New public transport regulations would 'stifle investment'

Car hire companies have lashed out at draft regulations forming part of the public transport reform which, they believe, will stifle investment and the growth of the businesses if implemented.

During an extraordinary general meeting, the members of the Rent-A-Car Association expressed concern at the draft laws regulating coaches and white mini-buses with 10 and more seats. Among the many requirements, the draft regulations lay down that companies will have to reserve a capital of €9,000 for the first vehicle and €5,000 for each additional vehicle and provide the transport authority with evidence of such capital reserves.

The members said such a measure was impractical and would limit operations to a handful of large car companies.

The draft legal notice would also eliminate the present system whereby car hire companies are granted a public service garage permit and instead introduce an operator's licence.

The permit included self-hire cars, black taxis and white mini-vans. However, under the draft notice, an operator's licence will only be granted to coaches and white mini-vans.

The association called on the government to amend the draft notice to regulate all the services falling under the present permit instead of splitting the licence.

In a report approved during the meeting, the association also protested against the proposal to introduce a licence that had to be renewed every five years.

The members pointed out that this went against all business sense as companies could not plan ahead or invest money for fear of not having the licence renewed.

They also disagreed with the proposal giving the transport authority a three-month window to process the application for an operator's licence. The members said three months was too long a wait for a new or renewed licence.

The draft notice also proposes that the licence will be granted only to people of "good repute" who, among other criteria, never had to pay up to €500 in fines or were found guilty of any driving-related crime.

The report described this requirement as impractical and "exaggerated". People should not be given a licence if they had committed crimes connected to fraud, theft and drugs and not because they were found guilty of over-speeding, it said.

According to the draft regulations, the transport authority will set up a register with information about the operator, the driver and the company and this document will be accessible to "any person".