Dáil Éireann Debate, Thursday - 28 May 2026
242. Deputy Michael Healy-Rae asked the Minister for Transport if he has engaged with the National Transport Authority regarding barriers preventing new entrants into the taxi industry in rural Ireland; and if he will make a statement on the matter. [41333/26]
Amharc ar fhreagraThe regulation of the small public service vehicle (SPSV) industry is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I have no role in the day-to-day operations of the SPSV sector.
Quantitative restrictions, which led to an undersupply of SPSVs in the past, have been removed from the SPSV sector and there are no barriers to entry to this industry, other than the obligation to use a wheelchair accessible vehicle (WAV). As a result of this requirement, significant WAV and eSPSV grants, where applicants can avail of up to €17,500 and €25,000 respectively, have been provided to SPSV operators to enable them to upgrade their vehicles.
From a rural perspective, the NTA issues local area hackney licences where applicants can show that there was a need for a part time service. A resident of the area in respect of which the local area hackney licence is sought, is not required to undertake the Industry Knowledge or Area Knowledge tests normally applying for SPSV driver licences. LAH drivers nevertheless must be licensed, and their vehicles must be licensed and insured. A local area hackney may only pick up passengers within a designated area of about 10km and may not pick up a new fare at a drop off point or any other point outside its designated area.
In 2025, the NTA conducted a review of LAH regulations and associated processes following which they introduced new Regulations, which came into effect on 2 April 2026. In these new Regulations:
• Up to five drivers are permitted to operate a local area hackney.
• Licences can be granted when local communities can demonstrate that transport needs are not being adequately met by existing public transport and SPSV services. Previously, local area hackney applications could not displace existing SPSV services in an area.
• The maximum licence period for vehicles and drivers is extended from 3 years to 5 years. This reduces the costs and administrative burdens on continuing LAH drivers.
• Licence holders must demonstrate that they are providing satisfactory service to their community when renewing their licence.
• A new Fixed Penalty Notice offence for picking up passengers outside of their permitted local area has also been introduced. This safeguard is an important part of the scheme’s design. It ensures that the LAH licence serves its intended purpose, which is to provide essential transport in communities that do not have enough commercial taxi or hackney services to meet local needs. The restriction also protects the earning potential of fully licensed taxi and hackney drivers operating in nearby towns and urban centres, who have invested significantly more in their licences and meet wider regulatory requirements.
Given the NTA's responsibility in this area, I have referred your question to the NTA for further information. Please advise my private office if you have not received a reply within 10 working days.
