The Government is moving towards deregulating the taxi industry following advice from the Attorney General that an appeal to the Supreme Court on the matter is likely to fail.
New rules to govern the issuing of taxi licences are expected within days but are unlikely to make any difference to taxi shortages over Christmas.
According to a Government spokesman up to 400 new licences could be issued before Christmas, but it was not known how many if any of these taxis would be available for fares by then. The situation was complicated by the issue of wheelchair accessibility, he said. There was now a strong likelihood that all new taxis would have to have this feature, but this could cause delays.
According to Government sources, the Government decided against appealing the High Court decision that it had no power to restrict the issuing of new taxi licences to holders of existing taxi licences, following advice from the Attorney General, Mr Michael McDowell, that any appeal was likely to fail. The National Taxi Drivers' Union has said it is appealing the ruling.
The Government was criticised yesterday by the Fine Gael leader, Mr John Bruton, who said that in early November 1999 the Tanaiste announced that provision would be made for the issuing of new taxi licences in Dublin before Christmas of that year. That had not happened. His party was willing to facilitate new legislation if it was required, he said in the Dail yesterday.
"When can we expect to see proposals on the issuance of licences in Dublin and other major cities? This is a matter of extreme urgency," he said.
The Taoiseach, Mr Ahern, said "final legal opinions" had just been submitted to the Minister of State at the Department of the Environment, Mr Robert Molloy. "It will not require legislation but rather new orders, and the Minister is working on these and will, hopefully, bring them forward as soon as possible, in a matter of days."
Mr Bruton asked when it could be expected that licences for additional taxis would be issued. "As soon as the orders take effect the procedure will have to be followed. It is unfortunate that the provision of 3,100 additional taxis which would have been on the road this Christmas was challenged and struck down."
The orders set standards for the issuing of licences and once those are made, according to a Government spokesman, people may apply for a licence and once they have been vetted, the licence will be granted.
Tim O'Brien adds: Dublin taxi-drivers will take industrial action before Christmas if their demands for an 11 per cent fare increase are not approved, the National Taxi Drivers' Union warned yesterday.
The drivers have also claimed that the number of taxis on Dublin's streets may decline in coming weeks because banks are reviewing lending to taxi businesses for new vehicles or instalments on licence payments.
About one-third of 750 drivers of wheelchair taxis are due to make their second payment of £7,500 on their licences shortly, but, according to an NTDU spokesman, Mr Tommy Gorman, the union is in possession of a letter from at least one bank confirming it is reviewing its loans for taxi businesses. The letter specifically mentions the Murphy judgment, he said.