TAXI drivers are urging councillors not to allow more cabs.
Richmondshire District Council only grants 65 hackney carriage licences at present.
However, after a study by the Office of Fair Trading, the Department of Transport has told the authority to review this policy.
Councillors could now decide to stop restricting numbers, a move that Dave Shotton, owner of Amalgamated Taxis, says would flood Catterick and Richmond with cabs.
"This would be one of the worst things ever to happen to Richmond. We don't need any more taxis. If we got more, the standards would fall.
"Instead of servicing a car every 6,000 miles, drivers would only be able to afford to do it every 20,000 or 30,000 miles.
"You would have people in full-time jobs working eight or nine hours and then going out at night in a taxi - this wouldn't be safe," he said.
Another Richmond taxi driver said: "This would affect drivers' livelihoods.
"Those relying on business from the rank would struggle to make a living."
Drivers say deregulation would have few benefits for taxi users, with part-time drivers only appearing at weekends when trade is good.
In Richmondshire, hackney carriage plates are worth between £4,500 and £5,000. Lifting restrictions would render the plates worthless to owners.
Of the 25 drivers who responded to a questionnaire, 22 said the council should not increase the number of taxis.
Councillors will discuss taxi provision at a meeting today.
John Jamieson, principal environmental health officer for the council, said in a report to councillors: "The Department of Transport makes it clear that councils which resolve to retain controls on hackney carriage numbers must review the case for restricting numbers.
"They further make it clear that councils who retain control in numbers can only do so if they have clear defined evidence to support their case after having carried out an unmet demand survey."
The cost of the survey, which must be carried out by the end of March next year, would be met by taxi drivers.
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