Taxi unions to demand licence moratorium
The meeting follows yesterday’s publication of a report on behalf of the taxi regulator which found — contrary to claims by drivers — that the increase in new licenses issued has meant a better service to the public and has not impacted on the earnings of existing drivers.
As taxi drivers held another protest demanding a restriction on the issuing of licences to new drivers, the taxi regulator published the results of a review carried out by Goodbody economic consultants, which found there was no need for a moratorium.
The Goodbody report said the current regulatory structure “has worked well and should be retained”.
“There is an insufficient justification at present for an adjustment to the regulatory structure through the introduction of a moratorium.
“Rather, free entry to the cab industry has yielded large benefits to consumers in terms of higher levels of service without compromising the quality of service on offer,” it said.
Goodbody did concede that taxi drivers had experienced a reduction in nominal earnings between 2005-2008.
However, it said that had been mitigated by the fare increases granted late in 2008.
“It is clear that industry earnings are not collapsing as some industry sources would suggest. However, this is not to deny that cab drivers have to work longer hours to achieve their income targets and that on an hourly basis they are earning well below the average industrial wage rate.”
The regulator also confirmed that drivers were working an average of 52 hours a week and that the percentage working over 70 hours had risen from one in 25 to one in 10.
Taxi regulator Kathleen Doyle said competition in the market was essential for the good of consumers.
“As anticipated, the findings of the review show an industry in transition, highlighting significant changes since liberalisation in 2000,” she said. There has been a large increase in demand for cabs, with approximately 100 million trips last year, an increase of over one quarter since 2005.”
However, Tommy Gorman of the National Taxi Drivers Union said drivers were furious, particularly as they had expected the moratorium to be introduced.
He said unions would tell the minister in no uncertain terms this afternoon that he faced a major revolt unless one was brought in.
Jerry Brennan of SIPTU said it came as no surprise that the report did not support a moratorium on issuing licences as it concurred with a letter sent from Transport Minister Noel Dempsey to him last October.
“Based on this letter and two years of non productive talks with his department, we balloted our members last November and they voted by 98% to support a Taxi Drivers’ Rights Campaign. We suspended the campaign this week in the light of the impending report in the hope it would highlight abuses and propose measures to deal with them. Unfortunately it failed to do so.
“Therefore, the SIPTU Taxi Branch committee has decided to resume its rights campaign for drivers. Over the coming days we will embark on an appropriate series of protests after prior consultation with our colleagues in the other taxi organisations.”
