Senators yesterday rubber-stamped a controversial bill giving taxi drivers a 20 percent fare increase while cutting back on fringe charges.

But rebellious taxi drivers vowed to continue a campaign to force a U-turn on a cutback in late night surcharge hours.

And Joe Brown of the Bermuda Taxi Federation said this week's eight cents a litre increase in gas and 1.3 cents a litre hike in diesel prices would bite deeply into any benefit from the increase because of the industry's heavy fuel consumption.

The bill was sent for the Royal Assent by Senate despite an angry protest outside the House of Assembly last Friday by angry cabbies.

Around 50 drivers circled Sessions House sounding their horns, furious at a decision by Transport Minister Wayne Furbert to link the increase -- five percent less than cabbies wanted -- to a two-hour cut in the period a 25 percent late night surcharge can be imposed.

Sen. Larry Scott, who introduced the regulations to Senate, said that taxi drivers were "good and faithful servants to this Country.'' But he said one of the problems in negotiating an increase was that the industry did not speak with one voice.

Sen. Scott said that the House of Assembly protest, organised by the Bermuda Taxi Federation, whose secretary is Mr. Brown, was only the most visible of several representations to the Minister.

He added: "He was told in no uncertain terms by another group of taxi drivers that they should not negotiate with Mr. Brown because he did not represent the majority of taxi drivers.'' And Sen. Scott said that the reason Government had refused to change direction on the proposals was that it wanted to get the cash "into the taxi drivers' pockets.'' In the House, Mr. Furbert also agreed to review the regulations early in the New Year.

Mr. Brown, meanwhile, insisted drivers would stay home on Christmas Day, as well as carrying out a wildcat campaign of other industrial action.

Report from the Senate -- Page 6