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Taxi Licences

Dáil Éireann Debate, Tuesday - 14 June 2022

Tuesday, 14 June 2022

Ceisteanna (128)

Neale Richmond

Ceist:

128. Deputy Neale Richmond asked the Minister for Transport the steps that he is taking to increase the numbers of taxis in Dublin; and if he will make a statement on the matter. [30510/22]

Amharc ar fhreagra

Freagraí scríofa

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

I can inform the Deputy, however, that the total number of active SPSV licensed drivers nationally was 25,426 as at 31 December 2021 and this had reduced by 191 to a total number of 25,235 at end May 2022. During the same period, however, the number of drivers licensed to operate (stand/ply for hire) in Dublin rose by 381 from a total of 14,572 as at 31 December 2021 to a total of 14,953 at end May 2022.

In terms of licensed vehicles, the total number and breakdown by type of SPSV vehicles licensed in Dublin to end May 2022 has also shown a small increase (of 32) since the beginning of the year as follows:

County

Hackney

Limousine

Local Area Hackney

Taxi

Wheelchair Accessible Hackney

Wheelchair Accessible Taxi

Total

Dublin (30 May 2022)

16

430

0

7,833

2

1,806

10,087

Dublin (31 December 2021)

17

417

0

7,838

2

1,781

10,055

The Government and the NTA have taken a number of steps to support taxi drivers nationally. Most recently, the NTA proposes an average increase of 12% on taxi fares from 31st August 2022 in the National Maximum Fares Review, which closed for public consultation on May 27th last and which will be the first increase on such fares since 2017.

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.

In this regard, the 2022 driver survey, conducted by the NTA earlier this year, shows that 93% of drivers are now working but only 29% currently work the premium rate period, which covers journeys taken between 8pm and 8am or on Sundays and public holidays. 30% of drivers (up from 17% in 2019) reported that they would consider working these hours if fares were to increase for this “night work”. In recognition of this, the NTA’s increased fare proposals have been weighted in favour of the premium rate period. The increase in cents/euro for each taxi user per journey is not substantial; however, the cumulative impact of the increase is significant for drivers, and it is hoped that this may encourage more taxi drivers to operate during these periods, and particularly at night-time, to meet the renewed levels of demand that have arisen because of the increase in social activity and the reactivation of the night-time economy.

In addition, 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 licenced SPSVs to continue in the industry during this very difficult period. These included several extensions of the maximum vehicle age on an emergency basis, and a temporary licence fee waiver. 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 licencees will return now that demand for services is increasing.

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.

I remain committed to supporting the transition of the SPSV fleet towards zero/low-emission vehicles. The SPSV industry is regarded as a champion in the normalisation of electric vehicle use. The Scheme is funded by my Department and administered by the NTA. €15m was allocated in 2022 to support the industry to switch to electric. A grant of up to €10,000 to support the purchase of a BEV in the taxi/hackney/limousine sector, with an additional €2,500 available for those choosing to make their vehicle wheelchair accessible, is available under the Scheme. Those scrapping older, more polluting, or high mileage vehicles are now eligible for double the normal grant if they make the switch to electric. The Scheme is kept under continuous review and is currently paused to allow for the drawdown and payment of provisional grant offers. When these grant offers have been drawn down, there will be a clearer picture of the funding available for the second half of the year and, at this stage, I anticipate the scheme will reopen for applications in the summer, allowing SPSV operators to again apply for the supports on offer.

At the same time, Microfinance Ireland is still providing the so-called eSPSV Business Loan, which is available to support small business owners with a Small Public Service Vehicle (SPSV) that are unable to secure finance from banks and asset finance providers and are availing of the government’s 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.

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