The Local Government Association said police forces across the country are no longer providing information to councils on criminal investigations involving prospective taxi drivers because of a dispute between the Home Office and police on whether it is lawful.
Some councils have also been told by the Disclosure and Barring Service that they can no longer check whether a prospective taxi driver has been barred from working with children or vulnerable adults unless they work on a school transport contract.
It comes as government's plans to extend the duration of taxi licences from one to three years will return to Parliament today as part of the Deregulation Bill.
The LGA is warning that forcing councils to issue longer licences without access to vital intelligence on applicants could put children and vulnerable people at greater risk of becoming victims of sex crimes, child sexual exploitation (CSE) and trafficking from organised gangs.
It is calling for the clauses in the Deregulation Bill to be deleted and a comprehensive reform of taxi and private hire vehicle licensing undertaken, based on the Law Commission's report last year.
The LGA also demands a guarantee from the Department of Transport and the Home Office that access to this vital information will be immediately returned and maintained in the future, without risk of it being removed again.
Cllr Ann Lucas OBE, Chair of the LGA's Safer and Stronger Communities Board, said: "Extending the length of taxi licences without ensuring councils can keep carrying out robust checks risks putting children and vulnerable people at risk.
"Recent child sex abuse cases in Rotherham and Rochdale are a stark reminder of the vulnerability of some passengers.
"CSE is a terrible crime with destructive and far reaching consequences for victims, their families, and society and councils are determined that nothing like this can be allowed to happen again. That is why we are extremely alarmed at actually being given less access to information about who is applying for a taxi licence.
"Taxi drivers routinely work with vulnerable adults and children as part of their daily work, regardless of whether they have a school contract or not. It is imperative that councils can keep checking applicants against barred lists and be able to find out if they are under criminal investigation.
"The consequence could be councils unknowingly granting licences to people investigated for sexual offences and only finding out three years later when the driver renews the licence and has the conviction flagged up.
"As we know, the consequences for someone entering a taxi where the driver has not been adequately vetted by the council can be devastating. We should not be doing anything that increases the chances of that happening."
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EIRE
More than 1,700 taxi drivers quit their jobs last year as the number of taxi driver licences in Ireland fell below 30,000 for the first time in a decade.
Data from the National Transport Authority (NTA) shows there were 1,729 fewer taxi licence holders at the end of 2014 compared to 12 months earlier.
It means the number of people working in the sector has declined by 38% since 2009, when the figure peaked at more than 47,200 drivers following deregulation of the industry in 2000.
More than 17,800 drivers have now been part of an exodus from the profession in the past six years.
However, the decline in the number of taxi drivers is regarded by one taxi representative group as a sign of growth in the economy and improved job creation.
“You’ll find that a lot of guys, including many from the construction industry, came into the taxi industry in desperation during the downturn,” said Eoin Candon, spokesman of the National Taxi Driver Association. “With the pick-up in the economy, many of them are now going back to their old jobs.”
Mr Candon said the falling number of drivers, combined with an effective cap on new licences which are restricted to drivers with wheelchair accessible vehicles, was welcomed by those in the sector.
“There have been problems of over-supply, particularly in Dublin, and these trends are definitely improving the viability of work as a taxi driver,” he said.
There were 353 fewer taxis operating in 2014 compared to the previous year, with 21,547 vehicles licensed as taxis at the end of December.
All counties saw a fall in the size of their taxi fleet with the exception of Meath, Sligo, and Monaghan. An extra 30 taxi plates were issued in Meath during 2014, bringing the number of taxis in the county to 1,152 — the third highest number after Dublin and Cork.
Although Dublin accounts for more than half of all taxis in the country, the number of taxis in the capital fell by 456 cabs during 2014, or 4% of the city’s taxi fleet of almost 11,000 vehicles. In Cork, there were 63 fewer taxis at the end of last year, leaving 1,929 still operating.
Not surprisingly, Dublin has the highest concentration of taxis, with more than eight vehicles per 1,000 people, followed by Meath, Louth, and Kildare. Cork has 3.7 taxis per 1,000 people.
Meanwhile, the number of fines imposed on taxi drivers for breaching regulations soared by 64% last year.
The NTA said the surge in fines imposed on taxi drivers was a direct result of a trebling in the number of compliance officers, who carried out more than 28,000 spot checks during 2014.
The extra NTA staff led to 1,369 fixed charge penalties being issued last year. Individual fines can range from €40 to €250.
More than half the fines related to the failure by drivers to display details of the taxi in their cab, while 262 drivers were fined for having their vehicles for hire at an unauthorised location.
Taxi drivers say increased business was a factor in the 28% rise in complaints against taxi drivers last year. A total of 952 complaints were made against taxi drivers last year — an increase of 210 compared to 2013. Almost half the complaints contained criticism of the conduct of taxi drivers, while a third of cases were in relation to fares, including allegations of overcharging.
Another 113 complaints were about the actual hiring of a taxi, while 47 complaints related to the condition and cleanliness of the vehicle.
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