Author: wnevets

The solution to this problem arrives back at amending the Table of Fares under the ‘Extras’ section, to implement a Callout/Booking Fee structure that can be lawfully charged when a Hackney Carriage must travel excessive distance (more than 1 mile) to pick up the hirer/passenger within its district, in order to ensure a viable service which can be available to all users no matter how rural their location may be. This has already been done in the borough of Telford & Wrekin, (see their Table of Fares here) and can be justified as follows:

 

The ability of Telford & Wrekin Council to implement such a booking fee can be understood within the framework of local authority powers under the Local Government (Miscellaneous Provisions) Act 1976, specifically within the latitude given by Section 65 to set fare structures for hackney carriages. Here’s how they might have legally implemented this:

 

Key Points of the Legislation

 

1. Section 65:

• Local Authority Power to Set Fares: This section allows local authorities to fix the rates or fares for the hire of hackney carriages within their districts, and it encompasses setting maximum fares for journeys within the district.
• Structure and Extras: The fare structure can include not just the fare for the journey itself but also any additional charges (extras) that the local authority considers reasonable.

 

Legal Implementation of the Booking Fee

 

1. Extras and Fare Tables:

• The council has the authority to define what constitutes an “extra” in the fare table. This means they can include additional charges for specific conditions or circumstances, such as a booking fee for pre-booked journeys.

 

2. Consultation and Approval:

• Public Notice and Consultation: When local authorities want to set or change fares, including extras, they typically must follow a process that includes publishing the proposed fares, allowing for public consultation, and considering any objections.
• Council Decision: Following the consultation, the local authority’s decision to implement the changes must be formalized through a council meeting where the changes are approved and adopted.

 

3. Reasonableness and Justification:

• Reasonableness: The charge must be reasonable. By setting a cap on the booking fee (e.g., £36 Tariff 1, £45.60 T2 & £60 T3 – (=12 miles)) and defining the calculation method (e.g., £3.00 T1, £3.80 T2 & £5 T3 per mile from a one-mile radius of vehicle base address – charged per 1/10th mile), the council can justify that the fee is a reasonable and predictable extra.
• Justification: The council may justify the booking fee based on factors like the cost and time involved in reaching the pick-up point, particularly in a spread-out area such as Cornwall where drivers may incur significant travel time and expense to fulfil bookings.

 

Compliance with Section 67

While Section 67 of the Act generally prohibits charging more than the metered fare for journeys wholly within the district, it does allow for extras if they are part of the authorized fare structure. If the booking fee is included in the fare table adopted under Section 65, and the metered fare plus any legitimate extras do not exceed what is permitted, then it complies with the law.

 

Summary

Telford & Wrekin Council has followed the legal process to amend the fare structure under Section 65 of the Local Government (Miscellaneous Provisions) Act 1976 (see their Table of Fares here). By defining a booking fee as an extra charge in their published fare table, and ensuring it is applied reasonably and within a clear framework, they have legally included this fee in their fare system. This aligns with the council’s authority to regulate fares and extras within their district, as long as the process for setting and amending these fares complies with statutory requirements, including public consultation and formal adoption by the council. There is no reason why Cornwall Council cannot do the same.

 

 

Proposed Table of Fare Amendments to solve the problem (Restormel Zone):

 

Questions & Answers:

So why have we set our maximum Booking Fees higher than Telford & Wrekin?

 Restormel Zone is geographically a much larger and more rural area than Telford & Wrekin, with 61% less population per square mile, meaning that drivers will have to travel more extreme distances to pick up passengers than in the Telford & Wrekin area, making for an even stronger argument for implementing this charge. We need to look at the following two questions:

 

How big is the Borough of Telford & Wrekin?

The borough of Telford and Wrekin in Shropshire, England, covers an area of approximately 112 square miles (290 square kilometres). As of the most recent data, the population of the borough of Telford and Wrekin is approximately 191,000 persons. That’s 1,705 persons per square mile.

 

How big is the Restormel Zone (former Borough of Restormel)?

 The former borough of Restormel in Cornwall, England, covers an area of approximately 172 square miles (445 square kilometres) before it was abolished in 2009 and merged into the unitary authority of Cornwall. Population figures from 2011 state a population of 103,600 persons. From 2011 to 2021, the population grew by 7.1% in Cornwall, so let us estimate a current population of 113,162 (7.1% / 10 yrs. * 13 yrs. = 9.23%). So, the area of Restormel Zone is 54% larger with 40% less population than the Borough of Telford & Wrekin, resulting in Hackney Carriage drivers having to cover much larger distances to pick up the hirer on pre-booked journeys. That equates to 658 persons per square mile, which means 61% less population per square mile than the borough of Telford & Wrekin.

 

Why is the booking fee rate set to £3 per mile?

Well, we need to establish the cost of travelling to the pickup point for the driver/operator of the hackney carriage, based on fuel cost, all other expenditure, time, and of course there must always be a profit element in all business to make it a viable option. The great thing about this is that we have already established what that rate per mile is, as reflected in the charge per mile currently in the Table of Fares. So why would it be any different? Plus, in the interests of fairness, the passenger is not charged for any distance travelled that falls within a 1 mile radii of the vehicles base operating address.

 

Can this be done on the meter?

Yes it can. Certainly on Digitax meters, the ‘K2’ button can be employed to apply this extra to the total fare and programmed with the maximum charge, and by charging this extra ‘per 1/10 mile’ achieves total accuracy of the booking fee charge (the maximum charge must be a direct multiple of the mileage rate in this case 12 miles). The great benefit of this is that on a pre-booked journey, you can show the total fare due from the hirer including the booking fee and any other extras.

 

Why a 1 mile radii for excess mileage and not further?

Each mile has a significant cost to the driver/operator, and this cannot be ignored, currently estimated at 53 pence per mile (this is only immediate cost and does not include fixed overheads to the business). Before 1997, Restormel was divided into 3 zones – Newquay, St Austell and the villages in between, so under this legislation, once you left the boundary of Newquay, you were out of your district, so you could then pre-agree fares, so this problem did not exist. The whole country was laid out this way, but local authorities have continually centralised and merged areas, but the legislation has not changed to help the trade adapt.

 

Why 12 miles for the maximum booking fee?

A fair and reasonable way to decide this is to look at some common ‘excessive’ mileage pickup locations within our district of Restormel such as Roche (12.7m), St Dennis (10.1m), Nanpean (11.6m), Seaview Terrace in Summercourt (9.5m), St Columb (6.8m) or Talskiddy (9.1m). The list could go on, but a maximum of 12 miles would seem a justifiable limit for the maximum booking fee that can be charged, but of course for lesser distances the fee would always be relative to the distance travelled. Setting the maximum on this basis supports the trade in ensuring a viable service can be operated, protects the hirer by being inline with consumer protection principles, and helps to ensure services are available for all residents regardless of rural location reducing the risk of crime such as drink driving.

 

Three examples of Journeys with a Booking Fee:

 

1. Red Lion, Fore St, St Columb to Indian Queens

Pickup to Destination: 3.2 miles

Metered Fare £ 12.30

Distance to pickup (from 123 Taxis Office): 6.8 miles

Booking Fee (6.8 less first mile = 5.8 x £3) £ 17.40

Total Fare inc. Extras £ 29.70 (Maximum fare that can be charged)

Current Advanced Booking Price (123 Taxis) £28.00

 

2. Bowgie Inn to Cubert

Pickup to Destination: 2.7 miles

Metered Fare £ 10.80

Distance to pickup (from 123 Taxis Office): 5.0 miles

Booking Fee (5.0 less first mile = 4.0 x £3) £ 12.00

Total Fare inc. Extras £ 22.80 (Maximum fare that can be charged)

Current Advanced Booking Price (123 Taxis) £18.00

 

3. Quintrell Inn to Mitchell

Pickup to Destination: 4.3 miles

Metered Fare £ 15.60

Distance to pickup (from 123 Taxis Office): 2.7 miles

Booking Fee (2.7 less first mile = 1.7 x £3) £ 5.10

Total Fare inc. Extras £ 20.70 (Maximum fare that can be charged)

Current Advanced Booking Price (123 Taxis) £19.00

No one does something for nothing; do you work for nothing? And certainly no one wants to do anything at a loss as that is not business at all. To prohibit hackney carriage drivers from charging a fair price for rural journeys that involve significant travel to the pickup point (beyond 1 mile), and in such a rural county, will only lead to drivers & operators simply refusing to do the work in the first place, which will leave residents (many of which are vulnerable people) high and dry with no access to vital public transport connections which can only be provided by the taxi trade.

This problem is even more exaggerated now that most private hire vehicles in the county have converted to hackney carriage due to the council’s recent decision, with hackney carriages now making up the bulk of the licensed vehicle fleet. Does the council not have a duty of care to ensure such services are readily available to all residents? And the only way to do that is to ensure operators can run a viable service.

Additionally, and alarmingly, if Cornwall Council persist in encouraging hackney drivers to refuse work in this way and deprive people in these rural areas of such vital services, most especially at night, this will most probably result in a significant rise in cases of people choosing to drink and drive; a situation that certainly cannot be encouraged or ignored.

Read the solution here…

In consideration of section 65.66 and 67 of the local government miscellaneous provisions act 1976, can a hackney carriage pre-agree a fare with the passenger whilst travelling only within it’s district if having to travel more than 1 mile to the hirer’s pick up location without using the meter?

The Local Government (Miscellaneous Provisions) Act 1976, particularly sections 65, 66, and 67, outlines the regulations regarding fares for hackney carriages. Here’s a breakdown of how these sections impact the pre-agreement of fares:

Section 65

Section 65 grants local authorities the power to set fares for hackney carriages within their districts. These fares, when set, are the maximum fares that can be charged for journeys that start and finish within the same district.

Section 66

Section 66 allows a hackney carriage to agree upon a fare for a journey that goes beyond the district boundaries. This fare can be agreed upon in advance and does not have to adhere to the meter fare set by the local authority.

Section 67

Section 67 prohibits the driver from charging more than the metered fare for journeys within the district, even if a higher fare has been pre-agreed. This section ensures that passengers are not overcharged.

Specific Scenario

Given these provisions, if a hackney carriage is picking up a passenger within the same district and the journey is also within the district, the following points apply:

 

1. Pre-Agreed Fare vs. Meter Fare: For journeys that start and finish within the same district, section 67 applies, which mandates that the fare must not exceed the metered fare. Therefore, even if a fare is pre-agreed, the driver must use the meter, and the fare charged should not be more than what the meter shows.

 

2. Travel to Pick-Up Location: If the driver has to travel more than 1 mile to the hirer’s pick-up location within the district, the meter should start when the passenger begins their journey. The fare for this journey must adhere to the metered fare.

 

In summary, while the driver may discuss and estimate a fare with the passenger for convenience, the actual fare charged for a journey wholly within the district must be the fare shown on the meter, as per section 67 of the Local Government (Miscellaneous Provisions) Act 1976. Pre-agreement of a fare without using the meter is not permissible for journeys entirely within the district, regardless of the distance travelled to reach the pick-up location.

In that case, do we need to seek an amendment to the table of fares to facilitate this, or can we just pre-agree fares mutually with passengers anyway when conducting private hire work, without the council setting terms?

 

Seeking an Amendment to the Table of Fares

Given the council solicitor’s strict interpretation, it may be prudent to seek an amendment to the table of fares to facilitate the ability to charge pre-agreed fares. Here’s a step-by-step approach to how you might go about this:

 

1. Proposal to the Council:

• Submit a formal proposal to the council requesting an amendment to the current fare table. This proposal should clearly outline the need for pre-agreed fares, especially for circumstances involving significant travel to pick up passengers.

 

2. Justification:

• Provide detailed justification for the amendment, including:
• Operational Challenges: Explain the practical difficulties of adhering strictly to metered fares when significant travel to pick-up locations is required.
• Consumer Benefits: Highlight the benefits for passengers, such as transparency and predictability of fares.
• Industry Practices: Reference practices from other councils that allow pre-agreed fares under specific circumstances.

 

3. Draft Amendment:

• Suggest specific wording for the amendment. For example:
• “In circumstances where a hackney carriage must travel more than 1 mile from its base address to reach the pick-up location, the driver may agree on a fare with the passenger in advance, provided that this fare is mutually agreed upon and documented before the journey commences.”

 

Implementing Pre-Agreed Fares Without Amendment

If pursuing an amendment is not feasible or if there is a need to implement pre-agreed fares immediately, you may still proceed under the current framework by focusing on compliance and transparency:

 

1. Documenting Agreements:

• Ensure that any pre-agreed fare is clearly documented and agreed upon in writing before the journey begins. This can include text messages, emails, or written agreements.

2. Clear Communication:

• Clearly communicate to the passenger why a pre-agreed fare is necessary (e.g., significant distance to pick-up location). Transparency is key to avoiding disputes.

 

3. Compliance Check:

• Regularly review and ensure compliance with any specific requirements or limitations imposed by the council.

 

Legal Context and Precedents

1. Local Government (Miscellaneous Provisions) Act 1976:

• While the Act provides a framework, it ultimately allows councils to regulate fares within their areas. This means that seeking an amendment would provide clarity and legal security for both drivers and passengers.

 

2. Best Practices:

• Look at other councils that have successfully implemented pre-agreed fare policies. For example, Liverpool City Council allows pre-agreed fares for certain circumstances, emphasizing clear communication and documentation​ (Liverpool City Council)​​ (Liverpool City Council)​.

3. Advantages:

• Simplicity: It keeps the format simple, allowing it to be applied to all 6 zones regardless of the table of fare format.
• Supporting: It supports the current practise already in place with most companies using hackney carriages for private hire work, taking advantage of a long time proven working model that the consumer understands and is happy with.
• Consumer protection: It is consistent with consumer protection principles, promoting transparency and fairness, as passengers are aware of the total cost upfront.
• Viability: It enables operators to maintain a viable service, thus not forcing them to refuse service to more rurally located consumers and so reinforces strong provision of service for all, regardless of location.

 

Conclusion

To ensure legal compliance and operational clarity, seeking an amendment to the table of fares is the best course of action. This amendment would provide a clear and legally supported framework for charging pre-agreed fares. In the meantime, ensure that any pre-agreed fares are well-documented and transparently communicated to passengers to maintain trust and avoid legal issues.

 

*The above text is opinion only and should not be taken as legal advice.

Cornwall Council’s Solicitor believes it is ‘unlawful’ to do this. Here is his response:

“Section.65 does refer to a ‘table of fares’ and therefore it is specifically referring to ‘fares’. The term ‘fare’ is also used under S.67 where it effectively states that any “fare or charge” is required to be calculated from the point the hirer starts their journey. Further, S.65 does not stand alone, and the provisions of S.67 are relevant to it. S.67 clearly states that “the fare or charge shall be calculated from the point in the district at which the hirer commences his journey.” In my view, this means that it would make any provision to the contrary unlawful.”

Can we provide an effective legal rebuttal to this?

To effectively rebut the council solicitor’s interpretation, it’s essential to address the specific points made and provide a legal argument based on the relevant sections of the Local Government (Miscellaneous Provisions) Act 1976, supplemented with supporting legal principles and precedents. Here’s a structured rebuttal:

Rebuttal

Interpretation of Sections 65 and 67

1. Section 65 – Fixing of Fares for Hackney Carriages:

• This section empowers the council to set fares within its area and requires a table of fares to be displayed in the vehicle. It does not explicitly prohibit pre-agreed fares but instead sets a framework for metered fares.
• The language of Section 65 suggests that the council can prescribe maximum fares but does not preclude the possibility of pre-agreed fares for specific circumstances.

2. Section 67 – Hackney Carriages Used for Private Hire:

• This section states that the fare or charge must be calculated from the point at which the hirer commences the journey. However, it also allows for flexibility in fare agreements for private hire journeys.
• The key phrase “calculated from the point in the district at which the hirer commences his journey” primarily aims to prevent starting the meter before the passenger is picked up, rather than prohibiting pre-agreed fares altogether.

Legal Principles and Supporting Arguments

1. Pre-Agreed Fares Under Section 66:

• Section 66 allows for fares to be agreed in advance, providing a legal basis for pre-agreed fares. The council solicitor’s interpretation does not fully consider this provision.
• The intent of this section is to ensure that passengers and drivers can mutually agree on a fare for convenience, especially in cases where the journey involves additional complexities or significant travel distances to the pick-up point.

2. Reasonableness and Transparency:

• Pre-agreed fares promote transparency and fairness, ensuring that passengers are aware of the total cost upfront. This is consistent with consumer protection principles.
• Courts have often supported the reasonableness and mutual agreement between parties as long as it does not result in overcharging or unfair practices (see Hackney Carriage Owners’ Association v Liverpool City Council, 1977).

3. Practical Considerations:

• Requiring the use of the meter in all circumstances can be impractical and unfair for drivers who must travel significant distances to pick up passengers. Pre-agreed fares compensate for this and ensure the viability of the service.
• Other councils, such as Liverpool and Manchester, recognize and allow pre-agreed fares for specific scenarios, indicating a broader acceptance of this practice within the regulatory framework.

 

Conclusion

The council solicitor’s interpretation emphasizes a strict reading of Sections 65 and 67 but does not fully account for the flexibility provided by Section 66. The law allows for pre-agreed fares as long as they are mutually agreed upon and documented in advance. This approach ensures fairness and transparency, aligning with consumer protection principles and practical service considerations.

 

References

Local Government (Miscellaneous Provisions) Act 1976 – Section 65

Local Government (Miscellaneous Provisions) Act 1976 – Section 66

Local Government (Miscellaneous Provisions) Act 1976 – Section 67

Engaging further with the council to explore a balanced interpretation that considers both the regulatory framework and practical service requirements may be beneficial.

*The above content is opinion only of it’s author, and should not be taken in any way as legal advice.