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This Memorandum refers to the Taxis Bill as introduced in the Northern Ireland Assembly on 11 June 2007 (Bill 4/07)

TAXIS bill

EXPLANATORY AND FINANCIAL MEMORANDUM

INTRODUCTION

  1. This Explanatory and Financial Memorandum has been prepared by the Department of the Environment in order to assist the reader of the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.
  2. The Memorandum needs to be read in conjunction with the Bill. It does not, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause or schedule does not seem to require an explanation or comment, none is given.

    3. BACKGROUND AND POLICY OBJECTIVES

  3. Under the Road Traffic (Northern Ireland) Order 1981, the Department is responsible for the licensing of taxi drivers and public service vehicles. The Department determines the roadworthiness of vehicles and checks the repute of drivers and owners. There is no licensing regime for taxi operators.
  4. In November 2002 the Department launched the Review of Taxi Regulation in response to widespread dissatisfaction among the taxi industry, public representatives and consumer organisations about how taxi services were being provided within existing legislative and operational controls. One of the main areas of concern was the extent of illegal taxi activity. The objective of the Review was to make recommendations aimed at creating a more effective and equitable regulatory framework that would promote road and personal safety, improve accessibility and facilitate fair competition in the taxi industry.

    5. CONSULTATION

  5. There has been extensive consultation on the proposals contained in the draft Bill. In August 2003 the Department issued a discussion document containing initial draft proposals followed, in March 2005, by the publication of a consultation document containing its final proposals.
  6. Following that exercise a total of 335 responses were received, representing 77 organisations, taxi businesses and individual drivers. Overall, the proposals are welcomed and recognised as a means both of tackling illegal taxi activity, and of professionalising the industry in order to improve safety, service standards, and consumer protection for all taxi users.
  7. The 2005 consultation paper – which included a draft Equality Impact Assessment (EQIA), a draft partial Regulatory Impact Assessment (RIA) and a rural proofing assessment – together with a report summarising the written responses and other representations received, can be found at the Department’s road safety website www.roadsafetyni.org/index/consultations/consultations-past.htm.
  8. In August 2006 the Department consulted on a proposal for a draft Order in Council: "The Taxis (Northern Ireland) Order 2006". This consultation involved the distribution of 1,600 documents to groups in the DOE Equality scheme, relevant taxi, transportation, road safety and consumer interest groups including some 800 known taxi businesses. 17,000 licensed taxi drivers were individually notified of the consultation. In addition, the Department conducted 10 public meetings and held a further 16 meetings with political representatives, taxi associations, vehicle manufacturer/converters and other interested parties.
  9. 53 responses were received from key stakeholders including taxis associations, taxi businesses, s75 groups, district councils and political parties/representatives. The Order and the specific measures it will enable, were widely welcomed by both taxis users and taxi businesses and wholeheartedly supported by the Consumer Council and the Inclusive Mobility Transport Advisory Committee.
  10. The 2006 consultation paper – which included the draft Order, Explanatory Memorandum, Information Note and Equality Impact Assessment (EQIA) – together with the formal responses can also be found at the Department’s road safety website http://www.roadsafetyni.gov.uk/Consultations-MainDetails.htm?id=con79

    11. OPTIONS CONSIDERED

  11. Policy options were considered in both the discussion document issued to key stakeholders in 2003 and in the 2005 public consultation paper. The way forward on the package of measures to be given effect by the Bill has been determined taking into account the extensive evidence gathered by the Taxi Review, the views expressed throughout the Review in meetings with members of the trade and other stakeholders and in written responses to the public consultations, including the 2006 consultation on the draft Order in Council.

    12. OVERVIEW

  12. The Bill proposes a new legal framework for regulation of taxis and taxi services. It covers the licensing of taxi operators, drivers and vehicles, fares and taximeters, hiring of taxis at separate fares, enforcement and penalties.

COMMENTARY ON CLAUSES

A commentary on the provisions follows below. Comments are not given where the wording is self-explanatory.

Regulation of Taxi Operators

Chapter 1 introduces the new requirement for a taxi operator to apply for and obtain a taxi operator’s licence and imposes duties on licensed operators. In addition to these general requirements Chapter 2 sets out the requirements and duties relating to operating a taxi service at separate fares.

Under clause 1 a person is required to obtain an operator’s licence if he is to operate a taxi service. It will be an offence to operate without a licence. Clause 2 outlines the application process, the form of a licence and provides for an appeal. Much of the detail on requirements of the application and the conditions that may be applied to a licence will be included in regulations made under the Bill.

Clause 3 imposes a number of duties on the licensed operator and affiliated drivers. The operator must use licensed taxis driven by persons holding a taxi driver licence. He must keep certain records relating to the business including regarding affiliated drivers, bookings and complaints. Subject to prescribed exceptions, an affiliated driver must work for only one licensed operator. He must notify the operator of any booking he accepts. Contravention of any obligation, including keeping false or misleading records will be an offence. Clause 4 provides that a licensed operator may only sub-contract a booking to another licensed operator. It will be an offence to subcontract work to a non-licensed operator.

Clauses 5 to 11 provide for the hiring of taxis at separate fares. These requirements are in addition to the general requirements set out in Chapter 1. An operator will be allowed to operate a taxi service at separate fares in three ways: in compliance with a Departmental taxi-sharing scheme made by order under clause 6, by advance booking and consent of passengers under clause 7 and when the operator is so authorised under his operator’s licence in accordance with clause 8. Clause 9 requires an applicant for a licence authorising separate fares to provide certain specified information about the services the applicant is to provide. Any contravention of these provisions will be an offence.

Clause 10 sets out the factors that the Department will take into consideration when deciding whether to authorise an operator under clause 8 to operate a service at separate fares including the suitability of routes. An applicant who already holds a road service licence granted under the Transport Act (NI) 1967 or who satisfies other prescribed requirements will not be subject to the requirements of Clause 10. The Department will consider representations from other licensed operators and certain specified bodies. Clause 11 provides for an appeal against the Department’s decision.

Regulation of Taxis

Part 2 provides for the regulation of the vehicles used to provide taxi services.Under clause 12 it will be an offence for the driver and taxi operator to use a taxi for hire or reward unless the vehicle has a taxi licence. It will also be an offence for an owner of a taxi to permit it to be used without a taxi licence. Clause 13 sets out the application process including the requirement for suitable vehicles and insurance provision. It also provides for an appeal against a decision of the Department.Clause 14 imposes a number of duties on the owner of a licensed taxi including a requirement to present it for a vehicle test, to report any accident that materially affects its safety or performance and to notify the Department of the sale of the vehicle and the subsequent return of the taxi licence. Contravention of any stated duty will be an offence. Under clause 15 the Department will issue identification plates, signs (or similar) for each licensed taxi and it will be an offence not to display it on the vehicle.

Clauses16 to 18 regulate taxi fares. The Department may regulate the fixing of maximum fares and other charges related to the hiring of taxis. In doing so it must take into consideration any recommendations made by the General Consumer Council for Northern Ireland. The rates, fares and charges must be displayed in both the taxi and the operating centre. Each taxi will be fitted with an approved taximeter and a device to issue receipts. Regulations will provide for the inspection, testing and sealing of the taximeters. Contravention of regulations relating to regulation of fares, publication of fares, taximeters and failure to display fares or tamper with taximeters will be an offence.

Each taxi will be able to carry a prescribed number of passengers. Anyone exceeding the maximum number will, under clause 19, be guilty of an offence.Clause 20 allows the Department to make regulations of a general nature concerning the standards of taxis, the safety and conduct of passengers and the use of taxis.

Clause 21 amends the Road Traffic Regulation (Northern Ireland) Order 1997 to provide that the Department for Regional Development may make taxi regulation orders in respect of taxi stands. Such orders will determine the location and use of roads that may be used as taxi stands.

Regulation of Drivers of Taxis

Part 3 of the Bill contains provisions for the regulation of taxi drivers.Under clause 22 it will be an offence for a person to drive a taxi unless he has a taxi driver’s licence for that class of taxi. The owner of the vehicle and the taxi operator for whom the taxi is being driven will both be guilty of an offence in such circumstances. Clause 23 sets out the application process including the requirement for the applicant to be deemed a fit and proper person, to have undergone training and to have passed a test of competence to drive a taxi.

Under clause 24, the Department will issue badges and other evidence of identification to each person who has been granted a taxi driver’s licence. The badge must be worn and other identification must be displayed at all times unless specifically exempt. Failure to do so will be an offence.

Licences: General Provisions

Part 4 contains provisions of a general nature relating to the different forms of licence required under the Bill.

Under clause 25 the Department may require a person to provide the application in a form that it deems necessary and it also allows the Department to seek as much information as it deems necessary for dealing with an application for a licence. The provisions of the Bill apply to the renewal of a licence as it does in relation to the grant of a licence. Clause 26 provides power for the Department to suspend or revoke a licence or to curtail an operator’s licence under certain specified circumstances. Clause 27 outlines the procedure the Department will follow in taking such action.

Under clause 28, an operator may apply for his licence to be varied to record a change in operating centre or the number of taxis that he may operate. An owner or driver may also apply to have their licence varied and all have a right of appeal against any decision not to vary the licence under clause 28. The decision to suspend or vary is open to appeal. Where the Department is no longer satisfied that an operating centre meets the necessary requirements, it may suspend or vary an operator’s licence under clause 29.

Clause 30 sets out the services in respect of which the Department may prescribe fees and allows for such fees to be paid by instalments. Clause 31 requires licences, certificates of insurance and other documents to be produced for inspection. Failure to do so will be an offence.

Clause 32 imposes a duty on a licence holder to return any licence to the Department if the licence has been suspended, revoked or curtailed. An expired licence or a badge, licence plate, sign or disc may have to be returned, if requested by notice. Failure to do so will be an offence.

Clause 33 imposes a duty on the Department to keep a register containing details of each licence issued under the Bill, which will be available for inspection by the public.

Clauses 34 and 35 deal with appeals to magistrates’ courts including provisions on time-limits for appealing, notification of right of appeal and the effect of appeal on the decision being appealed.

Clause 35A enables the Department to make such further provision in respect of appeals as it considers necessary or expedient by way of regulations.

Enforcement

Part 5 makes provision for the enforcement of the Bill.

Clause 36 provides for the service of an enforcement notice on a taxi operator who is considered to have failed to comply with certain duties imposed on him by clause 3 of the Bill. The notice will state the remedial action that is necessary and failure to comply will be an offence. The clause also provides for an appeal procedure. Failure to comply with an enforcement notice will be an offence.

Powers of entry and inspection of operating centres for specified purposes are provided to police and authorised officers under clause 37. The clause also provides for the entry, under warrant, of premises where it is suspected that a person is operating a taxi service without an operator’s licence.

Clause 38 provides power for police and authorised officers to stop and examine licensed taxis and, if necessary, to ensure other arrangements are put in place for the conveyance of the passengers. It will be an offence for a driver to fail to make alternative arrangements for the conveyance of passengers. Clause 39 allows the police or authorised officers to stop other vehicles that they have reason to believe are being used to provide taxi services. Such officers may require production of information and documents relating to the use of the vehicle in certain, specified circumstances.

In clause 40 police and authorised officers are provided with power to seize and remove a vehicle that he suspects is being used without a proper licence under clause 12 of the Bill. A vehicle that fails to stop may be seized later and powers of entry to premises are provided for this purpose. Clause 41 allows the Secretary of State to make regulations in respect of vehicles and equipment that have been seized and such regulations must be in place before the powers of seizure come into operation.

An offence of soliciting (touting) for taxi services is created in clause 42, while clause 43 deals with the offence of providing false information in seeking a licence or of forging or altering a licence, plate, disc, badge etc. Any such document may be seized by a police officer or authorised officer. Obstruction of an officer will be an offence under clause 44. Failure to comply with a request of an officer or failure to assist or give information or knowingly to make a false statement will also be offences.

Miscellaneous and General

Part 6 provides for a number of general issues that apply to the operation of the Bill and for the consequent amendments and repeals.

Under clause 48, the Department may make information, held by it for the purposes of the Bill, to police constables and support staff along with other prescribed persons. The purposes for which access to the information may be given and the circumstances in which the information may be further disclosed by those persons, will be determined in regulations made under this clause.

Clause 48A enables the Department to publish information about any of the provisions of the Bill but before doing so it must take into consideration any recommendations made by the General Consumer Council for Northern Ireland.

Clause 49 provides the Department with power to pay grants to persons or bodies that it thinks appropriate in connection with the provisions of the Bill. Clause 50 provides the Department with power to make regulations on the requirement for training in connection with the provisions of the Bill.

Clause 52 disapplies the application of certain, defined, statutory provisions to taxis to enable the provisions of this Bill to take effect. It also provides that the powers to restrict access to, and regulate motor traffic on roads in the area controlled by the Belfast Harbour Commissioners or other similar harbour areas, relates to taxis. A member of the Belfast Harbour Police will have the same powers as a member of the Police Service of Northern Ireland to enforce the provisions outlined in this clause.

Clauses 53 to 58 are of a general nature including interpretation of words and phrases in the Bill and provision for the commencement of the Bill.

Schedule 1 contains a list of the offences under this Bill and the penalties for each. These are to be inserted into Schedule 1 to the Road Traffic Offenders (Northern Ireland) Order 1996.

Schedule 2 contains the minor and consequential amendments to other legislation arising from the enactment of the Bill. Schedule 3 contains a list of the provisions in other legislation that are to be repealed on the enactment of the Bill.

FINANCIAL EFFECTS OF THE BILL

  1. Enacting this enabling legislation will have no financial implications other than in relation to the enforcement and prosecution of offences. The Bill provides for the use of enforcement orders that will help to minimise those costs. Consideration will also be given to allowing more minor regulatory offences to be dealt with by way of fixed penalty.
  2. It is expected that the Department will recoup, through fees and charges all of the costs associated with introducing subordinate legislation giving effect to the licensing and testing functions contained in the Bill.

HUMAN RIGHTS ISSUES

  1. The provisions of the Bill are compatible with the Convention on Human Rights.

EQUALITY IMPACT ASSESSMENT

  1. Responses to the March 2005 policy consultation paper have informed the Department’s view that the proposed Bill will not unlawfully, unfairly or unjustifiably discriminate, directly or indirectly, against any sections of the community specified in section 75 of the Northern Ireland Act 1998. It will have a positive impact on some of the section 75 groups and there is no evidence that it will have an adverse or negative effect on any of them. The EQIA can be viewed at www.roadsafetyni.org/index/consultations.htm.

SUMMARY OF THE REGULATORY IMPACT ASSESSMENT

  1. Where measures in the Bill will involve new costs for businesses, charities or the voluntary sector it is judged that, where quantifiable, these costs are justified by the benefits that will accrue through their implementation. An updated partial RIA can also be viewed at www.roadsafetyni.org/index/consultations.htm.

LEGISLATIVE COMPETENCE

  1. At introduction, the Minister of the Department of the Environment had made the following statement under section 9 of the Northern Ireland Act 1998:"In my view the Taxis Bill would be within the legislative competence of the Northern Ireland Assembly."

SECRETARY OF STATE CONSENT

  1. A statement is required under section 10(3)(b) of the Northern Ireland Act 1998, on Secretary of State consent:

"The Secretary of State has consented under section 10(3)(b) of the Northern Ireland Act 1998 to the Assembly considering this Bill."