100% agree with you, I don't have the answer but I'm sure there is one. But it would not come from the Government or Councils Officials as they are in glass houses and don't see the real world.
I'm sure if the Taxi's were part of the licensing structure they would be able to improve their trade as they are the ones that know how it runs. Anyone caught operating illegally I would propose their vehicle is seized. You can chip and pin number plates, scanned vehicles operating with out them vehicle seized. The situation can be resolved not 100% but at least making it very hard for the illegal person to operate.
On the licensing committee which governs Taxi's etc are the Councillors which you vote for. They have the power to make changes. There is a code of conduct for Councillors, I would use this as ammunition. We have already called for the removal of a Councillor from a Committtee. You need a Committee that will represent the Industry on the Committee, maybe that is what the Taxi drivers need to do is have the Committee in Birmingham removed.
These are my thoughts which can be done.
In Scotland the Committee are acountable and no one has ever challenged that. There are ways of removing them but that is the last option. And I would be confident if the taxi drivers took the Council to court they could seek compensation. The key is "standards of service".
If they fail that you can sue them
You may wonder why I'm confident in this. To cut a long story short if you live in a Council flat you pay service charges. I took the Council to Court and won substantial damages. By studying the law and the standards of service they offered which they failed, so I had the right to sue.
This is the same way I am handling the Councils in Scotland. Hope you understand what I am trying to put accross. Sometimes what I'm trying to say doesn't come out right.
Cheers
Doug