CLLR PADDY COSGRAVE

 

Taxi Regulation in Ireland

Cllr Paddy Cosgrave has welcomed the publication of the Government’s report on the future of the taxi regulation in Ireland.

“Minister for Public & Commuter Transport Minister, Alan Kelly T.D. has done a lot of hard work on the report in order to address the numerous issues that face the taxi industry.

“The complete de-regulation of the taxi industry led to a situation which totally undermined the ability of full-time drivers to earn a decent living. The report proposes ways of dealing with this.

“I particularly welcome the focus on the removal of certain types of criminals from the sector, allowing the Gardaí to issue fixed-charge penalties. I also welcome the focus the report places on safety, with initiatives to ensure that taxis are road worthy and the proposed new Smartphone app which will allow consumers to check if their driver is licensed and operating within the regulations.

“The vast majority of taxi drivers and operators provide a fantastic service but have unfortunately been tarnished by the actions of a minority. New actions as outlined in this report, will help combat this and introduce a new industry standard.

"I think that consultation needs to take place with taxi drivers concerning the practise of renting taxi licences but not renting the vehicle and also on the issue of renting both licence and vehicle with roof signs and taxi meters.

“Problems with the taxi industry have needed to be addressed for a number of years and I believe that Minister Kelly and the Government have wasted no time in delivering on the commitment made in the Programme for Government. This action-orientated report is another example of the Government delivering on its promise of reform.

“Finally, I would call for an end to be put to the purchasing of taxi plates that was engaged in by Ryanair’s Michael O’Leary so that he could have the personal privilege of being able travel in bus lanes. Purchasing a taxi license for this purpose is absurd and the practise should be ended.”

WHAT’S IN THE NEW FISCAL TREATY?

·        Twenty-five member states have agreed to the ‘fiscal compact’ or ‘Treaty on stability, coordination and governance in the Economic and Monetary Union’.

When does it enter into force?

·        The signature of the fiscal compact, which is to enter into force once 12 eurozone members have ratified it, is planned for the 1 March 2012 European Council and the Treaty is expected to enter into force in January 2013 with a further year to transpose the Treaty provisions.

What are the targets?

·        The Treaty proposes to introduce debt brakes into national law, paving the way for further European Central Bank intervention and greater German financial solidarity.

·        Article 3 - The debt brake implies that national budgets are to be “balanced or in surplus”. This means that the structural deficit, which strips out interest payments and one-off measures, must be kept below 0.5% of GDP at market prices and does not exceed 3 % of their gross domestic product at market prices and that government debt does not exceed, or is sufficiently declining towards, 60 % of their gross domestic product at market prices.

·        If the ratio of government debt to GDP is significantly below 60%, as defined in the Stability and Growth Pact, signatories are allowed to reach a structural deficit of 1% of GDP at most.

What happens in case of deviation?

·        The treaty specifies, under Article 3.2, that this debt brake must have “binding force and permanent character” “preferably constitutional, or otherwise guaranteed to be fully respected and adhered to throughout the national budgetary processes.” Failure to respect it could mean “a lump sum or a penalty payment” being imposed by the ECJ on a State, which cannot exceed 0.1% of the concerned country’s GDP.

·        In case of deviation from the above rules, a correction mechanism would be triggered automatically. The mechanism shall include the obligation of the Contracting Party concerned to implement measures to correct the deviations over a defined period of time.

·        If the ratio of government debt to GDP is above 60%, the Contracting Parties shall reduce it at an average rate of one twentieth per year as a benchmark

·        If subject to an excessive deficit procedure, a State, under the European Union Treaties shall put in place a budgetary and economic partnership programme including a detailed description of the structural reforms which must be put in place and implemented to ensure an effective and durable correction of their excessive deficits.

·        The content and format of these programmes shall be defined in European Union law. Their submission to the European Commission and the Council for endorsement and their monitoring will take place within the context of the existing surveillance procedures of the Stability and Growth Pact.

·        Countries are given some wriggle room to “temporarily deviate [...] in cases of unusual events outside the control of the contracting party with a major impact on the financial position of the general government or in periods of severe economic downturn”.

·        Certain details concerning the procedure to enable the EU Court of Justice (ECJ) to police the implementation of the balanced budget rule still need to be settled.

·        Only those countries that adopt a balanced budget rule will have access to bailouts under the European Stability Mechanism. “ … the granting of assistance in the framework of new programmes under the European Stability Mechanism will be conditional, as of 1 March 2013, on the ratification of this Treaty by the Contracting Party concerned”

What are the other provisions?

·        Under Article 9 the Contracting states agree to build “upon the economic policy coordination as defined in the Treaty on the Functioning of the European Union” and to “work jointly towards an economic policy fostering the smooth functioning of the Economic and Monetary Union and economic growth through enhanced convergence and competitiveness… promoting employment, contributing further to the sustainability of public finances and reinforcing financial stability.”

·        Under Article 13 “the European Parliament and the national Parliaments of the Contracting Parties will together determine the organisation and promotion of a conference of representatives of the relevant committees of the national Parliaments and representatives of the relevant committees of the European Parliament in order to discuss budgetary policies and other issues covered by this Treaty.”

Reflection of Irish concerns

·        Reflecting Irish negotiation concerns, the monitoring of the "Balanced Budget Rule" described in Article 3 of this Treaty will be made through the setting up of country specific medium term objectives and of calendars of convergence, as appropriate, for each Contracting Party so it will not be a one size fits all.

·        Also sufficient progress towards the medium term objectives “should be evaluated on the basis of an overall assessment with the structural balance as a reference, including an analysis of expenditure net of discretionary revenue measures”. The role of the social partners in States is recognised.

·        The Government are happy that within 5 years, there will be a review of the Treaty and there is a role envisaged for national and European parliaments.

 

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