Drivers can challenge deregulation plan for taxis

Taxi operators were yesterday given leave by the High Court to take a judicial review challenge to the plan to deregulate the…

Taxi operators were yesterday given leave by the High Court to take a judicial review challenge to the plan to deregulate the industry.

A full hearing is expected to start on December 19th and continue for a few days, making it uncertain if there will be a decision before Christmas.

The matter comes before the court next Monday to finalise a date for the hearing.

The new regulations, aimed at increasing the number of taxis, were announced last month by the Minister of State for the Environment, Mr Robert Molloy.

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Mr Justice Kelly said yesterday that while he was granting leave to seek judicial review, this was not an indicator of the prospect of success at the trial. His decision was that the applicants had met the low standard of proof required when seeking leave for a judicial review. which was that they had an arguable case.

The decision was "nothing more, nothing less, than that".

The granting of leave did not hinder the continued operation of Statutory Instrument 367 (brought in by the Minister on November 21st to allow deregulation of the industry) or any part of it, the judge added. That SI would continue in full force and operation unless the court directed otherwise.

The leave application was brought by the National Taxi Drivers' Union (NTDU) and its general secretary, Mr Thomas Gorman, and vice-president, Mr Vincent Kearns. The proceedings are against the Minister for the Environment and Local Government; the Minister of State at that Department; and the State.

The deregulation followed a High Court decision in October rejecting another scheme brought in early in the year aimed at increasing the number of taxis. The earlier proceedings were taken by hackney operators, and the High Court decision is being appealed by taxi operators.

In their forthcoming judicial review action, the taxi operators claim the deregulation plan amounts to an "improper interference" with their entitlement to have the appeal against the hackney proceedings disposed of.

The taxi licence-holders also claim to have a property right in their licences due to the manner in which the licensing system was created by the State and, in particular, the way in which the State had vested licensing authorities with power to sell taxi plates.

It is claimed that the Minister of State, in purporting to re move all quantitative restrictions on the taxi licence market without providing for any compensation for licence-holders, had exceeded his powers under the Road Traffic Act.

The licence-holders' assets were "thereby rendered valueless", despite significant investment by them. The taxi operators claim the regulations are unconstitutional in that they attempt to abolish their property rights.

The operators also maintain they had a legitimate expectation that their licences would be maintained at a value commensurate with their investment in the market. They submit that the Minister and Minister of State refused, despite requests, to hear their legitimate concerns, contrary to natural justice.

The State disputes all those arguments.