Southampton cab driver to make huge profit on taxi licence (From Daily Echo)

Southampton cab driver to make huge profit on taxi licence

12:00pm Thursday 4th February 2010 in

By Matt Smith » Politics and business reporter

Skip social links
Print
Email
Comments(36)

THE owner of a new Southampton taxi plate is trying to sell it for a £30,000 profit just weeks after it was virtually given away by the council in a lottery-style draw.

Shouyb Mohammad Yaqub beat 342 other applicants to win one of four £180 Hackney Carriage licences issued in December.

But he has now put his money spinning taxi plate, together with a £25,000 seven-seater wheelchair friendly taxi, on the market for £55,000.

Defending the sale of the plate and Citroen car, a‘59 registration with 5,000 miles on the clock, Mr Yaqub said: “It’s a good deal. I will sell to whoever wants to buy it.”

Last night taxi trade chiefs accused him of profiteering and said he could have prevented a genuine driver from entering the trade.

Southampton Hackney Association chairman Ian Hall said: “Selling for profit is not the right way to go about this. I think it’s disgusting, “These people are trying to make money out of our trade by buying and selling plates. I find it very distasteful. It’s stopping genuine people coming into the trade.”

Mr Yaqub, of James Street, St Mary’s, denied profiteering, insisting he had no intention to sell up when he won his licence.

He said he was now moving to Australia, although refused to discuss his reasons why.

Yaqub claimed he had already received an upfront cash offer of more than £40,000 with the balance to be paid in six months, but was holding out for more. His taxi was being offered for sale through a notice at the offices of Radio Taxis, a leading city cab firm.

The Daily Echo revealed in September how taxi plates were fetching up to £35,000 on the open market, but legally the council could only charge £180 per licence when issued to cover its costs.

The number of hackney carriage taxis, cabs that can be hailed in the street, had been limited to 263 in Southampton. But a survey found "significant unmet demand" and councillors agreed to issue 20 new plates.

Twenty names were picked from a hat in a draw held behind closed doors.

In a bid to limit abuse of the system, licensing bosses demanded applicants prove they had the £20,000 needed to put a taxi on the road.

But a council spokesman admitted that once the licenses have been issued the authority has no say in when it can be sold on or who to.

Matthew Elliott, chief executive at the Taxpayers' Alliance said it was “ludicrous” that taxpayers could not cash on the taxi plates.

“These plates are worth a small fortune, money that could make a real difference to council tax bills or public services. The law needs to be looked at.”

Four of the winners were issued with their plates in December. Eight more plates will be issued at the end of this year with the remaining eight issue in 2011.

Comments(36)

G0Rf says...
12:06pm Thu 4 Feb 10

what a joke.

they should have sell on clauses....like football players do!

council get a cut if u sell it on

hahah security word town-kind...yes very kind to these taxi drivers!