Dáil debates

Thursday, 12 March 2009

2:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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I am delighted to have the opportunity to raise this issue. The taxi regulator produced the review of the taxi and hackney market during the week and she did not recommend a moratorium on taxi numbers. I want to determine the progress that can be made on this matter. The review indicates the hackney and taxi market was responsible for approximately 100 million trips nationwide in 2008 and that the industry is worth approximately €1.5 billion. At present, 77% of cabs are taxis and 23% are hackneys. In 2005, 72% were taxis and 28% were hackneys. Therefore, there has been a significant increase in the proportion of taxis by comparison with hackneys.

The report concluded that the number of hours worked per week were above the standard number and amounted to 52, on average. However, some taxi drivers had a second job or were working part-time. Those with a second job were working an average of 75 hours per week, which raises certain issues pertaining to safety. Approximately 30% of drivers were discovered to have a second job or to be working part-time. This is a very substantial proportion. More than 16% had a second job and some 69 million working hours were clocked up in total. These statistics demonstrate it is a very substantial industry, worth €1.5 billion or €1.6 billion. At the end of 2008, 13,000 cab drivers were working in Dublin. Of all cab drivers in the country, 59% are operating in Dublin. This represents a significant increase.

The regulator indicates she understands circumstances have deteriorated and that taxi drivers are working significantly longer hours to make the same amount of money that they used to make. She recognised this is a serious issue and that certain drivers are working much longer than what would be regarded as normal. However, she does not recommend any step to deal with this, other than to try to improve the standards in the industry. There is no recommendation on a moratorium. I ask that we at least have a temporary one so we can take stock and have a better review and analysis of what has been happening in recent years. The Minister of State well knows that if one comes to Dublin any night of the week one will see the streets chock-a-block with taxis. It has transformed dramatically in recent years. In the past, we had far too few taxis but that was back in the 1990s. Now, it seems to be increasingly difficult for taxi drivers to make a decent living. They must work extravagant hours with all this means for safety in the workplace.

At present one can dispose of a taxi plate privately. It would be more appropriate for it to be sold back to the local authority from which it was obtained. In this way, we could know to a much better degree what plates are out there and the standards to which a taxi plate operates.

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