IT has been an underlying controversy in the taxi industry for years. And last week, it resurfaced in York with a splash.

Council leaders are considering the deregulation of licences, ahead of a decision that could have massive ramifications for drivers, customers and the city in general.

At present, City of York Council is one of around a quarter of local authorities that restricts the number of hackney licences it issues. There are 158 hackney cars in the city, and a further four horse-drawn carriages.

The council has a waiting list of 144 people, and is concerned that the rationing system has led to a lucrative spin-off trade in taxi plates. Some have been changing hands for as much as £60,000 - placing a value of £9.5 million on the entire fleet.

The Government says councils that do not allow a free market must justify their stance, and the current consultation will lead to one of four options being chosen:

  • Retain the current restrictions
  • Deregulate entirely, allowing a limitless number of hackney licences to be issued
  • Grant a specific number of new licences as a one-off, to accommodate some of those on the waiting list
  • Issue a quota of new licences every few months, until the demand is satisfied.

As reported in The Press last week, many people are in favour of complete deregulation. Richard Jackson, a private hire driver, said he spent 20 years on the council's hackney waiting list, and never got a licence.

He said: "We should all be hackneys, because the public does not realise that there are two types of taxi. It creates a lot of arguments, especially in the evenings if a private hire car is waiting for a pre-booked fare, and people come up and ask why they cannot use it."

He said it was unfair that people should make vast sums of money on licences that were issued for free, saying.

"The hackney drivers would be disheartened if they deregulated, because they would lose money, but it's money they were not entitled to."

York Taxi Association, which represents hackney drivers, has opposed the proposals.

Vice-chairman Stuart Robertson said the reform of drinking laws had reduced the peak demands, and said that although the number of hackney cars had not gone up, the number of drivers had, as cars were shared at different times.

Chairman Alan Rowley said deregulation would lead to lots of taxi drivers working on weekend evenings, but few on weekdays.

Less predictably, the York Private Hire Association has also now opposed the plans. Their vice-chairman Mark Wilson said they had yet to finalise their response to the consultation.

He said: "To be honest, we cannot see any positives for deregulation at the moment. We spoke to people in Sheffield and Swansea, both of which have deregulated, and the feedback has been negative.

"It tends to be that what happens is a lot of private hire drivers will get a hackney plate and be driving around with nowhere to park."

He said they were concerned deregulation would damage customer service, and increase pollution and congestion.

The difference between hackneys and private hire vehicles is that the latter can only take pre-booked fares.

The former can pick passengers up spontaneously.

What you thought of deregulation

OUR report on the possibility of deregulation prompted a range of comments on this website:

Yorker, of York, wrote: "It has occasionally happened (nationally) that inebriated women have been offered a taxi' ride home and then been attacked. At least the current system in York would allow for bona fide cabbies to be eliminated quickly from any investigation."

Ohsotired, also of York, added: "It seems a bit unfair that people have invested in their own business by buying a plate, to have the value reduced dramatically by issuing a whole load more."

But Joe, of Skelton, said: "We need more taxis and why shouldn't more people have the employment opportunity."

And bjb added: "The issue and possession of taxi plates should have been just like the council house waiting list. Once issued, stays with the same user, and handed back for reissue to the next on the list. The sellers or renters of plates are akin to ticket touting."

Hackney driver yzfpete wrote: "It should be left as it is. Release a few more plates, and make a rule that if you own a plate you must be a driver and you can only own one plate. This will stop people exploiting the trade of buying plates to rent out for extortionate amounts."

Licences issue nothing new

THE current debates are nothing new, as a trawl through The Press archives reveals.

In January, 1975, Coun Ken Cooper proposed increasing the number of hackney plates from 100 to 125, to stop the trade in plates.

But hackney drivers said there was no need for more licences, and the motion was lost.

In 1976, York Taxi Owners' and Drivers' Association reported that the problem of people privately selling their plates had been "virtually stamped out". Now, 31 years later, plates are changing hands for £60,000.

That April, the council agreed an increase to 125 hackney plates. But drivers were outraged over a lack of consultation, and the increase was trimmed to 110, as a compromise.

In October 1984, councillors rejected calls to issue 60 more licences, saying it would hit existing drivers' income.

March, 1988, saw the council labelled "unscrupulous" for allowing drivers to transfer plates to their partners.

In 1989, the council resisted bitter opposition, and increased the number of taxis to 120.