Fine Gael expects to agree the details of a compensation package amounting to more than ¤100 million for certain taxi licence- holders within the next few weeks.
Representatives of those licence holders who suffered financial loss through deregulation of the taxi system last year are seeking a compensation fund of more than €400 million.
The Fine Gael spokesman on finance, Mr Jim Mitchell, said the final figure was likely to be considerably less.
Mr Mitchell has promised the establishment of an Exchequer-backed compensation fund if Fine Gael is returned to office in the general election.
But he said the scheme would have to be "self-financing", with the money raised through higher charges for first-time taxi licences, licence renewal fees and a possible levy on each taxi journey.
"We are acknowledging that an injustice was done to former licence-holders in the drive to deregulation, which Fine Gael supported, and that serious hardship has been caused to many families," Mr Mitchell said.
Suggestions that the price of a new taxi plate should increase from €6,350 to €19,000, along with a doubling of annual renewal fees, were described as "exploratory options" by Mr Mitchell. Party representatives would be meeting two taxi groups soon, he said, and it was hoped agreement on a compensation package would be reached within a matter of weeks.
Each person seeking compensation would have to apply to a new Taxi Board.
They would have to show they had lost money and the board would decide what level of compensation would be given, he said.
If the cost of taxi plates was to increase in the future, the loss to existing holders would be reduced. Before deregulation, Mr Mitchell added, a taxi plate had been valued at £80,000, but subsequently dropped to £5,000.