A £9.5 MILLION taxi battle is raging in York, over the possible deregulation of the industry.

Licences have become so sought after that they are now changing hands for £60,000 each.

But City of York Council is under pressure from the Government to remove restrictions on the number available - meaning hundreds more taxis could hit the streets, and existing drivers could lose a fortune.

Stuart Robertson, vice-chairman of York Taxi Association, today warned deregulation would be calamitous.

He said: "Liverpool deregulated, and their fleet went from 450 to more than 1,200. The city almost ground to a halt. It was a disaster. In a city like York, we have already got more than our fair share of congestion and pollution problems."

York is among a minority of councils which caps the number of licences. There are 158 licensed cars, and four horse-drawn carriages. The council has a waiting list of 144 people for hackney licences.

The Government is opposed to restrictions, which have sparked a spin-off trade in taxi plates. The council currently charges £90 for a new licence, but a council spokesperson said: "It appears that money that should be invested in the trade is going out of it. The current value of a licence is £60,000, which puts a commercial value on the entire fleet of more than £9 million."

Rented plates are believed to be fetching £250 a week, as people increasingly see taxis as a business opportunity. Several dozen licence holders do not even drive, and nearly 20 own more than one plate.

Private hire driver Richard Jackson said: "Originally all the hackney plates were given out free, but over the years they have become worth money. The hackney drivers would be disheartened if they deregulated, because they would lose money, but it's money they were not entitled to.

"It should be deregulated and we should all be the same."

But Mr Robertson said: "Of course there is a waiting list for something that is free of charge.

"That is not a logical reason to issue more licences."

He said the new drinking laws had removed late-night peaks in demand for taxis, and said deregulation would mean more private hire cars becoming hackneys and cruising the streets.

Council leader Steve Galloway said the council wanted to hear the public's views.

He said: "It's entirely up to residents and the trade to respond, and we have not made any decisions yet."

He said deregulation would help ensure higher standards in taxis, but added: "I can understand that those in the taxi trade who bought plates for large sums of money could be anxious about any change, and it's for them to articulate why regulation continues to be in the best interests of customers as well as themselves."

A detailed report will be presented to councillors for decision later this year.


Two types of taxi

THERE are two types of taxi: hackney cars and private hire vehicles.

The former can pick up fares anywhere at any time. They can be hailed, pick up at ranks, or be pre-booked. Private hire vehicles can only carry passengers who have pre-booked. The number of hackney cars in York is capped at 158. There is no limit on private hire vehicles.


The pros and cons

A CITY of York Council spokesperson said the potential for more licences should mean more taxis available; fewer queues; a greater proportion of accessible vehicles; and free access to the trade for new entrants. There could also be more wheelchair friendly cabs.

The downside is that existing owners could lose the value of their investments and it could put pressure on available rank spaces

Painting it black

LAST month the council ruled that, from September, all hackney cars must be painted black, with the words City of York Hackney Carriage on both sides, and no advertising.

In addition, starting from June 2009, no vehicle will be first licensed if it is more than four years old or relicensed once it is eight years old.