I thank the Chairman for inviting us. I have a short presentation on our mission, our outputs for the period 2005 to 2009, our Strategy Statement 2010-2014, new reforms for the small public service vehicle, SPSV, industry for the period 2010 to 2011, our current funding model, our resourcing and outsourcing, and some statistical information.
The mission of the commission, acting in the interest of stakeholders, is to provide a regulatory framework that enables compliant and professional SPSV licence holders to provide a first-class, efficient, safe, accessible and customer-friendly service. An SPSV can carry up to eight passengers and can be a taxi, hackney or limousine. The mission is also to facilitate access to SPSV services by all users, including people with disabilities; to promote increasing standards of quality; and to promote the integration of SPSV services into the wider public transport system.
The commission was established in 2004. Its initial five-year work programme, covering the period 2005 to 2009, focused on the establishment of a regulatory system based on qualitative entries and renewal standards for the industry. All standards have been phased in to allow existing operators to adopt this regulatory model based on high-quality standards. Consumers are happy with the level of supply and have noted an increase in quality standards as a result of the economic review undertaken in the industry in 2008 and published in 2009.
On page 5 of our submission, one will see the number of SPSVs before and after liberalisation. By the time the taxi commission was established, there were 20,744 vehicles nationally. This number increased to an industry peak in 2008 of 27,000 vehicles. The equilibrium we expected has occurred and the market has determined its own numbers. There are now 25,811 vehicles, which include taxis, hackneys and limousines right across the country.
For the period 2005 to 2009, our primary outputs included a national vehicle licensing system. A new national taxi meter area was introduced and a new national maximum fare was established. The first such fare was introduced in 2006. We reviewed it in 2008 and again this year. We introduced a new national and secure driver identity card that must be displayed on the dashboard of a vehicle, and a small smartcard that drivers must carry. We established and maintained a national register of vehicle driver and dispatch operator licences. We introduced a new dispatch operator licensing system and a wheelchair-accessible vehicle register. Joint administration of driver licensing with the Garda was achieved and a national complaints system was established. New vehicle standards were published and new driver standard requirements were put in place.
For the period 2005 to 2009, our primary outputs in terms of compliance included the recruitment of a dedicated enforcement team, the introduction of a new fixed-charge penalty system, a national prosecutions function, and joint operations with other enforcement agencies such as the Revenue Commissioners, the Department of Social Protection and the Garda. Consumer complaints were investigated and we collected and disseminated statistical information on compliance levels.
With regard to industry data collection and information provision, we have an industry information line, a consumer information line, industry and consumer publications, a dedicated website, a national consumer complaints process and in-vehicle information for consumers. Regulatory impact analysis is carried out before making any decisions. Taxi rank planning guidelines for local authorities have been drawn up and statistical information on the industry in Ireland has been collated and distributed as required.
Our key five objectives for the period 2010 to 2014 are to continue to develop and maintain the regulatory framework for the SPSV industry in Ireland; to facilitate access to high-quality SPSV services by all users, particularly those with disabilities; to enhance quality assurance for SPSV users and service providers; to partner and engage with stakeholders to progress statutory and strategic objectives; and to promote the integration of SPSV services into the wider transport system.
For the period 2010 to 2012, the new reform package announced was the issue of wheelchair-accessible licences only from 2010. This commenced in June 2010. The rationale involved the provision of accessible services to all consumers and ensuring that the commission reaches its accessible services target of 10%.
There is now no further transferability of new taxi licences, and that is to reduce second-hand market activity in regard to the standard licences. Transferability of current licences is restricted in that a person with an actual taxi licence who had a legitimate expectation to transfer a licence can do so once more, but only to a newer vehicle.
Our nine-year age rule for standard taxis and hackneys has been fast-tracked to 2011. This rule has been fast-tracked to this year for anybody changing a vehicle. We have driver standards allowing for incumbent drivers to undertake the skills development programme, which is being rolled out by the commission. That is fast-tracked and is to be undertaken by all drivers to increase driver standards by 2012.
Prior to making any decision for the industry, we undertake an onerous consultation process. On page 10 of our presentation, members will see the various consultation processes we have undertaken since 2005. These included the national review of vehicle standards and services, public consultations regarding taxi meter areas, taxi fares, vehicle standards, transferability of licences, an economic review of the impact of liberalisation of the market and another maximum fare review in 2010.
Following our onerous consultation processes, we carefully consider all submissions. We meet stakeholders nationally, including representative bodies of the industry. We receive advice and input from the advisory council to the commission, which has representatives from stakeholders including local authorities, the Garda, consumers, people with disabilities, tourism bodies, the Competition Authority and the Road Safety Authority.
The effects of liberalisation of the market on consumers include shorter and often no waiting times and a national and easy-to-understand fare structure. Consumer services are available from the commission, including complaints facilities, a dedicated information line, in-vehicle information and a website. Telephone booking is now the preferred method of hiring, as our research of recent years and of this year on the fare review demonstrates.
With regard to peak demand, 85% of trips take place between Thursday and Saturday. However, people with disabilities are still receiving a poorer service. Regarding our promotion of services for people with disabilities, our key objective is to make 10% of the fleet accessible. We have made several submissions to the Department of Transport seeking financial assistance to increase the proportion of the fleet that is accessible. Currently 6% of the fleet is wheelchair accessible and our goal is to increase it to 10% and upgrade the currently accessible fleet.
A new category of wheelchair-accessible hackney was rolled out this year. Operators with wheelchair accessible vehicles must prioritise service for people with disabilities. There is no additional charge for people with mobility aids or assistance dogs. We also have disability awareness training for drivers, designed with input from people with disability, as part of our skills development programme. We have investigated the extension of travel concessions for people with disabilities — free travel or voucher schemes — with the Department of Social Protection. We are considering how tactile and Braille licensing number testing can be put on all the equipment in the future. All our commission publications are in a variety of formats.
On the effects of liberalisation on the industry, drivers are working longer hours to achieve their income targets. A 2008 survey showed that full-time cab drivers experienced a reduction in real earnings of approximately 5% between 2005 and 2008. Our research this year — part of the fare review — showed that earnings have been significantly further reduced. Garda and commission enforcement activities have indicated low levels of non-compliance and an increasing level of price competition has taken place, with evidence of price discounting by despatch operators. There has been a significant decline in the number of active small public service vehicle licence holders as the market has reached the equilibrium I demonstrated on the graph earlier.
The range of services provided by the commission for industry members will include a dedicated industry information line, a website, a publication, quarterly industry news letters, strategy statements, action plans, corporate publications, regulatory impact analysis and information guides. We promote the increasing consumer use of the small public service vehicle services by advertising campaigns for the industry and we provide vehicle licensing services, despatch operator licensing services, driver identification cards and a compliance hotline for the industry.
The illustrations on page 14 show the difference prior to and since liberalisation. Inadequate supply has been addressed by good supply and long waiting times have been reduced so that we now have satisfied customers. Previously, there were more than 80 licensing authorities around the country. Now we have one licensing authority with a national licensing system. We had different taxi fares locally, but now we have a national maximum taxi fare. We had different taxi meter areas, but we now have a national taxi meter area. Consumers lacked understanding due to inadequate awareness. We now have enhanced consumer awareness and a dedicated website. There was a poorer service for people with disabilities, but we now have an increased supply of wheelchair accessible vehicles and we hope to increase that number in the future. In the past there was inadequate enforcement; we now have stronger enforcement with a dedicated team working closely with the Garda.
In the past there was no ongoing change in vehicle standards; we have now published new vehicle standards. There was no up to date training for the industry; we have now introduced a new skills development programme. There was no licensing requirement in the past for despatch operators — cab companies that provide booking services — but we have now put in new requirements for despatch operators. There was no national register of licences in the past; we have now compiled a new national register of vehicle licences, driver licences and despatch operator licences. All our publications are now in accessible format and for the first time we now have a centralised website for all information for the industry.
With regard to our current model of funding, we are a self-financing independent regulator. Our income comes from licence fees. The Taxi Regulation Act 2003 provides for income from licence fees to accrue to the commission. Currently, fees are collected from vehicle licensing, driver licensing and despatch operator licensing. Fixed charge penalties are also paid to the commission. Income from fees can be applied for the purpose of meeting the expenses of the commission. Any surplus income shall be disposed of in a manner determined by the commission with the agreement of the Minister for Transport and the Minister for Finance. We have surplus income available currently. As provided for by the Taxi Regulation Act, the commission submits its accounts to the Comptroller and Auditor General for audit, following which the annual report and financial statements are provided to the Minister for Transport. In terms of financial management, we have compliance with public sector financial management principles, with internal audits carried out regularly. The Comptroller and Auditor General audit takes place annually and we will continue to introduce savings across all expenditure programmes.
The commission has a resourcing and outsourcing model. We have a small dedicated team of staff to meet the commission's statutory objectives and to ensure daily effective operations, including customer services for licensing and information, project management, complaints, enforcement operations, a legal service that includes regulatory, advisory and prosecution services, corporate management to include financial controls and risk management, management of outsource services and internal organisation requirements. The three core areas of licensing are: vehicle licensing, small public service vehicle driver licensing and despatch operating licensing. With regard to outsourcing, we have outsourced a national vehicle licensing system, a national driver testing system, contact management, administration for courts, driver identification, IT development finance support and HR support.
The presentation document shows some statistics for the committee. The majority of licences are taxi licences and these make up 74% of the fleet. There are 25,811 active vehicle licences up to September 2010. Some 6% of these are for wheelchair accessible vehicles, 5% are limousines and 15% are hackneys. The number of licences increased from 13,000 in 2000 to 20,744 when we took over licensing in 2004 when the commission was established. The peak was in 2008 and there has been a decrease in active licences since 2008. Page 21 shows there has been a decrease in people coming into the industry since early 2008 and there are practically no new entrants to the industry now other than those driving wheelchair accessible vehicles. Page 22 deals with the issue of active driver licences. Not all licences are active. Many people have small public service driver licences but do not necessarily operate in the industry. There has been a decrease in the number of active licences and in the number of people renewing licences over recent years.
On compliance statistics, we had more complaints in 2008. The number of complaints decreased in 2009 and the decrease has continued in 2010. There has been an increase in fixed charge penalties between 2008 and 2009. Prosecutions have decreased since 2008 and have reached their lowest numbers in 2010. In the area of enforcement, in 2009 there was a total of 118 operational compliance visits across the country. Some 36 of these were joint operations with the Garda Síochána. Therefore, for a dedicated team of nine enforcement officers, a significant number of enforcement operations have taken place. The enforcement team is also responsible for investigating complaints. To date in 2010, there have been 110 operational visits, 49 of which have been with the Garda Síochána and 16 of which have also involved Revenue and the Department of Social Protection. The final statistics relate to our consumer and industry telephone lines. As can be seen, a considerable number of calls take place, with a maximum of 77,000 calls already received this year from the industry to our industry line.
I thank the committee and am happy to take any questions.
