Transport Policy

Dáil Éireann Debate, Tuesday - 14 June 2022

Tuesday, 14 June 2022

Ceisteanna (59)

Darren O'Rourke

Ceist:

59. Deputy Darren O'Rourke asked the Minister for Transport the measures that he will take to address the challenges in the taxi sector, including rising fuel and running costs and driver shortages; if he has assessed the likely impact of a further exit from the sector due to the ten-year rule; the degree to which he has engaged with the National Transport Agency and taxi representatives on these matters; and if he will make a statement on the matter. [30744/22]

Freagraí ó Béal (6 píosaí cainte)

Deputy Darren O'Rourke

I ask the Minister of State what measures she will take to address the challenges in the taxi sector, including rising fuel and running costs and driver shortages. Has she assessed the likely impact of a further exit of vehicles from the sector due to the ten-year rule? To what degree has she engaged with the National Transport Agency, NTA, and taxi representatives on these matters? Will she make a statement on the matter?

Minister of State at the Department of Transport (Deputy Hildegarde Naughton)

I am taking this question on behalf of the Minister, Deputy Eamon Ryan.

Throughout the pandemic and more recently, the Government and the NTA have been actively engaged in ensuring appropriate and timely measures are in place to support the taxi sector in addressing the challenges it faces. I recognise that rising fuel costs are a significant challenge for all sectors. As the Deputy is aware, on 9 March the Government announced 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 in October, at an additional cost of €80 million. This should help to reduce the operating costs of all private and commercial vehicle owners, including operators of non-electric small public service vehicles, SPSVs. In addition, the NTA's national maximum fares review, which closed for public consultation on 27 May, proposes an average increase of 12% in taxi fares from 31 August 2022. This will be the first increase in such fares since 2017.

While 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 NTA's 2022 driver survey shows that 93% of drivers are now working but only 29% currently undertake night work. Some 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 p.m. and 8 a.m., as well as on Sundays and public holidays. The increase in cents and euro for each taxi user per journey is not substantial, but the cumulative impact is significant for drivers. The weighting in the increase has been designed to encourage more drivers to operate during these periods and also to encourage drivers who may still not have come back into the sector since the pandemic to reactivate their licences.

Deputy Darren O'Rourke

There is a crisis in the sector and I am not convinced from the Minister of State's answer that there is a full appreciation of it. I acknowledge the aspect regarding the fare increase and the weighted element in that regard, but there has been a significant exodus of drivers from the sector. It was reported just this evening that one of the taxi apps had 17,000 requests in a one-hour period over the weekend. We are hearing many stories about people, including women, waiting an inordinate time because of the lack of availability of taxis at night-time. This is going to be compounded by approximately 5,300 cars that are going to be taken off the road at the end of this year because of the ten-year rule. I raised this point before with the Minister, Deputy Eamon Ryan. The Government needs to move on this ten-year rule.

Deputy Hildegarde Naughton

On the ten-year rule, the NTA extended vehicle age limits several times during the 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. These extensions of vehicle age limits were emergency measures in recognition of the challenges faced during the pandemic, including the necessary health-related restrictions imposed on society and the resultant collapse in demand for SPSV services. This situation is now much changed and there has been a resurgence in demand for SPSV services with increased levels of social activity and particularly at night-time. This is where the premium rate will come into effect to encourage more taxi drivers to come on stream, especially at weekends, Sundays and public holidays.

Deputy Darren O'Rourke

How many vehicles will be impacted by the ten-year rule in 2023, for example? How many vehicles are we likely to lose from the sector? My estimation, based on the figures presented to me by taxi representatives, is that the number is greater than 5,300. These are vehicles that have not been used for a couple of years. Most of them are in mint condition. Drivers have been struggling to get finance for new vehicles. They cannot get electric vehicles because there is a supply chain issue. The likely impact will be that many of those 5,300 vehicles will leave the market, which means the acute shortage we are facing now will be exacerbated. I am frustrated that I do not yet see an acknowledgement of this from the Government.

Deputy Hildegarde Naughton

Of the 18,946 SPSV vehicles in the fleet in 2021, a total of 16,134 vehicles, which is equivalent to 85% of the fleet, were less than ten years old. A total of 2,359 vehicles were between ten and 15 years old, which represented 12.5% of the entire fleet. Approximately half of those, or 6.7%, were availing of the Covid-19 extension on the maximum permissible age. They were mainly taxis. The remaining 5.8% of vehicles were exempt from the ten-year age limit as a condition of their taxi licence or were older limousines. The number of vehicles older than 15 years was 444, which represents 2.3% of the total fleet. Of these, 150 vehicles, or 0.8%, were SPSVs availing of the NTA extension due to the impact of Covid-19. Most of the remainder were limousines.