Fergal Browne (Fine Gael)

I welcome the Minister to the House. I am also happy to welcome this legislation which will put an end to the previous system of regulation by the Garda Síochána and the Carriage Office. The establishment of a new statutory agency, the Commission for Taxi Regulation, is both welcome and long overdue, given the way deregulation took place, and will benefit both the taxi industry and the public. The taxi industry's unsuitable system evolved over many years. It meant that regulation by the Government and local authorities prevented the extension of the industry in line with demand. This was confirmed by an investigation carried out by the EU Parliament's Commission on Petitions. However, the attempt of this Government to rectify the situation has been shown to be disastrous for some families.

The aforementioned EU committee deemed that the appointment of an interim commission for taxi regulation with no statutory powers proved that the Government had had second thoughts due to the negative effects of the badly planned overnight deregulation three years ago. It is my hope and that of Fine Gael that the legislation will go some way to provide redress for those who have suffered as a result of deregulation and also address the concerns of the taxi industry and the wider public.

The House will be aware that deregulation took place in an instant, without the necessary consultation and consideration. No impact study was carried out on the likely effect the Government's action would have on the many individuals who had invested huge sums to enter the regulated market. It is also obvious that the negative repercussions for the public were not foreseen or investigated. That is why we are here today. The ill-judged actions of the then Government have been compounded by continued neglect of the taxi industry since deregulation. A previously regulated market was left unmonitored, while no action was taken to address the widely reported anxiety of both the industry and public.

As the Minister is aware, the taxi hardship panel has made a recommendation to him. I would urge him to make a decision on that issue and either accept the recommendation by the panel or increase the amounts, as recommended by every member of the Joint Committee on Transport, which felt that both the criteria for compensation and the amounts were questionable.

The number of taxi licence holders in the Dublin area alone increased from 2,700 to over 6,500 in the period from November 2000 to July 2001. The Department of Transport has repeatedly been made aware by groups such as Families Advocate Immediate Redress, FAIR, that entrants to the market had paid huge sums, €107,000 on average, for taxi licences. Let us consider the families of such entrants, who now have to bear the burden of 17 years of a 20-year term loan. As a result of the Government's action these same licences are today worth in the region of €6,500 or less. It is also worth remembering that this is a nationwide problem and is not confined merely to the capital.