Dáil debates

Wednesday, 16 September 2020

Taxi Industry: Motion [Private Members]

 

10:20 am

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I move amendment No. 2:

To delete all words after “Dáil Éireann” and substitute the following:

"notes:

— that 19,638 Small Public Service Vehicles (SPSV) are registered with the National Transport Authority (NTA) in 2020;

— the 3,059 taxis and hackneys which are wheelchair accessible, with many people relying on these daily;

— the very important services taxi, hackney, local area hackney, and limousine drivers provide as part of the public transport system across Ireland;

— the important contribution that SPSV drivers have made during the pandemic, with many working throughout to provide important transport services, including transport services for the Health Service Executive (HSE);

— the huge challenges faced by the drivers in the SPSV industry as a result of the ongoing Covid-19 pandemic;

— the evidence given by taxi representatives to the Oireachtas Special Committee on Covid-19 Response;

— that 15 per cent of drivers in the industry are aged over 66 years and are not covered by the Covid-19 Pandemic Unemployment Payment (PUP) scheme and instead can avail of other social welfare payments such as the State Pension;

— that 9 per cent of drivers in the industry are aged 70 years and over, and that the fall in passenger demand for SPSV services occasioned by Covid-19 means that many drivers, in this cohort in particular, may decide not to return to work within the industry;

— the important role of the Advisory Committee on Small Public Service Vehicles (Taxi Advisory Committee), which has played a crucial role in advising the Minister for Transport, Tourism and Sport and the NTA with proposals to support the SPSV industry through this uncertain time, particularly since the Minister invited proposals from the Committee to support the recovery of the SPSV industry in June 2020;

— the measures taken by the NTA immediately after the start of the pandemic, in March 2020, to assist SPSV drivers, including an extension of licence validity for licences expiring between 13th March and 12th June, 2020 and the publication of information and guidelines to assist SPSV operators;

— the further measures taken by the NTA to reduce the costs faced by SPSV operators such as waiving late licence renewal fees through to March 2021, extending vehicle age limits for SPSV licences renewed between March and December 2020, and facilitating, in conjunction with the insurance industry, the suspension of insurance for those operators who stop working temporarily;

— the availability of the PUP, introduced in March, to self-employed SPSV operators, many of whom have availed of the payment when passenger demand for SPSV services fell significantly due to Covid-19; and

— the measures available to self-employed SPSV operators under the Government’s July Stimulus Plan, including the Covid-19 Enterprise Support Grant, the Covid-19 Business Loan Scheme, the Covid-19 Credit Guarantee Scheme, and income tax relief measures for self-employed individuals who were profitable in 2019 but loss-making in 2020 as a result of the present pandemic;and

acknowledges the Government’s commitment to:

— continue its constructive engagement and dialogue with the Advisory Committee on Small Public Service Vehicles (Taxi Advisory Committee) and SPSV representative groups to understand fully the issues facing the sector and, to the extent possible, identify measures to support SPSV operators returning to work and the future sustainability of the industry beyond the present pandemic;

— fill vacancies that have arisen on the Advisory Committee on Small Public Service Vehicles and, insofar as is practicable, ensure a balanced representation of taxi, hackney and limousine drivers from both urban and rural areas;

— continue to ensure that self-employed SPSV operators are able to avail of current and forthcoming financial support measures to the greatest extent possible;and

— keep the question of age limits for SPSVs under review, noting that they have been extended for SPSVs due for renewal for the remainder of 2020."

I welcome this opportunity to discuss how the pandemic has affected the small public service vehicle industry. The term "small public service vehicle" is a somewhat cumbersome one to use. However, Covid-19 has affected not just taxis but hackneys, local area hackneys serving rural communities, and limousines. Limousines and chauffeur-driven services are especially dependent on overseas tourism and major events for their trade and have been particularly devastated by the onset of the Covid-19 pandemic and the disruption that it has wrought to this country's vitally important tourism industry.

The small public service vehicle industry is a vital part of the country's public transport system. We all agree it has made an important contribution since the start of the pandemic. Small public service vehicle operators were correctly recognised as essential workers providing essential transport services throughout the pandemic, including to the HSE.

While there are few parts of the economy that have been untouched by Covid-19, it is fair to say that public transport has been one of the most badly affected sectors. The small public service vehicle industry primarily exists to bring people together for major events and social occasions. Accordingly, it has been especially hit by social distancing and the need actively to limit and avoid such major events and occasions. The Government recognises this and I will outline some of the measures taken by the National Transport Authority, NTA, the statutory regulator, and the Government to assist and support the industry through this difficult time.

Support for the small public service vehicle sector commenced at the very outset of this pandemic. As Covid-19 began to unfold in March, the NTA acted to support operators by extending by three months all vehicle licences due to expire between 13 March 2020 and 12 June 2020, inclusive. The NTA also published information and guidance on its website to address the concerns of operators and advise on how best they could operate to minimise the risk of spreading Covid-19.

As operators stopped working and the pandemic continued, the NTA's response continued with additional measures. The aim of these measures was to ensure that, wherever possible, operators who decided to stop working temporarily did not face undue costs for doing so. The NTA, in conjunction with the insurance industry, facilitated the suspension of small public service vehicle insurance for those operators who temporarily stopped working and chose to suspend their licences.

The authority also waived the late renewal fees, effectively allowing operators to stop operating for up to one year without facing any undue costs for doing so.

As Deputies will be aware, a rule is in place that normally prevents most vehicles from being licensed as taxis and hackneys if they are more than ten years old. This rule is to ensure that equality of service is provided to passengers, recognising that newer vehicles are generally safer, more comfortable for passengers and more environmentally friendly. The adoption of this rule was an important recommendation of the taxi regulation review of 2011. Nevertheless, one of the biggest costs that SPSV operators face is the cost of the vehicle. In recognition of that, and to ensure that SPSV operators do not face undue costs, the NTA has temporarily extended for the remainder of this year the age limit for vehicles due to have their licences renewed. The NTA will continue to monitor this policy as the situation develops, and any decision on a further extension of vehicle age limits will be made closer to the end of the year. This is a sensible approach which recognises the current reality of Covid-19 and the uncertainty it generates. I do not accept the need for a wholesale extension of vehicle age limits by two years for all vehicles, as proposed by Sinn Féin. Frankly, I do not see any reason a new diesel vehicle, licensed last year, should have its age limit extended through to 2031 because of a public health emergency in 2020. I hope this pandemic will be long behind us by 2031, with the national SPSV fleet then composed mostly of low-emission vehicles.

I will also take this opportunity to discuss the supports available to SPSV operators via the Government's unprecedented suite of financial support measures to assist businesses to restart after Covid-19. Recognising the unprecedented nature of the challenge to the national economy, the Government has developed an ambitious series of national initiatives, with broad eligibility criteria. Officials from the Department of Transport, Tourism and Sport have worked with their counterparts across the Government to ensure that SPSV operators, many of whom are self-employed, can avail of these measures to the greatest extent possible. Self-employed operators who have closed their claims for PUP on or after 18 March 2020 can avail of the Covid-19 enterprise support grant from the Department of Employment Affairs and Social Protection. This grant can be used towards the costs associated with reopening a business and can include the purchase of cleaning materials and personal protective equipment, PPE.

Licensed taxi dispatch operators, self-employed taxi drivers and other SPSV businesses can avail of liquidity and investment measures. These include the Covid-19 business loan scheme, which provides for loans of up to €25,000, free from interest for six months, with a Government rebate available for the interest payable for the following six months, and the Covid-19 credit guarantee scheme, which offers a partial Government guarantee of 80% to participating finance providers against losses on qualifying loans to eligible small businesses, a category including self-employed owner-operators of SPSVs. Relief is also available to self-employed SPSV operators through the tax system. Tax relief is available to those businesses which were profitable in 2019 but loss-making in 2020 due to the impact of Covid-19. This relief allows losses of up to €25,000 to be used against profits in 2019.

As I said, many operators, faced with a dramatic fall in demand for their services, have had no choice but to avail of the PUP. Taxis and hackneys are particularly dependent on pubs, clubs and major events for many of their passengers, while limousine operators are especially reliant on overseas tourism that has all but stopped as a result of the pandemic. Recognising that it may be some time before these traditional sources of passengers return, the Government has extended the PUP until April 2021. The NTA continues to monitor passenger demand for services, and this information is fed back to SPSV operators. It is vital that SPSV operators on the PUP are supported by the provision of this type of information so they can make an informed decision regarding when to return to work.

I also acknowledge the important role being played by the taxi advisory committee and its chairman, Con O'Donohoe. The committee was established under legislation to advise the Minister and the NTA, and it features a broad membership of SPSV drivers, dispatch operators, service users and other stakeholders. In June 2020, the then Minister for Transport, Tourism and Sport, former Deputy Shane Ross, met with the committee and invited it to submit proposals on how best to support the industry and ensure its future sustainability. Officials have since worked with the committee to explore how these proposals can best be implemented, and they continue to engage with the committee to determine how best to support the industry as Covid-19 continues to unfold. The committee is an important forum, and that is why the Government will commit to filling the vacancies on the committee with members who can represent a broad cross-section of interests in this vital industry.

I would especially like to see representatives from the limousine and chauffeur area of the industry in recognition of the particular challenges they face in preparing for next year's tourist season. Dialogue is important and that is why my colleague, the Minister with responsibility for transport, Deputy Eamon Ryan, met with representatives of the taxi industry last week to discuss their concerns. The Minister assured representatives that he and his officials will continue to work with the NTA to identify the challenges faced by the industry, to ensure that the industry can continue to access the Government's range of financial supports to the greatest extent possible, and to ensure that operators are not unfairly penalised for taking a break from the industry during this difficult and challenging time.

I thank Sinn Féin for tabling this motion today and for providing me with an opportunity to discuss these important issues. There is much in this motion with which I agree wholeheartedly. I agree with its positive sentiments regarding the taxi industry and the vital work that sector has rendered throughout the pandemic, particularly to the HSE. I also agree that this is an industry that has faced especially grave challenges as a result of Covid-19. However, because of the measures I have just outlined, I cannot agree that the Government and the NTA have shown the industry a lack of support and assistance. I also cannot agree that there is a basis at this time for the wholesale extension of vehicle age limits as set out in this motion. I also believe that the taxi advisory committee should be able to continue its statutory mandate by representing the voices and opinions of a broad range of stakeholders, including passengers, to assist the Minister and the NTA in ensuring the provision of a reliable and high-quality public transport service from the SPSV sector. I reject this Sinn Féin motion and, on behalf of the Government, I call on the House to support my amendment.

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