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Dáil Éireann díospóireacht -
Thursday, 22 Feb 2001

Vol. 531 No. 2

Written Answers. - Taxi Regulations.

Ceist:

56 Mr. Hayes asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the practice whereby those who have obtained a taxi licence under the deregulation scheme must be a member of either a taxi association or organisation in order to gain a preferential car insurance rate from a variety of car insurance companies; her further views on whether this practice is uncompetitive in view of the Government's commitment to deregulate the taxi industry; if she will refer the case to the Competition Authority; and if he will make a statement on the matter. [5188/01]

Noel Treacy

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

Motor insurance schemes whereby parties signing up to them avail of the bulk purchase of insurance cover, and the consequential savings, are an established feature of the insurance market for many years. A critical aspect of such schemes is the fact that the association or organisation in question is able to validate the bona fides of their members seeking the cover. This is an assurance to the underwriter that the member, for example, the taxi driver, being assessed for cover is operating within specified guidelines and requirements and therefore represents a risk improvement to the underwriter. Such arrangements are commonly negotiated by associations and organisations across all professions and industries, for many years, both nationally and internationally.

With regard to any alleged anti-competitive activity in any sector of the economy, a complainant may take a case in the courts under the Competition Act or make a complaint to the Director of Competition at the Competition Authority.

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