Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the Minister of State for the comprehensive overview he provided and I welcome the opportunity to contribute to the debate on the Bill. While my party and I support the overwhelming majority of the provisions it contains - particularly the new criminal sanctions - we do not support the provision which prohibits the transfer of taxi licences. I will deal with that matter in some detail later and I hope we can have a more in-depth discussion in respect of it on Committee Stage.

Overall, the Bill is likely to improve the quality of taxi services in this State. Recognising the changes that have occurred in the economy and the considerable level of oversupply which developed in the taxi market as a result of activity in the boom times, it was only right and fitting that a comprehensive review was carried out. The Government announced such a review in May 2011 in the wake of the "Prime Time Investigates" programme on the sector. While those who produced "Prime Time Investigates" received criticism in the House in respect of some of their other work, it is appropriate to highly commend their work in this instance. The programme to which I refer shone a light on certain practices in the taxi industry which any right-minded individual - not to mention legislator - would find unacceptable. RTE and the "Prime Time Investigates" team are owed a debt of gratitude for their work in respect of this matter. The undercover footage featured in the programme showed taxi drivers double-jobbing, fighting at ranks, driving unsafe cars and carrying too many passengers in unlicensed vehicles. It also showed cars passing the NCT test after their owners had paid bribes. That was a shocking indictment not just of the regulatory system but also of a culture that was allowed to develop and exist over a prolonged period. The programme also brought into question whether the State was able to say with some level of authority that taxis represented a safe method of transport for citizens and for those who visit our country. In that context, the new criminal sanctions to which I referred earlier are most welcome.

The purpose of the review of the taxi industry was to consider all aspects of the industry, including matters relating to enforcement and licensing. The taxi regulation review report published last January contains 46 recommendations in respect of driver licensing, vehicle standards and wheelchair accessibility. While many of those recommendations can be implemented by means of regulation, it was also necessary to introduce legislation. We have gone through the Bill in detail and, as already stated, we broadly support it. The taxi regulation review report proposes actions under six categories: compliance and enforcement; consumer and industry assurance; driver licensing; vehicle licensing and standards; accessible services; and fleet management and rental controls. A number of new regulations have already been introduced, particularly in respect of branding and wheelchair-accessible taxis.

There has been some criticism in respect of branding. Some people believe that the new branding brings unwanted attention on the owners of taxis and their homes. In other words, it places them in a vulnerable position. A number of individuals have raised this matter with me and stated that in the past they could remove the taxi signs from the roofs of their cars when they had finished work. The fact that there is a permanent sticker on the side of their cars now is causing concern for some of them because they believe this indicates to criminal elements that they are small business owners who are likely to have cash about them late at night. Those to whom I refer are of the view that this may act as an incentive for those criminal elements to target them. I have listened to the concerns expressed and while I accept them to some degree, I am of the view that it is appropriate that the process of branding should continue, particularly as it allows ordinary people and the staff of the Department and the NTA to identify legitimate taxis. It will also bring about - in a gradual way - a recognition that being a taxi driver or operator is a profession and is not just something a person does on occasion in order to earn quick cash. The latter perception has created a problem for the industry because so many people see taxi driving as a part-time enterprise. This has undermined the capacity of full-time drivers to earn a decent wage while practising their profession. While I accept that there are concerns, I am of the view that the approach being taken is proportionate.

I am also of the view that the decision not to insist on taxis being of a universal colour, make or model was correct. In the United States, it is possible to use only certain car makes and models as taxis and these vehicles must all be the same colour. Imposing such a system here would place an undue burden on the industry, particularly in the current circumstances. However, this matter can be reviewed as the impact of the conditions to which I refer is felt in the market.

The Minister of State referred to the Indecon assessment of market demand and supply. Indecon did a good job in carrying out an analysis of the taxi market. One of the key findings of that analysis is that demand for small public service vehicle, SPSV, services has fallen significantly since 2008, in line with a general fall in consumer expenditure. There is nothing particularly revealing in this regard, and we have all become aware of this in our consultations with those who ply their trade within the taxi industry. It is difficult to measure the level of demand with precision but Indecon estimates indicate that overall aggregate demand is likely to be in range of 67 to 74 million trips per annum. Some estimates suggest higher levels but Indecon’s base case suggests a figure of 67 million trips per annum. The latter is a significant number and it allows for an analysis to be carried out by the NTA and policy makers in the context of trying to match supply with demand. The level of oversupply and the lack of demand have led to a deterioration in the quality of the service available. As many individuals have struggled to survive, pay their mortgages and keep their cars on the road and ensure they are properly serviced, of course they have taken shortcuts. This is evident from the quality of some vehicles and the way in which they are maintained. It is important that a balance is maintained and that an ongoing assessment of the levels of supply and demand is carried out in order to ensure that oversupply does not lead to a further degradation of the service.

It is not so long ago that an undersupply of taxis had a detrimental impact on the service. For some time people just accepted that it would not be possible to hail a taxi on certain nights of the week. This had an impact on tourism and on the growth and development of Dublin city and was factored into reports relating to tourism and business. It was important, therefore, that matters were put right through deregulation. I accept, of course, that there has been considerable fallout from deregulation but it is important to recognise how the latter improved the quality of experience for consumers. We must ensure that the opposite is not allowed to occur. It has already happened to a degree as a result of oversupply in the market.

When the market was at its peak in 2008, there were an estimated 100 million taxi trips per annum. Indecon's analysis suggests that overall demand for SPSV services may have fallen by approximately 33% since 2008. This should indicate to policy makers such as the Minister of State that the matter must be kept under review. While I accept that the legislation will not limit the number of taxi licences in existence, that will be the impact of the qualitative measures it contains. The Minister of State should not place beyond his own reach the capacity to intervene in the market at a later stage or to consider the quantitative element of the issuance of licences, particularly if the qualitative approach set out in the Bill in respect of vehicles and the provisions regarding the suitability of individuals who seek licences do not prove overly effective in the context of balancing the levels of supply and demand.

I hope that the Minister of State will keep an eye on this matter and refer to it later.

The number of licences stands at approximately 24,000, down from a peak of 27,000. Recent figures show a further decline in the number of licensed small public service vehicles, SPSVs, most notably among hackneys. The Indecon report states:

- The extent of oversupply which currently exists in the Irish taxi-SPSV market has economic consequences, both for taxi operators and for wider society.

- Low levels of utilisation in the sector mean that it is difficult for drivers to earn an adequate income and this can lead to drivers working very long hours and in some cases over the maximum permitted levels.

This reverts to my previous point on how to make the industry attractive enough financially to ensure that those who want to be full-time taxi drivers can be while discouraging those who cherry-pick at weekends in so far as is possible. The barriers should be increased. Some of the measures contained in the Bill will do so, but they do not go far enough in protecting the individual who has set his or her mind on being a professional taxi driver.

Some people on the periphery view it as a means of earning an income. They have rights in this regard. I have met them. Opposition politicians often take everyone's side and seek to support same, but that is not the case in this instance. It is a question of the service to the consumer. One must work back from that principle. If one is serious about it, one must ensure that the professional providing the service is given a framework in which to do so without his or her position constantly being eroded.

A negative impact of the level of oversupply is the congestion on road networks in major cities and towns during peak periods. In this regard, I welcome the amendments introduced by the Minister of State in the Seanad. In terms of the demerit scheme, for example, the amendment regarding people who, being unable to join a rank, park just short of it was a sensible one and took cognisance of the points raised.

The Indecon report states, "A differential regulatory approach should be considered for major urban centres and for rural areas where there are likely to be very different supply and demand balances". Being from rural Ireland, the Minister of State is familiar with taxi drivers' issues in Nenagh and Roscrea just as I am with issues in Ennis, Kilrush and Kilkee. The one-shoe-fits-all approach is not the right one. The differential regulatory approach for rural areas should focus on ways of assisting entry into rural markets where there is a supply shortage. The community car scheme to which the Minister of State referred is a sensible idea, although I am unsure as to whether it would apply to publicans who have made vehicles available. I welcome the indication that it would. As a result of changes in drink driving laws and the lack of rural transport, many community-minded publicans have put services in place at considerable cost to themselves. It is appropriate that a different approach be taken to their regulation. Most of the time, their services are not hire for reward, but are provided as an additional service so that people might get home.

The impact of the Bill will be difficult to assess but it is likely to restrict entry into the taxi industry on qualitative grounds. It may also lead to a number of those currently in the industry leaving it. This is a positive, as their departure will allow for a focus on those who are committed to the sector. I hope that the Bill will ensure a greater level of compliance. It is likely to provide for a better, more sustainable industry, one of which we as a country can be proud. This is important in terms of the image we portray. Often, we fail to recognise the fact that a country's lasting image is the first one visitors have when they arrive. It is a question of how they get through an airport, what kind of transport is available from there to a hotel and who they meet at the hotel reception. If one ties these factors into tourism and business opportunities, the taxi driver and his or her vehicle play an important role in making that first impression. It is right that we continue in this vein to improve that role.

Everything highlighted in the "Prime Time Investigates" programme required that an appropriate system of mandatory disqualification be put in place. Some people are unsuitable and unfit to drive public service vehicles, PSVs, because of their own decisions. As with any other job, certain convictions affect people's applications. While there may be hard luck stories, the State must, in the first instance, protect the industry's reputation as well as the country's reputation and image. Therefore, I support this measure.

I welcome the demerits that the Minister of State identified. I also welcome his amendment to the demerit scheme. However, issues concerning the vetting procedures have been raised with me by Tiománaí Tacsaí na hÉireann. At the outset of the work undertaken by the review body one of the aims was to clean up the sector and allow consumer confidence to return to the industry. Tiománaí Tacsaí na hÉireann does not believe that the review has tackled these issues, as no recommendations have been forwarded to change the vetting procedures substantially to ensure public safety and consumer confidence. A standard higher than that of the private security industry should be retrospectively implemented. As consumer confidence is paramount, no driver unable to meet this improved standard should be granted an SPSV licence.

Tiománaí Tacsaí na hÉireann disagrees with some elements of the Minister of State's comments on the taxi review group, namely, that it had unanimously tabled the notion that transferring licences should not be possible. Tiománaí Tacsaí na hÉireann argues that despite speaking for a large group of independent taxi drivers, it was not represented on the review body and its opinion was not taken into account. I accept that not everyone can be represented but I would at least have hoped that the Minister of State could have taken some of this group's issues into consideration.

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