Thomas Pringle (Donegal South West, Independent)
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61. To ask the Minister for Transport, Tourism and Sport if he will ensure that existing taxi and hackney licence holders can apply to provide the rural hackney service; if he will ensure that new licences will only be considered in the event of a failure to get enough applications; and if he will make a statement on the matter. [41231/13]

Leo Varadkar (Dublin West, Fine Gael)
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The taxi regulation review report 2011 which was adopted by the Government contains a recommendation regarding the introduction of a local area hackney licence for rural locations meeting certain criteria. The objective of the licence is to facilitate low cost entry to the hackney market for transport provision in rural areas that, otherwise, would be unlikely to have such services. The report anticipates that the licence would have the following features: the area of operation would be limited; the need for a licence would have to be validated by a local community or business organisation; low entry cost for operators; drivers would have to be resident in the area in respect of which the need for the service has been identified and there would be no requirement to sit area knowledge tests; and the driver would not be allowed to ply for hire on public roads or at taxi ranks. However, the establishment of an approved "hackney stand" in an off-street area would be permissible.

In accordance with the Taxi Regulation Act 2003, it is a matter for the NTA to make regulatory provision for the grant of a local area hackney licence. I understand the NTA is considering the matter in consultation with the taxi advisory committee which includes representatives of the taxi and hackney industry. Matters such as those raised by the Deputy are still part of the discussions with industry representatives and no firm decision has been taken.

Thomas Pringle (Donegal South West, Independent)
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I raised this issue during Second Stage of the Taxi Regulation Bill 2012 before the summer recess. The Minister of State should ask the NTA to give serious consideration to this issue because a large number of taxi and hackney drivers are operating in rural areas, but they are struggling to make a living in the current climate. Introducing another licensing brand in the sector will make it more difficult for them to survive. The rural transport model that will be used to roll out the rural hackney service could avail of existing taxi and hackney licences to provide services and that would ensure fair play for everyone. The Minister of State has acknowledged the difficulties in regulating the new licence if it is introduced. Given that there are only 19 regulators throughout the State, the chances are that hackney drivers will operate outside their areas and that they will not be policed. It is important in the context of fairness to give existing licence holders the opportunity to tender for the new licences and if they fail to pick up the slack, consideration should then be given to new licence holders. Will the Minister of State ask the NTA to deal with that matter?

Alan Kelly (Tipperary North, Labour)
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The Deputy and many others have raised this issue with me. There is market failure in rural areas as regards services and the provisions introduced through the legislation. The NTA regulations need to ensure an appropriate service in rural areas where there is market failure. I understand the Deputy's concerns and the NTA is going through a process with the taxi advisory committee to address them.

We are trying to ensure that services are provided in isolated rural areas for many of the reasons Members have raised with me and the Ministers responsible for other areas. It is critically important that that happens. I accept what the Deputy said about ensuring there is proper enforcement of the new rural hackney licence system. Given the provisions I included in the legislation, I am confident I can increase the level of enforcement.