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New Policy Brief on regulation of taxis

The Policy Centre has published a new Policy Brief Regulation of taxis. The taxi service in Jersey has been the subject of much discussion over the past 15 or so years. However, there is little published information about the regulatory regime or relevant statistics. The Brief brings together the available information in a coherent way and analyses public policy issues.

Key points in the Brief -

  • The market for taxi services has changed significantly in recent years as a result of developments in technology.
  • Taxi services in Jersey are governed by a 1935 law as amended and regulations made under the law. The law gives the minister extensive powers to impose conditions on the issue of licences for vehicles and drivers.
  • Taxis are subject to maximum fares, which in practice are the fares actually charged.
  • There is a cap on the number of taxis, officially 310 but the number is below this as a result of the strict conditions that licence holders must meet.
  • There is no restriction on the number of people licensed to drive taxis, but being a licensed driver with onerous restrictions on holding a vehicle licence is of little value.
  • The Jersey Taxi Drivers Association operates the Jersey Taxi App, which is widely used. A more sophisticated new taxi App – Ryde – has recently become operational. Uber does not operate in the Island.
  • Jersey Lifts provides an informal taxi service that is widely used. It is not regulated, but this does not make it illegal.
  • The major public policy issues, which are closely related, are -
    • The restriction on the number of licensed vehicles.
    • Availability of taxis at key locations at certain times.
    • The level of fares, which are, on average, much higher than minicab fares in England.
    • The requirements that owners of licensed vehicles must affiliate to a specified booking entity, that they must be full time and that they must work for 18 months for a “recognised” company before obtaining a licence.
    • That Uber does not operate in Jersey.
    • The impact of taxis on carbon emissions, given Jersey’s ambitious targets for reducing emissions.
  • There is a strong case for reforming the regulation of taxis in accordance with general government policy of reducing unnecessary red tape and creating a regime which recognises how people now wish to use a taxi service.

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