Subject: Private Hire Operators' Scheme Status: For Publication

Report to: Licensing and Regulatory Committee Cabinet Member: Councillor Cecile Biant

Date: Monday, 20 October 2014

Report of: Director - Economy & Environment Author Email: andy.glover@rochdale.gov.uk

Author: Andy Glover Tel: Tel: 01706 924105

Comments from Statutory Officers:

Monitoring Officer: Yes Section 151 Officer: Yes

Key Decision: No 1 Purpose of the report 1.1 This report is intended to:

1.1.1 inform members of the outcome of the consultation undertaken on the proposed

Operator Scheme which will be additional to the current licensing process for private hire operators; and

1.1.2 request that the Licensing and Regulatory Committee agrees to endorse the proposed Operator Scheme in order to enable the implementation of the scheme as part of the licensing process.

2 Recommendations 2.1 Members of the Licensing and Regulatory Committee are recommended to: 2.1.1 note the consultation feedback (set out in detail in Appendices 1 and 2); and 2.1.2 agree to the commencement of the implementation of the proposed Operator Scheme.

3 Background 3.1 In response to historical concerns over Child Sexual Exploitation (CSE), the Council

has required improvements to licensing processes as an appropriate response to this issue. These improvements have been listed on an action plan the Council adopted in early 2013 and which the Licensing Section continues to work on. A private hire Operator Scheme was believed necessary to safeguard members of the public and improve the taxi service offered by licensed operators.

3.2 The aim of the Operator Scheme is to promote the standards of private hire operators

within the Borough and ensure that their high quality service is recognised by the affixing of a grade/award (Bronze, Silver or Gold) to their vehicles and at the Operator bases. Users of private hire vehicles may wish to take into account the grade of any private hire vehicle / Operator in deciding whether to travel with that driver / Operator.

3.3 The Council has set objectives in relation to the licensing of the private hire/hackney trade. They are to ensure:

(a) that passengers have safe journeys at a transparent price; (b) that vehicles are safe, accessible and reduce their impact on the environment; (c) that licensed drivers are competent and safety-conscious; and (d) the provision of a high-quality service to the public within the Borough. The proposed grading system will underpin and emphasise these values, as well as give more transparency through the public display of the level of award.

3.4 Full details of the proposed Operator Scheme (including the criteria and mechanism for determining awards) are set out in Appendix 3.

4 Consultation undertaken 4.1 At its meeting on the 7th October 2013, the Licensing and Regulatory Committee

considered and endorsed the proposed Operator Scheme in principle and agreed to the commencement of the formal consultation process.

4.2 The consultation commenced on the 4th November 2013 until the 26th January 2014,

the consultation timeline is contained in the table below and is attached as Appendix 1. 4.3 The consultation feedback is contained in the feedback table below and is attached as

Appendix 2. The main points are:

• a wide range of consultation methods were adopted, including trade meetings; newspaper articles; a written approach to 120 community groups; and all elected members being aware of the proposals;

• a number of positive comments were received from elected members and community groups, essentially supporting the desire to professionalize the private hire trade and emphasizing improvements to public safety; and

• in contrast, a letter was received and signed by 10 local private hire operators criticizing the proposed operator scheme as not being conducive to the building of trust between the local authority and licensed trade. The letter states that the Private Hire Operators feel it unnecessary to be awarded with grades as they feel that they do their upmost already to adhere with all current licence conditions. In addition, a comment was received from the (now) Leader of the Council stating that any display of award grade should be voluntary, not compulsory. Alternatives considered None - this forms part of the CSE action plan and will enable the Council to better monitor the application of the “fit and proper” test to licensed operators.

5 Financial Implications 5.1 There will be no fees levied on operators to join the scheme, and the cost of

assessment will be met from within existing resources. The only other cost will be that for consumables, ie the disc showing the grade allocated which operators will display in their vehicles. This disc is similar to a tax disc and will be displayed in the front window of the vehicle. The cost will be around £1400 per year and will be met from within existing budgets.

6 Legal Implications 6.1 The Council has a duty to ensure that a licence is not granted unless they are satisfied

that the operator is a “fit and proper” person to hold an operator’s licence. 6.2 The Operator Scheme will assist both the Council and Operators in the Borough to

maintain standards and uphold public confidence in the duties and responsibilities imposed upon the Council.

7 Personnel Implications 7.1 There are no staffing implications associated with this report. 8 Corporate Priorities 8.1 The proposal meets the corporate priority of People, as it aims to ensure high

standards of safety and customer care in the use of private hire vehicles. It also contributes to the priority of Prosperity, as one of the main objectives of the proposal is to support local private hire operators and enable them to advertise the award they are given under the scheme.

9. Risk Assessment Implications 9.1 The Council may face a challenge from an operator who is concerned with the level of

award given to them. To prevent this, it will be important to ensure that all staff undertaking assessments which result in the allocation of an award are fully trained on the required processes and are monitored by their line managers as to how these are carried out.

10. Equalities Impacts 10.1 Workforce Equality Impacts Assessment

There are no (significant) workforce equality issues arising from this report. 10.2 Equality/Community Impact Assessments

The following equality/community issues arise from the issues raised in this report as set out below: The proposal will have most impact on members of BME communities as most of the licensed operators in the Borough are from a BME background.

Background Papers

Document Place of Inspection

N/a

Appendix 1 Consultation Process Timeline – Private Hire Operator Awards Scheme

Date Action

4th Nov 2013 • Consultation commenced on 4th November 2013 for the duration of 12 weeks.

• Consultation advertised on Rochdale Council’s Website (Consultation Hub) for members of the public to view.

• Information about consultation sent to all 29 Private Hire Operator firms and advised them to display the information at their firms.

5th Nov 2013 • Information about consultation hand delivered to 33 Hackney Carriage Drivers at the Hackney Carriage ranks located throughout the Borough both during the day and evening time. This included sending information to the Hackney Carriage trade representatives to be able to discuss with the trade.

• Emails sent to all Rochdale MBC Councillors with regards to the consultation process and associated documents.

• Information about consultation sent to Partner Agencies which included Greater Manchester Police, Sunrise Team, Rochdale Borough Safeguarding Children Board, LADO Children Safeguarding Services, Adult Care Legal Team etc.

8th Nov 2013 and 11th Nov 2013

• Information about consultation sent to 120 Community groups. The community groups included Age Concern, Rochdale and District Blind Welfare Association, Elderly Care Residents Association, Cedar Disabled Group, Balderstone Ladies Club, Community Centres, Learning Disabilities Information Centre, Kashmiri Youth Project etc.

29th Nov 2013 • Trade meeting was held in the Council Offices. Meeting was chaired by Nicola Rogers (Acting Public Protection Manager). Representatives of the Private Hire Operator firms which included Jo Baxis Private Hire, Streamline Private Hire, Globe Private Hire, United Millennium Private Hire and Tiger Private Hire were in attendance. Representatives discussed the Private Hire Operator Award Scheme and provided a letter dated 27th Nov 2013 objecting to the proposal. Representatives were informed of the imminent consultation trade meetings taking place over 3 days – 9th Dec, 12th Dec and 18th Dec 2013.

2nd Dec 2013 • Itinerary of the consultation trade meeting hand delivered to all 29 Private Hire Operator firms and advised them to display the itinerary for all drivers to view.

• Itinerary hand delivered to 38 Hackney Carriage Drivers at the Hackney Carriage ranks located throughout the Borough both during the day and evening time. This included sending information to the Hackney Carriage trade representatives to discuss with the trade.

• Itineraries distributed to the trade at the Licensing Service Counter who had attended for licensing matters. This occurred from 2nd Dec 2013 until 17th Dec 2013 to inform drivers of the consultation meetings.

6th Dec 2013 • Newspaper article published in Rochdale Observer and on Rochdale Online with regards to the new proposals and the consultation process for members of the public to view and make comments.

• Licensing Officers distributed the itinerary to 20 random licensed drivers throughout the Borough during the evening.

9th Dec 2013 • Licensing consultation trade meeting took place which consisted of having 2 x Powerpoint presentations with group questions and answers. This was followed by 2 x Drop-in-Sessions. Approximately, 70 members of the trade were in attendance. An attendance sheet was passed to everyone to capture the attendee’s details; however some drivers chose not to provide their names. (Attendance sheet has only captured names of 35 members of the trade). Cllr Farooq Ahmed and Cllr Shefali Ahmed were also in attendance.

• A petition was submitted at the consultation trade meeting which contained names of 389 drivers which stated, “we oppose the recent proposal regarding the new point scheme for Private/public hire drivers/operators which Rochdale MBC are trying to introduce… Drivers are concerned that they have not been consulted over this matter, therefore we would like a full review and consultation with all drivers/operators as soon as possible”. NB. The petition was from drivers from several Private Hire Operator firms which included Globe Private Hire, Strand Private Hire, Castleton Private Hire, Newline and Phoenix Private Hire, Tiger Private Hire, Central Private Hire, King Private Hire, Britannia Private Hire, United Millennium and Bamford Private Hire, Norden Intime Private Hire, Jo Baxi Private Hire, Streamline Private Hire, Royal Crown Private Hire, Diamond Number One Private Hire. However, it would appear from the signed petition that the drivers are only objecting to the Penalty Point Scheme as there is no mention of the Private Hire Operator Awards Scheme.

12th Dec 2013 • Licensing consultation trade meeting took place which consisted of having 2 x Powerpoint presentations with group questions and answers. This was followed by 2 x Drop-in-Sessions. Approximately, 50 members of the trade were in attendance. An attendance sheet was passed to everyone to capture the attendee’s details; however some drivers chose not to provide their names. (Attendance sheet has only captured names of 34 members of the trade).

18th Dec 2013 • Licensing consultation trade meeting took place which consisted of a two hour drop-in-session. 7 drivers attended, but the attendance sheet captured only 5 names, as two drivers chose not to divulge their details.

6th Jan 2014 • Emails sent to all Rochdale MBC Councillors reminding them that the consultation process was coming to an end on 26th January 2014.

• Reminder notice that the consultation process was coming to an end sent to the 120 Community groups.

• Reminder notice also sent to Partner Agencies, including Greater Manchester Police etc.

• Two Public Notice reminders about the imminent end of consultation process prominently displayed at the Licensing Service Counter for members of the public and the trade to view until 27th Jan 2014.

• Consultation reminder notice distributed to the trade at the Licensing Service Counter who had attended for licensing matters. This occurred from 6th Jan 2014 until 24th Jan 2014 to inform drivers of the consultation process and the end of the process.

• Consultation responses feedback box located at the Licensing Service Counter to gather comments until 27th Jan 2014 for anyone wanting to hand deliver their comments.

• Reminder notice and a further scheduled drop-in-session (on Weds 15/01/2014) letter to discuss the new proposals hand delivered to 23 Hackney Carriage Drivers at the Hackney Carriage ranks located throughout the Borough both during the day and evening time. This included sending information to the Hackney Carriage trade representatives to be able to discuss with the trade.

• Reminder notice and a further scheduled drop-in-session letter (on Weds 15/01/2014) to discuss the new proposals sent to all 29 Private Hire Operator firms and advised them to display the information at their firms.

9th Jan 2014 • Rochdale Observer requested further information with regards to the consultation process to publish an additional news article with regards to the Council ‘driving up standards’ in the Borough and to make members of the public aware of this and to send in their comments.

15th Jan 2014 • Licensing consultation trade meeting took place which consisted of a 1 hour 30 minute drop-in-session. Approximately, 120 members of the trade were in attendance. An attendance sheet was passed to everyone to capture the attendee’s details; however some drivers chose not to provide their names. (Attendance sheet has only captured names of 64 members of the trade).

• During this consultation trade meeting, members of trade decided to put together a petition there and then opposing the Penalty Points Scheme. 95 members of the trade signed this petition. However in this petition, there is no mention by the trade in being opposition to the Private Hire Operator Awards Scheme.

21st Jan 2014 • Licensing consultation Elected Members Briefing took place. Councillors were in attendance.

26th Jan 2014 • Consultation process ended at midnight.

Throughout the consultation process, Licensing Officers have fielded telephone enquiries and provided information over the Licensing Service Counter to both the trade and members of the public in relation to the new proposals.

Appendix 2 Taxi and Private Hire Licensing Consultation – Private Hire Operator Awards Scheme

The tables below captures all the responses/comments received both in favour and in opposition to the proposals for the introduction of the Private Hire Operator Awards Scheme.

Name of Commentator(s)

Comments in SUPPORT of the Private Hire Operator Awards Scheme

Cllr Sultan Ali (Rochdale MBC)

“I am of the opinion that there is merit in having the Operator Award Scheme. This would not only improve the working conditions for the drivers but improve the fleet of taxis at each base. Such a scheme would iron out some other minor concerns that the department may have”.

Cllr Alan McCarthy (Rochdale MBC)

“Fully supportive. Good piece of work”.

Cllr Mayor Peter Rush (Rochdale MBC)

“I think the Schemes will improve the standards of our private hire / taxi trade in the Borough”.

Chief Inspector Nadeem Mir (Greater Manchester Police)

“Will help to improve the taxi service in the Borough. Will have positive impacts and will help to professionalise the taxi trade. It puts a proportionate amount of responsibility on both the drivers and operators. The Scheme will improve confidence in service users and thus dispel myths and misinformation around the taxi trade. Drivers and operators will be encouraged to develop themselves as a professional and respected service provider. This is about raising standards and ethics. It also provides safeguarding measures for both the drivers and Operators. I see the scheme as a process of development and support rather being punitive”.

Tracie Powers (Project Development Manager - Spotlight on Falinge Ltd Community Hub)

“I am in favour of the proposed awards scheme.. which should include a section their drivers have undertaken many random drug tests this year and passed all of them”.

Chris Houston (Co-ordinator – World Development Movement, Rochdale)

“I have no problem in supporting these proposed Schemes, it does seem that the public will ultimately benefit from them. However, I would be happy to evaluate (and could well be influenced) by any objections from licensed operators who will have a much clearer/better understanding of the implications”.

Roy Kitcher (Member of the Public)

“It’s time Taxi Drivers was brought up to standard and it will be a welcome to the public and all Rochdale Taxis and we will know which will be safe to travel as at the moment I will not get a taxi in Rochdale”.

Francis W Salt “The below comments are those of a blind person and guide dog user

(Member of the Public)

and as such are limited to issues arising from the same… Reasonable assistance will be given to disabled people including assisting them to enter and exit offices, vehicles, make bookings for particular types of vehicle and carry any disability aids they may have. (Extract from the proposed Private Hire Operator Awards Scheme) I suggest ‘any’ disability aids be more specific. Are mobile scooters disability aids or a preferred mode of travel. I would also like the words ‘guide dogs and assistance dogs’ be put in, dogs are living animals and disability aids could be seen as just mechanical aids”.

Stephen Campbell (Private Hire Operator of Car 2000, Heywood)

In a news article published by Rochdale Online in December 2013, Mr Campbell welcomed the Schemes. He stated in the article, “these changes will bring the taxi industry up-to-date. Oldham Council already run a similar star-based scheme and this will really raise the standards for taxi firms across the borough”.

Name of Commentator(s)

Comments AGAINST the Private Hire Operator Awards Scheme

Representatives of Tiger Private Hire, United Millennium Private Hire, Norden Intime Private Hire, Strand Private Hire, Cosy Private Hire, Globe Private Hire, Jo Baxis Private Hire, Newline Private Hire, Central Private Hire, Streamline Private Hire

A letter was received by the Licensing Office dated 27th November 2013 objecting to the introduction of the Private Hire Operator Award Scheme and the Penalty Points Scheme. The letter was endorsed by several of Rochdale Council’s licensed Private Hire Operator firms (10 in total). For the purpose of this report, only the comments relating to the Private Hire Operator Awards Scheme are being considered. The letter states that representatives of several Private Hire Operator bases and Private Hire/Hackney Carriage Drivers have had meetings and “demand that the schemes are scrapped immediately”. The letter states that the Private Hire Operators feel it unnecessary to be awarded with grades as they feel that they do their upmost already to adhere with all current licence conditions. They “do not consider it to be appropriate for us to be distinguished from one another on the basis of the awards”. The letter states that the current regulations are sufficient to fulfil Council objectives and therefore the introduction of the Private Hire Operator Award Scheme is not required. The letter further states that it is in the Council’s interest and the trade “to build public trust in or sector, however these proposals are not the way to do this”. They believe this can be achieved through greater communication between the Council and the Operators. For example, if any issues are of concern to the Council with regards to drivers, vehicles or office records, then this should “be raised directly with the Operators; these matters can be resolved”.

Cllr Richard Farnell (Rochdale MBC)

“The display of “star” categories should be voluntary, not compulsory – like every other service we regulate”.

APPENDIX 3

Relevant extract from the Proposed Private Hire Operator Scheme Assessment criteria 3.5 The assessment of the grade awarded to each Operator will be assessed against a

series of indicators. These assessments will be carried out by a Licensing Officer in conjunction with the Operator or his/her nominated person. The assessment criteria are as detailed below in paragraph 3.13 of this Appendix. The grades are

No Award – which will have visits every month. Bronze Award – which will have visits once every 3 months. Silver Award – which will have visits once every 6 months. Gold Award – which will have a visit once every Year.

3.6 Once the criteria have been assessed by the Licensing Officer and the form

completed, a decision will be made on the grade to be awarded by the Licensing Manager.

3.7 If a Private Hire Operator is aggrieved by the grade awarded, he/she may lodge a

written appeal within 7 days of receipt of the decision. In order to deal with an appeal they will be invited to attend a Licensing Panel.

3.8 After 7 days or following an appeal hearing a certificate will be forwarded to the Private

Hire Operator who must then inform the owners/drivers of the vehicles as to what grade to attach on the vehicles. If a no grade award has been awarded, the vehicles will remain as they are and nothing will be attached to them.

3.9 In addition to the scheduled visit there may be a spot check conducted from time to

time to ensure on-going compliance with the scheme. A grade can reviewed either by the Council or upon the request of the Operator if he/she thinks they can achieve a higher award/grade.

No Grade / No Award 3.10 Following the Assessment of the grade award to be awarded to an Operator, it may

be decided that no grade/award should be awarded to an Operator due to standards at the premises being very poor with no compliance to legislation and/or conditions. In this instance, an Improvement Notice will be served upon the Operator to address the issues and for a further visit to be conducted in one month time to review the ‘no grade/award’.

3.11 If three consecutive Improvement Notices are served upon an Operator, the matter will

be referred to the Council’s Licensing Panel for the Panel to decide whether the Operator is a fit and proper person to hold the relevant licence. The Licensing Panel may then suspend or revoke a licence, or issue a warning to the Operator, depending upon the circumstances. Periods of suspension of a licence by a Panel will be dependent on the nature of the breaches of the legislation/conditions and the compliance history of the Operator.

Publication / Advertise

3.12 The Council may from time to time advertise in any form and manner, the grade/award that has been awarded to all the Operators, for members of the public to view.

3.13 Rochdale MBC Licensing Private Hire Operator Awards Scheme No Award

Negative Criteria Tick When Appropriat

e Notes

Obstruction of Officers or failure to co-operate with enquiries

Prosecution of Operator

Allowing unlicensed drivers to drive vehicle

Very poor or weak management oversight of the company

Allowing unlicensed drivers or vehicles to work from the company

Failing to comply with Operator licence conditions

Premises in poor condition

Additional input from Officers required in order to meet operator conditions

No procedure in place for checking expired licences or insurance

Operator not taking action to deal with drivers following complaints

No Public Liability/Employers Liability insurance

Evidence of smoking within Operator base

60% or more drivers and vehicles inspected during routine checks and found to be non-compliant

Operator has accrued 60 or more penalty points in a 12 month period

Bronze Award

Bronze Criteria Tick When Appropriat

e Notes

Any premises to be in a clean and tidy condition

Any radio equipment or GPS equipment or any other form of equipment used for communication with drivers to be in good working order, serviced and maintained

Public/employers liability insurance in force where required

Current fare table produced and retained for file

Booking records accurate and legible and retained for a minimum of three months

Details of all drivers, vehicles (including expiry dates) and insurance details held on file and are accurate and available for inspection immediately. Details produced for retention by Officer.

Complaints outstanding after 7 days referred to Licensing Office

Mandatory door signs complying with Council conditions affixed to all vehicles with no magnetic signs in use

Documented system in place for ensuring drivers/vehicles do not work following expiry of licence or insurance

40% or more drivers and vehicles inspected during routine checks and found to be non-compliant

Operator has not accrued more than 48 penalty points in a 12 month period

Silver Award (plus and including Bronze Award Criteria)

Silver Criteria Tick When Appropriate

Notes

Operator to have in place a written standard as to the cleanliness of vehicles

All staff employed by the operator to have been trained on licensing laws, how to deal with difficult situations and evidence of such training to be recorded by the operator.

Lost property log in place

Complaints procedure and log in place

Fire and Health & Safety Risk assessments in place for the office

Fire extinguishers in place and proof of annual service

Evacuation plan of premises on display

Policy in place for operator to check fire extinguishers in vehicles are in place before vehicles are used for private hire purposes

A daily check of each vehicle be completed by its driver and the check sheet as prescribed by the Council by completed each day and submitted to the operator upon the sheet being complete whether, daily, weekly or monthly. Documented spot checks to take place by the Operator to ensure the vehicle checks are taking place and defects noted and

corrected.

Where in car CCTV cameras are fitted they are to be compatible with Council requirements and available for download for Authorised Officers / Police.

Reasonable assistance will be given to disabled people including assisting them to enter and exit offices, vehicles, make bookings for particular types of vehicle and carry and disability aids they may have.

A policy to be in place for taking disciplinary action against any driver who takes advantage of a vulnerable person

All reasonable precautions to be taken to ensure that activities within the Operators office and from licensed vehicles do not create a nuisance to others

No door signs / adverts whatsoever on vehicles unless approved by the Council in writing.

A system of communicating key messages to drivers must be in place i.e. a driver notice board detailing information from the Police, Council or other agencies which drivers should know about.

70% of drivers and vehicles inspected during routine checks to be fully compliant

Operator has not accrued more than 36 penalty points in a 12 month period

All Private Hire and Hackney Carriage drivers and vehicles are licensed by Rochdale Borough Council

Gold Award (plus and including Bronze and Silver Award Criteria)

Gold Criteria Tick When Appropriate

Notes

Drivers of wheelchair accessible vehicles can demonstrate knowledge of transporting passengers safely

Drivers written code of conduct to be in place

Customer Service Charter to be in place

Where the company operates 10 or more vehicles there must be a wheelchair accessible vehicle on the fleet

Policy in place for testing and maintenance of vehicles. (This must be over and above the Councils minimum testing requirement)

Drivers who have more than one licensing conviction/prosecution in the last 3 years

will not be employed at the company

90% of drivers and vehicles inspected during routine checks to be fully compliant

Operator has not accrued more than 24 penalty points in a 12 month period

All Private Hire and Hackney Carriage drivers and vehicles are licensed by Rochdale Borough Council

Definitions: No Award – Non-compliance with legislation/conditions. Improvement Notice issued. Bronze Award - Some non-compliance with legislation/conditions – more effort required. Silver Award - Full level of legal compliance/conditions. Only minor issues not addressed. Gold Award - Full level of compliance with conditions plus demonstrate areas of best practice.