Written answers

Tuesday, 15 June 2021

Department of Transport, Tourism and Sport

Covid-19 Pandemic Supports

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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284. To ask the Minister for Transport, Tourism and Sport the funding allocated to support the taxi sector specifically in 2020 and 2021, by each initiative; and if he will make a statement on the matter. [31843/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I thank the Deputy for his question, however, no account of the support given to the taxi and other small public service vehicle (SPSV) sector would be complete without referring to the broad framework of horizontal support measures this Government has made available due to this pandemic.

The SPSV industry has been badly affected by COVID-19. Passenger demand for services has dropped and many SPSV operators simply haven’t worked since the start of the pandemic. I understand that as many as 70% of SPSV drivers have availed of the Pandemic Unemployment Payment. It is impossible to say just how much the nation’s 25,000 taxi drivers have received from the PUP as it is calculated with reference to an individual’s pre-pandemic earnings. However, it would undoubtedly be a very significant amount – an individual on the lowest rate of PUP, €203 per week, would have received over €10,500 after 12 months on the payment. The Deputy will be aware that the PUP has been extended to February 2022.

Self-employed SPSV operators can continue to claim the PUP and earn up to €960 in a given 8 week period, net of expenses. As society begins to reopen and passenger demand for taxis increases, this will become an important support for drivers as they return to work. Drivers who earn over €960 may be eligible for the COVID-19 Part Time Job Incentive for the Self-Employed Scheme. The COVID-19 Enterprise Support Scheme, worth up to €1,000, is also open to SPSV operators to meet the costs associated with returning to work. All of these schemes are administered by the Department of Social Protection.

That is the context in which my Department has funded additional measures specifically targeted at the costs incurred by SPSV industry. As the Deputy will be aware, many of the major costs faced by SPSV operators, such as insurance and dispatch operator fees, can be deferred or cancelled during a period of inactivity. In last year’s Budget, I allocated approximately €2.6 million towards the waiver of standard vehicle licence fees, in recognition of the fact that this was a cost borne by SPSV operators which could not be deferred.

The replacement of a vehicle is the single largest cost faced by any SPSV operator and I remain committed to supporting the transition of the SPSV fleet towards zero/low-emission vehicles. That is why I have increased the funding available to the Electric SPSV (eSPSV) grant scheme for 2021 to €15 million, up from €1 million. I also doubled the amount payable under the scheme to €20,000 for operators who scrap older vehicles and make the switch to full electric models. This scheme can be used in conjunction with COVID-19 investment and liquidity measures, such as the COVID-19 Credit Guarantee Scheme. There has been a strong interest in the revised scheme since its launch in February with over 500 applications received to date.

In April I met with the Advisory Committee on SPSVs and discussed my hope that passenger demand would begin to return this summer as public health restrictions are lifted and the tourism and hospitality industries begins to reopen. I understand the difficulties facing operators across the country and considered possible additional measures to target the statutory, non-deferable costs faced by SPSV operators.

Last week, following consultation with the Advisory Committee, I announced further measures worth €6.5 million split between 2021 and 2022 to address these costs. The measures will waive standard licence renewal fees again in 2022, and will refund the cost of NCTs and SPSV Motor Tax for a given 12 month period. The NTA will administer these refund schemes, the commencement date for which has yet to be decided, but likely to be during Q3 of 2021.

It should be noted that many other measures been taken to support the industry. At the start of the pandemic, the industry’s regulator, the National Transport Authority 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 and suspend their licences. The Authority 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 no vehicle will be forced to exit the fleet due to age limits in 2021 and I trust that the Authority will keep this issue under review as society and the economy reopens and passenger demand returns. I understand that the Authority will also shortly advance a public consultation on extending the period of time that SPSV licences may be placed in ‘inactive status.’

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