Government's Transport budget is almost unchanged from last year, but changes in areas such as the taxi industry could meet with resistance.

Included in Finance Minister Eugene Cox's Budget was a proposal to establish a flat fee of $1,500 per annum in lieu of payroll tax for taxi operators that will be payable in quarterly instalments of $375.

Mr. Cox said that even with this increase, the fee for taxi operators will remain well below the average quarterly tax payment of $1,260 in respect of payroll tax, and he added that the introduction of this flat fee would generate an additional $600,000 per year.

At a press conference held by the Opposition following the Budget's release, Shadow Transport Minister Erwin Adderley said: "Eugene Cox said we've listened hard and we've responded. If he has listened to taxi drivers and responded to taxi drivers then heaven help the rest of us.'' Mr. Adderley said: "This is not a Budget for the little man. Taxi drivers have a payroll tax, licenses are up, and gas and fuel is going up. "There's at least three hits in there, not to mention the fact that they might also have to buy a new radio.

"That's three hits for the little man who spoke up and voiced an opinion. It seems that if you speak up you get rapped.'' Government also aims to raise revenue from increased passenger departure taxes.

Mr. Cox said: "Passenger taxes have not been reviewed for more than five years in respect of air passengers and it has been ten years since the cruise passenger tax was last reviewed.

"The air passenger tax will be increased $5 to $25 in the coming year,'' continued Mr. Cox, adding that the full year yield is expected to be an additional $2 million.

For cruise ship passenger tax, Mr. Cox said that Government plans to formally notify operators of cruise ships that the tax will be restructured and the new rates will take effect in 2002.

The new structure of the tax will be based on seasonal factors and demand for Bermuda's three ports.

Mr. Cox said this would provide a discount incentive similar to the Cabin Tax, to extend the cruise season beyond the peak period of May to August.

Concerning traffic problems, Mr. Cox said: "Traffic congestion is a major problem in our community. The success of our economy with generally high household income levels has given rise to a strong and sustained demand for private motor vehicles.'' And he said that Government intended to tackle this problem by improving the quality of the public transportation system and by realigning economic incentives.

As such, Mr. Cox said that ferry and bus fares will not be increased in 2001/02, but all motor vehicle licenses will see a five percent increase.

Government proposes an increase of $50 for cars in classes A to D and an increase of $100 for cars in classes E to G.

The licence fee for all classes of motor bikes will be increased by $10.

Mr. Cox said the additional revenue from these increases is expected to be $2.8 million.

However, this drew criticism from Mr. Adderley who said: "They talk about the high levels of traffic, but I would have thought the motorcycle registration fee would be down to encourage people to get on the bike.'' Mr. Cox also outlined improvements that would be made to the Airport and said: "The Bermuda International Airport is our lifeline to the rest of the world and Government plans to invest some four million in runway upgrades, new approach lighting, apron replacements, associated works, and improvements to the terminal building in 200 1/02.'' Mr. Cox said: "This work is required to maintain international standards and to ensure the highest level of safety and security for visitors, residents and airport workers.

"The Apron replacement programme is a new addition to the Capital Expenditure Plan and has a Total Authorised Figure (TAF) of $7 million.'' Mr. Cox said that the work undertaken in 2001/02 will allow for the major replacement of concrete aprons to be phased in from 2005/06.

The Ministry of Works and Engineering has also been allocated $22.4 million for an array of capital projects that include $7.8 million for the refurbishment of ferry docks and public landings for the new ferries, and $2.4 million for the refurbishment of the Causeway and Swing Bridge.

Turning to major capital acquisitions, Government will spend $3.8 million on replacements for the bus fleet, and $4 million is included in the 200 1/02 capital budget for the first pair of new ferries.

Total estimated expenditure for the ministry of transport is $46.8 million, as opposed to $46.4 million last year.

Mr. Cox said: "In the Ministry of Transport, the budget of $46.8 million is essentially unchanged from the previous year. Moreover, I wish to note savings in the amount of $393,000 due to reduction in contractor costs for meteorology and crash fire rescue.

"These savings in Airport Operations helped to limit the overall increase in the Ministry's current account allocation for 200 1/02 to less than one percent.'' Expansion of programmes in 200 1/02 current account expenditure estimates include $98,000 for additional staffing at the registry of shipping and ferry service.

The Transport Control Department (TCD) will receive an extra $359,000 for projects relating to the Road safety Council, Project Ride, a staff training initiative, a provision for consultancy services for an organisational review, and an increased provision for operating costs.

And the Public Transportation Board will receive an extra $987,000 for additional staffing to improve the preventative maintenance programme, four extra drivers and overtime, a business manager /accountant, spare parts, fuel, security, and increased operational costs.

Rank and file: Will the Budget hit taxi drivers hard?