Draft guidance on taxis is due to be issued in the next year
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Taxi drivers on Wearside claim they are being penalised because they are not allowed to pick fares up in Sunderland.
Currently, hackney carriage drivers from Washington, Hetton-le-Hole and Houghton-le-Spring are limited to picking up in towns.
They say they want to work in Sunderland City Centre at some periods.
Sunderland City Council says its hands are tied on the issue at the moment but a review of taxi licences is being carried out.
Cab driver Mick Buckingham said: "Basically it's a rule by the Sunderland taxi licensing committee - any hackney carriages operating in the area of Washington, Houghton-le-Spring or Hetton are not allowed to pick up fares in Sunderland.
Achieve balance
"Seeing as how everyone is licensed by the City of Sunderland Council anyway and all pay the same licence fee it seems just a daft rule."
He said the explanation they had been given was that if that was not enforced, the outlying areas would not be covered by enough taxis.
But he said at the times the drivers were pushing for to work in Sunderland - 2300 GMT to 0500 GMT Thursday to Sunday - there was not enough work in the outer areas.
Sunderland Trading Standards and Licensing Manager Tom Terrett said: "The law wouldn't allow them to become, for example, a part-time hackney carriage in the Sunderland zone - it simply isn't set up like that."
He said their surveys showed that queues in Sunderland were not excessive and they believed they had achieved a balance between that and not having traffic problems caused by too many vehicles waiting.
He said they had been told the Government would be issuing draft guidance in the next year which might include zones for hackney carriages.