Ruairí Ó Murchú
Question:241. Deputy Ruairí Ó Murchú asked the Minister for Transport the mitigations that are being considered to reduce costs in the taxi industry; and if he will make a statement on the matter. [39238/22]
View answerThursday, 14 July 2022
Questions (241)
Written answers
As the Deputy would be aware, the NTA's Board recently approved an average increase of 12% on taxi fares from 1st September 2022, as proposed in the recent National Maximum Fares Review, which will be the first increase on such fares since 2017. The NTA’s 2022 driver survey shows that 93% of drivers are now working but only 29% currently undertake “night work”. 30% of drivers (up from 17% in 2019) reported that they would consider doing “night work” if the relevant fares were to increase. In recognition of this, the proposed fare increases have been weighted in favour of the premium rate that can be charged for journeys between 8.00pm to 8.00am, as well as on Sundays and public holidays. The increase in cents/euro for each taxi user per journey is not substantial; however, the cumulative impact is significant for drivers, and the weighting in the increase has been designed so as to encourage more drivers to operate during these periods and also encourage drivers who may still not have come back since the pandemic, to re-activate their licences.
Whilst the NTA has statutory responsibility for regulating the SPSV industry, taxi drivers are self-employed individuals and, as such, decide on their own business strategies within the regulatory framework, including choosing the times at which they operate.
The Deputy will be aware that my Department and the NTA previously introduced a number of supports during the Covid-19 pandemic to reduce the costs for licensed SPSVs to continue in the industry during this very difficult period. The SPSV motor tax refund scheme was introduced as an additional financial support to assist the SPSV industry in its recovery from the COVID-19 pandemic. I announced this support on 9 June 2021 and an allocation of €2m in funding was provided. The Scheme commenced on 1 September 2021 ensuring that SPSV licence holders could receive a reimbursement of €95 for their SPSV Motor Tax. The Scheme will end on 31 August 2022.
The NTA also introduced the NCT Initial Test Fee Waiver Scheme for the SPSV sector on September 1st 2021, with funding of €1.5m from my Department. As a result, SPSVs presenting for the NCT received, and continue to receive, this test for free. This Scheme also ends on 31 August 2022.
The NTA extended vehicle age limits several times during the pandemic, with standard age limits for taxis and hackneys now waived through to end-2022, thereby ensuring no operator exits the industry simply because of the need to replace a vehicle. The NTA also introduced a regulatory measure to allow licence holders to be inactive for 24 months (previously 12 months) to allow them to remain attached to the industry with no associated costs during this very uncertain period. It is hoped that a significant proportion of these licensees will return now that demand for services is increasing.
Supports are available to drivers wishing to change their vehicles. I allocated €2m to the wheelchair accessible grant scheme for this year (WAV22). Under this Scheme, the NTA informed me recently that 102 new WAV licences have been added to the SPSV fleet to date in 2022, and 26 replacement vehicles have been upgraded.
I remain committed to supporting the transition of the SPSV fleet towards zero/low-emission vehicles. The electric small public service vehicle (eSPSV) grant scheme was put in place to support the greening of the taxi sector. The Scheme is funded by my Department and administered by the NTA. The SPSV industry is regarded as a champion in the normalisation of electric vehicle use, and €15m was allocated in 2022 to support the industry to switch to electric.
eSPSV22 was paused for new applications in April to allow operators with grant offers the time to finalise their car purchase and draw down funding. The Department announced on 26 June 2022 that eSPSV22 will re-open for applications on 1 August, and the application form will be published on the NTA's website that same day. Applications will be accepted up to 30 November 2022 for this Scheme, with no extension being considered. Vehicles must be licensed (passed the suitability inspection) by 31 December 2022 to get the funding. If this has not happened, operators must wait and apply to any future grant Schemes which might be launched by the Department.
You may be aware that Microfinance Ireland is still providing the so-called eSPSV Business Loan, which is available to support SPSV owners that are unable to secure finance from banks and asset finance providers, and are availing of the eSPSV Grant Scheme to replace their vehicle with a more sustainable model (electric/hybrid). These loans range from €5,000 to €25,000, with a fixed interest rate of 4.5% if submitted through a Local Enterprise Office, and with no additional fees or charges.
I recognise that rising fuel costs are a significant challenge for all sectors and, that is why the Government announced on March 9th last, a temporary reduction in fuel-related excise duties of 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 be extended until Budget Day on September 27th, at an additional cost of circa €80 million, and should help reduce the operating costs of all private and commercial vehicle owners, including non-electric SPSV operators.