Dáil Éireann Debate, Tuesday - 26 April 2022
87. Deputy Darren O'Rourke asked the Minister for Transport if he is considering extending the ten-year rule for taxis in view of the fact that vehicles were underused for the duration of the pandemic; the other actions he intends to take to support taxi drivers who are struggling with high fuel and running costs; and if he will make a statement on the matter. [21009/22]
View answerI ask the Minister for Transport if he is considering extending the ten-year rule for taxis in view of the fact that vehicles were underused for the duration of the pandemic; the other actions he intends to take to support taxi drivers who are struggling with high fuel and running costs; and if he will make a statement on the matter.
The regulation of the small public service vehicle, SPSV, sector, including vehicle age limits for SPSVs, is a matter for the National Transport Authority, NTA, under the provisions of the Taxi Regulation Act 2013.
In this regard, the Deputy should be aware that the NTA has extended vehicle age limits several times since the start of the Covid-19 pandemic, with standard age limits for taxis and hackneys now waived through to the end of 2022, thereby ensuring no operator exits the industry simply because of the need to replace a vehicle. The authority's extension of age limits was an emergency measure of a temporary nature, taken in recognition of the particular challenges posed by the pandemic and was specifically aimed at ensuring that no operator would be required to change their vehicle while passenger demand remained low due to Covid-19.
More generally, the ten-year rule was recommended by the 2011 taxi regulation review and came about following a public consultation on vehicle standards for taxis, hackneys and limousines held that year. It was adopted in recognition of the need to strike a balance between achieving standards that offer the customer confidence, comfort and safety, and allowing industry members to operate successfully, cognisant of the fact that the replacement of a vehicle is an operator's single largest cost. There is no consideration being given to amending these age-related rules now or at any time in the future.
On the rising cost of fuel, I recognise that this is a significant challenge. The Deputy will be aware that the Government announced on 9 March a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil. Excise duty was reduced by 20 cent per litre of petrol and 15 cent per litre of diesel. These reductions, which were due to finish at the end of August, will now be extended until budget day in October at an additional cost of €80 million.
With regard to fares, the NTA is actively engaged in a review of the maximum fare order that sets the maximum fares that may be charged by the driver of a taxi in respect of a journey undertaken in the State. The current applicable order has been in effect since 1 February 2018. Just yesterday the NTA launched a public consultation on this that will run until 27 May.
The Minister just said that there is no intention to consider changing the ten-year rule now or at any stage in the future, which is a very big statement to make. It is as firm a "No" as one might ever get but I think there is a real case for reviewing it at this point in time. We have had two years with a lot of cars laid up. Cars are maintained to a very high standard. This is not 2011, it is 2022. In the context of trying to manage a transition across the whole of the taxi industry towards electrification, we are not going to do that in the next couple of years and there is a real possibility that if taxi drivers are forced to renew really good vehicles next year or the year after, they will not be in a position to go for an electric vehicle and will go for petrol or diesel. However, if the Department phased it out on a more gradual basis, we might achieve the transition more quickly. Has the Minister considered that or will he look at it as an option?
While I do not want to be too dogmatic in my response, at the same time these measures were introduced during Covid, correctly to my mind. We are now coming out of it, touch wood and please God, and it is appropriate to return to those standards. We have extended the grants that we introduced for the electrification of the taxi fleet because that will bring real benefits and will help people to make that switch.
It is important to look at some of the statistics on the SPSV fleet. There were some 21,000 SPSVs before Covid and that has dropped to 18,946, 85% of which are less than ten years old. Some of the 15% that are more than ten years old are related to the fact that the age restriction was lifted during Covid but there are also some vehicles that have a longer licensed age. Before Covid, about half of the vehicles were five years old or less but that has now dropped to 35%. There is an issue here. SPSVs do a very large amount of mileage and there is an issue if the vehicle is ten, 11 or 12 years old. It is an issue for the customer as well as for the driver. There are much higher costs associated with running older vehicles and it makes sense to go back to the ten-year rule.
I ask the Minister not to close the door completely and to consider an alternative transition. I do not have those figures on the breakdown of vehicles by age but it is certainly something that should be considered if it means that taxi drivers can transition to an electric vehicle more quickly. They have had a couple of years out of action and if they have a vehicle that is now approaching the end of its limit in terms of the ten-year rule, they might not be in a position to transition to an electric vehicle now. However, they might be in a position to do so in the near future if the rule is extended.
There is also concern in relation to the consultation on a rule that all taxis must be able to take credit card payments. While over 90% of taxi drivers already do, there are concerns. Taxi drivers need a commitment to get paid. They are very concerned that at 2 a.m. on O'Connell Street or somewhere else, they will pick up a passenger who will not be in a position to pay, with an excuse being made about a credit card payment. Will the Minister provide assurances in the statutory instrument that there is an obligation on passengers to pay their fare?
Absolutely, there is an obligation on passengers to pay their fare. There are real benefits to card payments and a lot of customers have moved to them because of Covid. I use a lot of taxis myself and I am surprised that there are still a good number of drivers who do not accept cards. That must be restricting their customer base at this stage because it is so common now for people not to use cash in their day-to-day lives. Certainly, however, customers have to pay their fare and the outcome of the consultation process must reflect that. That said, we are right to move towards cards in every cab. It is what the customer wants and it can also provide a better payment system for the drivers as well but they do have to get paid.
