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

Part of the debate – in Westminster Hall at 9:30 am on 15 September 2015.

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Photo of Zac Goldsmith Zac Goldsmith Conservative, Richmond Park 9:30, 15 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.