A law passed three years ago allowing taxi drivers and others to become limousine providers has prompted just eight applications with none of them from cabbies, Premier Ewart Brown has told MPs.

The Tourism and Transport Minister introduced new legislation in the House of Assembly on Friday to reduce the limousine permit fee from $100,000 to $50,000, as he said the cost had proved prohibitively high. Dr. Brown said no taxi drivers had opted to become limousine providers since the earlier legislation came into force in 2006 and there had only been eight other applications, with just two companies getting a licence. "The others have opted not to," he said. "Many have advised the [Public Service Vehicle Licensing] board that the permit fee of $100,000 made it virtually impossible for them to start their business."

The Premier, in response to questions from the Opposition, said the two licenced companies had made only partial payments towards a permit but had still been allowed to operate limousines by the Transport Control Department director.

He said they would now only have to pay the $50,000 fee.

Opposition MP Grant Gibbons was not allowed a question about how long the two companies had operated without paying the full permit fee. Dr. Gibbons said the original limo legislation capped the number of permits available at 100 — with 50 for taxi drivers and 50 for other interested parties. He asked if the Motor Car Amendment (No. 3) Act 2009 would reduce the number of permits to be made available. "Or is the Minister's intention still to try to get a much larger number than two?" he queried.

Dr. Brown said: "With respect to the eventual number of limousines, we are going to allow the market to determine that. We made it a maximum and we are sure that the number will come in considerably lower."

The bill was passed without amendment.