Alan Kelly (Tipperary North, Labour) | Oireachtas source

I understand that the intention underpinning these amendments is to limit the scope for the discounting of taxi fares. While I will not be accepting the amendments, I have some sympathy with the proposal, which seeks to address the concerns of many taxi drivers who feel that they are regularly being undercut by other taxi operators. This is one of a number of amendments with which I have some degree of sympathy. However, I must deal with this from a legal and regulatory perspective and accept the advice that is given. It is not possible to make such a legislative provision in the Bill which would effectively create a price floor. The taximeter area for the purposes of setting a maximum fare is the State, as provided for in the Bill. Under the provisions of the Taxi Regulation Act 2003, the setting of maximum taxi fares is a statutory function of the NTA. A review of taxi fares is carried out every two years by the authority. Under the fares review this year, the NTA put forward a proposal to simplify the overall fare structure and to provide an approximate 3.6% to 4% increase in the maximum allowable fares. However, following consultation with the taxi advisory committee and the various different taxi groups, it was decided not to make any changes to the existing fares structure.

It is important that legitimate and compliant operators are not undermined by rogue operators who cut costs by not adhering to the rules. A major focus of the reforms that I am bringing to the taxi sector is to make it impossible for non-compliant operators to continue in business. We have already set up data-sharing arrangements between the NTA and both the Office of the Revenue Commissioners and the Department of Social Protection, which has yielded some very interesting information. In the Bill we are providing for a much more effective enforcement regime through the demerit system and expanded provisions for on-the-spot fines. This is a better approach to promoting fair competition rather than having rigid pricing.