Duncan Smith
Ceist:298. Deputy Duncan Smith asked the Minister for Transport his plans for sector-specific supports for the taxi industry to combat rising fuel costs; and if he will make a statement on the matter. [44129/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (298)
Freagraí scríofa
As the Deputy may be aware, the Government and the National Transport Authority (NTA) have been actively engaged in ensuring that 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, 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, are extended until Budget Day on September 27th, at an additional cost of circa €80m, and should help reduce the operating costs of all private and commercial vehicle owners, including non-electric SPSV operators.
The NTA's Board approved an average increase of 12% on taxi fares, which came into effect on the 1st of September 2022. This increase was proposed in the recent National Maximum Fares Review, and it is the first increase on such fares since 2017. A recent NTA 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 fares increase has been weighted in favour of the premium rate, which 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 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. To support the wider availability of wheelchair accessible vehicles (WAVs) in Ireland’s small public service vehicle fleet, I allocated €2m to the WAV grant scheme for this year (WAV22). WAV22 offers financial aid of up to €7,500 nationwide for the purchase or conversion of a new WAV – and a sliding scale, with lesser monies being available for older cars. Cars older than 6 years will not qualify for this Scheme. The Scheme is available to anyone who wishes to purchase or convert an ‘internal combustible engine’ (ICE) WAV or an electric WAV (eWAV). The Grant Scheme also offers training assistance to all successful applicants. The criteria is subject to review at regular intervals throughout the duration of the Grant Scheme. The NTA informed me recently that, under this Scheme, 155 new WAV licences have been added to the SPSV fleet to date in 2022, and 57 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 I allocated €15m to the Scheme in Budget 2022, to support the industry to switch to electric.
eSPSV2022 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 Scheme re-opened for applications on 1 August, and the application form is available on the NTA's website. 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 obtain funding. If this has not happened, operators must wait and apply to any future eSPSV grant Schemes which might be launched by the Department.
The number of eSPSV grants administered has been encouraging, with 920 grants paid between the beginning of the scheme in 2018 to 2nd September 2022, with associated funding of €16,262,500m.
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.