Taxi fares to rise after Minister strikes deal with drivers

Thursday 06 July 2023

Taxi fares at the rank will rise by around 12% at the end of the month to reflect "rising costs" for drivers after a deal was reached with the Infrastructure Minister.

It means that a taxi from the Airport to the Weighbridge, for example, carrying up to four people, will rise by approximately £2 to around £19.

The maximum that a taxi can charge is defined each year by the Infrastructure Minister using a tailored RPI for the trade – a measure of inflation which takes in relevant costs such as fuel, insurance and vehicle maintenance.

270 plate holders

It is calculated each year based on the March rate, which is published at the end of April. The headline rate then was 12.7% but the taxi rate has been set at 12.1%.

The rate was proposed by the minister, Deputy Tom Binet, at a meeting with drivers last week, with all private hire firms and representatives attending, including the Jersey Taxi Drivers’ Association.

The minister had the power to propose any rate he wished but Deputy Binet went with the established formula.

It will apply to all 270 plate holders in Jersey, a figure that has fallen by about 40 drivers since 2020.

"A quarter of his takings are now spent on fuel alone"

Although the rate is now set, the increase will not come into force until the end of the month because meters, software, tariff cards and legislation have to be updated.

Last year’s taxi RPI increase was 7.5%, when the headline inflation rate was 6%.

Pictured: The number of plate holders has fallen by about 40 drivers since 2020.

JTDA Secretary and Treasurer Mick Tostevin said: “The taxi RPI has been the agreed standard for more than 15 years – some years we might not get any increase but this year the rate clearly reflects the rising costs we are all facing.

“I was talking to a driver recently who said that a quarter of his takings are now spent on fuel alone.”

"It's not ideal, especially as it cannot be backdated"

He added: “Being based on a calculation, the rate is usually accepted by the Infrastructure Minister relatively quickly after its release but this year, Deputy Binet has taken longer, meaning that we are well into summer already. 

“It is not ideal, especially as it cannot be backdated and it now will take a few weeks to put everything in place, but we understand that Deputy Binet has a lot on his plate and he has attended several of our quarterly meetings, unlike some of his predecessors.”

Mr Tostevin explained that although the rate is a maximum increase, it would be applied to all meters as they have to be opened up, reset and then sealed. 

Drivers, however, always had the discretion to offer discounts when it came to payment, he added.

Private hire tariffs are not determined by the Minister, although firms set fares based on a percentage of their choosing above the taxi RPI rate. This percentage lift has to be displayed in the cab.

"Taxis are free to charge whatever they want beneath that"

After setting the public rank rate, Deputy Binet said: “The key point is that it is a maximum, and taxis are free to charge whatever they want beneath that.

"At the meeting last week, I talked about the importance of remaining competitive.

“I urge all drivers and firms to look closely at their business models to keep themselves competitive.”

"Hopefully we can continue to find common ground"

Asked about his relationship with drivers, he said: “It is relatively early days and I am trying to develop a constructive relationship with them.

"I would say it has got off to a good start.

“I think it is fair to say that they are straight-talking, but so am I, so hopefully we can continue to find common ground.”

Pictured: Infrastructure Minister Tom Binet said relations had "got off to a good start".

The relationship between government and the taxi trade has been frosty in the past, particularly between 2015 and 2017, when the then-Infrastructure Minister Eddie Noel introduced reforms which brought in a ‘one-tier’ system that allowed, among other things, private taxis to pick up passengers from public ranks, and rank taxis to take private bookings.

Deputy Binet signed a Ministerial Decision paving the way for the inflation-linked rise in taxi fares on Tuesday.

Although agreement has been reached on fares this year, taxi drivers continue to call on the Government and authorities to do more to police the unregulated trade of paid-for lifts obtained through social media.