Fare rise of 3.34% not enough, say taxi drivers

The proposal is currently out for public consultation to offer taxi drivers a first increase in two years, during which time they have suffered from lockdowns, reduced travel and reduced visitor numbers.

‘No one in the industry likes the idea of putting up fares. It impacts our customers, many of whom are pensioners on fixed incomes,’ said Simon Rebstein, director of Island Taxis.

‘But everything has gone up, including fuel. That’s the way life is.’

Sean Harvey, owner of Harvey’s Taxis and Coaches, said fuel prices have seen a big increase in the last year. He believes the proposed fare increase, which he said will raise fares by about 20p for a trip from St Peter Port to the airport, will not recoup losses from increased fuel expenditures.

‘We haven’t had a say or input in that figure,’ said Mr Harvey.

‘The industry needs to see massive changes. There are so many hidden costs of driving and owning taxis and we can’t compete against the Facebook taxis and the bus subsidies.’

Mr Rebstein agreed that change of some kind is necessary. He believes fuel duty in particular has hurt taxi companies.

‘I have been fighting for years to get subsidised fuel for public service vehicles but to no avail. The States think it is fair to penalise public service vehicles through the extortionate tax on fuel. I say extortionate because taxis are required to do 25,000 miles per year,’ Mr Rebstein had said previously.

Mr Rebstein explained that before 2008, his company would have paid around £250 per annum per vehicle in tax. Since road tax was abolished and the revenue stream replaced with fuel duty, he estimated, he pays more than £3,000 per vehicle each year through fuel duty.

He said taxi drivers must work 60-80 hours per week to make ends meet in Guernsey.

‘Even with this proposed increase, that won’t change,’ he said.

The proposal would effectively increase daytime fares for Monday-Friday by 20p from £7.10 to £7.30 for a two-mile journey, and by 60p from £13.30 to £13.90 for a five-mile trip.

Late-night fares for weekdays 10pm-7am and weekends 7pm-7am would increase by 40p from £9.90 to £10.30 for a two-mile journey and by 60p from £18.70 to £19.30 for a five-mile ride.

The minimum fare will remain at £4.50 and there is no proposed increase in the baggage charge of 20p per item.

The States of Guernsey calculated the figures with an established taxi inflation index, known as the ‘Halcrow Formula’, which is based 40% on taxi inflation and 60% on average median earnings.

. The public can submit comments on the proposed increase in writing or by email to traffic@gov.gg by 7 January 2022.