The competition watchdog has found that the system of taxi regulation is not working in Islanders’ interests and that the Transport department needs to step in to open up the taxi service and take a bigger role in setting fares.

The report could be a blow to rank taxi drivers whose ‘plates’ allowing them to operate is a ticket to lucrative work.

If Transport Minister Mike Jackson follows the advice in the report filed by the Jersey Competition Regulatory Authority, the restrictions on the number of private and rank taxis would be lifted, there would be greater transparency on fares and Mr Jackson would be able to set maximum charges.