Dáil debates

Tuesday, 6 July 2021

Saincheisteanna Tráthúla - Topical Issue Debate

Covid-19 Pandemic Supports

9:45 pm

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I thank Deputy McAuliffe for raising this matter and for giving me this opportunity to set out how the Government has allocated over €24 million to targeted measures to support this sector since the start of the pandemic. The Government is acutely aware of the very difficult situation facing the taxi and small public service vehicle, SPSV, industry as a result of the impact of the pandemic. I recognise that low passenger demand has meant that many SPSV operators have been simply unable to work and have relied on the PUP. I understand that many operators have had to temporarily suspend their licences in order to reduce major costs such as insurance and dispatch operator fees. In response to this, the Government has sought to ensure that a range of sector-specific and more general supports are available to SPSV operators to provide tangible assistance in the face of these impacts.

As for targeted, sector-specific supports, over €24 million has been allocated to the sector since the start of the pandemic. Part of this includes the package of measures I recently announced, worth €6.5 million, which will mean that SPSV standard vehicle licence renewal fees, usually €150, will be waived in 2022 at an estimated cost of €3 million. These fees were also waived in 2021 at a further estimated cost of €2.6 million. The National Transport Authority is being provided with €3.5 million in funding to enable the establishment of a scheme to refund NCT fees, which cost €55, and motor tax for SPSV operators, which costs €95, for a 12-month period. The commencement date of this scheme has yet to be determined. Further details of the schemes, including how to apply, should be available during the third quarter of this year from the National Transport Authority.

A significant proportion of the allocated €24 million relates to support for the transition of the taxi fleet towards zero-emission or low-emission vehicles, an objective to which I am wholeheartedly committed. The replacement of a vehicle is the largest single cost faced by any SPSV operator, and the funding available through this eSPSV grant scheme directly supports the purchase of electric vehicles. The overall funding for the scheme was increased from €1 million to €15 million for 2021. Furthermore, a scrappage component for older vehicles was introduced, doubling the amount payable under the scheme to €20,000. Additional amounts are available for those switching to vehicles which are both electric and wheelchair-accessible. Interest in the scheme has been very strong, with over 700 applications received since it opened in February. Some 65 new vehicles have already been licensed under the scheme at a cost of €1.2 million.

These sector-specific measures augment and enhance the range of Covid-19 support measures with broad eligibility criteria that the Government has put in place. Taxi operators can avail and have availed of these critical supports, which include the PUP, liquidity and investment measures and tax relief measures. There is also the enterprise support grant, worth up to €1,000 towards business reopening costs such as personal protective equipment, vehicle costs and cleaning supplies.

The Government is committed to supporting drivers to return to work as society starts reopening. That is why self-employed individuals, including taxi drivers, can earn up to €960 in a given eight-week period, net of expenses, while keeping their PUP entitlement. The Minister for Social Protection, Deputy Humphreys, would have to answer any further specific questions about this measure's operation into next year. My understanding, however, is that it will be extended along the lines announced when we announced the measures for taxi drivers.

The NTA has also extended age limits for taxis and hackneys three times since the start of the pandemic. The most recent extension, made last month, ensures that no vehicle will be forced to exit the fleet due to age limits alone in 2021. Furthermore, and to answer Deputy McAuliffe's question, I have asked officials in my Department to engage with the NTA to make sure we will bring about an extension of that measure until the end of 2022, which I hope will help add to the other measures and provide some support to those taxi drivers who have been in real difficulty throughout this period.

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