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Dáil Éireann debate -
Tuesday, 27 May 2003

Vol. 567 No. 5

Taxi Regulations.

On 21 November 2000, the taxi industry was deregulated overnight. Since then hundreds of families have suffered considerable financial loss and many are experiencing significant personal financial hardship. These are the facts of life for them today. Since then they have lobbied to have their plight recognised and adequate compensation awarded to them. To date they have been literally ignored, disregarded and treated with contempt by a Government whose decision to deregulate the industry was a politically motivated quick fix that failed to acknowledge the problems that would arise from such a short-sighted approach.

Overnight, the value of a taxi licence dropped from approximately €100,000 to about €6,500. No system was put in place to provide for those who were obliged to mortgage their homes and the future of their families to secure employment. An unsuccessful applicant in 1999 was told that if he wanted a taxi licence his only option was to purchase an existing one. It cost £77,000 and £3,000 was paid to Dublin Corporation to transfer the licence at the time.

Despite the best efforts of many of the genuine, hard-working taxi drivers, the industry has deteriorated since deregulation. While the number of taxi plates has increased nearly threefold to 10,000 in the Dublin region, the morale of workers in the industry has dropped. Many of the new part-time taxi drivers only venture out at the weekend. Drivers who remortgaged their homes are obliged to work 12 to 14 hours a day, six days a week to exist and pay their mortgages. This is having a drastic effect on family life.

The group entitled FAIR, Families Advocate Immediate Redress, brought its case to the European Union. The EU committee on petitions appointed a fact-finding delegation, which visited Ireland and made recommendations. The committee's report stated that without questioning the right of the Government to deregulate, it is clear that the original hasty decision was not a clearly thought-out response to the problems which existed in the industry. Further, the delegation was of the view that individual rights had not been fully recognised in dealing with the matter and were critical of the delay in resolving the individual cases of hardship.

Some 30 months have passed since deregulation and there is still no progress to report. This is an utter scandal. The EU delegation recommended that the proposals of the taxi hardship panel should be reviewed by the Oireachtas Joint Committee on Transport and by the Minister for Transport in light of the findings of the report and that new proposals should be made to the Government.

What has the Minister done to date? He gave a commitment to the delegation that he would meet the Oireachtas Joint Committee on Transport to discuss proposals from the taxi hardship panel with a view to making new proposals to the Government on the levels of compensation. Thus far, he has failed to do so and all the indications are that he intends to renege on his promise.

To date, the proposed taxi regulator has to be appointed and the relevant legislation will not be in place prior to the summer recess. Were the legislation to be published, that, at the very least, would represent some progress. When can the families who have suffered as a result of deregulation expect to receive adequate redress? They include families that borrowed large sums of money to buy into a Government-regulated industry in recent years, widows, drivers approaching retirement, the sick and the infirm.

Some Fianna Fáil TDs and councillors conned taxi drivers over the years. The least they could do now is ensure there is a commitment by the Minister to bring this issue to a satisfactory conclusion. The current situation is untenable and if the Minister is not prepared to meet the rightful demands as acknowledged by the EU petitions committee's report, we could well see the membership of FAIR having to take to the streets again to obtain a satisfactory outcome to their case. The Government has a political and moral responsibility to address this matter.

In 2000 Government efforts to provide for a substantial increase in Dublin taxi licence numbers to meet the demand for such services led to High Court proceedings. The subsequent October 2000 High Court judgment created the legal position that limitation of taxi licences in the interests of existing licence-holders could not be sustained. The Road Traffic (Public Service Vehicles) (Amendment) (No. 3) Regulations 2000 were made to respond to the new legal reality and sought to establish orderly licensing arrangements in that context.

The courts clarified on a number of occasions since 1992 that there can be no legal duty on the State to compensate taxi licence-holders in relation to the open market value of licences. However, in excess of 1,000 individual claims for damages or compensation arising from the October 2000 High Court judgment and the introduction of the new taxi-licensing regime have yet to come before the courts.

The Government recognised that some difficulties might be caused by the new taxi regime for some existing taxi licence-holders, and it is appropriate to acknowledge the efforts that have been made to address those difficulties.

It was recognised that, given the many changes which were taking place, certain of those who had recently become holders of taxi and wheelchair-accessible taxi licences would be in the position of having paid much higher licence fees to local authorities than those which now obtained. Accordingly, arrangements were made for the introduction of a scheme of refunds by certain local authorities regarding taxi licence fees charged at above the default level fixed by the Public Service Vehicles Regulations 1995.

Additional mitigating measures were included in the Finance Act 2001, which provided for a new scheme of capital allowances for expenditure incurred on the cost of taxi licences acquired on or before 21 November 2000. The Act included specific provisions targeted at addressing some hardship cases that had been brought to the attention of the Minister for Finance.

Following persistent claims that certain taxi licence-holders suffered extreme personal financial hardship following the November 2000 changes which may not have been fully addressed by the mitigation measures already put in place, the Government decided in February 2002 to approve the appointment of a panel of three independent persons.

The taxi hardship panel was asked to report in general terms on the nature and extent of extreme personal financial hardship experienced by individual taxi licence-holders arising from loss of income as a direct result of the liberalisation of the taxi-licensing regime on 21 November 2000, including an estimate of the numbers of individual licence-holders involved, the likely financial implications and the recommended criteria for assessment of extreme personal financial hardship under any subsequent proposed response by the Government.

On 17 December 2002, the Government approved the phased implementation of the recommendations of the taxi hardship panel. The report of the taxi hardship panel recommends the establishment of a scheme to provide payments to individual taxi licence-holders who fall into one of six categories that the panel assessed as having suffered extreme personal financial hardship.

The design and administration of a scheme to implement the recommendations of the taxi hardship panel and the arrangements to facilitate the making of payments to eligible persons are being expedited to ensure that applications are dealt with confidentially and objectively. Every effort is being made to put in place a structure to facilitate the commencement of payments on the basis of the panel recommendations as soon as possible.

On 19 November 2002 the Government approved the establishment, initially on a non-statutory basis, of the Office of the National Taxi Regulator. In that context, the preparation of the necessary legislation to support the establishment of a Commission for Taxi Regulation is proceeding as a matter of urgency in the Department of Transport.

As an interim measure, an interim chairman of the commission has been appointed pending the recruitment of a statutory chairman, and Mr. Farrelly has commenced a series of detailed consultations with those involved in the taxi, hackney and limousine industry, local authorities, the Garda Síochána and other interest groups with a view to assessing and addressing those issues relating to standards in the industry. The Minister for Transport has also asked Mr. Farrelly to expedite, as a priority, the implementation of the findings of the taxi hardship panel report.

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