Dáil debates

Thursday, 17 June 2021

Ceisteanna - Questions - Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Transport Policy

9:05 am

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Transport, Tourism and Sport if he will extend the ten-year rule for taxis, acknowledging the severe financial pressure taxi drivers remain under as a result of the pandemic; and if he will make a statement on the matter. [32823/21]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Will the Minister extend the ten-year rule for taxis, acknowledging the severe financial taxi drivers remain under as a result of the pandemic, and will he make a statement on the matter?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

The National Transport Authority, NTA, is the statutory body tasked with the regulation of the small public service vehicle sector, SPSV, and it is responsible for the regulation of vehicle age limits under the provisions of the Taxi Regulation Act 2013.

The Deputy may be aware that the NTA has 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. I trust the authority will keep this issue under review as society and the economy reopen and passenger demand returns.

The authority's extension of age limits is an emergency measure, taken in recognition of the particular challenges occasioned by Covid-19. The ten-year rule was recommended by the 2011 taxi regulation review and came about following a public consultation on vehicle standards for taxis, hackneys and limousines held that year. It was adopted in recognition of the need to strike a balance between achieving standards that offer the customer confidence, comfort and safety and allowing industry members to operate successfully, cognisant that the replacement of a vehicle is a SPSV operator's single largest cost.

I remain committed to supporting the transition of the fleet towards zero-carbon, low-emission vehicles. For this reason, I increased the funding available to the electric grant scheme for taxis for 2021 to €15 million. I also doubled the amount payable under the scheme to €20,000 for operators who scrap older vehicles and make the switch to fully electric models. There has been a strong interest in the revised scheme since its launch in February, with nearly 600 applications received to date.

As the Deputy will be aware, many other measures have been taken to support the taxi industry. At the start of the pandemic, the NTA waived late licence renewal fees and engaged with the insurance industry to facilitate a suspension of SPSV insurance for those operators who decided to temporarily stop working.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

I will come back to the rest of the answer.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The response from taxi drivers to the full package of measures announced last week is that they are underwhelmed. They are frustrated and angry at the extent of the engagement they had with the Minister, Taoiseach, Tánaiste and various backbenchers and with the support package, which amounts to a sum total of a couple of hundred euro for each individual taxi driver. That is completely unacceptable.

On the ten-year rule, a video circulating on social media shows a taxi driver walking around his Toyota Avensis, which has a 12 D registration and is in immaculate condition, asking the Minister why he is going to be driven out of the taxi sector because he will not be able to renew his vehicle. Will the Minister put a plan in place instead of doing this yearly or every six months? Will he tell the taxi sector what he is doing with regard to the ten-year rule?

9:15 am

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

Last week we stated that a further €3 million is being provided to waive licence renewal fees for this year. We also announced a further allocation of €3.5 million to operate a scheme to refund the cost of national car tests, NCTs, and motor tax, so that is a further €6.5 million. Critically, the most important thing for taxi drivers was the ability to earn income while being on the pandemic unemployment payment, PUP, which has been extended into next year. Similar to the aviation industry, the most critical thing, which most taxi drivers want more than anything else, is for passengers to come back and to have fares. That will happen on a transitional basis in these coming months as business starts to go up and they will still be able to avail of the PUP, get their costs covered and have an income. The return of business in the autumn, as we expect it will in September with office workers coming back and colleges coming back in person, as well as pubs and restaurants opening up across the country from 5 July, will be the best way of getting the taxi industry back. The Government will continue to see what supports are needed depending on what the numbers are in that regard.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I have a question about the ten-year rule. I hear what the Minister is saying about the moves that have been made but there has to be NTA consultation before a decision is made and in the meantime, taxi drivers have experienced 15 months of no work and insufficient supports, whatever way it is cut up, and are losing money every day. The prospect of breaking even is a long way off, yet the decision about renewing their vehicles is imminent. That is what is hanging over them and they are frustrated with the Minister and his Government for not providing clarity and assurance in that regard. What is the Minister's plan for the taxi sector? There are in the region of 26,000 taxis in Ireland. How many does he envisage will be operating at the back end of 2022?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

I would like there to be 26,000 taxis because one of the things I want to do is switch the way our cities work. That is going to take time, support from this House, budgets and funding. It will also have to get through the planning system. One of the big changes coming to our cities is bus corridors and BusConnects schemes that will radically transform the city and give taxis a huge advantage in being able to get around cities quickly. There are all sorts of rumours that we are going to stop taxis doing this, that and the other but it is all nonsense. The key thing is reallocating space and reimagining how our cities work and taxis, as a public transport service, will have a huge role to play as part of that. I foresee an expansion in our taxi fleet.

Yes, it has been a tough time. This has been a terrible crisis for many different sectors and people and the Government has put €38 billion into a variety of different supports for every industry in every way. Specifically in the taxi sector, we tried to provide that extra bit of flexibility by allowing taxi drivers to get the PUP while also earning an income and getting their costs covered. It has not been easy as there were not any fares. The best way back is to get the fares going and that is starting to happen. I hear the numbers are starting to rise quite significantly.