Senator Michael Fahy has defended legislation to allow tourists to rent out minicars, after the announcement prompted anger from the Opposition and taxi operators.

The Minister of Tourism, Transport and Municipalities said the One Bermuda Alliance were taking a “very conservative” approach with the initiative and that the A-class vehicles would be strictly regulated.

After the Bill was discussed during last Friday’s House of Assembly, shadow transport minister Lawrence Scott claimed that the legislation had been “brought in under the radar”, adding: “They are attacking the taxi industry, one of our pivotal service industries, and adding competition during the peak months without consultation.”

Meanwhile, Tafari Outerbridge, of Bermuda Island Taxis, said the revelation had left taxi drivers in shock, and that a general meeting was planned in an effort to get the Act halted.

Mr Fahy, however, denied that the initiative would divert business away from taxis, claiming that the increase in visitor numbers would offset the difference.

“We have reached out this morning to the two largest taxi operator associations so that the ministry can meet with them and alleviate any concerns,” he said.

“I am confident that this initiative will benefit entrepreneurs and be an asset to our tourism product.

“The engine sizes and horsepower of the vehicles essentially mean that they will be unable to take more than two passengers and have little to no capacity for carrying luggage of any kind. They are more akin to quadri-cycles, although three-wheeled vehicles are not excluded from consideration.”

He also refuted Mr Scott’s allegation that the legislation had been quietly ushered in, adding that it was a simple “halfway house” option after years of discussions on how to improve island-wide travelling options for visitors.

“We need to decide whether we are in the tourism industry, and give opportunities for Bermudians to engage in servicing that industry. This scheme will do exactly that,” he said.

“In fact, the only place other than Bermuda that I know of which does not allow anything other than a scooter for rent is Capri, Italy.”

Answering suggestions that the vehicles would stretch parking capacity, senator Fahy said that there were 3,500-plus fewer vehicles on the road compared with 2008, and that the number of new livery vehicles would be limited. He added that there were at present only 2,000 livery cycles on Bermuda’s roads, compared with 6,000 in its heyday.

Mr Fahy underlined the financial benefits of allowing visitors a choice of transport other than scooters, saying it would “make us more competitive with other jurisdictions”.

And he argued that the initiative would help make the roads safer for residents and holidaymakers alike, with only people aged over 18 who hold a valid driver’s licence allowed to rent a minicar.

“Not all tourists feel safe driving a scooter, but would still like to remain autonomous when it comes to exploring the island,” he said, “and practically any local person can tell you a horror story about a floundering visitor coming off a rental scooter.”

That Bill is scheduled to go ahead in tomorrow’s session of Parliament — the last sitting until September.