Dáil Éireann Debate, Thursday - 27 May 2004
7 Mr. Quinn asked the Minister for Transport his views on whether payments to families who suffered serious financial losses as a result of overnight deregulation of the taxi industry are sufficient to alleviate the hardship experienced by these families; if he has plans to increase payments to these families beyond that recommended by the Taxi Hardship Panel; and if he will make a statement on the matter. [15909/04]
View answerThe taxi hardship payments scheme is based on the recommendations and parameters set out in the Taxi Hardship Panel report, as approved by Government.
The Taxi Hardship Panel was an independent, three-person panel established to report in general terms on the nature and extent of extreme personal financial hardship that may have been experienced by individual taxi licence holders arising from loss of income as a direct result of the liberalisation of the taxi licensing regime. No prior parameters were imposed in regard to the recommendations the panel might make. It was, however, made clear at the outset that based on legal precedent there can be no legal duty on the State to compensate taxi licence holders in regard to open market licence values that may have existed prior to liberalisation. Some 2,000 submissions were received by the panel and the panel also met with taxi representative groups and with some individuals who made submissions before finalising its report.
The report of the panel recommended 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 arising from taxi liberalisation. The payments range from €3,000 to €15,000 depending on the category of hardship involved. The Government approved the implementation on a phased basis of these recommendations. The payments in question do not represent compensation but rather compassionate payments in respect of extreme personal financial hardship.
I have no proposals to re-open either the terms of the Taxi Hardship Panel report or the Government's decision in regard to it in so far as the recommended payment levels for each category of hardship are concerned.
It is generally accepted there is a category of licence holder who was not adequately catered for by the Taxi Hardship Panel. It is those families who invested in taxi licences before deregulation. Those licence holders find it difficult enough to make a living, given the flooding of the taxi market, let alone make the repayments on what, in some cases, are substantial loans they would have taken out. Some licence holders would have taken out loans up to €100,000 on which the repayments are in excess of €900 per month. They are the real victims. The numbers involved are not large, but they are a category of people who are suffering serious hardship as a result of the Government's action.
Will the Minister explain how the hardship a family in those circumstances is suffering will be alleviated through the payment of €13,000? Does he accept such a payment is wholly and utterly inadequate in alleviating such hardship? Will he again reconsider this category of licence holder because they are experiencing real hardship. The families concerned are experiencing great difficulties. Some of them have to sell their homes, some are experiencing marital difficulties and some have to cope with alcohol abuse because of the enormous stress they are under as a result of deregulation. I appeal to the Minister in the strongest possible terms to reconsider this category and how they might be further assisted.
As the Deputy is aware, we had this discussion at a recent committee meeting. Whatever personal sympathy I might have for the category to which the Deputy referred — one would have to have sympathy for the case she laid out, assuming she has put forward a factual case — I have been presented with an independent report by Bill Attley, Kevin Bonner and Ann Riordan, three independent persons who came before the relevant committee recently. They went about their work diligently and professionally and produced a report. They met the groups and went through an entire process and recommended to Cabinet what type of compassionate payments might be made. The Cabinet accepted that recommendation without changing it and has stuck to it ever since.
Some €8 million has been paid out to date to more than 660 applicants. As I said at a recent committee meeting, that figure is expected to double or even treble depending on how it works out in the end with ADM which is operating the scheme. It is best to proceed to make the payments as quickly as we can so that we can help as best we can those who have suffered hardship. The independent three-man panel made clear that the hardship payments scheme is not meant to remove hardship but to make a contribution to alleviating it.
Will the Minister confirm that the figures that have been set by the taxi hardship panel are the maximum amounts to be paid out? Will he confirm that people will be paid less money as a proportion of the hardship involved? If it is the case that someone who paid €127 for a licence will be eligible for a payment of up to €13,000, whereas someone who paid up to €100,000 will be eligible for up to €12,000, how does the Minister square the circle? It does not seem to tally with his definition of extreme financial hardship. That is part of the discrepancy, as is the fact that people receive €5,000 for dependent children. The figure seems to be the same regardless of the number of such children.
Does the Minister not agree that there appear to be serious flaws in the hardship report? I refer to the manner in which the calculations are made to determine extreme financial hardship, as well as the criteria used to decide who should receive hardship payments.
Does the Minister agree that there is a great deal of hardship, especially in the Dublin taxi market, as a consequence of the number of taxis that are operating, many on a part-time basis? Does he agree that the problem would be solved if some type of entry standards were set? I would prefer if one of the standards was that taxis should be accessible to wheelchairs. An entry standard would, at least, help those full-time professional taxi drivers who have been in the industry for a long time.
There is a need for some regulation of the numbers rather than allowing anybody to enter the industry to work on a part-time basis, as is the case at present. Does the Minister consider that such a system could be used as a means of ensuring that working as a taxi driver is seen as a full-time and well-paid profession rather than something people take up as an additional or second job?
Deputy Naughten asked if the figures set by the hardship panel are maximum figures. I will check it again, but I think they are recommended payment amounts rather than maximum amounts. I think the panel recommended that the figures of €15,000, €13,000, €3,000, €6,000 and €8,000 be paid.
Does that mean that if one fits into a certain category, one will get the relevant payment?
Yes, that is my understanding.
A person who paid €127 for a licence will receive €13,000.
If one falls into the category, one will receive the level that has been recommended by the panel. They are not maximum amounts. Nobody should get less than that. I will double-check it for the Deputy. That is my understanding of what it means. The Deputy has made the case for those who paid a substantial amount of money for a taxi plate and will receive compensation of just €13,000. The panel must take account of all such cases in assessing hardship. Attempts have been made to help on a case-by-case basis along the lines recommended by the report. The payments will not alleviate hardship, but are intended as a contribution.
I agree with Deputy Eamon Ryan's comments about entry standards. The regulator has been identified by the Civil Service Commission. A name will be sent to me shortly for confirmation, which I will do. After holiday details and transitional arrangements have been worked out, the person in question is expected to take office in July or August.
The regulator will take office three and a half years after deregulation.
The regulator will be able to use powers under the Taxi Regulation Act 2003, which was passed by the House last year to establish an entire new regime. Successive Governments over the years spoke about introducing such a taxi Act.
In fairness, that includes the Government of which the Minister was the Chief Whip.
Indeed.
Will the Minister direct the regulator to use wheelchair accessibility as a means of assessing vehicle standards?
The Deputy is attempting to widen the scope of the question.
Will they be properly wheelchair accessible?
It is one entry standard, but not the only one.
Will the Minister seek to establish it as an entry standard with the regulator?
Absolutely.
Will it be a proper standard of wheelchair accessibility, as opposed to the standard used at the moment?
I have asked the National Taxi Advisory Council to discuss the matter, about which the taxi industry has strong views. We have asked the council, which represents consumers as well as providers, to indicate how best to proceed in that regard.
