Agenda item

Report of the Licensing Manager

The Committee received the report of the Licensing Manager to enable Members to consider objections to the proposed variation in licensing fees in relation to hackney carriage and private hire vehicle licences approved in principle by the Committee.

It was reported that on 24^th March 2016, the Committee had considered a proposed variation of the current level of fees in relation to hackney carriage and private hire licences and miscellaneous licences.  The Committee had approved in principle the variation in fees, as set out in the report.

The proposed fees had been duly advertised and objections had been received from seven hackney carriage proprietors.  Two of the emails received did not set out any reason for objecting and nothing had been forthcoming. 

The objections did not provide any evidence of figures to indicate why the fees should not be increased, and appeared to be objecting to the difference between the cost of a private hire vehicle licence and a hackney carriage vehicle licence.  One of the objectors made reference to the increase being higher than the rate of inflation.  However, there was no requirement to set any of the fees in line with inflation.  Fee setting should be based on cost recovery and inflation was not the only factor influencing the cost of each licensing function.

The March report clearly set out why the fees for hackney carriage vehicle licences and private hire vehicle licences should be different, based on actual allocations of cost, including the provision, control and supervision of ranks with regard to the setting of fees for hackney carriage vehicle licences, and the administering of hackney carriage vehicle licences, due to the requirement to set and advertise fares and to administer the hackney carriage unmet demand survey.  The cost of controlling and supervising ranks had been quite high due to the high rate of non-compliance, and this would be continuously monitored.  If a reduction in enforcement in that area due to better compliance resulted in a reduction in cost, the fees in relation to hackney carriage vehicle licences would be reviewed accordingly.

One of the objections was partly in relation to the reduction in private hire vehicle fees.  However, these had been set at cost and it would be unlawful to charge more.  Not to reduce these fees would leave the Council in danger of legal challenge by charging more than the actual cost.

The fees in relation to operators’ licences had already been implemented as no objections had been received in relation to them.

It was reported that the Council was required to consider the objections and then set a date not later than 2 months after the first specified date on which the variation of fees should come into force with or without modification as decided after consideration of the objections.  The first specified date in this instance was 29^th May 2016.  Although ordinarily the variations to fees had come into force from 1^st April in line with other Council fees and charges. 

Members were advised that it was for the Committee, on behalf of the Council as licensing authority, to determine the level of fees to be charged, and not the trade.  Members must consider the merits of any specific objections received and be mindful of the burden on tax payers as a whole if the costs were not fully recovered through the licence fees.

It was proposed by Councillor Hartley and seconded by Councillor Sykes:

“That no changes be made to the fees approved in March and that they be implemented from 3^rd June 2016.”

Upon being put to the vote, 3 Members voted for the motion and 5 against, whereupon the Chairman declared the motion to be lost.

The meeting adjourned for 5 minutes.

It was then proposed by Councillor Hamilton-Cox and seconded by Councillor Charles:

“That, in view of the objections received from the trade, the fees chargeable in 2016/17 be those charged in 2015/16.”

At this point Members were advised the law does not allow councils to make a profit.

Committee was advised that Section 70 of the Local Government (Miscellaneous Provisions) Act 1976 stated that if objections were duly made and not withdrawn, the district council should set a date when charges should come into place with or without modification after consideration of those objections.  In the absence of modifications, this would mean as approved in principle at the meeting on 24^th March 2016.

Following consideration of the legal advice, Councillor Hamilton-Cox withdrew his motion.

No further proposals were made, and the Chairman advised Members that as no modifications were proposed, the variation of hackney carriage and private hire vehicle licence fees approved in principle by the Committee on 24^th March 2016, would come into force without modification on 3^rd June 2016.