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    Uber persists in lobbying for entry into Irish taxi market

    New documents show how Uber is using the transportation struggles faced by disabled people to its own advantage By Conor O’Carroll Uber is pushing to enter the Irish market and is using the recent changes to taxi licence rules and fewer new taxi drivers to present themselves as a suitable solution. Documents released to Village Magazine under Freedom of Information (FOI) legislation show how representatives from Uber, including General Manager for Uber Ireland, Kieran Harte, presented the company as “a solution to the taxi crisis” in a meeting in late June of this year with John McDonald, a policy advisor at the Department of Transport. In June last year, then-Tánaiste, Leo Varadkar TD, suggested that Uber and Lyft could be allowed access to the Irish market to help with taxi shortages No meeting minutes were provided to the FOI request, leaving no record of what was specifically discussed, but presentation slides provided by Uber were released. They show Uber’s attempt to highlight the decline in taxi supply over the previous decade. While there has been a consistent decline since 2013, the numbers exiting the taxi market are far from dramatic. The largest drop occurred around the time of the pandemic when the need for taxis was substantially reduced. Since then, numbers have begun to recover, with an upward trajectory evident over the last number of years. Uber attributes this “decline” to the requirement for all newly licensed taxis to be wheelchair accessible. They show that the percentage of wheelchair-accessible taxis of total licenses has reached 20% as of May 2023, equating to just over 3,400 wheelchair-accessible vehicles. The presentation continues, however, by suggesting that the rise in accessible taxis will not continue due to the limited availability of suitable vehicles available for drivers to purchase. They also point to the ageing demographic of drivers, with the vast majority aged over 50. This claim is rebutted somewhat by the announcement in April by the National Transport Authority (NTA) that this year’s Wheelchair Accessible Vehicle grant scheme has increased funding to €3 million following “a high level of interest”. It is unclear what solution Uber is offering. Ride-sharing apps, such as Uber, rely on their drivers providing their own vehicles and so Uber drivers will face the exact same obstacles in sourcing and financing their Uber cars as new taxi drivers do. Thus, the only way that Uber could possibly add capacity to the public hire/taxi market is by allowing its drivers to use vehicles that are not wheelchair accessible. Nonetheless, Uber persists, arguing that the current policy will lead to less reliability for wheelchair users as they compete with more people for fewer taxis is supported only by anecdotal evidence, using a selection of complaints sourced from social media. Uber’s solution to this issue is predicable; address the supply imbalance by opening up the Irish market to private ride-share apps. An email sent to McDonald after the meeting suggests that this proposal has received some attention, with McDonald supposedly engaging with officials at the Department of Transport and NTA. The result of this engagement is, as yet, unknown, however, it is clear that Uber has not yet given up on its relentless efforts to force its way into the Irish taxi market following its ban in 2017. In June last year, then-Tánaiste, Leo Varadkar TD, suggested that Uber and Lyft could be allowed access to the Irish market to help with taxi shortages. This undoubtedly provided some hope to Uber that their request would be listened to by those in the halls of Leinster House. The trove of leaked company records known as the Uber Files released a month prior to this announcement by Varadkar, highlighted the intense lobbying campaign undertaken by Uber in the lead-up to the 2016 General Election. They show how the company believed they had influenced a Fine Gael manifesto commitment from then-leader Enda Kenny, to embrace a “sharing economy”, placing Ireland at the forefront of digital innovation. This Fine Gael commitment was short-lived, however, as officials at the NTA ruled that Uber’s business model was not suitable for Ireland’s economy. With all the issues arising from the gig economy in Ireland over the past number of years, as reported in this magazine, the NTA’s decision to refuse Uber an exemption from the regulated taxi industry, allowing it to operate as it sees fit, has stood the test of time. Even as Uber continues to lobby for a position in the taxi market, Village believes a better solution to the taxi “crisis” would be to invest in accessible, reliable and green public transport for all, reducing the strain on the industry and leaving accessible options available for those that require them most.

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    Landlords the big winners from Budget 2024

    McGrath’s first budget delivered significant tax breaks for landlords, a risky move with elections looming By Conor O’Carroll After much speculation, Fianna Fáil TD and Minister for Finance, Michael McGrath, delivered his first budget on Tuesday, ahead of what could be a hugely significant year for Irish politics. Local and European elections are already scheduled for next June, and the prospect of an early general election looms large on the horizon, meaning this may be the only chance McGrath gets to impress voters. However, while a raft of temporary measures to tackle the cost-of-living crisis were introduced or extended, it was landlords who are probably the happiest with today’s budget, with large tax breaks provided. Tax on rental income up to €3,000 is to be “disregarded at the standard rate”, equating to a roughly €600 tax break. Should the landlord remain in the market for four years, the rate will increase up to €4,000 in 2025 and €5,000 in 2026 and 2027, bringing the value of the tax break to landlords up to €1,000. Leaving the market will see any tax relief recouped. It’s possible that the tax breaks provided to landlords will also have a knock-on effect on housing prices This comes on top of the income tax cuts which saw the reduction of USC and an increase in the cut-off for the standard rate of tax. The rationale behind this cheque to landlords is to incentivise their continued presence in the rental market and prevent the mass exodus that has been muted in the media. However, the numbers behind this exodus don’t stack up. While the number of registered landlords with the Residential Tenancies Board (RTB) has been dwindling for many years, the most recent Census results show that the number of landlords has grown by 7% since 2016. The discrepancy between the Census and RTB data is over 50,000, suggesting that landlords aren’t leaving the rental market at all and many are instead not registering with the RTB. Speaking before the Oireachtas Committee on Housing today, Dr Michael Byrne, an Assistant Professor at the School of Social Policy in UCD, said the lack of concrete data makes it difficult to assess how many landlords are fleeing the market, as has been suggested. For renters, on the other hand, an increase to the Rent Tax Credit from €500 to €750 will be welcomed, provided it isn’t eaten into by subsequent rent increases. The latest RTB Rent Index for Q1 2023 shows that nationally, the average rent in newly registered tenancies was €1,544 per month, a year-on-year increase of 8.9%. Relief of €62.50 a month isn’t going to make much difference to those forking out over €18,500 a year just to put a roof over their heads. There was also no increase in capital spending on housing, however, with an underspend of €1 billion intended for social and affordable housing between 2020 and 2022, money doesn’t seem to be the issue causing housing targets to be missed. For prospective buyers, the Help-to-Buy scheme has been extended through to the end of 2025, though with property prices increasing by 1.5% in the past 12 months to July, affordability remains a significant issue. It’s possible that the tax breaks provided to landlords will also have a knock-on effect on housing prices. Writing for RTÉ Brainstorm last September, Dr Bryne says that “tax breaks for landlords might seem an obvious way to increase supply of rental properties, but it can also increase demand for housing”, leaving those in the rental market seeking to escape in competition with landlords seeking to invest. Elsewhere in the budget, the allocation to the Department of Health has been reduced by just under €1 billion, following an overspend of similar amounts this year. However, last year’s figure included €2.6 billion in disability services, which has since become the responsibility of the Department of Children. In his interview with Village (October – November issue) prior to the budget, McGrath said that he was “brassed off” at budgetary overrun and stressed the importance of improving results at the Department. Much of this year’s health budget is being used to maintain current levels of services. However, with almost 550 patients waiting on trolleys today according to the INMO, ballooning waiting lists for appointments and diagnoses, maintaining current levels is far from satisfactory. Other budgetary headlines announced today include further energy credits, a significant jump in the minimum wage to €12.70 and tax relief on mortgage interest up to €1,250 per property. There was no word on the rumoured RTÉ bailout, though if TV license receipts continue to fall, this may come later in the year. An increase to the Rent Tax Credit from €500 to €750 will be welcomed, provided it isn’t eaten into by subsequent rent increases Despite some much-needed measures to blunt the impact of the cost-of-living squeeze, McGrath’s budget seems measured and controlled as opposed to lavish. The coup for landlords will certainly provide fuel for the government’s detractors and the lack of change in housing policy will put the Department of Housing under significant pressure to deliver. With elections on the horizon, this may be the last chance they get.

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    Unannounced special advisers push total salaries towards €6 million

    By Conor O’Carroll The Department of Education has confirmed to Village Magazine that three as-yet-unannounced special advisers are employed at the department. Áine Doyle and Eoin Murphy are employed as special advisers to Minister of Education, Norma Foley TD, while Diane O’Gorman is employed as a special adviser to Minister of State, Josepha Madigan TD, a department spokesperson said. None of these appointments have been publicly notified in Iris Oifigiúil, or through the release of the statutory instrument confirming their appointment. They also don’t appear on the government’s list of special advisers. No explanation was given for why the advisers, which are required to be officially reappointed following the rotation of Taoiseach last December, have not been made public yet. Another special adviser appointed in April has also yet to see any official announcement. Eoin Delaney, special adviser to the Minister of State at the Department of Foreign Affairs, Seán Fleming TD, was appointed on April 10th and given a salary of almost €75,000. Despite the lack of public announcement, Delaney appears to have begun advising, accompanying Fleming on a visit to Killeshin National School in Laois a few days after he was appointed. A spokesperson for the Department of Foreign Affairs said, “Mr Delaney’s appointment has progressed through the standard process as required by [Section 11(1) of the Public Service Management Act (1997) and the Ministerial Appointments for the 33rd Dáil guidelines]”. “The order for his appointment has been finalised and will now proceed for official approval and publication”, they continued. Last month, following the announcement of Taoiseach Leo Varadkar’s eighth special adviser, Village reported that a substantial delay often exists between appointment and official announcement. This trend continued recently, when two more announcements were made, confirming special advisers for Minister for Further and Higher Education, Simon Harris TD and Minister of State at the Department of Finance, Jennifer Carroll MacNeill TD.  Official notice of these appointments was provided, however, in the case of the Department of Further and Higher Education, no statutory instrument (and name of the appointee) has followed. Over six weeks have elapsed since the official notice in the July 28th edition of Iris Oifigiúil. No explanation was given for this delay by a department spokesperson, stating that “it is expected that the relevant Statutory Instrument will be finalised shortly”. As for the Department of Finance, the statutory instrument was released, showing that Stephen Foley, Jennifer Carroll MacNeill’s new adviser, was appointed on 13 March 2023 and announced 151 days later. A spokesperson for the Department of Finance said that “there was an administrative oversight within the Department of Finance HR” that led to the delay. They claimed that “HR was not aware a separate statutory instrument was required for the specific individual to be named”. These new appointments, along with those from the Department of Education, bring the total number of special advisers to 60. It is also unknown how much the new appointees will earn, though the current average salary for special advisers stands at over €100,000. Following queries made by Village Magazine in July as to why three special advisers – Patrick Cluskey, Fiach Kelly, and Jim D’Arcy – had not been added to the official government list, a spokesperson committed to updating the list to reflect the uncovered appointments. At the time of writing, however, the list has still not been updated and is now also missing a further six special adviser appointments. The salaries of these nine appointments are likely to push the total cost towards €6 million annually, though the true figure won’t be revealed until the government updates their list. The current rules surrounding special advisers stipulate that Ministers, other than the Taoiseach, Tánaiste and party leaders, may not appoint more than two special advisers. The appointment of Simon Harris’ new adviser brings every government minister to the maximum of two special advisers. The rules also state that Ministers of State may only appoint one special adviser, though appointing two is permitted provided that they regularly attend meetings of the Government. Just two Ministers of State, Hildegarde Naughton TD (Department of the Taoiseach – Chief Whip) and Pippa Hackett TD (Department of Agriculture) have appointed two special advisers, with ten others settling for just one.

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