The Transport Control Department (TCD) is failing cabs which don't have working GPS, say industry sources as elements of the taxi industry continue to resist the controversial technology.

Radio Cabs boss Eddie Darrell said he believed around 20 taxis had been given fail slips by TCD since December 1 when the hardline measures were brought in. All cabs must be licensed by the end of January.

And Mr. Darrell said it was unfair to penalise drivers when it was their cab firm which was not operating the system.

Ironically, his is one of the two firms believed not to be running GPS. Mr. Darrell said there was no law to force cab drivers to pay monthly fees for the GPS service to their dispatching firm.

The businessman, who spent around $90,000 on installing GPS dispatching in the office, said: "I am not a charity, I cannot do it for free."

And he said drivers with his firm were anti-GPS and if he insisted it was turned on drivers simply signed off and drove home.

"You cannot get people to run the service so in order to get them back you go to voice."

A law making GPS mandatory in cabs came into effect in February 2006 but it was then discovered many drivers were not using the system and relied on radios to get jobs.

So a bill to force cab drivers to have their systems switched on was passed in the summer, while using other systems – such as radios – to pick up rides was banned.

Mr. Darrell said his lawyer was looking at the latest twist in the GPS saga.

Taxi driver Lee Tucker said it was unfair that drivers without working GPS who took their cabs for licensing before December 1 got passed, while those who went after that date got rejected.

He said he feared for the future of Radio Cabs and expressed concerns that if it went under, drivers would then have to fork out for a new GPS system as each of Bermuda's taxi companies used different technologies.

Mr. Tucker said he was disgusted at Government for pushing the system and he was equally annoyed that the Bermuda Taxi Association had not done more to resist it.

Raymond Robinson, boss of BTA Dispatching which uses GPS and has about 380 drivers, said he had no concerns about the situation and said more drivers were likely to come to his firm if the situation continued.

Last night a Government spokesman said: "The Transport Control Department would like to take this opportunity to remind taxi operators and dispatch companies of the Motor Car Amendment Act 2008.

"The Act states that no person shall operate or allow any person to operate a motor taxi unless the global positioning device is in working order and switched on.

"We urge all taxi operators and dispatch companies to comply with the law."