Agenda item

To submit the report of the Head of Regulatory Department to receive the support of the committee regarding the taxi licensing fees from 1 October  2015

Submitted - the report of the Head of the Regulatory Department, recommending that the Committee supported the intention to increase the Taxi Licensing Fees to the recommended levels, in order to achieve full cost recovery, prior to their approval by the Head of the Regulatory Department for implementation from 1 October 2015.

The Council was required to review its fees in respect of taxi licensing (i.e. hackney carriage licences, private hire vehicle licences, private hire operator licence and driver licences) on a regular basis. Sections 53 and 70 of the Local Government (Miscellaneous Provisions) Act 1976 provided that fees could be charged at a level sufficient to recover reasonable costs. On 24 June 2013, this Licensing Committee decided:

-          To review the fees annually

-          That taxi licensing fees must be increased in order to achieve full cost recovery.   

This year, the Treasurer’s Department had calculated that the amount which the Council was permitted to recover the cost of providing the taxi licensing function in 2015/16 is £141,626. 

In 2014/15, the actual income from taxi licensing had been £127,848. There was therefore a projected income shortfall of £13,778 for 2015/16. It was therefore suggested, in order to achieve full cost recovery and to ensure that the Unit was self-sufficient, that this year’s fees should be increased by 10.78%.

It was reported that the proposed fees had been consulted upon internally with the Head of Finance who supported increasing the fees to achieve full cost recovery.  A public notice had been placed in the local press on 20 August 2015 and a copy made available for inspection in Siop Gwynedd Caernarfon, Pwllheli and Dolgellau in accordance with the statutory requirements. The consultation end date was 17 September 2015. In addition to the statutory requirements a copy of the public notice had been made available on the Council’s website and the taxi trade had been informed of the consultation by letter on 14 August 205. A total of 505 letters had been sent. The trade had been reminded in this letter that there would be an opportunity to submit formal representations during the consultation period. As at 14/09/15 the Licensing Unit had received one letter objecting to the new fees.     

          During the discussion, the following observations were made:

-          Would the cost deficit be a recurring pattern?

-          Were the numbers of drivers decreasing due to the increasing costs?

-          What was the comparison with nearby counties

-          Both operators and drivers needed to recover costs, therefore fairness must be ensured

-          Historically, the Council had not regularly increased its fees, and therefore since 2013 the increase appeared to be high. However, the percentages had been increased at acceptable rates.

-          505 letters had been sent – one objector had responded to the review – which illustrated that the companies accepted the increase.

In response to the above observations, the Head of the Regulatory Department noted that the intention was for the fee to reach the costs of providing the service, in the hope that there would ultimately be no deficit. If income exceeded the costs, the profit would have to be considered against the following year’s fees. The fees would be reviewed annually – it was difficult to anticipate the fees, but it was required to operate in accordance with the act.

The Licensing Manager noted that there had been no substantial change in the number of drivers / operators, but Members were reminded that the length of the licence period would change in October 2015 due to the requirements of the Deregulation Act 2015. The length of a licence would be 3 and 5 years, which would again have an impact on the income. It was also noted that information about the fees in neighbouring counties could be provided by the next meeting. Additionally, it was noted that every Council had to review its fees by 1.10.2015.

          It was proposed and seconded to support the intention.

RESOLVED to support the intention to increase the Taxi Licensing Fees to the suggested levels in order to achieve full cost recovery, prior to their approval by the Head of the Regulatory Department for implementation from 1 October 2015.