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Transport Policy

Dáil Éireann Debate, Tuesday - 26 July 2022

Tuesday, 26 July 2022

Questions (199, 200, 201, 202, 203, 204, 205)

Jennifer Carroll MacNeill

Question:

199. Deputy Jennifer Carroll MacNeill asked the Minister for Transport his views on the current taxi shortages in Dublin; and if he will make a statement on the matter. [39768/22]

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Jennifer Carroll MacNeill

Question:

200. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if his Department has met with taxi representative groups regarding the ongoing shortage of taxis in Dublin; and if he will make a statement on the matter. [39769/22]

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Jennifer Carroll MacNeill

Question:

201. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if his Department has met the National Transport Authority regarding the ongoing shortage of taxis in Dublin; and if he will make a statement on the matter. [39770/22]

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Jennifer Carroll MacNeill

Question:

202. Deputy Jennifer Carroll MacNeill asked the Minister for Transport the measures that his Department and the National Transport Authority have implemented to ensure that the shortage of taxis in Dublin is greatly increased to meet demand; and if he will make a statement on the matter. [39771/22]

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Jennifer Carroll MacNeill

Question:

203. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if he intends on reviewing the Taxi Regulation Act 2003 to take into account the number of changes to the taxi industry since the Act's enactment; and if he will make a statement on the matter. [39772/22]

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Jennifer Carroll MacNeill

Question:

204. Deputy Jennifer Carroll MacNeill asked the Minister for Transport the way that he intends to address the current taxi shortage in Irish cities; the way that he intends to further facilitate the entry of more registered small public service vehicle drivers into the taxi market in a timely fashion; and if he will make a statement on the matter. [39773/22]

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Jennifer Carroll MacNeill

Question:

205. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if he intends on reviewing the regulatory requirements for gaining a small public service vehicle licence; the way that such requirements might be streamlined or improved to increase the number of new small public service vehicle drivers; and if he will make a statement on the matter. [39774/22]

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Written answers

I propose to take Questions Nos. 199 to 205, inclusive, together.

As the Deputy will be aware, the regulation of the small public service vehicle (SPSV) sector is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Taxi Regulation Act 2013.

The Department and the NTA are both committed to the existing SPSV regulatory arrangements and have taken a number of steps to support taxi drivers nationally. The NTA's SPSV driver recruitment campaign is open on a national basis since 4th July for a three-week period. I am encouraged to hear that the number of applications received to date, is 25% ahead in comparison to the same period in the 2019 campaign.

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 (licensing and enforcement) the SPSV industry, taxi drivers are self-employed individuals and, as such, decide on their own business strategies within the regulatory framework. Additionally, SPSV operators choose the times at which they operate.

My Department and the NTA 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.

I have met with the Advisory Committee on SPSVs three times during the pandemic, with the last meeting taking place on 25 November 2021. The Committee is the primary forum for discussing issues in relation to the SPSV sector. It was established under the Taxi Regulation Act 2013 to provide both my Department and the NTA with advice in relation to small public service vehicles and their drivers. Neither the NTA nor my Department are bound by any advice provided.

Drivers are an important part of the Committee’s membership, and four positions on the Committee are reserved for members who can represent driver interests. One of those positions was recently filled by a person representing taxi drivers based in Dublin. The other three positions are filled by licensed SPSV drivers from across the country and I am satisfied that this ensures the Committee’s advice is informed by the perspective of drivers.

In relation to Ireland's SPSV regulatory framework, this requires that all drivers and vehicles are licensed, as a means of protecting the consumer and helping ensure public safety. I believe that the protection of the consumer and personal safety are vital objectives and must continue to be central to how the SPSV industry is regulated and operated.

Within this context, though, there is also a need to evolve and be open to new technologies and innovation. In this regard, there is now widespread use of technology in the SPSV industry, and such innovations are of benefit to both consumers and operators. My Department is open to new possibilities, but the regulation of any public passenger service into the future should continue to be determined in the context of the important safety and consumer objectives that underpin our existing legislation.

Question No. 200 answered with Question No. 199.
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