What impact a new category of public transport will have on the taxi industry has split Senators on whether it is wise to allow some taxi drivers to become full-time private limousine providers for corporate clients.

Even though it is illegal to do so, there is already an unofficial pool of limousine providers ? taxi drivers that switch off their meters to work as limousines for companies whisking clients around the Island.

They are often seen with a sign of the corporation they are working for in the front of the vehicle, indicating to ordinary customers trying in vain to hail them as they drive past that they are already taken.

Addressing that trend is the reason Government has decided to create a new category of public service vehicle known as a limousine. It does not necessarily refer to a quintessential stretch-limo vehicle, but can be an ordinary car or former taxi.

It is intended up to 100 of the limousine licences will be issued, and the first 50 will go to taxi drivers wishing to swap their taxi permit to become a limousine operator, according to Senator Walter Roban when he introduced the Motor Car Amendment (No 2) Act in the Senate.

First to voice opposition was UBP Sen. Gina Spence-Farmer who said there had not been proper consultation with taxi drivers, that the limo service would mean less business for taxi drivers and the impact additional vehicles will have on Bermuda's roads.

Independent Sen. Walwyn Hughes said he could not see how reducing the pool of available taxis on the Island by 50, if all the first 50 licences are taken up by taxi drivers, will help the ordinary taxi service.

Fellow independent Sen. Carol Bassett could not see what the burning issue was. She said if the high-end customers were already being served by those taxi drivers who opted to go off-meter already why was there a need to create a new category of vehicle.

The new Act will stop those drivers who do both ordinary taxi fares and off-meter corporate clients from being able to revert back to being a straight-forward taxi service.

UBP Sen. Kim Swan questioned why the limousine operators would still be required to fit their vehicles with a GPS system and pay a monthly fee to a dispatching company even though they would not be servicing taxi calls.

He said Government would be wiser to wait until the compulsory requirement for GPS in taxis had been monitored for a full year before deciding if there is a need for a new category of public transport vehicles.

The Act was "legitimising something that is already happening," said Government Sen. Neville Tyrrell.

His colleague Sen. Raymond Tannock did not believe the full 100 licences would be taken up but more likely 10 or 20 and with taxi drivers getting first option it would be keeping the business "in their round."

But UBP Sen. ET (Bob) Richards described Bermuda's current situation as having "stealth limos," referring to those taxi drivers who were already accepting corporate client off-meter jobs.

He said a lady outside the supermarket who was confused why a taxi she tried to hail did not stop would not realise that she had tried to hail a "stealth limo."

But by legitimising the limousines the Government would be creating "stealth taxis," because the licensed limousines are still required to carry GPS and radios so could quickly revert to taxi-mode, albeit unofficially.

He also said the net effect is to increase the number of taxis in Bermuda because those who apply for the limousine licences will seek to "sell on" their taxi licence.

Agreeing with this observation Senate President Alf Oughton said: "Taxi drivers who sell their taxis to buy a limousine permit will not mean their old taxi is off the road. They will sell their taxi and their taxi licence of $100,000 in order to buy the limousine permit."

In reply Sen. Roban, who is the Junior Transport Minister, said not all requests for the permits would be agreed. He said the GPS system still needed to be fitted to limousines to secure data to assess the needs of the public transport industry as a whole.

And he said linking up with central despatching companies was needed so that clients seeking a private limousine might be able to get in contact with the limo service providers.

The Act was passed by a vote of eight in favour to three against.