Cabbies furious over 25% fares hike plan

Nov 6 2008 by Gary Fanning, Hamilton Advertiser

FURIOUS cabbies this week hit the roof over controversial plans for a whopping 25 per cent hike in taxi fares.

Hamilton TOA members fear the huge increase in fares could drive customers away.

Taxi drivers are up-in-arms at the plans, proposed by South Lanarkshire Council’s Licensing Committee, to raise the cost of a two-mile journey from £4 to £5.

Gordon Frew, chairman of Hamilton TOA, said the increase is not fair on hard-pressed passengers and could put many taxi drivers’ livelihoods at risk.

“We are disgusted that the council are forcing us to put up our prices by 25 per cent,” he added.

“We are not entitled to this huge increase.

“And we want the public to know that the hike is being forced on us.

“In the last 15 years, the number of TOA journeys has fallen 40 per cent and that is without any substantial increase in fares.

“We think the 25 per cent increase will force our customers to use other modes of transport.”

Local authorities review taxi fares every 18 months.

Any increase is based on a complex formula that takes into consideration the running costs of a taxi and the rate inflation.

It is believed the council calculated the proposed increase after the taxi trade in East Kilbride claimed that the cost to run a taxi in the town was 114.9p per mile.

But Hamilton TOA taxis made their own enquiries... and found that it costs cabbies in London 78.5p per mile to run a taxi in that busy city.

Hamilton TOA estimated that it costs them about 56p per mile – less than half of the 114.9p per mile it is claimed to cost in East Kilbride.

Gordon Frew added: “We found that there was a monumental error in how the formula had been applied by the council.

“We enlisted the help from Dr James Cooper, of Napier University, who is an expert in Taxi Studies, and he also says the 25 per cent increase is wrong.

“He thinks a seven per cent increase is about right.”

Hamilton TOA carried out a vote among their members on the council’s proposals and an overwhelming 98 per cent of the 136 members were opposed to the 25 per cent price rise.

The majority of taxi drivers were either in favour of a small rise to help with the spiralling fuel costs or no rise at all.

The TOA are fighting the proposals and made their members feelings known to the council who told them that they had missed the deadline to raise any objections to the proposed increase.

The group said they were left with no alternative but to appeal against the increases to the Traffic Commissioner for Scotland.

Taxi drivers and the council both argued their case in front of the Traffic Commissioner at Hamilton District Court on Thursday, October 23.

The Traffic Commissioner is expected publish her decision within 28 days of that meeting.

Pat McMahon, secretary of Hamilton TOA, said: “The council have made an error in their calculations. It seems as if they have doubled the costs.

“We are hoping that the Traffic Commissioner will come back and find in our favour.

“Anyone with common sense knows that a 25 per cent increase is wrong.”

Mr McMahon added: “I have never known a price increase like that.”

The Taxi Studies Group (TSG) is a dedicated transport group investigating, reporting and advising on the use of taxis, taxi fares and taxi licenses.

Dr James Cooper, head of TRI Taxi Studies Group at Napier University, said: “The current calculations completed by the council indicate a particularly high and very localised increase in the cost of operating a taxi, significantly above the rate of increase in neighbouring Glasgow, a city with a lower tariff than that in South Lanarkshire.

“The higher level of increase appears to be opposed within some areas of the taxi trade, seeking to ensure appropriate but not excessive fares and ensuring a fair deal to their customers.

“Following a recent discussion between the taxi trade and the council, the Taxi Studies Group at Napier University are seeking to meet with the trade and council to revisit the review.

“The group will seek to establish, with the council, an appropriate method by which tariffs can be properly calculated, and ensure future reviews benefit both the travelling public and ensure a continued quality service in South Lanarkshire.”

A South Lanarkshire Council spokesman said this week: “The fares tariff is calculated using a formula based on the retail price index thatincludes the cost of running a vehicle."