The Island’s second-largest taxi firm has held on to its licence after a change of heart by transport bosses.

Radio Cabs, which has around 200 vehicles, was served with a letter on April 13 stating that its permission to operate was suspended by the Director of Transport for failing to use the controversial GPS system. The firm launched a legal fight against the suspension, with lawyer Delroy Duncan threatening to take the matter to Magistrates’ Court over the “unfair and unlawful” decision.

In a letter to the Public Service Vehicle Licensing Board (PSVLB), Mr. Duncan said there was no legal obligation on Radio Cabs to use only GPS to assign jobs to drivers.

He added that it was wrong to penalise the company for not using GPS “when the operators of the said motor vehicles refuse to receive, accept or turn on the mobile data terminals in their vehicles to receive the jobs assigned to them”.

Meanwhile Radio Cabs drivers carried on working despite the suspension.

The Transport Control Department told Radio Cabs boss Eddie Darrell of the change of heart in a letter dated Tuesday.

Director Randolph Rochester said that after consultation with the PSVLB, they had decided to retract the letter suspending the licence.

Mr. Rochester did not give a reason for the decision, but warned Mr. Darrell: “Please be advised that this does not exonerate you from complying with the Motor Car Amendment Act 1951 which requires all taxi dispatch companies to use digital dispatching equipment for the dispatching of taxis subscribed to their services.”

Mr. Darrell welcomed the news yesterday, adding that he hoped the law would be changed so dispatch companies are not punished for the failure of drivers to switch on their GPS terminals.

It became law last year that the high-tech satellite navigation systems must be fitted in all cabs. They are designed to track cars in order to send the nearest available vehicle to each job, and regular spot-checks have been carried out since the policy change.

However, some drivers have branded the systems an expensive and unnecessary move and have refused to turn the units on.

Head of the PSVLB Joella Dawn Simmons was unavailable for comment yesterday.

Radio Cabs keeps its dispatch licence