Bolton does not have “enforcement powers” for “out of town” taxis that have been licenced by other councils; town hall has heard.
In recent months and years an increasing number of taxis operating in Bolton have been doing so with out-of-town licences, particularly from Wolverhampton.
This has meant that the public have had to rely on those other authorities, rather than Bolton Council, acting on reports of alleged wrongdoing.
Addressing a town hall meeting Cllr Ryan Bamforth, of Horwich North, said: “I'm currently chasing up complaints from residents who have outstanding concerns.
“It seems to be a loophole for many to go to what would appear are a less strict local authority to be able to operate here in Bolton, taking away the term local, and in some ways making our licensing department potentially redundant on this matter.”
If taxi licences are granted by Bolton Council then the authority has the power to investigate and take enforcement action if members of the public have complaints.
But they cannot do so if taxis have been licenced out of town and must instead rely on those other councils that granted the licence taking action.
Addressing a full meeting of Bolton Council, Cllr Bamforth asked what enforcement if any the authority can take against taxis like these.
In response, council cabinet member for regulatory services Cllr Sue Haworth said that all three licences for a private hire vehicle “the trinity of licences” must be granted by the same authority.
She said that Hackney carriages had the freedom to take up contracts or pre-booked work in any area but could only “rank” in the area where their licence was granted.
Cllr Haworth the Deregulation Act of 2015 had allowed private hire operators the right to subcontract bookings across different council boundaries.
This also allowed private hire or Hackney carriages that were licenced by one authority to work wholly or partly in another area.
Cllr Haworth said: “This is the reason out of towners, as they are often referred to, can work in the Bolton area.”
She added: “Bolton Council unfortunately does not have enforcement powers for Hackney carriage and private hire licences issued by another licencing authority.
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“What we do is forward details of any wrongdoing to the relevant licencing authority that issued the licence and rely on that authority to investigate and take appropriate action.”
Cllr Haworth said the changes to regulations had been “contentious” within licencing departments.
But she said the Greater Manchester Combined Authority were making the case for strengthened licencing regimes.
Cllr Haworth said this was expected to appear in a forthcoming white paper on English devolution.
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