Taxi fares hiked up 20% – but some operators say they don’t want it
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Highland licensing committee has agreed to increase taxi fares by 20 per cent – effective from February 23, 2023.
It followed a lively debate in which Inverness Taxis Alliance (ITA) said the rise is not justified.
While the ITA said their members don’t support a 20 per cent 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 per cent proposal was reasonable and fair.
The issue went to a vote, with members voting nine to three in favour of the 20 per cent hike.
Following today’s decision, each tariff on the taxi fare will increase by up to 20 per cent. 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 per cent proposal reflects data from the consumer price index.
This showed the cost of buying a new vehicle has increased by eight per cent, and 22 per cent for second hand. Repairs and maintenance cost around eight per cent more and petrol and diesel are up by 58 per cent and 59 per cent respectively. This has since reduced a bit to 38 per cent and 45 per cent.
An initial survey of 93 operators showed that 95 per cent supported a fare increase.
However, the chairman and vice-chairman of Inverness Taxis Alliance told the licensing committee their members don’t support the rise.
Instead, they proposed increases between zero and 15 per cent, depending on the tarriff.
ITA vice-chairman Duncan Fraser said the alliance represents 130 operators, none of which support a 20 per cent fare increase. He said that while the cost of fuel has shot up, overall operating costs are about 12 per cent.
“Taxi drivers and not poor,” he told councillors. “You could give them 50 per cent today and they’d still be moaning to the public. It’s in their genes.”
Mr Fraser suggested some operators said they support 20 per cent because they saw it as a bartering position to come down to 10 per cent. The ITA has more members than the number who responded to the public consultation, he added.
Chairman Andrew MacDonald said 20 per cent 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 seven per cent while Highland Council is volunteering a 20 per cent rise for taxi drivers.
His comments prompted Ms McArthur to clarify that the council doesn’t set salaries; it only sets maximum tariffs.
Inverness councillor Duncan Macpherson defended the council’s proposals. Cllr 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,” Cllr Macpherson said.
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.
Cllr Macpherson countered that he had spoken to many operators outside of the city who were pleased with the 20 per cent proposal.
“Every time it comes to this committee, they squabble among themselves and say we don’t want an increase,” he said. “They haven’t got the foresight to see that we’re protecting them.”
He later added: “We listened to each of those who we consulted and came back with a rational decision based on all the costs given.”
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 per cent increase, seconded by Councillor Emma Knox.
Councillor Drew Millar called this rate “extortionate” and tabled an amendment supporting the ITA plan of a sliding scale up to 15 per cent. This was seconded by councillor John Bruce.
But Cllr Mackay’s motion won the vote 9-3.
