The Tanaiste, Ms Harney, has written to the Minister for Justice, Mr O'Donoghue, asking him to bring forward proposals to remove restrictions on the availability of licences for public houses.
Following another Christmas of chronic shortages in taxi services in Dublin, she is also expected to ask the Minister for the Environment, Mr Dempsey, to "encourage" local authorities to issue more licences.
Meanwhile, as Minister for Enterprise, Trade and Employment, Ms Harney is to consider the possibility of introducing legislation permitting illegal immigrants to work "in controlled circumstances" while their applications for asylum are being processed. A more open immigration policy would be used to channel non-EU nationals into sectors currently experiencing labour shortages.
Ms Harney will also bring a report to Cabinet in January on company law, compiled by the former Progressive Democrat TD Mr Michael McDowell. It is expected she will seek clearance to pursue a number of recommendations in that report, including the establishment of a Company Law Enforcement Office which would be staffed by professionals and have the authority to pursue cases of company wrongdoing.
In an interview with The Irish Times, Ms Harney said a more flexible immigration policy was needed and yesterday she predicted in The Sunday Business Post that this could be the "last Christmas of taxi mayhem".
Urging thorough deregulation, she said a relaxation of the laws governing the licensing of public houses was imminent. Sources said last night she had already written to the Minister for Justice, urging him to bring forward proposals to deal with the situation whereby large sections of Dublin suburbia are serviced by a tiny number of pubs.
According to Ms Harney, outmoded legislation governing pub licensing must be overhauled without delay to take population changes into account and to allow greater competition in the Dublin area particularly.
However, senior sources said her hopes to see radical changes in the State's electoral legislation would not be realised overnight.
Ms Harney said the number of Dail deputies should be reduced from 166 to 100 and their salaries should be increased from just over £35,000 per annum to about £60,000.