TAXI drivers could take legal action against Bury Council for lost trade.

They say they are not breaking the law and are determined to save their livelihoods.

And they have challenged the local authority to sue them if they dare.

In a case which has nationwide implications, Bury Council has told main taxi company Farebay Ltd that it may be acting unlawfully by operating hackney carriages as private hire vehicles.

A meeting last week between senior council officers and taxi representatives failed to break the deadlock.

While the atmosphere was cordial when the sides met again at Tuesday's (Sept 2) licensing committee, they are still no nearer a solution.

Troubleshooter Mr Ted Lane, who is advising Farebay, says he is considering seeking an injunction against Bury Council to stop them saying Farebay are acting illegally, claims which he says are damaging drivers' livelihoods.

"My advice to Farebay is to continue to operate as currently. We'll have to wait and see if they are brave enough to prosecute."

Mr Lane outlined the history of taxi licensing rules to councillors at Tuesday's meeting.

"You appear to think that a hackney carriage cannot take bookings. They have always done so and will continue to do so until the law changes," he told them.

"I agree that the time is ripe to make a change, but please don't pre-empt any new law. Allow hackney carriages to do what they have been doing since 1635."

Committee chairman Coun Trevor Holt, who had invited Mr Lane to make his presentation, said the council was aware of the pressure taxi drivers were under.

He said: "I appreciate some decision has to be taken sooner rather than later."

Mr Lane's stance, however, is totally at odds with that of council chief executive Dennis Taylor, who described the first meeting as very productive.

"We were all agreed that the council is not seeking to close down any operators," he said.

Mr Taylor added: "We could have closed them down but it was a clear gesture of co-operation from us by not doing that."

Mr Taylor said taxis had been given three months to either accept the council's position or challenge it with their own legal arguments.

"We are going to talk to other local authorities to see how they have resolved the problem," he said.

"The taxi association are going to give us legal interpretations they have which might suggest a way round this issue: we'll then run that by our own barrister.

"They will also look at possible alternative ways of operating in terms of advanced booking."

This might involve setting up two distinct operations on one base, with one specifically handling private bookings.

"They will get the fullest co-operation from the council," he said. "We have now established a rapport. With good will on all sides this can be resolved."

Mr Taylor said the council would have to consult its lawyers if taxi firms decided to simply ignore the matter.

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