A TWO-year ban on issuing new hackney carriage licences in Bolton has led to cabbies getting a premium price when they sell their cabs.

Bolton Council clamped down on the number of black cabs on the town's streets after appeals from the Taxi Drivers Association that too many cabs meant that drivers were struggling to make ends meet.

Until September, 2002, hackney carriage licences were issued to anyone whose vehicles satisfied criteria and passed necessary tests.

Bolton licensing committee decided not to increase the 106 licence plates already in existence and a survey it commissioned confirmed that demand for cabs in Bolton was already being met.

The restriction on licence plates remains in force.

Drivers who wish to leave the business are now able to sell their cabs for much more than the vehicles are worth because the taxi plates remain with the vehicle.

Drivers are cagey about the additional value the licence plates bring but there have been suggestions that it could be several thousand pounds.

Demand for taxi licence plates is high and Bolton Council has a waiting list of 41 people for new licences.

Andrew Fisher, Bolton's head of licensing, said: "We have no plans to issue more licences in the immediate future but we will review the position in 12 to 18 months."

While black cab drivers have benefited from a limited supply of licences, Charles Oakes, general secretary of the Bolton Hackney Association, said the restriction can lead to benefits.

He said that because drivers are more positive about their potential income, they feel more confident about investing in their businesses.

And he said old cabs are being replaced with newer, up-to-date vehicles at the town's taxi ranks, offering a better service to the public.

He also defended the increased prices owners of cabs are now able to get when they sell up.

He said: "If people out there have done good work and built their business up, then something drastic happens and they cannot work any more, why shouldn't they get something back?"

He said that someone coming into the industry and paying a premium price for a licensed cab will have more of an incentive to have high standards.

"If someone pays £10,000 for a cab and plate, they will have to work at it to get their money back and will give a better service," he said.

Although there are currently no plans to end licence restrictions in the town, the Office of Fair Trading has produced a national report recommending limits should be dropped to increase competition among taxis.

But the Government is not keen on accepting the recommendation and the issue is currently being looked at by a Parliamentary committee.