Angry cab drivers are to form a union and link up with the Bermuda Trades Union Congress after hitting out at Government for reneging on an agreement to increase fares.

Bermuda Taxi Owners (BTOA) spokesman Lee Tucker said cabbies had been promised a 20 percent hike in fares due on July 1 but that date had passed without any improvement.

He accused Government of sour grapes after its bid to force drivers to install global positioning systems was blocked again by the Senate.

Drivers have not had an increase for seven years.

Mr. Tucker said: ?We are very, very disappointed there was no rate increase. Right now members are up in arms.

?There is no telling what might take place, I am not saying a strike.

?I think Government missed a wonderful opportunity to extend the olive branch and let bygones be bygones.?

He called for a board of inquiry into problems affecting the taxi industry.

He said on Thursday night a large meeting of drivers at Warwick Workmen?s Club agreed to move towards setting up the BTOA as formal association.

The BTOA has 150 paid-up members but around 350 are associated with the group.

?We are reorganising into a fully fledged association,? said Mr. Tucker. ?We want to affiliate with the TUC. It will enable us to get more information about labour relations.?

He said the move would also allow the BTOA to get support in strikes from other unions.

Transport Minister Ewart Brown could not be reached yesterday.

Asked if blocking the fare hike was a case of sour grapes Transport Permanent Secretary Marc Telemaque said: ?That?s a matter for the taxi industry.?

And he said Government hadn?t blocked the fare increase but was now assessing its options.

He said the increases formed a portion of raft of proposals, as had been spelled out by Dr. Brown and the Premier. They had been linked in with GPS, the ability to import second hand taxis and shared rides from the airport, said Mr. Telemaque.

He said: ?I have heard a lot in the media about the taxi drivers desire to communicate with the government.

?But at this stage we have not had any confirmation by the Bermuda Taxi Owners Association or otherwise.

?It would be a bit premature to discuss what the position might be in the absence of anything of that sort.?