Councillors have agreed to increase taxi fares for Hackney carriages in Merthyr Tydfil. A request was received from members of the Hackney carriage trade to increase the current Merthyr Tydfil Council rate of fares but despite the proposed increase being 50p for the first mile (or part thereof), cabinet agreed to increase it by 30p instead at its meeting on Wednesday, July 6.
The last taxi tariff increase was in March 2020 and this latest increase will come into force from August 1. Figures from the Private Hire and Taxi Monthly magazine show that based upon a two-mile journey, the current national average fare on tariff one is £6.24.
Council officers have used figures from the league table for May 2022 for all Welsh authorities and a comparison of the two mile tariff across Wales shows that based upon a two mile journey, the current Welsh average fare on tariff one is £5.78. Merthyr Tydfil’s current two mile fare on tariff one is £5.50 and the new tariff is £6.
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Merthyr Tydfil is currently 287th in the national two mile fare league table which takes into account the position of highest to lowest fares set by 359 licensing authorities. The report added that in Wales, the current tariff puts Merthyr Tydfil in 16th out of the 22 authorities
The new fares would see a current two mile journey increase by 50p and the new rate would be 22p above the Welsh average for a two mile journey and 24p below the national average. Merthyr Tydfil would then be 201st out of 359 authorities in the national table and 7th in Wales.
The cabinet report said that all 201 licensed Hackney carriage drivers and owners were consulted with 34 responding (16.92%) and most being in favour of it. One response did not support the proposal but suggested a different amendment be made saying: “35p added to table of fares, not 50p. Customers are finding it hard enough as it is. The taxi rank is busy as there’s no buses, let’s not drive customers away.”
Another response that did not support the proposal suggested a different amendment be made saying: “Start tariff 2 from 9pm.” Another response against the proposal said: “Increasing fares is not fair on members of the public. I do not recommend increasing fares as taxi and private hire drivers earn more than average living wages.”
A response that supported the proposal also suggested an additional amendment saying: “I would like tariff 2 to start at 11pm instead of 11.30pm." Another response in support of the proposal said: “Due to price inflation in fuel & parts & labour, we as taxi drivers feel we cannot continue to take fares as same price as before, we need to balance the costs and make a living.”
There were four objections received to the proposal during the objection period so that’s why it went back before cabinet.
One objection from a member of the public said it is really unfair on the people of Merthyr, adding that nobody else has had a pay rise and everyone is feeling the squeeze. They called for everyone to boycott taxis and said the council approving it is shocking.
Another person said: “Given the current state of bus services elderly people are increasingly forced to use taxis. They are hit by the economic downturn more than others. Putting up fares will increase their isolation.”
A third person said that, being a resident in Merthyr Tydfil, they do not object to taxis raising their prices but said there should be a caveat placed on this rise that if fuel prices fall, so should taxi prices.
They said that otherwise, prices will only ever go up and will never go back down.
The final objection was from a member of the taxi trade who said they objected to the 50p increase.
They said: “I feel that we have recently received a rise during Covid, and this price is a fair price. We must remember, a large proportion of taxi users are in receipt of benefits or pensions.
“Have these increased? Merthyr Tydfil has a terrible bus service at the moment, therefore we are seeing increasing numbers of passengers on taxi ranks.
“We are busy. Even though fuel has increased in recent weeks, we should be mindful that fuel will rise and fall over coming months.
“This is something we have to deal with. If we take a taxi trade Appendix B fare from Merthyr town centre to Prince Charles hospital, £5.75-£6.20. Or a fare to Asda £8.10-£8.40.
“By increasing the fares it’s your constituents that are going to suffer. I honestly can’t see how a 50p increase will benefit us.
“With meter calibration costing £20- £25 that’s 40+ fares required to get that money back alone. And if it’s increased temporarily while fuel process are up it will be another £20-£25 to re-calibrate it.”
Councillor Michelle Jones said she was in favour of an increase although she said she appreciates that there is a cost of living crisis but she also highlighted the massive increase in fuel costs.
Cllr Jones said: “I really want to look after our taxi drivers” adding that there “real issues with bus services”.
She said: “We need taxis not just for people going out in the nights but for carers. If these taxi drivers leave it is just going to have a massive impact. We can’t lose any of the profession to other industries.”
She said it is really important that they are able to run a service.
Councillor David Hughes raised the issue of deprivation and the cost of living crisis but said he had sympathy with taxi drivers as he could see what it costs to fill up the tank.
He said he would support an increase but not the full 50p proposed saying they’ve got to protect the public as well as protecting taxi drivers.
He said he would be happy if they came in line with RCT and the Welsh average.
The leader of the council Councillor Geraint Thomas said it was a “very very difficult decision” and that “we are living in difficult times”.
He said the taxi trade does very much need an increase to fuel their vehicles but on the other hand we are living in a cost of living crisis at the moment.
He said the 30p increase brings them in line with neighbouring authorities, adding they are “not deaf to the taxi industry” who are “more than welcome to come back to us again”.
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