The Tanaiste firmly ruled out a Government U-turn on the deregulation of the taxi industry, but said there would be discussions with taxi-drivers if they called off their blockade.

"The decision will be implemented," said Ms Harney. "If the blockade is called off, the Minister of State, Deputy Molloy, will be happy to have discussions, but not negotiations."

The Tanaiste was speaking in the Dail on the Order of the Business, which she took in the absence of the Taoiseach, Mr Ahern. She was replying to the Labour leader, Mr Ruairi Quinn, who said much of the detail of the Government's decision, and how it would be implemented, had yet to be finalised or communicated adequately to the people directly affected.

"No other group in this country has had its livelihood altered in such a dramatic and precipitate way. This group is at least entitled to discussions in respect of the implementation of that decision, and I urge the Taoiseach to contact SIPTU, which negotiates on behalf of taxi-drivers, to begin negotiations so that the blockade can be ended voluntarily by the people carrying it out."

Ms Harney said nobody was taking anyone's livelihood away. "There is more than enough work for all existing taxi-drivers and many more in Dublin. Mr Molloy has announced his intentions regarding the £15,000 licence fee that was paid. The people of Dublin have been frustrated for many years as a result of indecision in this area. We now have a decision."

The Fine Gael leader, Mr John Bruton, said the way in which ordinary commuters were treated by the providers of public transport was "appalling and public transport under the Government is a shambolic monopoly, which is not working, and which the Government has shown a particular unwillingness to confront, especially in the delay in dealing with the taxi issue for 3 1/2 years".

There were some, he said, who questioned whether Mr Molloy had the support of all his senior colleagues in the ministerial hierarchy. Road blockades were illegal and impermissible and should not be the basis for any negotiation or resolution.

Agreeing that the blockades were illegal, Ms Harney said: "Everybody is entitled in a democracy to protest, but they are not entitled to engage in blockades such as those we have witnessed over the past two days. I have total confidence that the Garda will implement the law without fear or favour, and I believe that is already under way."

Mr Bruton expressed concern at statements made by some taxi representatives that they would not take a single disabled person unless they were satisfied with the Government's decision.

Ms Harney said: "I deplore any threats of that nature."