An extra 700 taxis could be on the streets before Christmas with the deregulation next week of the taxi industry by the Government.
Mr Bobby Molloy, the Minister of State for the Environment, is to sign an order which will allow anybody with a proper driving licence and vehicle to operate a taxi, The Irish Times has learned.
Mr Molloy said: "We want to get the system into operation as quickly as possible so that applications can be processed and the taxis can get on the streets."
The High Court ruled recently that the Government had no power to restrict the issuing of new taxi licences to holders of existing taxi licences. The National Taxi Drivers' Union is to appeal. However, the Government itself has decided against an appeal, on the advice of the Attorney General, Mr McDowell, that any such challenge is likely to fail.
The new orders to set standards for the issuing of licences are being finalised. Mr Molloy explained: "It is clear from the High Court judgment that no useful quantitative restrictions could be imposed under new regulations and if they were they would immediately be challenged and found invalid."
However, rules of a qualitative nature do have to be introduced which would control overall service to the customer, such as a requirement that taxi drivers would issue receipts. It had not yet been decided what the price of a new taxi licence would be.
He explained that the licences would be issued by Local Authorities around the country. Those applying would have their cars tested by the National Car Test (NCT) centres. This function will continue to be carried out by the Garda Carriage Office until arrangements for the NCT centres are finalised.
Mr Molloy said the taxi situation in Dublin had been allowed to develop to a "critical stage".
There are currently more than 2,700 taxi licences in Dublin.
The move will almost totally devalue the price of current taxi licences, a number of which have been bought for up to £90,000. Mr Molloy said the Government acknowledged this and had attempted to ensure people would not suffer financially through the plan announced last year to introduce 2,700 new licences in the capital, offering one new licences to each person who currently owned a licence.
"I tried to do this in a way that would have minimum financial impact on them but now we have to comply with the court's enunciation of what the law is."