A significant increase in the number of taxis in Dublin may eventually follow yesterday's High Court decision that the Government has no power to limit the number of taxi licences.
However, the Taoiseach, Mr Ahern, described the High Court ruling as bad news for the public.
"It's a pity this has happened. I think we could have achieved a situation where we would have doubled the number of taxis on the streets of Dublin.
"That has now been rejected and the judgment will have to be examined over the next couple of weeks," he said.
The ruling will not lead to an immediate end to taxi shortages in Dublin as it will be appealed to the Supreme Court by the Irish National Taxi Drivers' Union, which is opposed to deregulation.
The ruling appears to end the Department of the Environment's plans to issue an additional 3,100 licences - 2,700 of them to existing taxi-plate holders. However, the Minister for State for the Environment, Mr Robert Molloy, said he hoped the ruling would lead to an "efficient and customer-friendly taxi service for Dublin that all parties want".
The High Court case was taken by four hackney drivers who claimed they were discriminated against as they were not allowed to ply for trade on the streets or to drive in bus lanes, and they claimed the proposed new licences would go mainly to existing taxi drivers.
The director of the National Hackney Drivers Association, Mr Christopher Humphrey, said his members would enjoy the same privileges as taxi drivers as a result of the ruling.
"Every journey will be a lot quicker. There'll be a better service there for the general public. We won't be hackney operators, we'll be taxi operators," he said.