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A State of Crisis Claims Taxi Body

The taxi industry in Ireland is in a state of crisis where drivers cannot meet their financial obligations and standards are at an all-time low, says The Irish Taxi Council (ITC) in a proposal document sent to the Department of Transport. The Council, which represents 28 taxi associations from around the country, submitted a range of proposals it believes will revitalise the industry. On the subject of licenses it says all future taxi licenses must be for wheelchair accessible vehicles only. “They must be issued exclusively to taxi drivers who are available to work at least 40 hours per week on a non-transferable basis,” says the ITC. “This would serve to address both the extreme over supply of saloon taxis and the under supply of wheelchair accessible taxis.” A major bugbear of all fulltime drivers has been the emergence of so many part-time drivers since the introduction of deregulation a decade ago. According to the ITC these part-timers are presenting a safety risk to passengers as “the mental and physical resources of these drivers are inherently focused on their commitment to their primary occupations”. According to the ITC “this should be addressed by making it a condition of licence renewal that the majority of the applicant’s earned income must derive from the trade of taxi driving”. Another well-publicised problem for drivers is the serious shortage of rank space in all towns and cities. In fact there are many towns of significant population that have no rank facilities whatsoever, says the representative body. “It is imperative that action be taken to provide adequate facilities as a matter of extreme urgency,” it says. “It is noteworthy that while the Commission for Taxi Regulation has achieved a significant surplus it has made no finance available to local authorities for the provision of infrastructure as intimated within Section 11 Taxi Regulation Act 2003. The body is also calling for a taxi license ‘buyback’ scheme whereby drivers who no longer want to work would receive reimbursement of their license fee.

Free Taxis for Dublin?

Does Dublin need free taxis? According to informed sources the mobile phone giant Nokia is thinking of sponsoring free taxi journeys in Dublin. The sponsorship deal would be similar to ones already in place in four major UK cities: Glasgow, Manchester, Birmingham and London. According to the deal, if a punter spots an Ovi Maps branded cab out and about in these cities, they can flag it down and get a free ride. Providing someone else isn’t in it already!And also providing it’s a short distance trip. People who take the mickey and ask for a ride up to John o’ Groats (or down to Lands End) will be unceremoniously ejected from the vehicle. “The cabs also have Nokia X6 phones running Ovi Maps in the back, the idea being that customers can follow their route, and realise how good Nokia’s map service is,” says Nokia. Nobody knows how many of these taxis are in the four cities so the odds of finding one might be large.

Card Charges Too High Says Regulator

The Taxi Regulator has responded to the launch of the Taxi Pay credit card service by stating it thinks some of the charges applied by service providers are too high. Taxi Pay is proposing to charge passengers a minimum €2 fee or 10% of the total fare, whichever is lowest. Some other service providers are believed to be charging 20%. According to Sonia McIntyre from the Office of the Regulator, “the Commission is of the view that the facility to pay a taxi fare by credit or debit card is a useful facility for customers and sees no problem with charging a passenger for the reasonable cost to the service provider of extending to that passenger the facility of a credit or debit card payment option”. The problem arises, she says, when “this charge may not be used by service providers as an expedient by which to inflate the maximum fare. In other words, any related administration charges should be kept to a minimum or, ideally, absorbed by the operator. “As a result, the Commission is of the view that a 20% surcharge is excessive for the purpose of consumers paying taxi fares by credit or debit card and does not represent the real net cost of the administration of a credit/debit card facility. In light of this industry practice, the Commission is proposing to: • Alert consumers to the fact that certain dispatch operators apply no fee for providing a credit/debit card facility and that others apply a surcharge of as much as 20%; • Alert consumers to the fact that a passenger should be advised clearly at the start of a hire that, if they decide to pay by credit/debit card, they will be liable to be charged a surcharge of X%. “While related administration charges should be kept to a minimum, this is not always the case nor is this problem confined to the small public service vehicle (SPSV) industry. However, I wish to assure you that the Commission is actively considering this issue and will endeavour to raise consumer awareness of these charges in an appropriate manner.“

Mixed Reaction to Proposed Fare Change

The Taxi regulator’s announcement that she is committed to a review of the national maximum taxi fare during the course of 2010 has met with a mixed reaction from taxi drivers. Two years ago most drivers were demanding action on fares to make the business more competitive. Now, however, most see little room for a fare reduction. Drivers speaking to The Taxi Magazine say any sort of profit has gone out of the business. “With so many part-timers coming out at the weekend the one good night of the week, Saturday, is now a busted flush,” said ‘John’, who was waiting at the rank on St Stephens Green. The recession has had a huge effect on people’s willingness to spend money on taxis, particularly long journeys. One driver, writing on the Irishtaxi.org forum said long distance fares are a thing of the past. “Fares are too expensive. I can travel up to Dublin (from Ballina) on Bus Eireann between Monday and Thursday for €19 return. If someone had to go to Dublin for a hospital appointment it would be cheaper for them to travel up on the bus, stay overnight in a hotel where they will probably get a great deal midweek and return after their appointment. “A taxi fare from Ballina to Dublin on the meter is over €400. Who is going to pay that amount of money? It would only be somebody who has a phobia about travelling on buses or trains or someone who is in desperate need to get to Dublin for an emergency. There’s no way will people pay those kinds of fares in this current economic climate. “I even notice now that I rarely get any fares to the main hospital in Mayo, which is in Castlebar. People get friends and family to bring them. The same with Knock airport.” Other drivers argue that the undercutting on ‘off meter’ jobs is too much. It is now possible to get a taxi from Portlaoise to Dublin for eight people for €80 on a Saturday night. Some drivers argue that economic conditions dictate such fares but others compare those sorts of fares as below minimum wage. “What incentive is there to even clean your car before going to work for earnings like that,” asked one driver. “House cleaners are asking €13 per hour. We have no overheads to reduce, we can’t let staff go, we have to increase the quality of the goods we are supplying, and pay more for all the services we have to buy.”

Overcharging Tops Complaints List

Over 65% of complaints made about taxi drivers to the Taxi Regulator during 2010 have related to overcharging. According to new information from the Taxi Regulator’s office, 158 complaints were filed with the Commission for Taxi Regulation during the first four months of 2010 as against 476 complaints filed for 2009 as a whole. Some 69% of complaints filed in 2010 relate to overcharging while 17 per cent concern conduct and/or behaviour of drivers. A further 11 per cent of complaints related to the hiring of a small public service vehicle (SPSV) while three per cent concern the condition and cleanliness of vehicles. The commission undertook 31 prosecutions during the first four months of 2010. The regulator also undertook a total of 84 prosecutions for the whole of 2009. Additionally, it has issued 103 fixed-charge penalties in 2010, compared to 401 charges for 2009 as a whole.

Rollout of Changes Met with Mixed Reaction Reform announced by the Commission for Taxi Regulation last October will now begin to be implemented over the coming months. We report on the reaction to some of the major reforms from within the industry.

Licensing Changes

As most are now aware, it was announced that new PSV licences will, from 8 June, only be issued to wheelchair accessible vehicles (WAVs). According to Kathleen Doyle, the Commissioner for Taxi Regulation, “New entrants are still able to enter the market, both through a new WAV taxi or hackney licence [since a new category of wheelchair accessible hackney will be also be introduced as part of the reform], or by buying a transferred taxi licence and putting it on a car that is less than three years old. The objective of this policy is to raise standards and ensure a service is maintained for people with disabilities.” For some, this couldn’t come sooner, with considerable tension and dissatisfaction surrounding the disputes held by drivers both this year and last, with many claiming that their income has fallen by between 40 and 50 per cent as a result of the surplus of taxis on our roads. However, the priority for the Department of Transport appears to be the increase in the number of WAVs on the road, with mounting pressure from the disability sector. Frank Byrne, spokesperson for Taxi Drivers of Ireland and President of The Irish Taxi Council, believes that the move to WAVs needs to be incentivised if it is to be successful. “The situation is that the market is over supplied,” he says. “What the regulator should be doing is fighting for incentives to encourage drivers to convert from normal cars to wheelchair accessible vehicles to accommodate requirements of those less well abled in our society.” So is there any chance of making a WAV a real possibility for drivers? With financial pressures as they are, it would clearly only be possible with some sort of subsidy. The Commission for Taxi Regulation is in ongoing discussions with the Minister for Transport, Noel Dempsey and the Department of Transport regarding the proposed introduction of a subsidy to assist in the purchase and use of new WAVs, but no decision has been made as yet. In a document entitled, ‘Engaging for Progress: a rank and file view of reform in the taxi industry’, compiled and written by contributors to irishtaxi.org/forum, those involved believe that the wheelchair accessible target will never be reached under the current rental system. The document states: “It is notable that the Commission for Taxi Regulation has set no target date, interim targets or failure standards relevant to achieving its obejective of 10 per cent of the fleet to be wheelchair accessible taxis. If the Commission for Taxi Regulation is serious, as it should be, about increasing wheelchair accessible taxi numbers, it must address the real barrier to provision by restricting the rental sector to wheelchair accessible taxis.” The document goes on to say: “Before entry liberalisation, a salon taxi licence valued at £80,000 fetched a rent of £1,000 p.m., giving an annual return on investment of 15 per cent. Since entry liberalisation, the figure, conservatively based on taxi vehicle licence value of €6,300 and rent of €160, works out at 30 per cent. These figures highlight the fact that investors returns have doubled since entry liberalisation, while drivers incomes have more than halved.” A large part of the problem, Frank Byrne believes, is this issue of part-time drivers and multi licence holders, where the current situation is that many drivers are working a full-time job and supplementing that income by working as a taxi driver in the evenings. This is viewed as unfair competition by many. “There are just under 21,000 licensed PSV vehicles in Ireland; there are 7,200 licenses held by multiple licence holders and there are 9,819 PAYE workers who hold SPSV driving licenses.” Frank asks the question, ‘Why’? In other words, how has this become acceptable? Many see it as wholly unjust since other workers operating within other industries do not have to suffer the same unfairness, yet this has become the harsh reality within the taxi industry. Full-time drivers are now struggling to earn what they used to earn, not purely due to the fact that members of the public are less likely to take a taxi now due to the recession, but also due to the added competition of part-timers, leading to what is, in essence, a double-whammy effect on earnings. Also, although some believe that the new licensing rule means a much welcomed moratorium on licences, other industry representatives are claiming that this is not, in fact, a true moratorium since the Regulator is likely to open up licences again once the 10 per cent wheelchair accessible vehicle target has been reached.

Transferring of Licences

Another reform being introduced is that existing standard licences can only be transferred one more time, “To ensure the second hand market value of licenses does not artificially increase following the new entry requirements,” says the regulator. “Existing taxi licenses will be transferable only once more and will only be processed if the licence is being transferred to a standard saloon vehicle under three years old, thereby ensuring that people entering the industry will do so at a high standard. The change in transferability rules will improve quality standards, enhance enforcement and compliance activities. It should also ensure that those entering the market are totally committed to it. All of this is of benefit to the industry as a whole.” Although many drivers welcome any move to raise standards within the industry, this three year rule, along with the nine-year rule [any driver who wants to change their car must buy a vehicle that is less than nine years old] has added to the current mounting financial pressures on drivers to purchase newer cars. Originally, the hope was that this would not come into effect until 2012, to bide more time for drivers to raise the necessary finance. With banks reluctant to give out loans in the current climate, some drivers feel that this reform could actually force them out of the industry once and for all. Other changes to licensing include the new fleet licence to be introduced in a bid to bring ‘greater transparency and accountability to multiple vehicle licence holders and the rental sector’. This is something that most drivers are happy about, in that it introduces a fairer playing field within the industry, although many are still unsure as to what criteria will apply to such a licence and many drivers are still sceptical regarding the enforcement of regulations with a general disappointment in enforcement carried out to date. According to the Commission’s website: The [enforcement] team, assisted by An Garda Síochána, covers all aspects of the SPSV industry including; vehicle standards, vehicle licensing and driver licensing. Since February 2007, officers have visited every county in the country. This is part of our national enforcement operation and also in response to calls from within the industry, members of the public or following advice from the Gardaí. These visits will continue in 2008 with special attention assigned to major events that draw large attendances and are serviced by significant numbers of SPSVs. Talk to any taxi driver and you are sure to discover that most have no faith in compliance, particularly within the rental market, because they have seen regulations being ignored with their own eyes. Also, it appears that many drivers are surprisingly reluctant to report infringements by other drivers to the Commission. Instead, they have an expectation that those who break the regulations should be picked up by the Commission and the multi-agency checkpoints. “The fact that the industry is supervised in a light touch regulation way means that the fleet holders can operate without fear of retribution,” says Frank Byrne. “The fact that there are only nine enforcement officers appointed to regulate the industry means that these people can operate without impunity. One SPSV driver can go and rent a car. He can then give it to his mate and then rent another. There is no check system in place.” Although there are offences detected via the multi-agency checkpoints (just 13 reported on last count), some drivers feel that the figure does not in any way reflect the actual number of offences which is frustrating for the many, honest, compliant drivers across the country. > Kathleen Doyle, the Commissioner for Taxi Regulation “What the Regulator should be doing is fighting for incentives to encourage drivers to convert from normal cars to wheelchair accessible vehicles to accommodate requirements of those less well abled in our society,” says Frank Byrne, Spokesperson for Taxi Drivers of Ireland.

New Driver ID & Roof Signs

The roll-out of the new glow-in-the-dark driver ID and roof signage is to take place in the coming months and is likely to be welcomed by the great majority of drivers. The Regulator is currently contracting out the production of both with the aim of clearer signage that should indicate the licensed operating area for drivers (these will be issued free of charge to drivers). The current vehicle signage clearly fails to adequately identify the area in which a driver is licensed to operate so drivers are hopeful that this should help with the enforcement of regulations and, despite the short-term inconvenience, should help to prevent the problem of poaching or illegally cloned taxi signs and licences, allowing drivers to operate in other areas. Some say that bogus taxi signs have been on sale for just €200 in Dublin. One well publicised example of an offence was when one particular driver noticed that another driver plying on the street was actually using his legally registered number on the taxi sign. With this in mind, drivers have stipulated that this new area information should be included in such a way as it can be read from both inside and outside the vehicle in order to be truly effective. Clearer signage and ID has been welcomed by the industry as a whole, with Frank Byrne stating: “The return to county licensing identification is welcomed by the industry. The fact that the public will be able to identify that the taxi they hail or hire is licensed to operate in their city, town or county should inspire safety and securing in using the services the vast majority of full-time drivers wish to offer. It allows the Gardai and enforcement team from the Commission to do their jobs in enforcing the laws of the industry in a far easier way.” This has become a necessity given the fact that, although the Commission claims that the overall level of compliance within the industry is very high, there is a stack of anecdotal evidence to show that some drivers are still standing for hire at a bogus ‘ranks’, are wandering into areas outside of their remit, or worse so this clearly needs to be addressed and stopped as a matter of urgency. In addition to infringing on other drivers’ areas, it leaves a bad taste in the mouths of the public when the media report such abuses of trust. When asked about the stage of procurement which the Regulator is at regarding the new ID and roof signage, she said this: “The Driver ID and Smartcards will be introduced in the summer months upon licence renewal and through the Driver Skills Development Test. A standard card will be available to all licensed drivers and a different coloured ID for those that have completed and passed the Skills Development Test. The area of licensing will be more visible and will also contain other security features. The cards for those that have completed the Skills Development Test will be coloured pale purple; the standard card will remain the same colour – yellow. The roof sign ID will be rolled out on a phased basis later this year.”

Taxi fare changes

Fare Changes One reform which drivers are reportedly particularly anxious about is the review of the National Maximum Taxi Fare (NMTF) later this year. The NMTF is reviewed every two years since the National Maximum Taxi Fare was originally introduced in 2010. The Commission for Taxi Regulation will undertake a consultation process during the second part of this year, with a final decision to be made towards the end of the year. As maintained by the Regulator, Kathleen Doyle, the crucial depending factors on whether fares will rise or fall are the daily operating costs and also the annual costs involved in operating a taxi, a hackney, a limousine or a WAV. She said on Morning Ireland: “We are looking at the operational and day-to-day running costs, such as fuel, servicing, spare parts, tyres and cleaning. We also have to look at annual costs including insurance, financial packages, taxi vehicle licence fees, road tax and NCT tests.” The consultation process will take into account the views of those who have made submissions, including industry representatives, the Advisory Council to the Commission and other key stakeholders. When the National Maximum Taxi Fare was reviewed in 2008, the Commission came to the conclusion that there were increased costs in relation to owning and operating a taxi. As a result, there was an increase of 8.3 per cent made. The Regulator said that other costs, such as petrol prices, would be looked at over a two-year period. The cost of keeping taxis on the road has climbed since the beginning of 2010, with a litre of petrol just a few cent off the record highs reached during the summer of 2008, but it is likely to be the mean average figure that the Regulator will be concerned with. Submissions will now be sought from the industry and the public regarding the fare review. However, many within the industry suspect that The Regulator will, in fact, reduce the NMTF to make taxi services more affordable and to sustain demand. However, even if the Regulator has her reasons, the impact will be significant on weekly takings for many. For some, a reduction will be sustainable and they welcome the move in the hope that it will stimulate activity and business. From the public’s point of view, it would bring Ireland in line with many other countries, where fares are lower. For some other drivers, however, the operating and annual costs will supersede the income, making it almost impossible to continue in business. So, for this group, a fare decrease would be catastrophic, adding to what some drivers call ‘the slow financial strangulation of taxi drivers’. Another issue is the discounts currently being offered by some taxi companies, with coupons printed for €4 or €5 off trips (delivered via flyers in post-boxes across Dublin). This, of course, brings more competition into the market which is good for the taxi travelling public but, for drivers, it is something they can ill afford. With fare reductions (illegal ‘off meter’ rates) and discounts, one driver commented that it causes de-motivation to an already demoralised industry, adding, “Earnings of €5/€10 per hour? What incentive is there to even clean your car before going to work with earnings like that? House cleaners are asking €13 per hour. We have no overheads to reduce, we can’t let staff go, we have to increase the quality of the goods we are supplying, and pay more for all the services we have to buy.” Reform happens for a reason - in this case, because the current system was not working. So, although drivers are understandably sceptical about some of the reforms being introduced, there are other elements which they tend to be more positive about, namely the new driver ID and roof signs. What is needed is a more positive voice from within the industry – one that is willing to look forward to positive change, rather than to always look back at the mistakes that have been made. This is not always easy but, as well all know, there is great value in positivity. The vast majority of drivers within the industry want to provide a good service to their passengers and they are honest people, eager to work within the regulations laid down. However, with others openly breaking the regulations, for some it is understandably difficult to restore any faith within an industry which has become increasingly marked by dissention and non-compliance. If the Regulator can open a truly two-way system of communication by listening to drivers’ needs, she would go a long way in restoring some harmony to the industry which is clearly needed as a matter of urgency.

Have Consumers Gained from Taxi Deregulation in Ireland?

‘YES’ says Mark Perry, PhD, Professor of Finance and Business Economics from the University of Michigan and visiting scholar at The American Enterprise Institute.

“The 2009 Goodbody report found that deregulation and market forces were achieving a balance between supply, demand and economic viability in the industry. The report also provided evidence that deregulation of the Irish taxi industry led to a significant reduction in waiting times, from an average of 11.5 minutes in 1997 to only 6.2 minutes in 2008, resulting in an estimated time savings of more than €325million annually for Irish consumers. “The history of the Irish taxi industry is a good example of how excessive regulation stifles competition, leading to high prices and poor service, and how deregulation restores competition, resulting in lower prices and better service for consumers. “In fact, many economists agree that intense market competition is often the best regulator of all, and the most effective protection for consumers against potential anti-market, anti-consumers behaviour of producers. Intense market competition is, perhaps, the best friend of the consumer, and the Irish taxi deregulation clearly demonstrates this outcome. Irish consumers have seen the clear beneficiaries of taxi deregulation. “As Adam Smith wrote in the Wealth of Nations: “People of the same trade (eg., taxi licence holders) seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any lay which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies, much less to render them necessary.”

‘NO’ says Deputy Thomas B Broughan, TD, Labour Spokesperson on Transport

“A ‘light touch’ and badly regulated taxi sector is as bad for taxi users as the “light touch” regulation of banks, housing and planning has been disastrous for the Irish people. Labour wants a taxi industry that is safe, effective and sustainable for both passengers and taxi drivers. But this is simply not happening in the current, free-for-all in the taxi sector. “As a safety critical industry we need to know who is driving a taxi and that they got their license though rigorous vetting and safety procedures. We also need a taxi fleet where drivers have a comprehensive knowledge of the area within which they ferry passengers. Yet, due to the grossly incompetent regulation of the taxi industry, there are an ongoing range of complaints from customers about drivers who don’t know how to get to major suburbs or landmarks in our cities and towns and serious allegations about the proliferation of illegal licenses in the industry. “Given the over-supply of taxis, full-time drivers are being forced to work more and more hours for less and less wages. There are also clearly health and safety issues at stake if double-jobbing drivers are working another full-time 40 hour plus a week job and then going out taxiing at night. Yet, like other supposed quality and safety regulations in place, there is little, if any, monitoring or enforcement of even minimum standards in the industry. “Clearly there should be adequate taxi capacity in our towns. But the Goodbody Report was hugely disappointing as it delivered few hard facts on drivers’ incomes and had no recommendations on finding a new demand-supply balance (as Labour has suggested) that would also ensure a decent, liveable income for taxi workers. Unfortunately, Goodbodys, the Fianna Fail/Green government and the Taxi Regulator still seem stuck in in the time warp of the now discredited ‘light touch’ regulation ideology that is failing taxi users and drivers alike. Labour’s programme for a fair and well regulated taxi service, “Hailing A New Taxi Service” is available at: (www.labour.ie/download/pdf/ hailinganewtaxiservice.pdf).”

An Average Day in the Life of a taxi Driver

Tom Canavan is 59 years old and is a driver from Donaghmede. Tom became a taxi driver with Classic Cabs in Baldoyle in 2004 after 27 years as the head butcher in Superquinn, Sutton. 8.00am – I usually get up around this time each day. Most lads start earlier, sometimes around four in the morning, because everybody is under pressure right now - you just don’t know what you’re going to earn. A lot of the younger lads would have big mortgages and they’re not making enough so it’s very stressful for them in particular. 10.00am – I have a decent breakfast at home as I don’t then tend to eat again until the evening time. I would usually have a bowl of porridge or Weetabix, a cup of tea and a couple of slices of brown plus an egg. 11.00am - I call in on the radio to be trapped. I can often be tenth down the traps as I start that bit later. On an average day I might get three or four jobs off the radio and a couple of jobs off the rank– they can vary from €4.50 to €17.00 fares. 11:30am - I’m trapped and then head to the rank in Donaghmede or if I get a job into town, I’m engaged so taken out of the trap until I’m free again. I work for Classic Cabs in Baldoyle so most of the work is around the area. I’m seldom out in the other part of the city, especially mid-week, but I could be in town at the weekend of course. A lot of the jobs off the rank would be shopping – local people from Donaghmede and bringing them around to Edenmore, Kilbarrick, Raheny or sometimes Howth. We also look after Superquinn so they ring us for shoppers in the area. 12.00pm – I could be on the rank for an hour and a half and then I’d get a local job. You do notice the change in that some people I used to pick up, you now seeing them standing at the bus stop. I’d sometimes get a cup of tea from McDonalds at this stage. The locals like getting the same drivers and they tend to know our names – Classic Cabs has about 70 drivers covering seven days 24 hours a day but it’s quite personable and we get to know the customers. I always try to be pleasant though as I think it’s an important part of the job. I’d never beep the horn at the door for instance. I would always go and knock on the door and be polite as people generally respond better to that. 3.00pm – A radio job could be a couple coming out of a restaurant in Howth, for example, like I had last week. It was a French couple with a holiday home in west of Ireland – they usually come up and stay a couple of nights in Dublin and they always go to one of the fish restaurants for a meal. I took them on the back roads to the airport and I had a joke with them saying ‘This is not the scenic route! It’s the same distance you know, it’s just that most of our guys and local people take that road to the airport. But I’m aware that some passengers are sceptical and they think we’re going the long way around so I always reassure them that it makes no difference. 4.00pm - I have a chat with some of the lads at the rank. I do enjoy the job but you have to be light-hearted about it. I’m 60 this year and I haven’t planned what I’m going to do. Some people would have a good pension but I wouldn’t have. But taxi driving is like any job in that you have to try to get out and be cheerful about it. There’s nice comradeship with the other lads at the rank and you have a chat – you’d be hoping you wouldn’t be there too long, but you could be! 5.00pm – Some people walk up to the base and I could get called there to pick someone up. The other week I was called to collect a man but when I arrived I saw him slumped on the ground on the street close to the base. I had to ring in and say ‘Forget about him – he’s fast asleep and he’s drunk! It’s not a taxi he wants, it’s an ambulance’! There’s no way I could have even picked him up if I wanted to! I don’t have to deal with many problems on that front though as I don’t do much late night driving, just a couple of hours on a Saturday evening is all. 6.00pm – I finish and then I often take my daughter’s dog for a walk to relax. If you get stuck in traffic, you can make it stressful for yourself and you would get very stressed if you let it, but I try to not to let it get to me. What is hard is that there’s often no room on the ranks and there’s police giving out tickets. You see the Regulator gave out all these plates but the problem is that there are not enough spots for the number of licences out there. There are seven spaces on the rank in Donaghmede so we sit around the corner and then you notify the last guy. He takes your phone no and then you slot in when there’s a space. I got fined for standing for hire in an illegal spot before as I was waiting to get called up by last man on rank, so that can be stressful sometimes. Besides that, as I said, it’s a job like any other so I do try to remain cheerful as much as possible – it’s the only way to get through the day!

Taxation Issues for PSV Taxi Drivers

Here MD Stephen Fennell offers his taxation expertise of NPH&TA Financial Taxation Services offers his taxation expertise to drivers. “Accounting and taxation is extremely important for PSV taxi drivers because of the mandatory legal obligations set down for taxi drivers to operate their business,” says Stephen. “The cost for non-compliance and potential non-renewal of licences can take people out of business.”

Keeping Records

“We specialise in a number of areas, firstly we introduce the client to the self-employed procedures, the need for keeping records for Revenue compliance. We then explain the tax deductible expenses that are legally deductible and the treatment of their business assets so that they can make informed decisions of any vehicle asset upgrade in line with the 9 year rule and the most tax efficient way for that to be financed. “We then prepare the tax return and advise the client to his/her tax liability making sure all entitlements have been claimed. Upon payment of taxes we also apply for tax clearance certificates for all our drivers and troubleshoot in the event of a problem with Revenue issuing a valid certificate. Other practical advantages of our services include liaising with the new SGS system for renewal of taxi licences for online access to tax clearances which is now acceptable by the SGS renewal system. This is typically useful for drivers that may have mislaid their tax clearances and we often save them the additional renewal cost that a late renewal would occur.

Changing Vehicle

“With the downturn in the economy, taxi drivers may not be applying for all their entitlements,” adds Fennell. “For instance, taxi drivers are generally unaware of their entitlements to medical or doctor only card, certain social welfare entitlements and grant applications for 3rd level college. All these applications forms require qualified and valid certification. We don’t charge for this service and these entitlements may be denied to drivers that use book-keepers, unofficial sources and unqualified persons to manage their tax and financial affairs. “We also deal positively with drivers that may be behind in their tax affairs and we advise them on Revenue instalment payment arrangements. In dealing with Revenue we also have expertise in self-employed Revenue Audits and we advise our clients step-bystep in procedure in the event of a Revenue Audit. “This year we launched our website www.nphtafinancial.com and we have had a fantastic feedback, especially on a nationwide basis, which includes an online consultation process that many drivers have found to be very helpful. “Looking forward and specifically to filing of 2009 and 2010 tax returns, drivers may find that they are paying more even if their income is 25 per cent less due to the government income levy and it stresses the importance of proper tax advice and professional planning into the future.