The bully-boy tactics engaged in by taxi drivers should not dissuade the Government from breaking up the cartel and putting in place a licensing system that will provide an efficient and cost-effective transport service. The nettle should have been grasped years ago. There was a string of reports urging reform of the sector. But political pressure, particularly within Fianna Fail, ensured that the taxi cartel flourished while the travelling public endured a down-at-heel and desperately inadequate service. It took a High Court judgment to crack the monopoly.
Blockading Dublin airport and the Dail, along with the major roads around the cities of Dublin, Cork, Galway and Waterford, caused huge disruption yesterday and the travelling public was seriously inconvenienced. It was not the kind of behaviour designed to attract public sympathy. Rather, it was a crude threat against the Government and the economy. And there was an open-ended promise of more disruption to follow. Yesterday's disruption was predictable. Individuals who enjoy a privileged position rarely surrender it without a struggle. And taximen were so successful in defending their monopoly and financial advantage in recent years, that they came to see themselves as being exempt from the rules of competition. As in all such situations, it is sometimes necessary for people to vent frustration and anger before they are prepared to concentrate on the reality of a settlement. Taximen may now be in the process of doing that.
The Taoiseach, Mr Ahern , outlined the terms of such a settlement to the Dail, yesterday. The terms were generous, even if they did not meet the demands of some taxi plate owners. An individual would be able to write off any depreciation in the value of his licence against his tax liability, going back to the time of purchase. And drivers who paid high fees in recent years to carry disabled people would have most of the money refunded. Such a scheme would ensure that no licence holder was directly out-of-pocket because of the deregulation of the trade. But those wealthy individuals who traded in or acquired taxi plates because of their artificial scarcity value, and in the expectation of future appreciation, would lose. And, of course, there would be increased competition.
The Garda showed understanding yesterday when it came to enforcing the traffic laws breached by the protesters. But that will change if taxi drivers ignore a Court injunction designed to prevent people from blocking the entrances to Dublin airport. The Government's hands are tied by a High Court judgment which found it had no authority to restrict the number of taxi licences. Such an approach, the Court 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. The days of the taxi monopoly are over.
The Tanaiste and leader of the Progressive Democrats, Ms Harney, last night welcomed deregulation of the taxi market, even as complaints arose from the Fianna Fail backbenches. There was no question, she said, of the Government taking away the livelihoods of taximen. There was more than enough work to go around in the industry and there was a compensation package available for those affected. Ms Harney and her junior minister, Mr Molloy, are to be complimented for their handling of the issue. The old system was at breaking point, under resourced and incapable of meeting public demand. Consumers shouldn't have to wait for hours in the cold and rain for a service that is available within minutes in other European cities.