Taxi fares are to increase by 10.5 percent from December 1 but this will bring "improved service for visitors and residents", Government promised yesterday.

Premier Dr. Ewart Brown announced a package of measures aimed at easing the grumbles of cabbies, who claim meter fares are not keeping up with rising fuel and living costs.

In addition to a 10.5 percent rise on the meter, operators and drivers can expect a fuel rebate, better insurance coverage and improved service in vehicle repairs.

Some cabbies, however, branded the 10.5 percent increase "an insult". Lee Tucker, a driver with Radio Cabs, said: "We've been working without an increase for three years now, so anything at 10 percent is an insult to us when you take into account increased living costs and the general costs of materials and equipment."

He said that in 2004 cabbies were given a 20 percent fare increase. A further five percent was promised in 2005 but this did not materialise.

"A 10.5 percent rise is unacceptable as far as I'm concerned, because our increased costs over the last few years have exceeded 10 percent," said Mr. Tucker.

"We're one of the few businesses on the Island whose expenses exceed the income we're getting."

News that the Government intends to further enforce GPS also brought a disappointed response. At the press conference yesterday the Premier declared the satellite navigation system was "here to stay" and that the Public Service Vehicle Licensing Board would ensure compliance among all drivers.

He added that further regulations could come into play, stating: "Where there is a need to strengthen or clarify areas of the existing legislation, it will be done without delay when next the Legislature is in session."

Mr. Tucker however, said: "This is ludicrous. How in the world can the Premier enforce GPS? It's up to the driver who drives the car to drive it as he sees fit."

The cabbie claimed that problems with the GPS signal on the Island were resulting in a poorer service. "The Premier should be working to improve the quality of service, not taking it backwards," he said.

Yesterday Dr. Brown said negotiations with the taxi industry had sought to address the rising costs of operators and complaints by members of the public.

He was joined at the press conference by Labour and Immigration Minister Derrick Burgess, members of the Bermuda Taxi Association executive and MP George Scott and Charles Clarke, whom he described as "advocates for improvement in the taxi industry".

The Premier said the meter fare increase had been calculated with reference to running costs and the Consumer Price Index.

"We used the figure average to the industry with effect to the operation. The Consumer Price Index factored into it and we thought this would be a very reasonable increase," said Dr. Brown.

"The last increase was in 2004 and my predecessor (Alex Scott) had promised another increase, and although it didn't come at the time it was promised, we are happy now to have caught up and we think this increase helps the industry to catch up."

Dr. Brown, who is Minister of Tourism and Transport, said: "Since the implementation of GPS, the Ministry of Tourism and Transport has worked closely with the industry to foster continuing dialogue on issues of importance.

"Since the start of these discussions we have seen a decrease in customer complaints, increased revenue to owners and operators, and improved statistical data collection.

"These are things we had hoped for and, I am pleased to say, that progress is being made in all these areas. Whilst we are not 'there' yet I am confident that we are moving in the right direction.

"Amongst the issues we have discussed with the industry are the extension of a fuel rebate to taxis, better insurance coverage, improved service in the area of automotive repairs, and of course a fare increase.

"I am grateful to Minister Burgess who has facilitated much of the discussion on these issues over several months. To date I understand the fuel rebate to be well in hand and that the other areas are shortly to bring positive results.

"In keeping with the progress that this constructive dialogue has brought I am pleased to advise the public that Cabinet approved, at my invitation, a 10.5 percent increase in taxi fares with effect from December 1, 2007.

"We consider this increase to be proper in all the circumstances and reflective of the needs within the industry and something which can be accommodated by the travelling public."

The Premier added: "We will continue to be vigilant in improving service to the public and remain committed to providing better coverage for the airport in the evenings and to working with the industry for better night service."

Dr. Brown claimed the introduction of GPS (Global Positioning System) among taxi operators had brought "tremendous benefits".

"GPS is here to stay and I am comforted by the increasing numbers of drivers who, having tried the system, report its tremendous benefits to their efficiency and earning capacity.

"In this regard, I have asked the Chairman of the Public Service Vehicle Licensing Board to maintain their keen attention to the dispatching companies and their compliance with the law, as well as the strict enforcement of the use of computerised dispatch in all taxi service in Bermuda.

"The progress in the taxi industry is real, but it is ongoing.

The commitment we made to making these improvements is a work in progress, and the continued dialogue between Government and the industry is vital to the success of this critical sector of public transport."

Labour and Immigration Minister Mr. Burgess said: "There is still much work to do in the taxi industry and I look forward to more progress that will result in a win-win for all sides.

"Our goals will be — lessening the financial burden on taxi operators, increasing the level of compliance on TCD regulations, and above all else, we will be focused on improved service for visitors and residents who rely on the taxi industry."

Mr. Tucker however, was critical of the enforcement of the use of GPS.

"The radio system provides a better service on this Island, so why are we being told we have to use GPS? I have the GPS system in my car but I prefer the voice and radio. I've come to the conclusion that the radio is the best system for Bermuda at this stage," said Mr. Tucker last night.

He explained that if a cabbie was at Spanish Point the operator would then guide them to a pick-up in Dockyard as the GPS system would seek a straight line, not taking the stretch of water into account.

Mr. Tucker said the same problem was happening all over the Island, with drivers being sent to Paget when they were in Hamilton with the GPS not recognising Hamilton Harbour.

"This means the passenger ends up waiting around," he said. "The operators are at the mercy of the system."

Mr. Tucker, who has working in the industry for 45 years, said a GPS system also cost around $2,000 per car with additional operating costs at $150 per month.

"It's costing us more money but the quality of service is worse, because the signal is sometimes not correct," he said.

Other cabbies however, welcomed the measures and the 10.5 percent fare increase. Bermuda Taxi Association President Gilbert Trott said: "It's fair. I was a long road of talks and we think that the increase is fair."