More on Dublin De-Regulation Issues.

Taxi drivers say deregulation has caused a glut of cabs and a moratorium should be put on issuing more licences to protect their earnings and ease jams

 

THE BACKGROUND: Customers are down, cabs are up

Following deregulation in 2000, there are now five times more cabs operating in Ireland, with the number in Dublin up by 450%. According to Kathleen Doyle, the regulator, there were 13,223 taxis in the capital at the end of November, with 2,359 in Cork, 1,224 in Galway and 923 in Limerick. In all of Sweden there were just 14,251 taxis in 2006. Doyle points out that it’s not just about population, it’s about demand. But with the number of public transport users down heavily last year because of the recession, it’s a safe bet that fewer commuters are now hailing taxis.

Meanwhile, redundant workers from other sectors are buying plates. The Department of Social Welfare even gives grants worth €1,000 to unemployed people setting up a taxi business.

THE RESULT: Taxi drivers’ income is slashed

Terry O’Connor of the Concerned Taxi Drivers’ Association has said most of his members had to work 20% more hours last year to bring home the same money they earned in 2007.

Another problem is that there isn’t enough room on the streets for all the extra cabs. Galway has about 65 taxi rank places for its 1,224 cars. “The situation is reminiscent of a car rally in Mondello Park,” Paul Connaughton, a local TD, told the Oireachtas committee on transport. “Taxis tend to cause traffic jams around Eyre Square and adjoining streets.”

Meanwhile, drivers with a Stamp 2 student visa are allowed to work only 20 hours a week during college term. Some in the industry believe this restriction is being widely flouted.

THE SOLUTION? Industry wants a moratorium on licences

Taxi drivers, with support from the Oireachtas committee, want a moratorium for up to three years on new licences being issued. They also want retiring drivers to be forced to give back their plates to the regulator so they can be reissued rather than being sold through newspaper ads.

The regulator does not have the power to impose a moratorium. Any change to the liberalised market can only be made by Noel Dempsey, the transport minister. The taxi industry points out that, since the exchequer pockets the licence fees after the regulator’s modest administrative costs are paid, there is no incentive for the government to cap the number of cabs. A taxi licence costs €6,300.

THE REAL SOLUTION: Raising standards may be the answer

Presuming the government continues to reject demands for a moratorium, there are steps the regulator can take to limit the number of taxis. One is to raise the required standards of both vehicles and drivers. A new test will be introduced this summer for prospective drivers, with seven modules. Taxi cabs will also have to be kept up-to-date, and vehicles more than nine years old will not be allowed in the fleet.

Better management would also help. The regulator recently found “long queues and no taxis at one rank in Cork on 12 different occasions over a two-day period”. Many taxis are available in off-peak periods, but there are still shortages at times of high demand.

Source: TimesOnline

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