seeking his approval for advertising to be allowed on JTDA members’ vehicles so that the taxi marshal scheme could be funded. SSHCP did not have a firm proposal from any company or agency nor any expected level of income.

It is not known what the market is for taxi-cab advertising in Jersey or how many licence holders would wish to carry advertising on their vehicles. While the Minister has powers to prescribe by Order control of matters affecting the service, such as displaying advertisements on taxi-cabs, this would take time to develop and resources to implement and monitor. At present, third party advertising is prohibited by a condition applied to all taxi-cab licences.

In order to assist in determining the benefits or otherwise and the political and public opinion on taxi-cab advertising it is suggested that a year’s trial of permitting advertisements on controlled and restricted taxi-cabs is run. However, there should be some level of control and a clear benefit to the service. This could be done by inviting proposals from organisations who would indicate what they would propose to advertise, how, on/in which vehicles and what contribution would be made to SSHCP to operate the taxi marshal scheme in the coming year (and future years if advertising is permitted to continue). Provided the proposal complies with certain basic requirements and there is a commensurate contribution to the taxi marshal scheme, those licence holders nominated by the proposer could apply to have the condition on his/her licence to be amended to permit the particular form of third party advert. The Minister could delegate administration of the trial scheme to SSHCP but should retain the final approval of any proposal.

It is important to note that a condition of licence can be challenged by appeal to the Royal Court. Hopefully, however, operating a trial scheme as an experiment for a year to determine the effects on the service may satisfy the Royal Court should some other taxi-cab operation, that does not meet the requirements of the trial, challenge the current standard condition.

The wording for a proposed notice in the Evening Post inviting expressions of interest in submitting proposals for advertising on controlled and restricted taxi-cabs is attached. Similarly, an outline of what details proposals should contain and what restrictions there would be on adverts is also attached.

Recommendation

The Minister is asked to approve a year’s trial of permitting advertisements on controlled and restricted taxi-cabs subject to organisations providing the Minister with details of:-

The proposed advertisement;

Where and how it will be displayed;

On/in which licensed taxi-cabs;

The contribution to be made to the taxi marshal scheme.

Reason(s) for Decision

To permit an experiment to determine the benefits or otherwise of third party advertising on taxi-cabs.

Action Required

Head of DVS to arrange for a notice to be placed in the Evening Post inviting expressions of interest in submitting proposals for advertising on controlled and restricted taxi-cabs.

Written by:	Alan Muir, Head of Driver and Vehicle Standards

Approved by:	Caroline Anderson, Director of Transport

Endorsed by:

ASM

28 August 2008