Government's announcement of a fare rise for cabbies continued to provoke a mixed reaction yesterday with one taxi owner branding it an attempt to win over drivers and their families before an election.

Premier Dr. Ewart Brown unveiled a package of measures for the taxi industry on Thursday, which he said aimed to ease rising costs but also ensure better service for passengers. The measures include a 10.5 percent increase in fares from December 1. There have also been discussions over a fuel rebate, improved insurance coverage and better service in vehicle repairs.

The Premier also announced the Public Service Vehicle Licensing Board would crack down on those drivers without a GPS satellite-navigation system, with further recourse for enforcement to be implemented "when next the Legislature is in session".

Some cabbies however, have branded the 10.5 percent fare increase an "insult", saying it was the first rise in three years after a promised five percent increase failed to materialise in 2005.

Lee Tucker, a driver with Radio Cabs, said: "We've been working without an increase for three years now, so anything at ten percent is an insult to us when you take into account increased living costs and the general costs of material and equipment."

Last night, another cabbie summed up the Premier's announcement as "too little, too late".

William Glenn Tucker, a member of the Bermuda Taxi Association and a shareholder in BTA (Dispatching) Limited, said: "In February the Bermuda Taxi Association requested a meter increase of ten percent together with a fuel rebate.

The Association had hoped the increase would be granted in time for the 2007 tourist season. Over 65 percent of earnings for the taxi operator are generated between April and September. Therefore to now award a 10.5 percent increase in taxi fares without the fuel rebate is too little, too late.

"This is election time and the fare increase is intended to win over the taxi owner\operator and their families. If I am not mistaken we have had only one increase in taxi fares under this Labour Government. They reneged on an earlier five percent increase in fares (in 2005).

"Personally I have been pushing for the establishing of a framework to determine future increases and I must say Minister Derrick Burgess appears to support such an idea.

"It is my opinion based on the increase in the number of mini-buses, introduction of limousines, and hotels being allowed to use their own transport to do work that was historically done by the taxi industry, that we in the taxi industry will continue to see our revenue deteriorate under the current leadership of the Progressive Labour Party."

Mr. Tucker added: "Since September 2004 (when the industry was given a 20 percent meter rise), the aggregate increase in the Consumer Price Index is 9.6 percent.

Therefore, a 10.5 percent fare meter increase on December 1, 2007, will more than likely be eroded by inflation before the end of the year."

Mike Ray, President of BTA (Dispatching) Limited, however, said he thought the increase was "fair". Mr. Ray said: "I certainly would have asked for more but I think it's fair, and if we can get the 10.5 percent and a fuel adjustment then I think it weighs out, because this will help us tremendously."

He also called on Government to "relax the duty at the pump", saying drivers spend an average of $50 per day on fuel.

"I'm asking Government to take the duty, or a large percent off the duty. I feel they should relax the duty on gas and diesel for taxis in addition to this fuel rebate."

Mr. Ray added: "We need Government to assist us in setting up a decent medical insurance policy, so as not just to have vehicle insurance but also better health insurance for the drivers."

Announcing the 10.5 percent rise on the meter, Dr. Brown said during a press conference: "We consider this increase to be proper in all the circumstances and reflective of the needs within the industry and something which can be accommodated by the travelling public."