There is much grist for the mill in TfL’s recent proposals as part of the private hire regulations review. Much of that I’ll leave for another day but there are a few disturbing issues arising that need immediate illumination.
Steve Wright, Chair LPHCA & TfL board member
The Wright family business and Addison Lee mouthpiece aka LPHCA (Licensed Private Hire Car Association), submitted some ugly proposals some of which TfL have now included in the draft proposals much to their mutual shame. Take this gem from the LPHCA:
Bank accounts of licensed private hire drivers in London should be located in the United Kingdom. It is submitted that if a booking is for a private hire vehicle in London, through a London private hire operator, for a journey in the United Kingdom then financial payments to that private hire driver should be into a United Kingdom bank account. This ensures traceability of the transactions thereby mitigating potential tax evasion and / or risks of funds supporting foreign terrorist organisations. The LPHCA formally requests that this requirement be added as a condition to private hire operator licenses.
This is nothing more than xenophobic clap trap that has no place in TfL regulations nor is it any business of LPHCA members such as Addison Lee how their workers spend their hard earned income. It is an echo of the ‘dog whistle’ politics of hate Nigel Farage made in his intervention in this debate last month.
Its a fact that immigrants the world over send remittances to support families back home and its been going on for centuries. So, is every Filipino nurse, every Ghanian doctor, every Pakistani engineer, every Polish driver sending money home a suspected tax evader and terrorism sponsor? What evidence does Addison Lee and LPHCA members have to support this risk assessment? Is there are any real evidence or are these ideas driven only on prejudices? As for tax evasion, I can attest many of us already live in a tax haven because with net incomes well below minimum wage, many of us are not anywhere near busting the taxable income threshold. Our incomes are taxable here in the UK where earned and will always be. It is entirely irrelevant where payment is deposited even if drivers choose foreign bank accounts just so as to reduce exchange and transfer costs.
The hypocrisy of Addison Lee, a Carlyle Group holding, standing behind the LPHCA on restricting driver payments abroad is staggering. Last year the International Consortium of Investigative Journalists named the Carlyle Group as one of a group of large corporations taking advantage of secret deals with Luxembourg to shelter from tax in that jurisdiction. (I guess the subtle message to pleb drivers is ‘leave the off shoring to us big boys’.) If Addison Lee is to support the LPHCA on this as a matter of principle perhaps it might put its own house in order before bringing unwarranted regulatory scrutiny to their own zero hours drivers.
Yet despite the apparent threat we pose to Treasury coffers and to national security LPHCA members are oddly attached to us. So much so, in fact, they want to have the regulator mandate that we are only allowed to work for them one operator at a time only.
A new condition be added to private hire drivers’ licences requiring their formal registration and attachment to a single private hire operator (“one driver, one operator”) at any one time. Recent events have shown private hire drivers to be working for multiple private hire operators. This has resulted in a loss of reasonable control over some private hire drivers who are working an unsafe number of hours and whose geographical movements are simply unknown. This leads to various concerns (including amongst others) public safety. The LPHCA submits private hire drivers should be required to obtain formal written permission from a sole private hire operator, at point of licensing, from whom they will receive bookings.
Yes, LPHCA members want to have ‘control’ over us despite the fact they do not want to offer us the security of full employment tenure with benefits or observe our workers rights. It is simply unacceptable that the operators would look to restrict the labour market while offering such poor pay and benefits in return. And why on earth do LPHCA members want to monitor my ‘geographical movements’? What are the ‘various concerns’ unnamed that makes LPHCA members so fearful of their workers? I have to agree that excess hours is a risk but perhaps a more reasonable, market based solution is in order. Here’s a market innovating idea – how about competing for driver labour with better payment, benefits and conditions? Or if Addison Lee and the rest of the LPHCA member base really want to make sure their drivers are paying tax, how about employing them directly and withholding the tax for PAYE? No? I didn’t think so.
Alas these operators seek to rely on TfL as regulator to fix the market with a measure that amounts to something approaching the prevailing modern slavery definitions of forced labour. I exaggerate not. It wants flexible employment terms for itself but to fix the options for us.
Even more shocking is that these twisted ideas from LPHCA have made it into the final TfL draft regulations consultation document.
Drivers to only work for one operator at a time
A number of consultees suggested that PHV drivers should be restricted to working for only a single licensed operator at one time. This proposal would reduce the risk of drivers working excessive hours for a number of different operators. It also will assist enforcement and compliance activity because there would be more certainty as to whom a driver is undertaking bookings for at any particular time. There will be no restriction on the number of times that a driver changes the operator they are working for.
Proposal We proposed to make it a requirement that a PHV driver must be registered to a licensed operator and may only be registered to a single operator at any time.
Yet, while the LPHCA seeks regulatory force to restrict employment options, when it comes to investment in this captive block of human capital all bets are off. Addison Lee advised TfL that ‘the market should determine the appropriate training’. This tells you all you need to know of the contempt LPHCA members hold for the people who literally drive their business. Uber is not an LPHCA member and while they behave absolutely ruthlessly when it comes to earning a shilling, I’ve never heard of drivers being treated with the hatefulness exhibited in these submissions.
But the fun doesn’t stop here. Beyond the LPHCA other consultees have managed to plant even more scrutiny on top of private hire drivers. According to the TfL draft regulations consultation:
Driver and Operator licence applicants to provide National Insurance numbers and share with Department for Work and Pensions (DWP)
A number of consultees suggested that applicants for a PHV driver or operators licence should be required to provide their National Insurance number as part of their application. Operators are already required under regulation 13 of the Operator Regulations to record the National Insurance number of any driver carrying out bookings for them. Whilst a National Insurance number is not proof of identity, it does provide an additional safeguard to other identity checks. Furthermore, the information could be of use to the DWP to assist any relevant investigations.
Proposal We propose an application requirement to provide a National Insurance number for private hire driver and operator licences (where the operator is an individual).
So there you have it – not only are private hire drivers geograhically shady, in need of control, tax cheats and terrorism sponsors, it turns out TfL believes we are likely benefit cheats as well.
The UK already has a tough anti terrorism, tax evasion, welfare fraud and money laundering regulatory framework. There is no need for TfL’s intervention here and if chooses to do so then we must demand the same measures for taxi drivers
I realize this blog post is somewhat more reactionary than usual but I was genuinely shocked upon reading the LPHCA and TfL documents. The hateful way 87,000 innocent people are regarded by their regulator is beyond comprehension. However, it does go some way towards understanding the mindset that brings us Operation Neon and a senior TfL board members who see us only as ‘potential sex attackers’. How any of the measures discussed here will help save the taxi trade or keep London moving is beyond me. Frankly, we have in the midst of our great city an out of control regulator and operators who are determined to act with impunity to trample over the most basic rights of workers. Private hire drivers are in urgent need of organisation and representation to turn back this tide of hate.