Taxi Driver Online

Coronavirus: Payments for taxi drivers and bus operators approved

Financial support for taxi drivers and coach and bus operators affected by Covid-19 restrictions has been approved by the executive.

Infrastructure Minister Nichola Mallon said a £14m package would go directly to taxi drivers.

She confirmed it would be a one-off cash payment of £1,500 to each taxi driver.

Some drivers have criticised this amount, describing it as "a go-away payment".

They said this would not go far enough to cover lost earnings during the Covid-19 pandemic.

Not a 'go-away payment'

Ms Mallon said she did not agree it was a "go-away payment".

"I've been very honest with people, as the minister for infrastructure I don't have the power to create schemes," she said.

"I was given these powers at the weekend, I've delivered a scheme to the executive today and I'm clearly saying I want it up and running as quickly as possible".

She said she recognised taxi drivers were struggling and she was doing what she could in difficult circumstances.

She said her intention was to open the online application process on 9 November.

Coach and bus operators will get a bespoke financial scheme worth a total of £5m that will be based on the number of buses in a firm's fleet.

She said it would be capped at up to £100,000 for each operator.

'Take ownership of us'

Speaking before the £14m package was confirmed, taxi driver Pat Meghan told the BBC's Good Morning Ulster a £1,500 one-off payment was "very disappointing".

"We've went through this process for the last seven months of talking to this department and trying to get somebody to take ownership of us and, finally on Tuesday, Nichola Mallon broke this big news to us that she's putting a bespoke scheme in place," he said.

Mr Meghan said some drivers have cars worth £52,000, which incur high monthly costs.

"£1,500 for the last seven months - we don't know what we're looking into in the future. Is it a payment to get us to go away?"

"Our night time economy has gone, there's nothing out there, there's no one in the city centre, no offices," said Mr Meghan.

"We're down to 10-15% of the work we used to have.

"I haven't been out of the house this last fortnight, I haven't taken the car out because it costs money, money that I don't have to put fuel in my car."

_________________
IDFIMH

'Derogatory': Taxi driver insulted by support package

A taxi driver from Co Down has described a £1,500 support offer from Stormont as "derogatory and degrading".

It was announced by Infrastructure Minister Nichola Mallon yesterday that a £19m support fund for taxi drivers and private coach and bus operators will be made available from November 9.

However, the one-off payment will provide a set amount of just £1,500 for each eligible taxi driver who has been available for work since the start of the Covid-19 pandemic.

Michael McKinney (37) from Bangor has been working as a taxi driver for the last 10 years and criticised the plan.

He currently drives a taxi for Value Cabs in Belfast on a self-employed basis but has been unable to provide for his wife Jennifer and sons Jack (15) and Matthew (11) due to the original lockdown and the four-week circuit breaker.

“I thought the offer was derogatory,” said Mr McKinney. “I didn’t get anything from the original self-employed help scheme either.

“I’m diabetic so when this all started I stayed at home for 14 weeks and didn’t get a penny.

“When the restrictions started easing and the bars and restaurants started to reopen it wasn’t brilliant and you were getting something that resembled a wage.

“You weren’t afraid of not being able to pay your bills every week, whereas now it’s a shambles out there.

“I don’t understand how a government can virtually get away with closing people’s businesses without supporting them.

“You can’t ask somebody to close without giving them the money they would earn. What would be the point in that?”

Mr McKinney outlined that his turnover in 2019 was £50,000 but his expenses were over £30,000.

After purchasing a new Mercedes through his employers in August, Mr McKinney repays £205 a week and he felt that Ms Mallon was “out of touch with our industry”.

He believes that taxi drivers should have been allowed to apply for the Small Business Grants Scheme of £10,000.

“My expenses are higher for my taxi than they would be if I rented a shop,” he explained.

“I understand people pay rates but my expenses are far higher than that. I don’t see why taxi drivers weren’t able to avail of the Small Business Grant.

“It has been a nightmare. My son hasn’t got full capacity in one of his lungs and my wife suffers from seasonal asthma so I take a risk every day going out of this house and possibly bringing something home.

“I’ve been left with no option but to do that.”

Commenting on the support for taxi drivers, Ms Mallon said she hoped that the £14m funding for taxi drivers, along with the £1.2m she had already put in place to waive fees for the renewal of taxi vehicle licenses, will enable drivers to continue to work.

“Over the last few months I have met representatives from these businesses and heard at first-hand how their lives and livelihoods have been affected,” she stated.

“I am therefore very pleased today to announce that a £19m support fund will open in the next few weeks.”

Commenting on the funding at yesterday’s Covid-19 briefing, Deputy First Minister Michelle O’Neill said the taxi and coach sector had been “forgotten”.

“The taxi and the coach operators were a forgotten sector and for some time we have been asking for a scheme to come forward so we’re glad that eventually we do have a scheme,” she said.

“We know there is some disappointment out there among the sector that it doesn’t go far enough but we’ll keep that under review and we’ll work with the Infrastructure Minister.”

First Minister Arlene Foster added: “In terms of the taxi position, the Minister for Infrastructure brought forward a paper proposing the £1,500 payment to individual taxis.

“We had a good discussion around that and she still has £6m in reserve and of course we will keep all of this under review.”

Meanwhile, the proposed scheme for private bus and coach operators is intended to open in mid-November.

Subject to necessary approvals, this will provide an amount to each operator of £8,000 for the first vehicle and £4,450 for each additional vehicle. Payments to eligible operators will be capped at £100,000.

Ms Mallon said she hoped the funding will compensate for some of the losses incurred in recent months as a result of the pandemic.

_________________
IDFIMH

Outgoings of £600 a week?

FFS.

_________________
IDFIMH

Finance plus mortgage plus household bills especially if he has a big family

_________________
lack of modern legislation is the iceberg sinking the titanic of the transport sector

£1500 on top of what the goverment is giving is not to be sniffed at. As for the driver with £50,000 turnover and £30,000 outgoings needs to visit an accountant ,seems excessive for running a taxi.

The way I read it was the £30,000 was trade expenses, not personal expenses.

_________________
IDFIMH

That's how I read it as well, and not particularly difficult to come up with an estimate like that.

So he's just bought a new Mercedes "through his employers" and says it's costing him £205 per week. Sounds about right. Looks like an E-class from the photo, but if it's a Merc of any kind then that's the kind of money it's going to be. The firm does 'rent to own' deals, which won't be cheap compared to standard HP or other commercially available finance, I suspect.

So add on £150 per week for fuel - it's not going to be the most economical car around, and he'll need to be doing a lot of running around to turnover £50,000 per annum.

Settle or office fees - wouldn't be surprised if that was £150 per week.

Add £100 per week to cover tyres, maintenance, insurance, licences etc. That's £5k per annum, so entirely feasible.

So in summary, ballpark weekly payments:

Car repayments: £200
Fuel: £150
Office fee: £150
Maintenance etc: £100

So that's £600

Doubt if he's got much of a clothes budget, though - I mean, those trainers and a brand new E-class Merc

(Although, to be fair, that's not to say that's his work gear.)

Doubt if he's using £150 of fuel per week at the moment, but it looks like he's talking about figures when business is more normal.

But he said he bought the new car in August, when things were looking a bit better. A tad optimistic, I suspect, and doubt if many UK drivers committing to a new motor at that time, even if things looking a bit more encouraging.

I'm a big supporter of drivers upping their game by improving their motors if they can afford it.

August 2020 was not the time to buy/loan/borrow an E Class Merc.

Why put such pressure on your personal circumstances/finances at this time?

_________________
IDFIMH

Good question. That's two reasonably expensive brand new motors I've bought now, and regretted both. But I wouldn't have bought them when I did but for the council's age rule, which meant I needed a new car, so thought I'd go for broke.

Of course, problem with an HP agreement or whatever, is that it ties you in, so you might not want to buy a Seat Toledo and be tied to that for a few years when you're maybe planning to target the airport/exec market when the time is right, even if the Toledo deal makes sense in the short-term.

So maybe he knew the E-class didn't make much sense in the short-term, but might do in a few months, so took the plunge rather than being handcuffed to the likes of a Dacia Sandero for several years, or lose a shedload of money changing car after six months, say.

But he's obviously misjudged things.

Don't know his precise circumstances, obviously, but if Covid had happened 15 years ago, say, and my car needed renewed in August then I might have been tempted to take the plunge and hope for the best. On the other hand, if my car didn't need renewed in August then I wouldn't have invested in a new motor at that time.

And, of course Covid is one thing, but personal circumstances another. I'll be 57 in a couple of months, and even if Covid hadn't happened, if I needed a brand new car now it'd be a whole different proposition than when I was 40, say. And the trade here has been slowly going down the pan for years now anyway, so that's another factor, and Covid has just accelerated that big time.

Anyway, as it is I can't see me getting another motor unless I absolutely have to, and have no other option. But if I need to, and the car's still viable as a taxi, I'll probably keep it until it gets to the council's 10-year age limit in 2024. So that would be just three cars over 26 years

In that time I've had 9.

_________________
IDFIMH

7 cars in 15 years ,couple of them right offs.

When you got them, or when you got rid?

_________________
Chris The Fish

http://www.youtube.com/watch?v=Gdlyi5mc ... re=related

On my third in 18 years.

_________________
Chris The Fish

http://www.youtube.com/watch?v=Gdlyi5mc ... re=related

On my third ‘hack’ as an owner (shared one for a few years)I usually run them for five years and sell them while they’re still worth something. Used to keep my P/H cars for two years and do the same.

Indeed, there was a time when I would have supported a five-year age rule, for saloons at least.

However, I could write a book about how the trade here has gone downhill over the years (largely thanks to local councillors and national politicians), so not so keen on the commitment required to finance a newish vehicle, particularly at closer to 60-years-old than 50 (me, not the car ).

Indeed, my motor is still worth something if I sold it now, but over the next four years or so it'll be costing me less than a grand a year in depreciation. Even a cheapish new car would cost me several grand per year in depreciation. Of course, I'll probably spend more on repairs than on a new car, but hopefully still be better off. Just have to hope it doesn't suffer some sort of 'catastrophic engine failure', or similar.

But I think I've done my bit locally over the years in terms of decent cars - suspect my last two cars among the most expensive 4-seaters in the whole of Fife and Dundee*, but what thanks do you get?

For example, I bought my current motor partly on the basis of its environmental credentials (Bluemotion technology, and all that), but by the time it was about four-years-old and not even round the clock it was proposed that it would be banned from Dundee city centre (because it's a Euro 5), which is in normal times where I'd get many of the half-decent fares I needed just to make a basic living.


*there's been a few more expensive saloons in terms of cost new (like 7-series Beemers) but brought into the trade second hand.

My first car was three-years-old and low mileage, but even that was joint-newest in the local trade at the time (the bog standard back then was 8/10-years-old Grannies with 100-150k on the clock - some apparently double that mileage ).