Reading MP Jane Griffiths called on the town's taxi trade to stop its 'wasteful' legal action just days before a judge threw out its case.

The Reading Taxi Association (RTA) faces a bill of up to £25,000 after a judge ruled that Reading Borough Council's (RBC) decision to issue 30 new taxi licenses was not made on irrational grounds and could therefore not be challenged.

A 2003 survey by Transport Planning International had concluded that eight additional taxis were required to meet unmet demand, on top of the 138 already operating, but RBC decided to issue 30 new licenses and re-survey after a year to assess the effects.  RBC had highlighted illegal plying for hire by private hire vehicles at peak times, and said that the rules could not be enforced when there were insufficient taxis available to meet demand.

But the RTA said that its members were already struggling to make a living since the introduction of night buses, and challenged RBC in court on the grounds that its decision to issue 30 new licenses was made on 'irrational' grounds.

In the High Court Mr Justice Goldring heard claims from the RTA that the figure of 30 was "arbitrary and unsupported by any evidence" and that the number was arrived at without explanation and was based merely on a 'hunch', and also that irrelevant matters were taken into account, including an anonymous letter which claim that taxi plates were changing hands for up to £50,000.

RBC argued that case law indicated that the courts would not interfere with councils' decisions unless made illegally.  It said that the number was decided on after some 'horse trading' and taking into account councillors' local knowledge of Reading's problems.

While awaiting the judge's decision, the RTA claimed that the Government's decision not to follow the Office of Fair Trading's recommendation to de-restrict numbers nationally represented a first round victory in its battle against RBC.

Reading West MP Martin Salter said: "A free-for-all would have been a disaster for the trade and a nightmare for Reading."

However, Reading East MP Jane Griffiths called on the the RTA to abandon the High Court action, claiming that controls on taxi numbers produced an inferior service and are bad for consumers.  She said: "Any review by the council will see the restrictions on the number of taxis removed, a growth in the number of taxis on the streets, and a better service for customers.  I call upon Reading's taxi drivers to end their wasteful legal action against the council and for them to accept the inevitable, that the restrictions on the number of taxis will have to go."

RTA secretary Keith Johnson said: "She is obviously a Labour MP on her way out and she looks to be trying to do as much damage as she can.  I think the council have got to make transport accountable to government, and what they do must be for the benefit of the public.  What we need is a public transport system that is regulated, and not open to the whims of everybody - deregulation leads to deterioration."

But last week Mr Justice Goldring dismissed the RTA's action, saying that the council's decision was not irrational since it had an 'absolute discretion' on the issuing of new licenses and could even de-restrict numbers completely if it wanted.

The judge said that police were in favour of any decision that would get the public home safely, and that there was evidence of informal ranks being operated by rogue minicab drivers to meet demand not met by taxis.  He also said that 'real deference' should be paid to the views of democratically elected councillors, and that 'adequate consultation' had taken place with stakeholders.

Mr Johnson said: "We will have longer working hours causing fatigue and no job security.  The service will be substandard if we are not able to maintain our taxis and have to work in excess of 70 hours."

David Sutton, leader of RBC, said that the decision 'vindicated' the council's action and claimed that the council and the taxi trade still had 'large amounts of mutual interest'.

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