Deregulation `would cut taxi-drivers' earnings'

Deregulation of the taxi industry could mean 8,000 or more new licences and would reduce existing licence holders' capacity to…

Deregulation of the taxi industry could mean 8,000 or more new licences and would reduce existing licence holders' capacity to make a living, the High Court was told yesterday.

Mr John Rogers SC, for the taxi licence holders, told Mr Justice Carney his clients believed unlimited availability of taxis would be such a fundamental, immediate and unwarranted change of policy by the Government that it would completely destroy taxi-drivers' prospects of earning a livelihood in the long term.

There was no provision in the new Government regulations for compensation. "This is a case where the State says compensation is out," he said.

Mr Rogers was opening a challenge by the National Taxi Drivers Union and two of its officers to the new taxi regulations announced by the Minister for State for the Environment, Mr Bobby Molloy.

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Earlier this month Mr Justice Kelly said the legal challenge would not hinder the operation of Statutory Instrument (SI) 367 (introduced by the Minister on November 21st to allow deregulation).

The new regulations were introduced after an October decision in the High Court rejected another taxi licensing scheme introduced last January. The hackney drivers had challenged that scheme and the taxi-drivers have appealed the High Court decision to the Supreme Court, where it has yet to be heard.

Yesterday Mr Rogers said there had been a regulatory system for many years, on the basis of a defined, linked policy for gradual liberalisation of the number of taxis. Regulation first came about in 1978.

Because of concern, particularly in Dublin, that there were not enough taxis, in 1997 the Taoiseach, Mr Ahern, had set up the Dublin Taxi Forum which included taxi interests. It reported there should be ongoing gradual liberalisation but no deregulation.

The Minister introduced SI 3 in January, which proposed issuing 750 new licences to taxi licence holders and another 500 licences for wheelchair accessible taxis. Hackney interests had successfully challenged that proposal in the High Court, where it was held the Minister exceeded his powers.

Mr Rogers said his clients had appealed the decision to the Supreme Court. But the Minister last month had made SI 367, which lifted the restrictions on the number of taxi licences, and he revoked SI 3.

By introducing new regulations before the Supreme Court had pronounced on the previous ones the Minister had breached the constitutional principle of separation of powers, Mr Rogers argued. His clients also claimed that deregulation was a breach of their property right; that the Minister's decision was unreasonable and they should have been consulted.

The effect of the Minister's order was to potentially create 8,000 or more new licences. An expert in competition matters would say the potential effect of that would make taxi employment unremunerative and constituted ruin.

Mr Rogers said the State would claim his clients did not have a property right in the taxi licence and that if they had it was not a right which had any value. They would also claim that, in light of another High Court case (involving a temporary moratorium on issuing hackney licences in 1992), all licences could be revoked at the State's whim.

Mr Rogers opened affidavits from taxi-drivers who bought plates for between £28,000 in Limerick, £70,000 in Cork and £107,000 in Clare. All claimed to be fearful of not being able to make a living if deregulation is introduced.

The hearing continues today.