Dáil debates

Thursday, 12 March 2009

2:00 pm

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)

As the Deputy stated and as the House is aware, last Monday the Commission for Taxi Regulation published an economic review into the small public service vehicles sector. This comprehensive review contains a wide range of detailed data regarding the demand for and the supply of taxi, hackney and limousine services. The review of the period until the end of last year demonstrates there has been a large increase in the demand for these services with, as Deputy Costello stated, approximately 100 million trips last year. This is an increase of more than 25% in a three year period. This reflects the great improvements in the service available in terms of waiting times and quality.

I agree with the Deputy that there was a time when, on a busy night, one could be waiting for a taxi for an hour or two and we might have been discussing such matters in another forum. There has been an increase in supply and, as the review acknowledges, taxi drivers are operating in a more competitive market than ever. As a result of the increased supply of vehicles, and as the review acknowledges, drivers are working longer hours than in 2005, with which many comparisons are made, and average earnings have dropped slightly despite an 8% increase on maximum fares in 2008.

However, I understand the number of applications for new licences has been decreasing on a monthly basis over the past nine months. This is probably one of the factors that has been taken into account. People seem to realise the market has reached saturation level and there are not the same number of people wishing to enter. The Commission for Taxi Regulation will consult widely with the sector and the public at large on the review.

It is important, as the Minister for Transport, Deputy Noel Dempsey, advised the representatives of the taxi sector when he met them on Tuesday, that all involved now give adequate time to reflect fully on all aspects of the review, its findings and recommendations and not pick or choose one or two headline recommendations from it, and convey their views to the commission. The commission will also be seeking the views of the Taxi Advisory Council before any final determinations are made by the commission.

The review states that a moratorium is not warranted on the basis that the current regulatory model is the most appropriate and has been successful in raising the quantity and quality of services. The review also concludes that the fact drivers' income has fallen in real terms or that they are working longer hours is insufficient to justify the introduction of a moratorium.

The Taxi Regulation Act 2003, which provides the legislative basis for the licensing and operation of small public service vehicles generally, does not provide a basis for the application of quantitative controls on the issue of licences for any such vehicles. We all recall that a High Court judgment of 2000 determined that limitation of taxi licences in the interests of existing licence holders could not be sustained. The Minister has indicated he will consider all aspects of the report, the Oireachtas Committee on Transport report, the views of the official representatives of the taxi industry, consumers and consumer interest groups. Anyone who has a view on the matter should make a submission to be considered as part of the next phase.

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