Darlington police has been called on to crack down on crime after reports of prostitution and drug-using in the town centre.
Taxi drivers operating in the area have discovered people taking drugs in public toilets in the Market Place and some drivers have been asked to take fares to two known brothels in the town.
They have also become the subject of attacks.
On one occasion a taxi driver was stabbed with a syringe, narrowly missing a major vein in his back.
Another, who was parked outside Stanley Racing in the Market Place, had a used syringe thrown into the back of his cab after drug-users left the public toilets.
Drivers have also said that soldiers from Catterick Garrison are travelling to Darlington to use brothels located in North Road and off Neasham Road.
Taxi representative Mick Kennedy, who raised the issue at a council public involvement forum meeting, said that the matters have been reported to Darlington police.
He said: "It is giving Darlington a bad name. These brothels should be shut down. We have reported it to the police.
"Taxi drivers frequently see this sort of thing going on. One taxi driver saw a man administering drugs through his arm in the public toilets.
"The police were called but by the time they arrived it was all over. They searched the man and a woman and no drugs were found because they had already used them.
"I see children following these people into the toilets, people should be made aware what is going on.
"One driver had a needle stabbed in the back of his shoulder. Luckily there were no contents in it but it narrowly missed a major vein, it could have killed him.
"It is becoming a town of ill repute. The authorities need to crack down on it and crack down hard."
A police spokesman said they had received information from the public about the activities in Darlington.
He said: " We are always happy and grateful to accept information from whatever quarter and in this case it has been received and fed into our intelligent system.
"Beat officers covering the Market Place have been alerted to the problem and are keeping a watchful eye on it."
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