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A decision made 8 July 2011 regarding:

Decision Reference: MD-T-2011-0075
Decision Summary Title :	Motor Traffic (Cabs – Fares and Charges) (Amendment No 2) (Jersey) Order 2011~~’’’~~		Date of Decision Summary:	05 July 2011
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 2) (Jersey) Order 2011		Date of Written Report:	05 July 2011
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 2) (Jersey) Order 2011
Decision(s): The Minister made the Motor Traffic (Cabs – Fares and Charges) (Amendment No 2) (Jersey) Order 2011 which will increase controlled taxi-cab fares with effect from 25 July 2011.
Reason(s) for Decision: To allow an increase in controlled taxi-cab fares so that a reasonable service can continue.
Resource Implications: The cost of advertising the Order in the Gazette, printing tariff cards and inspecting meters are all covered in the 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 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. 2) (Jersey) Order 2011

TRANSPORT AND TECHNICAL SERVICES

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

2) (JERSEY) ORDER 2011

CONTROLLED TAXI-CAB FARE INCREASE 2011

Purpose of the Report

To consider the Motor Traffic (Cabs – Fares and Charges) (Amendment No 2) (Jersey) Order 2011, 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 2010 amounted to six percent, in line with RPI (Taxi). The increase came into effect on 28 June 2010.

In May, the Jersey Taxi Drivers Association (JTDA) applied for an increase in tariffs requesting an average increase in tariffs of five percent.

Discussion

In its submission, the JTDA representatives acknowledged that in the present economic climate any wage rises are contentious, however, fuel costs in particular had continued to rise, over 26 percent since January and since fuel was a major expense in running a taxicab service, a five percent increase in tariffs was warranted. The recent increase in GST from three percent to five percent would also have a significant impact on licence holders‘ running costs.

At a meeting on 24 June between representatives of the JTDA and States departmental representatives, the Head Statistician was able to provide the latest inflation figures and confirmed that RPI (Taxi) was currently running at four 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 2010 and March 2011, RPI (Taxi) increased by four percent when RPI, the retail price index increased by 3.1 percent, RPI(X), the retail price index excluding mortgage costs increased by 2.9 percent and RPI(Y) the retail price index excluding mortgage costs and indirect taxes increased by 3.1 percent, in the same period. As the intention is to continue using RPI (Taxi) as the basis for any changes in tariffs, the impact on costs from the increase in GST will filter through in RPI (Taxi) in the coming year.

The Minister had confirmed that he could not support the requested five percent increase in tariffs, however, he was minded to agree to a four percent increase in line with RPI (Taxi).

The JTDA representatives accepted the Minister’s offer. The four percent increase will be applied to tariffs 1, 2 and 3, with no increase to tariff 4, bringing an overall weighted increase of four percent.

The Minister confirmed the decision in a letter to the Secretary of the JTDA, dated 29 June. The Minister also stated that he wished to discuss simplifying the tariffs and agreeing that, at least for a few years, RPI (Taxi) is accepted as a reasonable means of adjusting controlled taxicab tariffs so that any adjustments can be applied on 01 June annually without the need for protracted discussions.

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 2) (Jersey) Order 2011 is attached for the Minister to make the Order. Making the Order will implement the increase in charges described above and will come into force on 25 July 2011.

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 2) (Jersey) Order 2011 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 2) (Jersey) Order 2011, 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 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 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.

Written by:	Head of Driver and Vehicle Standards

Approved by:	Director of Transport