The National Transport Authority has called for grant aid to be given to a number of taxi and hackney services in rural areas.
The organisation appeared before an Oireachtas Committee today to discuss the Rural Transport Programme.
The NTA said that public bus transport cannot meet the travel demands for people in rural Ireland.
It said that taxis and hackneys play an important role when public transport is not available.
However, the NTA told the Oireachtas Committee on Transport that there are gaps in the provision of taxi services in many rural communities.
It said the lack of taxis is primarily due to the cost of insurance, which can be up to €8,000 per year.
It is proposing that a number of hackney services be given grant-aid in areas where there are currently no services available.