The Government today confirmed that it is to establish a public sector agency to conduct driving tests.
The decision follows a review by the Auditor General which found serious weaknesses in the current service.
A report was then drafted by PriceWaterhouseCoopers, which recommended an agency should be established to improve the testing process.
The new agency will be based in Ballina, Co Mayo, where the Department of the Environment currently oversees driver testing.
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There had been much public complaint last year over long waiting lists, of up to 29 weeks, for tests. The waiting lists have been cut to an average of 12 weeks in the past year.