Highland licensing committee has agreed to increase taxi fares by 20%, effective from 13 February 2023.
It followed a lively debate in which Inverness Taxi Alliance (ITA) said the rise is not justified.
While the ITA said their members don’t support a 20% increase, Highland Council officers said the review takes account of steep hikes in operating costs and fuel.
Members expressed their disappointment that only Inverness taxi operators made their case in the chamber.
Councillor Duncan Macpherson highlighted that licensing committee is for all of Highland, not just Inverness. He said the 20% proposal was reasonable and fair.
The issue went to a vote, with members voting nine to three in favour of the 20% hike.
Fare increase reflects steep rise in running costs for taxis
Following today’s decision, each tariff on the taxi fare will increase by up to 20%. This reflects the maximum that operators can charge, though they can choose to charge less.
Highland councillors also agreed to increase the cleaning charge to £150 and allow operators to charge £5 for bulky items that won’t fit in the boot (excluding wheelchairs and mobility aids).
The taxi fares review was brought forward at the specific request of some operators. They wrote to Highland Council asking them to make an early decision because of the increased costs of running their business.
Highland Council’s principal solicitor, Claire McArthur, said the 20% proposal reflects data from the consumer price index.
This showed the cost of buying a new vehicle has increased by 8%, and 22% for second-hand. Repairs and maintenance cost around 8% more and petrol and diesel are up by 58% and 59% respectively. This has since reduced a bit to 38% and 45%.
An initial survey of 93 operators showed that 95% supported a fare increase.
Inverness drivers say 20% is too much
However, the chairman and vice-chairman of Inverness Taxi Alliance told the licensing committee their members don’t support the rise.
Instead, they proposed range of increases from zero to a 15%, depending on the tariff.
ITA vice-chairman Duncan Fraser said the alliance represents 130 operators, none of which support a 20% fare increase. He said that while the cost of fuel has shot up, overall operating costs are about 12%.
“Taxi drivers are not poor,” he told councillors. “You could give them 50% today and they’d still be moaning to the public. It’s in their genes.”
Chairman Andrew MacDonald also said 20% is not reasonable. “That’s not an increase, it’s an imposition.”
Councillor Drew Millar said he had never known a taxi operator to speak at committee against a fare increase. However, he found their argument persuasive.
Referring to ongoing national pay disputes, Mr Millar questioned why teachers and nurses are fighting for 7% while Highland Council is volunteering a 20% rise for taxi drivers.
His comments prompted Ms McArthur to clarify that the council doesn’t set salaries; it only sets maximum tariffs.
‘They haven’t the foresight to see we’re protecting them’
Inverness councillor Duncan Macpherson defended the council’s proposals. Mr Macpherson said it was disappointing not to hear any voices from rural areas of Highland.
“We are the Highland licensing committee, not the Inverness licensing committee, and we have to look at things Highland-wide,” said Mr Macpherson.
Mr Fraser said he had reached out to operators in other areas including Thurso, but they held a strong anti-Inverness sentiment. One told him “Inverness will get whatever they want.” As a result, they failed to engage with the consultation.
Ms Macpherson countered that he had spoken to many operators outside of the city who were pleased with the 20% proposal.
Councillor Willie Mackay said motoring is never going to get any cheaper, and the committee should raise the fare tariff accordingly. He tabled a motion for the 20% increase, seconded by councillor Emma Knox.
Drew Millar called this rate “extortionate” and tabled an amendment supporting the ITA plan of a sliding scale up to 15%. This was seconded by councillor John Bruce.
Mr Mackay’s motion won the vote 9-3.
The new taxi fares structure will take effect from February.
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