Taxi fare rise of over 3% proposed
TAXI drivers have welcomed what they describe as a well-overdue proposed taxi fare increase of over 3%.
The Guernsey Taxi Federation president Leon Gallienne said he was pleased to see proposals put through by Environment & Infrastructure for an increase to taxi fares of 3.09% to reflect the increasing costs of running a taxi service.
He said the increase was well needed and would be well accepted.
‘This rise will help towards increasing operating costs for taxis,’ he said.
‘In the last two to three years there has been an increase of £3,000 to our fuel costs, these are extremely high and what with running costs trebling and the price of servicing going up, this increase is well overdue.’
Over the 12-month period ending 30 June 2019, taxi operating costs increased by a total of 2.78%, with fuel costs increasing by 3p per litre.
Other increases were also experienced in vehicle purchasing, servicing and maintenance costs.
The increase in average median earnings was 3.3% at the end of 2018, lifting the proposed increase to 3.09%.
It has been a year since taxi rates were reviewed and in order to facilitate the latest fare proposals, E&I is also proposing that the charge set on the meter before any journeys commence – the initial standing charge – is increased and, in return, the minimum distance travelled before the first additional 20p fare increment is charged, would increase from 0.14 miles to 0.79 miles.
As fares increase in increments of 20p – some fares will increase by a higher percentage than others, depending on the tariff selected and the distance covered.
Mr Gallienne said the standing charge had not seen an increase in over 10 years.
‘It is a reasonable proposal and it is needed,’ he added.
‘Companies and taxi drivers are finding it increasingly difficult to make ends meet, in fact in order to get a decent wage many individuals work 50-70 hours a week, there isn’t any job really that requires that.
‘The proposal increase probably won’t make us even yet, but it will help.’
The 3.09% figure has been calculated in accordance with an established taxi inflation index, known as the Halcrow Formula, which is based 40% on related inflation and 60% on median earnings.
Taxi fares are reviewed annually, with the last changes made in January 2019.
There are no proposed changes to public holiday surcharges or baggage charges.
A formal notice summarising the proposed fare increases has been published in La Gazette Officielle in page 39 of today's Guernsey Press.
Should any member of the public wish to comment on the proposed fare increase, they should do so by Wednesday 22 January 2020 in writing to traffic@gov.gg or to their Bulwer Avenue Office.
