Taxi drivers will get a long-awaited pay increase within the year, according to the Government.

But the pledge, made by Rena Lalgie, the Governor, when she delivered the Throne Speech has left industry representatives asking more questions.

Fare rates, which are set by the Government, were last raised in May 2014 by the One Bermuda Alliance government.

Referring to a planned shake-up of the transport sector, Ms Lalgie said: “As part of a wider discussion on the harmonisation of public-service vehicle licensing, the Government will address longstanding grievances of various public-service vehicle sectors and will usher in a more equitable approach to permitting, licensing and operation, with the goal of ensuring that our residents and visitors have access to transportation services that they expect in 2023 and providing Bermuda’s taxi operators their first fare increase in nearly a decade.”

In September 2022, the transport minister at the time, Lawrence Scott, insisted that a fare increase was due to go before the Cabinet before the end of that year, although he did not reveal the size of the hike.

But earlier this year, the Government said that a further review was required before any increase could be introduced.

At that time, the Bermuda Taxi Owners and Operators Association accused the ministry of transport of stalling on the issue.

On Friday, a BTOA representative gave a lukewarm reaction to the news.

The representative said: “We’ve always known that there would be a rate increase ‒ it’s been ten years ‒ there has to be one.

“The question is when, how much, and what are we going to have to give up in order to get it? The minister presented his idea of rider share apps as something that we will have to agree on in order to get our increase or anything that we have asked for.

“We asked for 20 per cent, but we don’t know if we’re going to get that. We have not spoken to the minister in quite some time.”

In other positive news for taxi drivers, the Government said it intended to “urgently” advance the replacement of its asphalt plant.

The Throne Speech stated: “That will accelerate the pace of road paving in Bermuda to ensure that, after enduring delays due to island-wide trenching, road users can start to see relief from less-than-ideal road conditions.”

Cabbies have claimed that their vehicles frequently suffer from mechanical failure after repeatedly driving on pothole-riddled roads.

In another planned change, public transport passengers will soon be able to pay fares digitally.

Currently, bus and ferry users have to pay with pre-purchased Department of Public Transport tokens. They can also pay by cash, but must have the exact fare when boarding.

Reading from the Throne Speech, Ms Lalgie said: “The promise of digital-fare media for public transport has been too long deferred.

“A reduced reliance on cash payments and the introduction of convenient digital payment methods will allow our public transport interface to match our tourism marketing as a luxury destination.

“The procurement process is complete and during this session the legislature will be invited to consider amendments to the Government Omnibus (Fares) Regulations 1952 to implement this initiative.”

The developments were generally welcomed by the Bermuda Chamber of Commerce.

Danielle Riviere, the chamber’s chief executive, said: “While we appreciate the first fare increase for Bermuda taxi operators in ten years, there is still work to be done to enhance transportation services to meet the needs of both tourists and locals.

“The Government's attention to improving public highways is a welcome development. Infrastructure upgrades are critical for the island's growth.

“The implementation of a digital fare platform for public transportation will be a significant advancement for Bermuda, benefiting both tourists and locals relying on public transportation.”

Stephen Todd, the chief executive of the Bermuda Hotel Association, agreed that the developments would improve Bermuda’s tourism product.

He said: “From a general standpoint, the BHA is pleased to see that plans are in hand to implement improvements in the delivery of Government services.

“Public transportation is to be addressed in terms of services, such as that of taxis in addressing the legacy concerns of both residents and visitors, as it relates to the overall recovery of our tourism economy.”