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dublin | worker & community struggles and protests | other press

Thursday March 05, 2009 10:48

by d.farrell - full time taxi driver

Ive been an operator in the industry for 8yrs now on a full time basis.I obtained my taxi as a consequence of deregulation.Prior to that my interest in entering the industry was dampened by two facts 1.It was not possible to apply for a spsv test application if already in employment and 2.The extortionate price put on a privately sold spsv licence(IR65,000)at the time.

While I do support the need to introduce a cap on the supply of licences I do so for the reason mainly that new operators entering into the business are doing so with niave economic expectations.At the point of entry,even now the industry burdens operators with highest level of capital investment eg e6,300 spsv licence,approx e1,500 sign,printer and meter,average e3,000 insurance and e7,000 to e10,000 vehicle cost.

All together most new entrants are paying in the region of e18,000 with a furthur insurance annual instalment package.On the basis that most vehicles doing an average of 35k per year(yearly average is up due to increased amount of driving now required)would require to be changed every 3yrs the average weekly costs for a return on capital investment would be approx e115.

This does not take into account interest that may have to be paid on loans required to provide capital investments which could run at between 7% and 9% for personnel and vehicle loans.Where loans are required the average weekly cost for a return over 3yrs could run to e130.

There are other various costs involved with industry eg GPS or two way radio rental weekly e90 ave,Fuel costs e50 part time/e100 full time,e700 approx vehicle maintanance costs.Altogether hidden costs can run to approx e200 weekly.This combined with capital investment 3yr return an operator would be required to obtain on average e300 weekly before earning a wage which is then subject to tax.Tax must be paid annually in order to obtain a clearance certificate which is required for annual licensing.Accountants charge approx e300 for annual filing and their is also annual NCT costs.

These are facts that both the taxi unions and taxi regulator secrete from potential operators.The regulator does not advise on these costs so as not to effect the revenue available by sale of new spsv licences and the unions/federations because it would effect their annual revenue as a consequence of potential membership fees and kick backs from insurance company recommendations.

It is my opinion that a protest focused mainly on the request of the introduction of a cap on the issueing of licences will fail in its core objective as the political will is not there to make the change.Increasing numbers of new unemployed will be guided or misguided into an industry that is no longer viable in order to reduce or keep down the live register figures.All potential investers should seriously consider the costs of entry as opposed to sustainable income available from an industry that provides a service that is on the main a luxury therefore negatively liable to ever increasing economy drives and reviews.Also new unemployed should factor in the difficulty with returning to social welfare payments on entering the world of the self employed if the project doesnt work out.

The real problems I feel that are effecting the income of full time taxi drivers is the disproportionate number of part time operators in the industry who have main full time employments and rogue operators.The problem of rogue operators,while unlike some industry representatives is not a problem due to its volumes,is however a public health and safety issue.This problem is difficult to tackle due to the lack of enforcement by the under manned taxi regulator and carriage office of An Garda in comparison to the sudden growth of the industry in respect of operators.For this reason licences should be capped at least until enforcement agencies can install confidence in the public and industry operators.

The other problem of part time operators supplementing permanent incomes can be resolved if the will existed.It would require a linking of the regulators office,government departments responsible for employment and revenue commisioners.SPSV applicants are required to commit to a minimun of hours of work per week in the industry.Failure to reach this minimun should result in an spsv licence being revoked.This required information can be required from the revenue commisioners by the taxi regulator.

One can be certain that all if not most dual job operators are commiting by licence to working particular hours but registering hours well below those required when filing for tax returns.Revenue commisioners penalties in this area should increase to reflect the dire economic climate we are languishing in today.Also for reasons of health and safety industry operating hours should be brought in line with Irish and EU labour legislation,this would expel the anomally of dual jobbers completing a 39 or more hour week then working,in some extreme cases of need or greed another 30+ hours behind the wheel of a taxi.

One person One job.Need not Greed.