A NUMBER of Ennis taxi-drivers are at the forefront of an “army-deafness” style legal action against the Government to secure millions in compensation over the deregulation of the industry.
Prior to deregulation in 2000, the most expensive taxi “plates” in the state were being sold in Ennis because the local taxi market was restricted to just 20 taxi-drivers.
In the previous year, a local man bought a plate for €150,000, while others purchased plates for €142,000 and €135,000.
However, as a result of legislation introduced by former Progressive Democrat Minister, Bobby Molloy, any person could enter the taxi market by purchasing a plate for €6,500.
Six years on, Ennis has 116 licensed taxis. One of the original 20 taxi-drivers Paul Kelliher is among the local operators who has been contacted to join the legal action.
The Ennis man purchased his plate for €92,000 in 1996 and is confident the legal action will succeed.
“You could buy a decent house in 1996 in Ennis for €60,000. When we purchased our plates, we were investing in our futures and our pension and that was wiped out overnight and we are hoping to be re-imbursed. Natural justice would suggest that what was done was wrong.”
“Deregulation is not the issue – restrictive entry enforced by the Government was and is wrong. Allowing entry at very little cost, thereby wiping out the investment made by existing operators, is at issue here. If the government had issued licences at a cost to reflect value, existing taxi drivers would not be aggrieved nor would a legal challenge be now pending.”
“No single group of self-employed businessmen had ever been isolated and destroyed as quickly and effectively.”
“All these operators converge on the only taxi rank in Ennis to ply their trade. Ennis Town Council has got a windfall of €624,000 in licensing fees since deregulation and their only response has been a proposal to move the existing taxi rank to a ‘back-alley’ location in possibly the most dangerous location in Ennis, at the Parnell Street car park.”
He said that Limerick legal firm, Mc Mahon O’Brien Downes has been in contact with him on the issue of instituting proceedings – the firm was one of the highest earning firms in the legal actions taken against the Government over the army-deafness cases.