Competition regulator says taxi reforms "will increase prices"

Thursday 08 October 2015

The Competition regulator and the Transport Minister have clashed over planned reforms of the taxi and cab industry - with the watchdog saying they'll lead to higher fares for passengers.

The Channel Islands Competition Regulatory Authority says it is “concerned that the reforms that TTS is seeking to introduce retains a two-tier system which is confusing for consumers, will significantly increase the cost to industry of providing services" - and they say that passengers will pay the price.

But TTS Minister Eddie Noel said that CICRA wanted complete deregulation of taxis – and that a free-for-all in the industry was simply a step too far.

A fortnight ago, his department announced plans to end the difference between rank taxis and bookable cabs over the next few years, and could go further by allowing more drivers to work and resetting maximum prices.

Under the plans, by the start of 2018 all taxis and cabs will have to be wheelchair accessible with a simpler fare system taking electronic payment, and all of them will have to share clearly identifiable branding.

At the moment, taxis operate from public ranks, and cab firms work from a phone or app dispatch system. But that difference is going to be broken down by the start of 2019, along with regular medical and customer service checks for drivers.

But CICRA say that the proposals miss the point, because what passengers really want is lower fares - and the reforms proposed will do the opposite.

They say: "Ultimately what consumers want is a service that is available when needed, is safe, reliable and value for money. It is not at all clear that these proposals will meet those needs.”

Deputy Noel responded by saying that total deregulation would be a step too far. 

“I’m surprised that CICRA say that the costs will go up because I set the tariff as Transport Minister,” he said. “They would like deregulation on both quality and quantity. Historically we have regulated on quantity, both on the rank and with private plates, but we are moving away from that to focus on quality, which includes greater transparency and better access for the disabled.

“When it comes to CICRA’s criticisms of a two-tier system, they are right to a degree but we are encouraging a one-tier system. What I cannot do is put existing drivers who can’t or don’t want to buy a disabled-access vehicle out of business.

“I want DVS checks for drivers, I want adequate training to make sure drivers know how to help disabled passengers in and out of vehicles and I want our drivers to be ambassadors for Jersey at the ports. We need to regulate the quality rather than quantity because there is slack in the current system. There are enough plates out there but they are not being used a productively as they should be. Our plan will make the industry a lot more efficient.”