The bully-boy tactics traditionally employed by the powerful taximen's lobby should not dissuade the Government, and especially the Progressive Democrats, from vindicating the rights of citizens to an efficient and cost-effective transport service. This cartel, whose growth has been facilitated over the years by restrictive State rules and regulations, should be broken up and open competition introduced into the system. New licences should be awarded for a small fee and on the basis of quality transport and standards of competence set for the driver.
A report in this newspaper that Minister of State, Mr Bobby Molloy, intends to sign orders next week that may put an extra 700 taxis on the streets of Dublin before Christmas caused an immediate withdrawal of taxi services at Dublin airport yesterday. After some hours, service was resumed. But a spokesman for the Taxi Federation threatened to seek a court injunction to prevent deregulation of the service and, if that failed, to seek compensation for the inevitable fall in value of existing licences. At the same time, SIPTU, which represents some taxi drivers, asked that the issues be discussed under the Programme for Prosperity and Fairness.
A compassionate case might be made for State compensation where an individual had purchased a taxi plate for as much as £90,000 within the past few years. But most plates have been in circulation for a very long time and have gained an artificial value because of their scarcity, rather than through any particular contribution by their owners. In fact, they have become a tradeable commodity and have been treated as such by wealthy individuals. Just as shares on the stock exchange and other investments can increase or decrease in value over time, there is no compelling reason why the State should compensate such individuals and effectively carry the risk element of their investments. The chairman of the Competition Authority, Dr John Fingleton, has been particularly critical of the taxi cartel. And he has identified the most serious curbs on competition in this economy as Government regulations. In that regard, he mentioned taxis, pubs, pharmacies, banking, airports, broadcasting, health insurance and milk production as areas requiring deregulation so that consumers can benefit from greater competition and falling prices. The Progressive Democrats are willing to listen. But Fianna Fail appears to be reluctant to confront powerful vested interests.
Last month's decision by the High Court vindicated the views of Dr Fingleton when it found the Government had no right to restrict the number of taxi licences. Such an approach, it ruled, prevented citizens from working in an industry for which they might be qualified; affected the right of the public to a reliable taxi service and restricted the development of the industry. Taxi drivers are at present appealing that ruling to the Supreme Court. But the prospect of overturning the judgement is said to be poor and the Government has withdrawn from the case.
The Attorney General is scheduled to approve the wording for new orders affecting taxi licences next Monday. And Mr Molloy has indicated he will sign them into law during the week. The taxi lobby will almost certainly attempt to prevent that happening through a disruption of services, legal challenges and intensive political lobbying. Such a campaign should not be allowed to succeed. The Government is already committed to spending hundreds of millions of pounds in upgrading bus and rail services and is determined to encourage competition in that sector. It makes no political or economic sense in that context to retain a grossly inefficient and inadequate taxi service. Deregulation of taxis would be a start. After that, the interests of consumers would be served by liberalising the drinks trade.