[Sir Edward Leigh in the Chair] — London Black Cabs

– in Westminster Hall at 9:30 am on 15th September 2015.

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Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park 9:30 am, 15th September 2015

I beg to move,

That this House
has considered the future of black cabs in London.

It is a pleasure to serve under your chairmanship, Sir Edward. We have an hour and a half for the debate and I know that a number of people want to speak, so I will keep my remarks quite short and to the point.

Black cabs are an iconic part of London and are famous around the world. The first horse-drawn hackney coaches appeared in London during the reign of Queen Elizabeth I, and the first taxi rank was installed in the Strand just over 400 years ago. The famous knowledge was started in 1884. Today there are 25,000 black cabs in London. They remain a vital part of the capital’s transport system and play a key role in keeping London moving.

For me, black cabs are one of the things that make London stand out. Their value is not necessarily quantifiable but is huge and real, all the same. I am reassured, for example, by the fact that taxi drivers have had rigorous background checks. I like the fact that they know every nook and cranny of our capital. For many people visiting our country, our unique taxis are the first thing they see and their drivers are the first people they meet and talk to. I would think nothing, personally, of depositing any one of my children in a black cab at any time, as I would know absolutely that they would be safe. It is hard to put a number on all that, but it is worth something.

The tragedy is that black cabs’ days could soon be numbered. If trends continue, I do not think that there is any doubt that they will be extinct in a matter of years. I will briefly explain why. Transport for London’s rules enforce a two-tier system for taxis in London. London’s black cabs can ply for hire and wait at ranks. Their fares are set by TfL, as are their stringent service standards. The reason they are licensed to pick up anyone from the street is that TfL has confidence that the drivers and vehicles are safe and the price is fair. Private hire vehicles, on the other hand, have to be pre-booked, so cannot legally ply for hire. Their fares are not set by TfL and their drivers do not pass the knowledge or do advanced driver courses. PHVs have less regulation because customers book them in advance and so know what deal they are getting and what service they can expect.

That system largely worked fine until recently, but the emergence of Uber has turned it on its head. The speed of the Uber app means that its cars are effectively hailed by users, and no one can reasonably argue that they do not also ply for hire, picking up people straight from the street. The one key advantage enjoyed by black cabs has simply evaporated.

I have been told recently by people who think of themselves as free marketeers that we should not intervene—we should let progress have its way and let the market decide. But that is not an honest position to take, for the simple reason that the black cab trade in London is not a free market and never has been. Costs are piled on to the black cab by regulation. They are the most regulated taxis in the world by far. Black cab drivers’ fares are set for them by TfL and they are told which vehicles they are allowed to drive. Their vehicles must have a turning circle of 8.535 metres, a partition separating passenger from driver, an overall length of no more than 5 metres, a flat door in the passenger compartment with a minimum height limit and an approved taxi meter, and must be able to accommodate a person in a wheelchair.

Photo of Mark Field Mark Field Conservative, Cities of London and Westminster

Although I have a lot of sympathy with what my hon. Friend is saying, equally, we do have technological change, and Uber is part of that. Given that Uber is now in this highly regulated black cab market, is there not a perfectly good Conservative argument that suggests that the amount of regulations for our black cabs should be reduced to make them more competitive?

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I agree with my right hon. Friend up to a point; I will come to that shortly, but I do not think it will be enough. Deregulating the black cabs to put them on a genuinely level playing field with Uber and the like would logically mean the end of the black cab. That is the decision we need to make, but it is not one I would be happy with.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

I congratulate the hon. Gentleman on securing this debate; if the polls are right, I suspect this will be the first of many debates he and I will be having between now and May. Mark Field referred to technological innovation with regard to Uber. Rather than deregulating the black cab in a race to the bottom, should there not be innovation in regulation for private hire vehicles, and Uber in particular, to make sure that there is a level playing field?

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I agree with the right hon. Gentleman, and I will come on to the steps we need to take as a minimum to maintain the two-tier system and encourage innovation.

I will finish my point about the lack of free market for black cabs. I mentioned some of the specifications and the hoops the black cab drivers have to jump through, but that is not the only factor. We all know about the knowledge, a gruelling exercise that takes on average 50 months—between two and five years—to study. It has a failure rate of 80% and is done entirely at the driver’s expense. Black cabs also have to be wheelchair accessible. London is the only major city in the world that requires that. Given that around 1.2 million Londoners have some form of disability, that requirement is a good thing, but it adds enormously to costs.

Some have suggested that we simply remove the regulations and let the drivers fight it out, but on the whole the regulations have worked for London, and removing them effectively means losing the black cab altogether. There was a very good debate on the Floor of the House not long ago on this very issue. In what I thought was a magnificent speech, my hon. Friend Mr Walker said:

“London cannot have it both ways. It can try, but it will end in tears.”—[Hansard, 15 July 2015; Vol. 598, c. 1054.]

He is right. My starting point is that London would be poorer without black cabs and we should ensure that they have a future.

The question is how we do that. Partly it is a question of helping black cabs to compete, which means looking at unnecessary regulations: turning circle technology, for example, is probably not necessary and adds an enormous cost to the car. I know that TfL is keen to build more taxi ranks. I believe that a third of all taxi journeys in London start at the taxi rank and there is a strong case to be made for rolling ranks out all over London, not least to help deal with congestion. We should also help black cabs to switch to contactless payment systems. That is what consumers expect—83% of passengers polled recently want to be able to pay by card—but only half of London’s cabs currently take card payments. There is a case for subsidising that process. If we measure the cost of that subsidy against the costs imposed on black cabs through regulation, it would be a fairly small piece of the equation.

Photo of Gareth Johnson Gareth Johnson Conservative, Dartford

I congratulate my hon. Friend on securing this debate on an issue that I know he cares about passionately. Many black cab drivers live in my constituency of Dartford. If London were to lose its black cabs, that would be a tragedy that had an impact way beyond the capital, into the home counties, where so many black cab drivers live. They tell me that they want equality of arms, so that the right and necessary checks carried out on them are also carried on other drivers.

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I agree with my hon. Friend, and will be coming to that point.

Before I move on to the steps we need to take on regulation, we should acknowledge that black cabs are already adapting and changing fast. From 2018, all new black cabs will be zero-emission capable, helped by £8,000 grants from the Mayor. The cost to drivers will be no greater than that of buying conventional cars, but the cost of managing the cars will be much lower because they will be independent of fuel and will be able to fuel their cars electrically. That change has been very much welcomed by the drivers I have spoken to. Incidentally, the first motor cabs, which arrived in 1897, were electric, so we are seeing a neat ecological full circle—we are experiencing the circle of life right here in London with our black cabs. Many drivers are also using new booking apps, some of which are very innovative. For example, some help passengers to share journeys; others enable serious discounts over longer distances.

I do not believe that on their own those changes will be enough, however. We need to find a way to maintain the two-tier system distinguishing between cabs and taxis that has worked well in London for over 50 years.

Photo of Grahame Morris Grahame Morris Labour, Easington

I apologise for arriving late and congratulate the hon. Gentleman on securing this important debate. I was listening carefully to what he said about improvements to air quality. Does he acknowledge that the huge influx of minicab drivers and Uber drivers has had a really negative effect not just on air quality but on congestion in central London?

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I agree with the hon. Gentleman and will be making a similar point shortly. We need to look at that issue.

The bottom line is that we need to find a way of maintaining the two-tier system. I know that some within the black cab trade are calling for a mandatory five-minute period between booking and pick up to try to maintain the divide. I understand why that would work, and there is a strong case for it, but I worry that it would alienate—even infuriate—customers, who would not understand why it was happening. I understand that a similar mechanism has been brought in in New York, and there has been a considerable customer backlash there, which has been felt by the Mayor, who introduced the scheme, and whose popularity has been collapsing as a consequence.

Photo of Mark Field Mark Field Conservative, Cities of London and Westminster

I want to touch on the issue of choice, which my hon. Friend has raised. One of my concerns about the black cab’s protected position is that we hear voices saying that we should outlaw Uber and ban pedicabs. Could my hon. Friend give some indication of where he stands on both those issues? Would such an approach be detrimental to consumer choice, or would it be the right way to protect the market?

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I absolutely do not want to deny people the choice they clearly want and need in London. There is therefore no question of banning Uber, but there is a need for more clarity in the regulatory system. That is the point I will be making shortly, and I hope my right hon. Friend will intervene as I continue.

I am sceptical of the five-minute rule proposal, but I hope the Government will commit to working with TfL to urgently define what “ply for hire” actually means. For the black cabs, their customers and London generally, that cannot remain the grey area it is today.

More broadly, the Government need to address the issue of the sheer number of cabs in London, which Grahame M. Morris mentioned. In August, there were a staggering 86,500 minicab drivers in London—a 46% increase in just five years. That number grows by more than 1,000 every month, with obvious congestion and air quality implications. That needs to be addressed, and we need to take a view on the private hire vehicle trade’s carrying capacity in London.

While few people want to see the end of Uber—I absolutely do not want to, because Uber does innovate and provide choice—there is no doubt that standards need to be raised. That view was shared by the overwhelming majority of respondents to a YouGov poll the other day, 62% of whom said they would like a higher standard applied to private hire vehicles and to Uber in particular.

For instance, the Government should, in my view, require all minicab companies to take out fleet-wide insurance policies to guarantee consumer safety. That does not seem an unreasonable request, and TfL has confirmed to me that it regularly repeat-catches uninsured drivers. Drivers should have a basic geographical knowledge—not the knowledge, because that would be unrealistic, but a basic grasp of London. They should also be required to have at least a basic command of the English language. TfL is looking closely at that, too, and we will hear in the next few weeks where it has got with that.

Uber fares are generally low, but in times of need—as we saw during the recent tube strikes—those prices escalate out of all proportion. In some cases, there was a 300% increase. What, if anything, do the Government believe should be put in place to protect consumers against such price surging?

There are also concerns about Uber’s corporate behaviour. For instance, Uber enjoys a significant price advantage by not paying UK corporation tax, because jobs are booked through the Netherlands. Despite Uber being a $50 billion company, its drivers earn far less than the London living wage; in some cases, they earn a lot less than the minimum wage. Drivers are self-employed, as with most minicab services, but the risk is that Uber’s model is depressing fares to unsustainable levels, and that also needs to be looked at.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

I particularly welcome the hon. Gentleman’s last comment. Does he support the case brought by the GMB against Uber to protect drivers the company had exploited?

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

That is the case I was referring to. As I understand it, a member of the GMB was found to have been paid about £1.50 below the minimum wage, which is clearly not acceptable. However, I would like to redirect the right hon. Gentleman’s question to the Minister, who is better placed than I am to understand the legalities.

I ask the Minister—this is perhaps the most important issue—to provide an undertaking to work with the Competition and Markets Authority to look at the London taxi market as a whole. In particular, will he consider whether the low prices offered by some apps are kept artificially low to drive out competition—a form of predatory pricing? I am not clear how much evidence exists on that, but there is a strong suspicion, which I think I share, that it is happening.

Photo of David Lammy David Lammy Labour, Tottenham

On that point, the hon. Gentleman will understand that companies such as Uber do not pay tax in this country, so they can, of course, keep prices low. We really need the Treasury to tighten up on that.

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I thank the right hon. Gentleman—I almost said my right hon. Friend—for his intervention. That is actually a point I made earlier. He is exactly right: that does give the company an unfair advantage, and the issue needs to be looked at.

I do not want to remove choice in the market, and nor does any taxi driver I spoke to in the run-up to the debate, but it is an unarguable fact that, without efforts to level the playing field, we will lose the black cab in London, and London will be a lot poorer for it.

Several hon. Members:

rose—

Photo of Edward Leigh Edward Leigh Conservative, Gainsborough

Order. Several people wish to take part in the debate, so I am sure hon. Members will keep an eye on the clock. I know that the next speaker’s speech will be a masterclass in making concise and powerful points.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting 9:45 am, 15th September 2015

Thank you, Sir Edward. You have clearly heard me speak before.

I echo the comments of Zac Goldsmith, who said how well known and iconic the black cab is around the world. Famously, at the closing ceremony of the Olympics, there was much comment about George Michael’s bad choice of song, but Ray Davies of The Kinks made the right choice when he entered the stadium in a black cab. Ray Davies got it right, and George Michael got it wrong.

The hon. Gentleman was right to comment on the positive things about black cabs. They are fully accessible to wheelchair users, providing a service to disabled passengers who may have few other ways of getting about. As the father of two daughters, I also fully understand his comment about how safe we feel putting our children in a black cab, knowing the checks that take place before someone is allowed to drive one.

It is worth reminding ourselves of why black cab drivers—particularly the London ones—are considered some of the most qualified in the world. They undergo extensive criminal checks, including by the Disclosure and Barring Service. Medical checks are also undertaken. People have to pass a Driver and Vehicle Standards Agency assessment. They also have to receive a licence from both TfL, which is run by the Mayor of London, and the Metropolitan Police Service. In addition, as the hon. Gentleman mentioned, they have to pass the knowledge. Hon. Members may not fully appreciate this, but the test requires drivers to learn more than 300 basic routes, more than 25,000 streets, and approximately 20,000 landmarks and places of public interest. The other requirement is that black cab drivers must have a high-standard vehicle.

It is also worth reminding ourselves of what has happened as a consequence of the failure to regulate the change that is taking place because of innovation and of the failure to adapt. We do not have a level playing field, and the Minister will need to tell us why, over the past five years—indeed, the past seven years—TfL and the Government have failed to enforce existing legislation, or to provide new regulations, to ensure that new entrants to the market operate fairly.

What is the consequence of the failure of TfL and the Government to act? The number of drivers licensed by TfL fell by more than 500 in the last year alone, to about 25,000. Worse, the number of people applying to be taxi drivers and to undertake the knowledge is the lowest in more than 20 years. When we speak to black cab drivers, they confirm that their income has dropped by about 20% during the day and by about 35% during the night shift.

At the same time, the number of private hire vehicles licensed by TfL has grown at the rate of 600 a week. As the hon. Gentleman said, there are now 86,500. He also mentioned that there has been a 46.1% increase since 2010. At those levels, the number of private hire vehicles in London will reach more than 105,000 over the next two years. As my hon. Friend Grahame M. Morris said, that not only leads to problems with congestion, pollution and illegal parking, but will lead to the death of the black cab as we know it.

Photo of Mark Field Mark Field Conservative, Cities of London and Westminster

The right hon. Gentleman presents a slightly bleak picture of the prospects and concerns of black cab drivers. Can he suggest how consumers feel? It strikes me that many Londoners and many tourists coming to London feel that there is now a vast array of options at relatively cost-effective prices. Does he feel that that is important, and how will he try to marry the two interests, in his mayoralty campaign?

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

Consumers may think it is great to get cheap meat, until they realise it is horse meat; they may think it is great to get a cheap builder, until the house falls down; they may think private hire vehicles are cheap but, as the hon. Member for Richmond Park said, they want to feel safe. We need to make sure that drivers speak basic English, have basic geographical knowledge and are properly insured. Choice is important, but the job of parliamentarians, and of those who aspire to be the Mayor of London, is to make sure that there is proper regulation of those who run public transport—and I consider black cabs and private hire vehicles a form of public transport.

The key answers that we need are not platitudes; we need to know what Government and those who run TfL can do. I have several questions for the Minister.

Photo of Grahame Morris Grahame Morris Labour, Easington

My right hon. Friend is making important points. We accept that there is a need to balance the interests of consumers with the Rolls-Royce service that we enjoy through the black cab industry, but does he agree on the fundamental need for a legal definition of private hire, to distinguish between that and Hackney carriages? There may well be a role for Parliament in that, and it is another example of deregulation being a good thing. We can still innovate—and black cab drivers are indeed doing that in zones 1 and 2, through the introduction of the new app—without the need for the five-minute gap that was tried in New York. There is a balance to be struck, and I wonder if my right hon. Friend agrees.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

My hon. Friend is right. I made that point earlier in an intervention. We have had innovation in technology, but what my hon. Friend has described requires innovation in regulation. I do not mean a race to the bottom; I think that a levelling up rather than levelling down is required.

Does the Minister agree with criticisms of TfL that it failed to carry out proper licensing and enforcement functions in relation to the hire market? Does he agree with the hon. Member for Richmond Park and me that the Government should introduce legislation containing a clear definition to protect the distinction between taxis and private hire vehicles? Is he aware of the concerns raised by the Licensed Taxi Drivers Association that TfL may wrongly have licensed Uber in 2012, not fully understanding its methods of operation, and that it now has concerns about revocation, for fear of paying compensation? If the Minister thinks new legislation is required, will he consider whether it should include limits on the number of private hire vehicles in London, for the reasons that the hon. Member for Richmond Park and I have given, to do with congestion, pollution and illegal parking? Does he agree that any legislation should, as my right hon. Friend Mr Lammy mentioned, require any licensed operators to have a UK tax liability? Also—and this is probably the most important issue for black cab drivers—would the new legislation define plying for hire?

What reforms is the Department for Transport considering to secure a fairer system for London’s cabbies and a better service for passengers—an important consideration at the core of this issue? Would that include a clear distinction between the working practices for black cabs and private hire vehicles? Finally, we understand the temptation for Ministers to meet celebrities and for the Mayor of London to meet Joanna Lumley; but roughly how many times have the Minister, other Transport Ministers or the Mayor had meetings with the Licensed Taxi Drivers Association or black cab drivers’ representatives such as Unite, GMB and the National Union of Rail, Maritime and Transport Workers?

The hon. Member for Richmond Park deserves our thanks for bringing this debate to Westminster Hall. He has raised important issues, as I hope I have, and it is important that the Minister and the current Mayor respond. If they do not, the next Mayor will.

Photo of Victoria Borwick Victoria Borwick Conservative, Kensington 9:54 am, 15th September 2015

I have a long-standing family interest in the subject of the debate. My father ran Carbodies, which some right hon. and hon. Members may know about, from the time when taxis were made in this country. My husband Jamie took over after my father’s death and ran the company for a short while. He led the changeover to the taxis with full disability access that we have today.

As has been said, the black London taxi is as iconic to London as red buses and red post boxes. As we have heard from both sides of the House today, black cabs of London are renowned the world over for their high standards and because of the knowledge—and of course for their full disability access. Londoners can be proud of leading the world in that. Licensed black taxis can take wheelchairs, prams, trolleys and heavy suitcases, and get the passenger safely to their destination using the fastest route. The drivers do not need to check the sat-nav to know the back streets, and if there is a disruption or change in the traffic, as happens frequently in London, they have alternative routes in their head. They do not have to rely on intermittent technology. As we have heard, those taxi drivers are fully vetted, insured, and licensed, and regularly checked; and that applies not just to the drivers, but the vehicles as well.

Licensed taxi drivers have invested heavily in their profession. Very few industries require two to four years’ unpaid training, followed by the purchase or lease of a vehicle. Our black cab drivers are very committed to their trade. However, we have to appreciate that technology has begun to catch up, and TfL, the regulator, has seen an enormous increase in requests for private hire licences, as we have heard; but who are all the applicants, and why are there so many requests for minicab licences? There are now almost 90,000 minicab drivers in London, and only 25,000 licensed black cab drivers. The imbalance can be seen immediately; what is the reason for it? I believe that if we want our gold standard licensed taxi drivers we need a level playing field. The regulations cannot be all on one side. We make the drivers and the vehicles go through hoops, as my hon. Friend Zac Goldsmith said, and meet very high standards; and those standards must apply across the board, to other vehicles and to their drivers. Why are minicab drivers signing up at such a rate?

Photo of Mark Field Mark Field Conservative, Cities of London and Westminster

Arguably the opposite case could be made, which is that there have traditionally been huge barriers to entry for black cabs, and that now we are in a modern world, where more and more people want to become taxi drivers and where there is the incentive of Uber technology, so that a high level of regulation is against consumers’ interests and will make it much more expensive to get into London cabs. That is not my personal view, but it is an argument that could readily be made. I have a sense that satisfaction levels among those who use cabs in the capital city—black cabs or others—is pretty high.

Photo of Victoria Borwick Victoria Borwick Conservative, Kensington

I welcome that point. It is right: people want to use a safe vehicle that has been properly assessed, as everyone has said. Technology has moved on, so we must support the gold standard of our taxi drivers. Becoming a licensed taxi driver does not have such an appeal any more. Is that because of the barriers or because the investment and time is entirely on one side? TfL should look at its regulations and how it promotes the licensed taxi trade. It allows the competitors to charge what they want, and use any booking and charging methods they want; but over the years restrictions have been put on our taxi drivers, and they should be reviewed.

London has the advantage of being a friendly city. We have built on the Olympics, and have proved it time and again; we are working together for full disability access for the whole of London, in new homes and transport infrastructure such as Crossrail. It all has full disability access. Every new bus, every new train and every carriage is disabled accessible. All vehicles licensed by TfL for the public should be disabled accessible, take credit cards and alternative methods of payment, and be tracked and trackable to continue to provide the level of safety, as has been mentioned here today, that is unique to our taxi trade and our traditional taxi drivers. In the longer term, when we have proven technology, we should support the trade to move to more environmentally friendly vehicles.

I ask the Minister to re-examine the governance and regulations of the taxi trade and minicab vehicles, so that we can provide our excellent licensed taxis and ensure that this remains a worthwhile profession for those wishing to sign on to the high standards that have been spoken about this morning.

Photo of David Lammy David Lammy Labour, Tottenham 10:00 am, 15th September 2015

I congratulate Zac Goldsmith on securing the debate and on his contribution, and I congratulate and commend my right hon. Friend the

Member for Tooting (Sadiq Khan) on his speech. He articulated in great detail the issues and substance of what is now required.

I want to say a couple of things that have occurred to me over the last little while. First, I want to thank a knowledge school called the Knowledge 4 You academy, which sits in Bethnal Green. I paid a visit to that school, which is run by a wonderful chap called Courtney, who is a Barbadian Rastafarian. Every evening in a little portakabin behind Bethnal Green station, about 40 Londoners gather to go through the knowledge. I met those 40 people. They are men and women, from all the ethnic backgrounds that we see reflected in the city. It might be said that they are overwhelmingly from a working-class background. One was a firefighter and another was a paramedic. Some were working in retail, and actually, I met a student there. It was a real reflection of London, going there every evening and studying for up to three years to get that knowledge, all coveting the yellow badge that gives them the entitlement to drive a black cab around London.

I came from the kind of background in the ’70s and ’80s where, if I had come into the centre of town, say, as a 19 or 20-year-old, and then got home and told my mother that I had got into a black cab, I would have got a clip around the ear. “Where the hell did you get that kind of money?” she would have said. However, later, as I became a barrister and had a little bit more money, it was quite nice to get into a black cab in the centre of town. It was quite nice to have the odd date and take one’s girlfriend home in a black cab, and it was comforting to be able to put one’s partner into a black cab and send them home in safety. It is great to be able to get into a vehicle where the driver knows where he is going. I have to say that all these years later, having seen the dedication of those who work hard to get that badge, it is something we should preserve. It is an institution.

All of us in this room will have travelled to cities all over the world, and we will have seen in those cities how people prize this institution, which is the first face that someone sees of the city when they arrive at Heathrow or Gatwick. That should be preserved and the business of plying for trade, which we established, is now something that, as my right hon. Friend said, should be in statute. This House could sort that out pretty rapidly and it would give that institution the reassurance it needs, not just in this city, but in other cities in the country. That is really the centrality of what the Minister has to come to.

I am absolutely clear that the Government’s slightly relaxed attitude to international companies that do not pay tax in this country must stop. Of course such a company can undercut established institutions. It is well known across the world that people can arrive in London, get a second-hand vehicle, jump through very few hoops—the bar is so low—go to the Uber office, get the technology, and for very little training, they, too, can be part of the explosion that we are seeing across the city which is now polluting our young people’s lungs. Of course the city is congested; it is all the private hire vehicles that people are picking up. In this economy, where one in four young people in London is still unemployed, we are seeing many young students doing this as well. Is that right? Is that good? It cannot be.

I wrote to the Home Secretary not so long ago to raise the issues of homophobia, assault and rape—really concerning activity that is going on from some of these unregulated drivers. That is the price of entire deregulation, which is effectively what we are seeing through the back door. My view is that despite Transport for London being a great institution, in this area, it has failed miserably. Many black cab drivers expected the Mayor to intervene and to understand fully the difference between a metred cab plying for trade and actually ringing up a company, but that did not happen in a sufficient way. Will the Minister look again at this and at how this was allowed to happen? Unlike in a city such as Paris, where licensed drivers and new technology are able to exist alongside the long-standing institution of drivers in that capital city, how in London have we got it so badly wrong? The black cab is looked at across the world. It is more iconic than the New York yellow cab, and we are prepared to see it dwindle away on the back of deregulation.

There is the issue of who these drivers are. What is their qualification? What is their background? Why are we hearing of so many incidents of really poor, antisocial, dangerous and sometimes criminal behaviour? Who are they and what is the regulation relating to that?

Why are we so relaxed about a company that is not paying tax? Why are we supporting them? Who are the friends that we are hanging out with? There have been lots of suggestions and there has been lots of contact at different places between the Mayor’s office, the Government and some of these new companies that are entering the market. Are we going to make this a statutory base—plying for trade, the hackney carriage—and move it forward into the 21st century so we protect that institution?

Finally, if someone lives in London locally, they want to be able to ring up a minicab office, where there are local drivers who know their local area. That is usually to do regular routes. Lots of old people make short visits to hospitals, GP surgeries and that sort of thing. It is really worrying to see the collapse of minicab offices in London because of the failure to regulate appropriately in this area.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

My right hon. Friend has touched a nerve with me and with regard to what my constituents have been saying to me, which is that some private hire vehicles are being driven out of the market by the pricing model of Uber. It is trying to gain a huge share of the private hire vehicle market and the worry is what will happen tomorrow when all these private vehicles that he knows about—the minicabs in Tooting and Tottenham—are run out of business.

Photo of David Lammy David Lammy Labour, Tottenham

My right hon. Friend is absolutely right. Basically, do we want the high street to have a place not only for the supermarket somewhere, but for small independent shops? Very soon in London, those small independent minicab offices will all be gone. There will be no sense of locality. It will all be one big M25 fudge called Uber. That is what we must stand up to. There is room for everyone, but unfairness must be grappled with over the coming weeks and months.

Photo of Andrew Rosindell Andrew Rosindell Conservative, Romford

As a London MP myself, I congratulate the right hon. Gentleman on everything that he is saying. He is speaking the utmost sense and I support everything that he has said.

Photo of Andrew Rosindell Andrew Rosindell Conservative, Romford

No, not at all. Does the right hon. Gentleman agree that the real issue is that we need a level playing field? We need equal access to the market for everyone in this trade, but those in the black cab industry have had to go through many hoops to get where they are and it is absolutely wrong that a company can just undercut people who have worked all their lives to establish their trade. I therefore commend the right hon. Gentleman for everything that he is saying. I hope that this can be a cross-party consensus in order to take action to resolve this very serious problem, which could destroy our black cab industry in London.

Photo of David Lammy David Lammy Labour, Tottenham

The hon. Gentleman has put his points very well and I entirely agree with him. I think that there is consensus in the Chamber today, but there is also concern about those who have the power. The Mayor, the Minister and the Government have the power and, as my right hon. Friend the Member for Tooting says, this issue requires action, not just platitudes. I know that he is forensic in his quest for action and will be over the coming weeks and months—I have felt that myself. The point is absolutely right that a level playing field is what is required. There must be fairness to those who put the effort in—those who do the knowledge and go through those hoops. There must be regulation, not a completely deregulated market. That does not work and cannot work in this sector, particularly in relation to safety. And we do need to get a grip on companies that are not paying their tax properly in this country.

Photo of Stewart McDonald Stewart McDonald Scottish National Party, Glasgow South 10:11 am, 15th September 2015

It is a pleasure to speak in this debate. Some hon. Members may be questioning the relevance of the London black taxi service to my constituents in Glasgow South. However, it is clear to me from the debate so far that there are lessons that we can learn in Scotland so that we do not end up in the position that people in London find themselves in today. I therefore congratulate Zac Goldsmith on initiating this important debate on one of London’s and, indeed, Britain’s most iconic symbols—the black taxi.

It has also been a pleasure to sit through—I had not expected this—what may be the first London mayoral hustings, here in Westminster Hall this morning. If the hon. Gentleman and Sadiq Khan can have debates that are this consensual, they have a good election ahead of them.

The Uber phenomenon has yet to hit Glasgow and, indeed, Scotland, but I do not doubt that it may well do so in the future, so I genuinely approach this debate in the spirit of trying to learn something. I hope that we can use it to inform ourselves in Scotland, as we have entirely separate licensing of taxis and minicabs that in many ways is not dissimilar to the licensing here in England and Wales.

Taxis are a vital part of our city infrastructure and national life. Victoria Borwick gave the example of the London Olympics, when black taxis came into their own. We had the same experience during the Commonwealth games in Glasgow. Along with our public transport services, black taxis and their drivers were there not just to ship people around, but to welcome people to the great city of Glasgow.

If I may, I will make one comment on taxi drivers in my home city. Glasgow taxi drivers are the most knowledgeable and most friendly people—aside from one or two Members of Parliament perhaps—who visitors to the city of Glasgow can meet. They have great humour and great local knowledge. Based on the colour of the football top that someone is wearing when they enter the taxi, they will even know which routes to avoid when they are there. I have always found that taxi drivers are great for providing that wonderful thing that the metropolitan media and the pollsters always get wrong—political analysis. Speak to any taxi driver, whether in Glasgow or London, and believe me, they will give their views on Scottish independence and, indeed, any other political matter of the day. These people have put their entire working life into being not just a car service, but a welcoming service to whoever comes through those doors. I think that Parliament owes it to taxi drivers not just here in London but across the UK to get this right.

Mark Field, who unfortunately has left the Chamber, suggested that less regulation of black taxis could be an option. My experience suggests that that is not what black taxi drivers themselves want. Indeed, they enjoy the gold standard that comes with being a black taxi driver. The right hon. Member for Tooting mentioned the importance of someone knowing that they can safely put their daughter into one of these vehicles. Indeed, my own mother would never travel in any kind of vehicle other than a black taxi, although she usually prefers it if her son is picking up the bill!

The right hon. Member for Cities of London and Westminster talked about choice; indeed, consumer choice was mentioned by a few speakers. Choice cannot come at the expense of knowledge, safety, proper insurance and proper training. In fact, there is a whole argument to consider in terms of the investment put into Uber’s drivers. What it should have is a well regulated and unionised workforce. The answer, of course, is not to ban Uber, or any other private hire vehicle service, but to bring it in line with what the public expect from any other transport provider, whether that is black taxis, the underground or buses.

Mr Lammy mentioned recent allegations of homophobic or racist abuse in Uber cars. We would not expect that or put up with that if it happened on a bus, on the London underground or, indeed, in any other public service, and these minicab companies cannot expect to operate outside that.

Photo of Victoria Borwick Victoria Borwick Conservative, Kensington

Another important thing to talk about when we are considering the difference between the two kinds of vehicle is that there have also been incidences of guide dogs not being taken in minicabs. For the record, I think it is important that we ensure that any taxi driver of any taxi that we license should take such assistance dogs.

Photo of Stewart McDonald Stewart McDonald Scottish National Party, Glasgow South

The hon. Lady’s point is absolutely correct and I thank her for making it.

To return to my point on what we do about Uber, which appears to be the bogeyman in this debate, we need to look at ensuring that the wages of its drivers are properly regulated and properly enforced and that the training on health and safety and local knowledge is there. It is obvious that Uber is not going to go away, so this could be a turning point for transport in London depending on how we respond to it.

We must create a proper choice to ensure that there is not a cowboy operator not just operating in London but, potentially, coming to my home city. The technological challenge that is presented to us with the rise of minicab apps is something that Parliament and Government, local authorities and devolved Administrations must get right and must catch up with. The risk of not doing so is great and there for all to see. As I mentioned earlier, the ancient tradition of black taxi driving and all the service that those drivers provide us with means that we owe it to them to get this right; and we in Scotland look forward to learning something from London’s experience.

Photo of Richard Burden Richard Burden Shadow Minister (Transport) 10:18 am, 15th September 2015

It is, as always, a pleasure to serve under your chairmanship, Sir Edward. I add my congratulations to Zac Goldsmith on securing the debate and on the contributions that he and many other hon. Members, on both sides of the Chamber, have made. I mention in particular my right hon. Friend Sadiq Khan. Like him, I suspect that this is the first of many debates that he will have with the hon. Member for Richmond Park. They were in agreement on the matter, and the consensus across the Chamber has been remarkable. I hope that the Minister bears that in mind when he replies to the debate.

Today’s debate concerns something fundamental for London, as many hon. Members have said, namely the future of black cabs in the capital. It is clear that existing regulation is insufficient to deal with the changes. That point has been made by Victoria Borwick and my right hon. Friends the Members for Tooting and for Tottenham (Mr Lammy)—he made an excellent speech—and it has been recognised north of the border by Stewart Malcolm McDonald. Although black cabs are regarded as having some of the highest safety and accessibility standards for taxis anywhere in the world, the phenomenon of ride-sharing schemes and taxi apps has made it clear that regulation has simply not kept pace with the changes. That gives us a choice about how we cope with those changes and regulatory challenges.

Photo of Grahame Morris Grahame Morris Labour, Easington

Although I acknowledge that the subject of the debate is black cabs in London, I attended, along with other hon. Members, a national lobby of Parliament expressing the concerns about the matter across the midlands and in a number of the great cities in the north. This is a problem that we will all face, even if we do not face it immediately. Is it not a good time, as a Parliament, to look at the legal definition of plying for hire and to resolve the matter not only in London, but across the whole United Kingdom?

Photo of Richard Burden Richard Burden Shadow Minister (Transport)

My hon. Friend is absolutely right, and without wanting to stray from the focus of the debate, I hope to say one or two words about that in a while. He was also right in his earlier intervention about the need for consistency in regulation across the piece, which has to be founded on principles.

My right hon. Friend the Member for Tooting made the point, quite correctly, that we have a choice. We can look towards a future based on a race to the bottom, with all that that implies, or we can look to generalise the best standards for drivers and for passengers. I have referred to black cabs, but rising to the challenge of dealing with these changes is also important for the private hire industry. Properly regulated private hire has a role in the capital and elsewhere in getting people to the airport early in the morning, for example, and getting them home from nightclubs late at night or perhaps very early in the morning. Whether they use private hire or black cabs, passengers—across the country, not simply in London—need to know that services will be reliable and that they will be safe.

In London, about 3.5 billion passenger journeys a year are being recorded on the underground and the bus network combined, and London’s population is set to grow from 8.6 million today to around 10 million by 2030. As companies such as Uber recognise, that will have a profound effect on the nature of our transport system. With their emergence and success, Uber and other apps have made important headway in London, notably in the late-night market and the recreational market. They have been particularly successful in London’s suburbs, where the black cab network is sometimes at its thinnest. The promotions and public relations of such companies are something of a masterclass, it has to be said. Despite serious reservations about Uber, which I will say something about in a minute, it is not surprising that a recent YouGov poll found that a majority of Londoners thought that Uber was a good thing.

I want to recognise a good thing that Uber has done. It recently launched the UberGiving campaign to help to raise money for the global refugee crisis, in partnership with Save the Children. That is an innovative and worthy fundraising campaign. I suppose that the company would say that that is part of social responsibility, and I welcome that. Social responsibility goes beyond that, however, as my right hon. Friends the Members for Tottenham and for Tooting have said. If the company wants to be part of the fabric of the public transport system in its widest sense in London—I consider taxis and private hire vehicles to be part of that—and in the rest of the country, responsibilities must go with rights. Surely, an absolutely fundamental responsibility for a company is to pay its dues in taxes, which provide services in the country in which it operates.

Some of Uber’s actions give cause for genuine concern. There are regulatory disparities and issues about the use of taximeters. It is also important to ensure that the welfare of passengers is made paramount. Passengers have a right to know that when they book a journey through any operator, the service will be reliable, traceable and fairly priced. They should also know who is driving and be able to trace the vehicle’s registration and licensing details quickly and easily.

Such strengthening of safety regulation must extend to drivers as well. There are real concerns about the kind of culture encouraged by Uber and, I have to say, some private hire operators. To recruit new drivers, Uber’s website states:

“Make money on your own terms. Full-time and part-time driving opportunities for independent contractors in London give you the flexibility to access the platform as much or as little as you want. You can focus on driving your car when it works for you.”

That all sounds fine, in one way, but is it encouraging a culture—particularly as we have already heard from right hon. and hon. Members about the pay rates that Uber drivers often end up earning—of long hours, with drivers working 50 to 70 hours a week without any checks? The impact of tiredness on drivers and their passengers can be quite simply deadly. What assessment has the Minister made of the long hours that are being encouraged by not only Uber but the private hire industry more generally?

Beyond passenger and driver welfare, Labour recognises the genuine concerns of unions and private hire trade associations that Uber’s growth may be benefiting from a loose interpretation of the regulation on taximeters that I have mentioned. That is why I welcomed Transport for London’s decision to seek a High Court ruling on taximeters in May 2014. Apps such as Uber that involve a contract for vehicle hire must conform to the same standards of safety, licensing and insurance as the rest of the industry. They are neither black cab nor minicab, so it is vital that we understand and get a ruling on where they fit in the regulatory framework.

The delay in obtaining that ruling has gone on for some time, so the discrepancies persist. Does the Minister have any information about when that is likely to be resolved? Although it is clearly not for anybody here to speculate on the outcome, can the Minister confirm whether his Department has consulted with TfL to draw up contingency plans for all the possible scenarios that may result, and will he confirm what those plans are? Many hon. Members agree that any High Court ruling will address only one regulatory issue, but the kinds of problems that we are experiencing in London are being experienced not only in other parts of the country but internationally. They have come up in other European cities, in north America and even, in quite serious ways, in Mexico City.

TfL’s involvement and its announcement over the summer of a consultation on regulations have been timely. I will not go into too much detail about that at the moment, other than to ask the Minister to comment on two relevant matters: capping and off-duty driving. On capping, the transport network has to respond to the challenge of population growth, but there is real concern about where the unprecedented rise in the number of minicabs, which many hon. Members have mentioned today, is heading.

In an Adjournment debate before the summer recess, Mr Walker asked the Under-Secretary of State for Transport, Mr Goodwill, to say whether the Government will consider a cap on numbers and what their view is on such a cap. That Minister would not be drawn, but I hope the Under-Secretary of State for Transport, Andrew Jones, will tell us today whether a cap on numbers could be appropriate.

My other question on the TfL review is about the rules on who can drive off-duty taxis and private hire vehicles and when they can be driven. The Minister will recall that, when the coalition Government tried to introduce such a measure in the Deregulation Act 2015, they were forced to withdraw part of that proposal in the House of Lords simply because too many people noticed that it opened up the possibility of illegal pick-ups and malpractice, and made things such as sexual assault far more, not less, likely. Although I recognise that the review is primarily TfL’s responsibility, will the Government say anything in response to that review given the response when the Deregulation Act was debated in the previous Parliament?

That draws me to my final point, which picks up on the point raised by my hon. Friend Grahame M. Morris. A long time ago, the Law Commission was charged with looking in detail at regulatory disparities. It was recognised a long time ago that proper consideration is needed, and we have all known for years that a proper, thorough review of taxi and private hire regulations is needed to ensure safety and consistency and to recognise changing customer demands and expectations. That is why the Government asked the Law Commission to consider such matters but, after delay after delay and coyness from the Government about when anything would happen, Ministers jumped the gun just before the Law Commission published its findings and made last-minute additions to the Deregulation Act on PHV and taxi licensing outside London that, to put it charitably, were half-baked and ill thought out.

The Government got themselves into a mess on that, as we know, so where will they go from here? Will they respond to the points that have been consistently raised in this debate on the need to have proper consolidated legislation, a Bill, that can sort out the matter, that can update centuries-old regulations, that can address the challenges facing black cabs in London and that can incorporate long-overlooked taxis of sorts, rickshaws and ride sharing, and other such things? When will they set out their response to the Law Commission’s proposals and recommendations in general? If the Minister is not able to give that response now, will he let us know when he feels he might be able to do so? How does he expect that to fit with the likely timetable for High Court rulings on Uber and TfL’s regulatory review for London?

London’s black cabs are revered as having the highest safety and accessibility standards in the world. Last month, the Local Government Association called for its taxi operators to be put in line with the high standards enforced in London. Can we have a proper Bill to regulate taxis and private hire vehicles? Will the Government take the initiative, and when will they introduce such a Bill?

My final, final point is on emissions. A number of hon. Members, particularly my right hon. Friend the Member for Tottenham, have spoken about pollution. If black cabs and the private hire industry are to help address the challenge of air quality in the capital, they need to be future-proofed. The Government’s commitment of £25 million through the Office for Low Emission Vehicles to help drivers upgrade to greener vehicles is a good step, but the Government are sending mixed messages. The Chancellor has tagged increased vehicle excise duty rates on all vehicles, including low emission vehicles.

Outside of transport, we have seen the mothballing of a number of green policies since the election. May we see a bit more consistency? On taxis and private hire vehicles specifically, has the Minister received any representations from the taxi trade on the phasing in of emissions requirements? What is he doing to alleviate such concerns? Will he listen not only to the consensus in this debate on the future of taxis and private hire vehicles in the capital but to the people at the sharp end—the drivers, the trade associations and so on—who are telling him what is coming down the tracks? Something needs to be done. As well as answering the specific questions asked by hon. Members, will he confirm that he agrees that the time has come for comprehensive, thought-through legislation to get a proper taxi and private hire Bill on the statute book?

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport) 10:35 am, 15th September 2015

It is always a pleasure to serve under your chairmanship, Sir Edward. I congratulate my hon. Friend Zac Goldsmith on securing this debate on London’s famous and wonderful black cabs. This topic has been the subject of a previous debate secured by my hon. Friend Mr Walker, so I praise my hon. Friend the Member for Richmond Park for continuing to highlight the contribution of London taxis to the economy and transport network of this great city and the issues that the industry faces.

As my hon. Friend will appreciate, although the Government are responsible for creating the legislative framework within which local licensing authorities license taxis and private hire vehicles, responsibility for licensing in London rests with TfL. It is TfL’s responsibility to decide who is a suitable person to hold a taxi or private hire vehicle driver’s licence, or a private hire operator’s licence, and for ensuring that all its licensees comply with the rules and regulations that govern the industry. I understand his desire to raise his concerns in the House but, as licensing is TfL’s responsibility, some of the points raised today are TfL’s responsibility, so I might not be able to address all those points.

Photo of Grahame Morris Grahame Morris Labour, Easington

Will the Minister acknowledge the contributions made by Members on both sides of the Chamber? We have highlighted problems that are likely to manifest in other parts of the country and, in fact, are already manifesting in the midlands and in some northern cities. Similar problems are likely to arise in Scotland. Do the Government not have a responsibility to legislate in anticipation of those problems to introduce appropriate redress?

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

I recognise the excellent contributions made by Members on both sides of the Chamber. Some of those points will apply across our country, but this debate is about the future of London’s black cabs. The hon. Gentleman makes a fair point, and I will address the Law Commission later in my speech.

Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park

I thank the Minister for his remarks. I have one question on the Government’s role. My understanding is that if TfL was minded to cap the number of new licences at some 2,000 a month, it would require legislative support from the Government. Will he clarify whether that is the case?

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

Indeed, I can. A few Members have mentioned the number of licences, and there is currently no legislation in London, or anywhere else in England and Wales, to allow the number of private hire vehicles to be limited. Equally, officials are working closely with TfL on whether legislation needs to change—we need to consider that issue and develop the required evidence. The situation is changing rapidly due to the numbers, as Members have highlighted today, and I will return to that later. As things stand, there is no legislation in place.

The traditional London taxi or black cab is, as hon. Members have said, an icon of this city. For many years the taxi industry has played a key role in keeping London moving, and the industry has a history and reputation of which drivers are rightly proud. The black cab is the gold standard across the world, and its quality is internationally recognised. All the vehicles are of a high standard, fully wheelchair-accessible and driven by skilled and knowledgeable drivers. I admire the time and dedication that prospective drivers put into learning the world-famous knowledge of London. It is an enormous commitment, involving up to four years of work on top of a day-to-day job. The drop-out rate is high, between 70% and 80%, meaning that those who complete training in the knowledge are the most committed. From a customer’s perspective, their knowledge brings a sense of utter reliability and security. As a visitor to London—my home is 200-plus miles away—I rely on it. Learning the knowledge rewards taxi drivers with the unique right to ply for hire on the streets of our capital.

In the 1960s, minicabs began to appear in London, and the private hire vehicle industry, as it came to be known, was finally regulated following the introduction of legislation in 1998. Licensing and regulation have ensured that the public have the same assurance of safety as when using a taxi and have raised standards throughout the private hire sector. Transport for London now licenses more than 22,000 taxis and 69,000 private hire vehicles. Between them, those vehicles make 300,000 trips every day, making a vital contribution to London’s economy and helping to keep the city moving 24 hours a day, seven days a week.

The availability of both taxis and private hire vehicles offers the travelling public choice. They can instantly hire a taxi in the street or at a taxi rank; alternatively, they can pre-book a taxi or a private hire vehicle. When pre-booking, passengers can make an informed choice based on factors such as price, availability and quality. The combination of taxi and private hire ensures that the needs of as many Londoners as possible can be met.

As my hon. Friend the Member for Richmond Park recognises and as Members from different parties have highlighted, the market is changing. New technology is providing new ways of engaging taxis and private hire vehicles. Smartphone booking apps are now available for both taxis and private hire vehicles, offering passengers easy access to services, more choices, faster pick-ups and options for sharing that can reduce the cost for travellers.

It is encouraging that the London taxi trade has been at the forefront of those technological changes. There are now numerous apps through which one can book a taxi, and more and more drivers are embracing cashless payment options, a customer benefit highlighted earlier in this debate. However, such new technology is challenging traditional operating boundaries between the taxi and private hire trades. I understand that it is straining the relationship between Transport for London and the industry, but I hope that by working in partnership, they can deliver a modern industry that continues to provide both choice and high standards.

The evolution of the private hire sector has helped to ensure that that form of transport is available to all in a cost-effective manner, particularly supporting those who cannot rely on other public transport services. The importance of local minicab firms, often small local businesses, was well outlined by Mr Lammy. Such companies are often established in their communities and have served them well for many years, providing a valuable service that needs to be maintained. That point was clear.

Uber and other new entrants to the market present major challenges to established business models, and I can understand the concern of London’s taxi drivers. Uber London Ltd has been licensed by TFL as a private hire vehicle operator in London since 2012. The company has now applied for and been granted licences in 25 other licensing authority areas in England. In order to be granted a licence, Uber must meet the same standards as any other private hire vehicle operator in the local authority area. Therefore, 26 different authorities have decided that Uber is a fit and proper company, that its operating model meets the requirements of private hire legislation and that it keeps such records as the law requires.

Photo of Charles Walker Charles Walker Chair, Procedure Committee

I apologise to colleagues for being late to this debate. There is something slightly sinister about Uber’s business practices. My hon. Friend might be aware that in America, the board of Uber met to discuss how to discredit and destroy the career of an IT journalist concerned about its business practices. I hope that he is aware of such conduct by Uber and will take it into consideration when developing his thoughts on the company.

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

I thank my hon. Friend for that intervention. I have absolutely no sympathy for any company that behaves in such a way as to discredit others. Other colleagues in the House have highlighted poor practice, such as on taxes. I have no sympathy for any company that dodges its responsibilities, including on taxes.

Photo of Charles Walker Charles Walker Chair, Procedure Committee

Basically, the company bullies local authorities and national Governments. It will not and should not be allowed to bully the Government of the United Kingdom.

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

I entirely agree with my hon. Friend’s point. This Government will not be bullied by any individual company. We must keep in mind the qualities of the taxi and private hire sectors and what they have delivered over many years—in some cases, over centuries—for our city. Both are strong, important players and need a protected future.

I know that the London taxi trade fundamentally disagrees with TfL’s views on how Uber calculates a fare. Many members of the taxi trade consider Uber’s smartphone app to be essentially a taximeter. Taximeters are, of course, forbidden in London’s private hire vehicles.

Transport for London has recognised that the law in respect of the issue is unclear and has applied to the High Court for a declaration. Members have asked when that case will be determined. It is due to be heard in the High Court next month, so we should let the court make its decision.

Transport for London’s vision and strategy for the taxi industry is designed to maintain and enhance the high standard of service on which customers have come to rely. It will include development of the next generation of taxis, which will be environmentally clean and modern and suitable for passenger needs, particularly those of disabled people, a point consistently made by Members in this debate. The taxis will retain or enhance accessibility features to ensure a safe, smooth and comfortable ride.

The Mayor of London has announced plans to improve air quality in London, including by increasing the number of ultra-low-emission taxis. In April this year, the Office for Low Emission Vehicles announced the launch of a £45 million fund to support the roll-out of ultra-low-emission taxis across the United Kingdom. It includes £25 million set aside specifically for the Greater London area to help taxi drivers cover the costs of upgrading to a greener vehicle. The Mayor of London has pledged an additional £40 million, creating a £65 million fund to encourage the cleanest and greenest taxi fleet in the world.

At the same time, Geely, which owns the iconic London Taxi Company, announced plans for a new £250 million state-of-the-art facility to produce the next generation of low-emission London taxis in Ansty, near Coventry. Geely was awarded £17 million from the Government’s regional growth fund to build the facility, which will create 1,000 new jobs and ensure that the London taxi continues to be designed, developed and made in the

United Kingdom. This shows the Government’s support for the taxi trade throughout the country and will mean that the London taxi trade will play a leading role in improving the capital’s air quality and meeting our climate change obligations.

Hon. Members may be aware that last year, the London Assembly’s transport committee began an investigation into taxi and private hire services in London. As a result of that scrutiny, the committee made a number of recommendations to the Mayor and Transport for London on steps that they could take to improve taxi and private hire services in the city. In some cases, the committee was critical of the role of the taxi and private hire section of TfL, and I understand that members of both London’s taxi and private hire vehicle trades gave evidence to the committee as to their dissatisfaction with TfL’s actions as the licensing authority. The committee is responsible for questioning and scrutinising the actions of the Mayor, so it is not for the Government to comment on local licensing matters or the committee’s actions.

My hon. Friend the Member for Richmond Park will be aware that the Department for Transport asked the Law Commission in 2012 to conduct a review of taxi and private hire vehicle legislation throughout England and Wales, including London. That was against the backdrop of the Government’s red tape challenge and legislation that dates back to the first half of the 19th century and the age of the horse-drawn hackney carriage. Despite more recent legislation to allow for the regulation of private hire vehicles, the recent innovations that I and colleagues have described this morning have demonstrated that the legislation used to regulate both the taxi and private hire trades is becoming increasingly outdated. Licensing authorities throughout England and Wales are now faced with the challenge of accommodating 21st century technology in 19th century legislation.

The Law Commission undertook a comprehensive review, its final report containing recommendations for a modern and simplified structure. The report not only provided crucial analysis of the problems posed by the current law, but provided solutions designed to make a difference to both the travelling public and people in the industry. Updated and simplified legislation will provide a modern and simple framework, ensuring public safety and providing the trade with certainty, making growth and competition easier. I cannot yet give the House a date for the Government response to the review, but the Law Commission’s work has been powerful and important.

Photo of Richard Burden Richard Burden Shadow Minister (Transport)

It is good news that the Government are looking at the legislation, but it is not enough for the Minister to say that he does not know when the Government will respond. TfL is doing a review, the London Assembly is considering such matters, and Uber is growing. If the Law Commission has been meeting since 2012, when on earth will the Government make a decision about whether they are going to do something?

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

I completely recognise the importance of this case. We are seeing technological changes that require a legislative change, but getting this right is critical. The Government are still considering the matter, and I cannot give the hon. Gentleman any more detail at this moment.

Photo of Sadiq Khan Sadiq Khan Labour, Tooting

I thank the Minister for giving way again. I have been listening patiently to his speech, in which he has run through a range of issues. He has heard from the hon. Members for Romford (Andrew Rosindell), for Broxbourne (Mr Walker) and for Richmond Park (Zac Goldsmith), and from my right hon. Friend Mr Lammy, my hon. Friend Grahame M. Morris, the Opposition Front-Bench spokesman and me. He has heard that black cab drivers are going out of business every week. He has heard that private hire minicabs in areas such as Tottenham, Poplar and Canning Town, and Tooting are going out of business every week. He has confirmed that the legislation and regulations are “outdated”—made in the 19th century and not fit for purpose in the 21st century. Yet there is no sense of urgency from the Government. It beggars belief that the Minister can come to the second debate on this issue in the space of a number of months, and speak for 18 minutes without telling us what action the Government will take.

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

That smacks of a mayoral hustings debate rather than a Westminster Hall debate. The legislative framework is complicated and technology is changing. The Government took action by commissioning this complicated work from the Law Commission. That work is currently being digested and the Government will respond shortly. I cannot provide a date for the response, but the work is important and will provide security and clarity not only for TfL, but right across the country. That has been understood, and voices from across the House have made that clear this morning.

My hon. Friend the Member for Richmond Park may be aware that TfL recently completed its own consultation on the regulations that govern private hire vehicles in the capital. That came in response to developments in the industry that I have described, including advances in technology and changes in how people engage and use private hire services. The proposed revisions to the regulations will be known later this year, and some of TfL’s proposals may address concerns raised this morning.

I was asked several specific questions, which I will try to address now, although I have already answered some of them. On whether plying for hire has been defined, the Law Commission addressed creating such a statutory definition, but it came to the view, after careful consideration, that a statutory definition would not be a practical improvement on the current position. As for Ministers meeting celebrities, the Minister responsible for transport in London is in a Delegated Legislation Committee this morning, which is why I am covering this debate—

Photo of Grahame Morris Grahame Morris Labour, Easington

Will the Minister take a brief intervention on his previous point?

Photo of Grahame Morris Grahame Morris Labour, Easington

Regarding the Minister’s remark about the Law Commission and the statutory definition of plying for hire, given rapid technological advancements such as the Uber app and the complications that they are causing, does he recognise that the Law Commission advice is perhaps out of date? Is it not worth the Government considering the matter again?

Photo of Andrew Jones Andrew Jones Parliamentary Under-Secretary (Department for Transport)

There may be ways of addressing some of those issues, such as providing a definition of a lawful pre-booking, which will perhaps achieve the same objective. The Government’s response to the Law Commission is still a work in progress. We recognise its importance, and I am happy to commit to maintaining the Department’s energy in delivering it.

I cannot comment on Ministers meeting celebrities— I have not met any—so I cannot really add to that. Do I agree with the comments about TfL’s actions as a licensing authority? That is up to TfL and the scrutiny of Assembly Members. My hon. Friend the Member for Richmond Park mentioned price surging, and I will certainly write to TfL to highlight that point and to ask it to investigate. The same applies to the points made about predatory pricing. The key thing will be to start collecting evidence—if, indeed, this practice is taking place—so that we can make insightful comments. I have already commented on capping numbers.

On the regulation of fares, TfL is the licensing authority and has the power to set fares for London taxis. That regulation is an important element of consumer protection in the hail-and-rank market. TfL has no power to set private hire fares, which are set by the licensed operators. When booking a private hire vehicle, customers can shop around in advance and obtain a quote or estimate for a journey, which is why the regulatory authority sets no price constraint.

In conclusion, the Government are fully aware of the changes and challenges affecting the taxi and private hire vehicle industry in London and elsewhere in the country. The challenges include not only new technology and increased competition, but the need to ensure that vehicles play their part in improving air quality. The London taxi trade has rightly recognised such challenges, and I have recently been advised of a new campaign launched by trade bodies to promote London’s taxis. I believe the reputation of the London taxi trade and its high-quality service mean that it is well placed to continue to compete in this changing market and have a strong and healthy future. That is what I want, and that is clearly the view of the House this morning.

Question put and agreed to.

Resolved,

That this House has considered the future of black cabs in London.