Cabbies make case for tax concessions
Taxi drivers are asking for government concessions after being hit with rocketing health and fuel costs.
Bermuda Taxi Owners Association spokesman Lee Tucker said Government had granted concessions for all the major elements in the tourist trade, but hard-pressed cabbies had been left out.
Around 30 drivers recently dropped from a group health plan by Canada Life have until the end of the month to find new coverage, but Mr. Tucker said one driver had been given a quote of $1,100 a month.
Gordon Flood of Island Wide Taxi Service said efforts to get a group deal from other companies were proving expensive, with the cheapest quote being 50 percent more than they used to pay.
Mr. Tucker said Transport Minister Dr. Ewart Brown had promised to lobby Finance Minister Eugene Cox over the issue, adding: "We have not heard back from them, we are very concerned about it."
Some drivers were only making a couple of thousand a month gross, said Mr. Tucker and had been further hit by Tuesday's fuel hike which saw diesel fuel rise by 2.3 cents a litre.
He said special pumps should be available for taxi drivers offering subsidised fuel. He said: "I have seen this work with the fishermen."
Mr. Tucker said similar concessions had been given to taxi drivers around a decade ago in the last recession. He also suggested payroll tax breaks to ease the financial burden while noting the hotels and restaurants had been given tax concessions recently.
He said some older taxi drivers might consider giving up rather than pay massively hiked health bills.
He said: "If they sell up and go home what income will they have? You are damned if you do or damned if you don't.
"It's a very difficult position for taxi operators to be in."
He said statistics taken from the metre reader showed the average taxi driver was only earning about $48,000 a year gross but this was reduced to around $35,000 after deductions.
Mr. Tucker said the tourist season was also proving sluggish, putting further strain on the industry.
He said: "I waited for an hour and a half outside the Southampton Princess this morning and there wasn't a single call on the radio."
Lack of income is making the taxi drivers all the more adamant that they don't want government's global positioning system in cabs because they will be an extra expense said Mr. Tucker.
The new system, which has yet to be made law, could cost each cab owner $1,500 to install.
Mr. Tucker said: "One penny more is one penny to much."
Recently taxi drivers lobbied Premier Jennifer Smith and Transport Minister Dr. Ewart Brown in a bid to stop them enforcing the new technology.
Government requested the anti-GPS lobby identify how many owners and drivers supported their stance before further talks could proceed.