A HIGH Court judge called on the Government to rethink the law governing taxi operators after a North-East test case.

Paul Shanks, Ian Shanks, and Jane Bell run Blue Line Taxis, controlling more than 150 vehicles in Wallsend, licensed by North Tyneside Council.

Ian Shanks and Ms Bell obtained an operator's licence from Newcastle City Council in 1996, to open Blue Line (Newcastle) at Gosforth.

An arrangement between the firms to share bookings was deemed by North Tyneside to breach the Local Government Act, which bans taxi firms from operating outside the area which has licensed them.

The council refused to renew Blue Line's licence in 1999.

Yesterday, Cherie Booth QC, sought renewal of the licence at London's High Court, saying the rules were restrictive.

Lord Justice Latham, sitting with Mr Justice Forbes, upheld the council's stance, but said that in the face of modern communications "the legislation may be too restrictive in the public interest, but that is not a matter for the court, but a matter for Parliament".