The Government has moved to end the system of control over the number of taxi licences, which can be issued by the local licensing authorities. Announcing the deregulation of the taxi business, the Minister of State, Bobby Molloy, told the Dáil the new regulations did not place or authorise any restriction on the number of new taxi licences. He said that the changes would apply not just in Dublin but also to the taxi services operated in other taximeter areas.
The Minister also announced that the fee for a new taxi licence would be £5,000. The cost of a licence for a wheelchair accessible taxi would be £100. He told deputies it was his intention that from the end of 2003, all taxis owners should begin the process of making their vehicles accessible to wheelchairs. Mr Molloy also moved to compensate taxi owners who in the past had spent large sums of money to obtain a licence. He said that this would be done through a tax relief provision in the Finance Bill.
Taxi drivers have responded to the Minister's announcement by saying that the moves will destroy their business. They are withholding comment on the tax-relief element of the package until they have studied it, but, overall, they say that they are angry at tonight's development. Labour's Deputy Eamon Gilmore said the fact that the compensation proposals for existing plate holders will not be known until Budget day means the latest initiative will not resolve the taxi crisis by Christmas.
SIPTU says that it will be meeting officials from the Department of the Environment in the morning to discuss Minister Molloy's announcement. The SIPTU taxi drivers' branch secretary, Gerry Brennan, said that they would be telling the Department that they are not happy and will not accept any of Bobby Molloy's statement, unless he pays every driver in the industry £80,000.
