Gardai yesterday revoked a taxi licence issued to the man at the centre of the X case.
This followed expressions of dismay by the Fine Gael TD and family law expert, Mr Alan Shatter, among others, that the man was driving a taxi.
Gardai had confirmed they were investigating allegations that the man had assaulted a 14-year-old girl on two occasions as he drove her home and also made lewd suggestions to her.
These investigations are continuing.
The licence was issued to the man in 1997, without gardai realising who he was. However, they became aware of the situation in July 1998, when he was recognised driving a taxi in Dublin.
He was interviewed at the time, and a decision was taken not to revoke his licence.
A Garda spokesman declined to comment yesterday on the reasons for reversing the decision. A criminal conviction, irrespective of the offence, would not necessarily be a barrier to holding a taxi licence, he said.
The type of crime, the length of conviction and the time lapse since the conviction would all be taken into account, he added.
The 50-year-old man was released from prison in 1997 after serving two years of a four-year sentence for raping a 14-year-old at the centre of the X case.
He had changed his address in the period between leaving prison and applying for a taxi licence, with the result that gardai vetting his application did not make the link.
In the wake of this case procedures for applying for a PSV licence have been tightened up. Applicants are now required to make a declaration of any prior convictions held.
Failure to do so can result in disqualification.