State could face €15m taxi bill

THE State could be forced to pay out over €15 million to taxi drivers who lost money after the industry was deregulated.

Upwards of 1,500 claims have been lodged with solicitors, with the first case due to go before the courts late next year.

Drivers are aiming to get back the value of their taxi licence before deregulation.

Taxi plates cost in excess of €100,000 in 2000 but their value has dropped to 5,000 since the industry was opened up.

If the claims are successful the State will face a €15 million payout.

The number of taxis has jumped from 3,900 to 11,000 since deregulation.

The majority of the claims are being handled by the Limerick firm of solicitors, McMahon, O’Brien and Downes.

Taxi drivers are going to argue the State acted illegally by restricting taxi numbers back in 1978. This means the decision to deregulate the industry was an attempt to correct the initial mistake, the drivers claim.

The court action comes despite Transport Minister Seamus Brennan yesterday paying out €604,000 to drivers who suffered financial hardship following deregulation.

Mr Brennan agreed to give 49 families, out of a total 500 applications, hardship payments of between €3,000 and €15,000.

However, the Dublin-based drivers’ lobby group Families Advocate Immediate Redress (FAIR) criticised the minister for paying only 49 families.

“Natural Justice is being ignored in various respects,” a FAIR spokesperson said. “Our case is still under very active consideration in Brussels and will be raised in the New Year during Ireland’s presidency.”

FAIR was established in January 2001 to campaign for almost 3,000 drivers affected by deregulation.

“We are looking forward to the European Parliament seeking a positive resolution to this unresolved injustice,” the Fair spokesperson said.

Meanwhile, taxi unions also feared last night that hundreds of illegal taxis will come on the roads during the busy Christmas period.

Opportunist car owners are posing as taxi men as demand for cabs soared in recent weeks.

“This is something we are aware of and it does seem to happen more during Christmas,” National Taxi Drivers Union vice-president Vinny Kearns said.

“Because the industry is deregulated, it is very difficult to track these individuals.” Bogus drivers are working in areas throughout the country, he said.