Cabbies must leave their GPS systems switched on at all times or risk a fine, under a new Act approved in the Senate yesterday.

The Motor Car Amendment (No. 3) Act 2008 was passed by Senators despite the Opposition criticising the penalty as akin to "beating people with a stick".

Opposition Senate Leader Michael Dunkley said: "They've (taxi drivers) just been hit on the head by a sledgehammer. This legislation is the latest in 'you do it our way or don't go about your business'."

A law making GPS mandatory in cabs came into effect in February 2006, but many drivers are not using the system and still rely on radios to get jobs. Government says the technology will enable it to compile statistics on the state of the industry, leading to improvements.

Under the Motor Car Amendment (No. 3) Act, it is now an offence not to switch GPS on, while using other systems to pick up rides — such as radios and cell phones — is banned. Drivers face a $1,400 fine for failing to turn on their GPS system.

Senator Marc Bean, Junior Minister of Tourism and Transport, said GPS would enable cabbies "to own their own industry and share in the profits", while at the same time it will "improve service standards".

But Opposition Senate Leader Michael Dunkley said: "We on this side do not support this legislation. We have some serious questions and reservations about this legislation.

"We believe the taxi industry for some time has been at odds with the Government, whether the UBP or PLP Government. We believe this period for the past 20 years, it is something that needs to be managed in the right way if we are to move forward and get the industry operating at full potential.

"Any business must be there to serve the customer and in the case of transport and taxis we need to do our best — not only to serve our visitors to the Island but all Bermudians who need to take a taxi."

Sen. Dunkley said the taxi industry was not only facing competition from "mini buses and shuttle buses approved by Government" but was also struggling with rising fuel costs due to the cost of a barrel of oil doubling in the past year. Air arrivals had also fallen, he said.

"We are very concerned about the state of the taxi industry — it is facing a difficult period," said Sen. Dunkley. "There are not too many people in the industry who support this legislation as it is. Right now it's a very high-handed approach — you do it our way or we'll penalise you for running a business. If any more legislation comes forward to the taxi industry it will be like a bull with a red flag before it.

"Taxi drivers need to feel their voice has a say but as far as GPS is concerned, they feel their voice hasn't had a say.

"I believe taxi drivers would buy into GPS if they knew what the benefits were but at this point we do not know what these are.

"They've just been hit on the head by a sledgehammer and this legislation is the latest in 'you do it our way or don't go about your business'."

Sen. Dunkley said: "While this Government wants to make GPS mandatory, we believe it would be better to make it optional. Once people find out it will be an improvement to their business they will come on board and buy it.

"But we do not see how GPS in itself is going to improve things."

Independent Senator Walwyn Hughes added: "It's going to allow a collection of data but I don't think it will change the modus operandi of most taxi drivers".

He said cabbies "worked for themselves" and there was no "unified base", due to there being three dispatchers on the Island. "You can't make a cabbie take a job," said Sen. Hughes.

He added: "With this it will now be illegal to use a radio to communicate with a dispatcher. To me that seems ridiculous.

"In addition, you can't communicate by cell phone, and I don't think that is right. It doesn't prevent anyone else from calling in.

"The cell phone is the main contact with a non-dispatched call. I don't see an awful lot changing quite frankly. I don't hold much hope we will see a huge improvement in the taxi service because of what we're doing here."

But Government Senator Thaao Dill said: "I can testify that since the GPS system was installed, the service has improved significantly. You get taxis faster and I can personally testify that this system, if used properly, can really work extraordinarily well.

"Turning on the GPS system doesn't increase the hardships of drivers at all."

But Opposition Senator Charlie Swan said: "I don't support this particular legislation. If you want to teach a dog new tricks you don't bat it over the head with something.

"We are talking about hundreds of people here who have invested a lot of money into a mode of transport they think their country needs. I'd like to see more incentives than penalties, and I'm sure you will see more legislation now to increase the penalties for not abiding by this legislation.

"It does place an onerous burden on taxi drivers and companies. And I don't think beating people with a stick is the way to get people to come around to your way of thinking. "The costs of installing GPS are quite high and then the driver has to pay something like $150 a month."

Senate President Alf Oughton said: "I don't know whether we will ever sort out the taxi industry because they are all entrepreneurs and no entrepreneur wants to be told how to run their business. Two governments — the UBP and PLP, haven't been able to solve the nitty gritty issues in the past 30 years so I don't think this legislation will change things."

But Sen. Bean said: "What we are making sure of is that all three companies properly use GPS. Having GPS turned on does not mean a driver has to take a job.

"If I'm closest to the caller and I don't want the job, I don't have to accept, so it will then go to the next closest driver."

He added that during the low season, GPS would help cabbies "to hustle" on the street and the system would end the "cut throat" competition of drivers racing to be the first one at a job.

Sen. Bean added: "Nothing is going to stop customers from calling on the cell to ask for a job."

Neither did Government "want to get rid of radio altogether" as it provided useful back-up in power outages and technical difficulties.

"This (the Act) is to ensure there is fairness across the board," he said. "If I had to pay $2,000 for a piece of equipment and $150 a month, why wouldn't I use that equipment to recoup my investment.

'It's up to the taxi drivers at the end of the day to use it or not, but if you want to make money using GPS, you can if it's your desire."