A taxi driver is urging the Government to pump up meter fares in line with fuel increases.

Glenn Tucker says the industry has not received an increase in the past three years and drivers are struggling to make ends meet.

Inflation in Bermuda is now at a 16-year high, at 4.5 per cent, and the price of an imported barrel of oil is $96 — a rise of almost 50 percent on $68 in January.

Mr. Tucker, 63, said: “We in the taxi industry are asking this Government to be more willing to respond, on a timely basis, to all matters that affect our ability to maintain our level of earnings, profitability and standard of living.

“At the present time the taxi industry is subsidising tourists and other passengers as we are forced to absorb increased costs that other business entities would be able to pass on to the consumer.

“We are subsidising tourism because while hotel and restaurant rates have gone up, our rates haven’t. As business people we need to keep up with the level of inflation and at least cover costs.”

Mr. Tucker says that drivers were awarded a 20 percent fare meter increase in September 2004, by the Minister of Transport. It was the first rise in seven years and a further five percent was promised in 2005, but this never took place.

“To date this promise has not been honoured,” said Mr. Tucker.

“I find it very difficult that the Government has allowed us to get this far in the 2007 season without even a small meter increase. I feel that nothing less than a ten percent increase on the meter coupled with a fuel rebate will do, together with a consumer price index for the taxi industry, so then there is a mechanism in place.”

Mr. Tucker owns three taxis and drives one part-time. He has worked in the industry since retiring as a computer auditor in the Attorney General’s office eight years ago and is a member of the Bermuda Taxi Association and shareholder in BTA Dispatching Limited.

Mr. Tucker said some drivers want to see a 6.1 percent fare meter rise and a fuel rebate. They also want Government to draw up a taxi industry cost of living index to review fare meter increases in line with the Consumer Price Index.

Bermuda currently has up to 600 taxi permits, and costs for operators run to more than $150,000 for the permit and a taxi. Each driver has to pay for his or her fuel and then the costs of leasing a taxi, currently $70—$80 a day.

According to Mr. Tucker, fuel costs amount to 70 percent of operating a taxi on the Island. He says the average price of petrol rose by 14 percent between 2005-2006, with a 17 percent increase in diesel costs.

In contrast, between January 2005 and December 2006, the Consumer Price Index (CPI) rose by 6.1 percent.

Taking these figures into account, Mr. Tucker says taxi operators are “20 percent worse off” than they were in September 2004.

“And on at least one occasion during the period reviewed, taxi operators were 35 percent worse off because of the aggregate increase in the cost of fuel and the increase in the CPI,” he said.

“The Government must have a framework and mechanism in place that monitors the needs of the industry.”

Current taxi fares are $5.75 for the first mile and $2 afterwards, for one to four passengers travelling between 6 a.m. and midnight.

Mr. Tucker said Government’s failure to increase meter fares in line with fuel was more frustrating when the taxi ‘season’ was taken into account. A Government report ‘Transportation 2000’ by Laurence A. Jacob points to a five-month low season for taxi drivers and operators between November and March, when business is slack.

“At the start of the year there is no money to be made,” said Mr. Tucker.

“It’s unconscionable for a Progressive Labour Government to hold back our ability to earn a reasonable income. At least give us an increase to the extent of an increase in the cost of living.”

Mr. Tucker would also like to see immediate fuel rebates handed out so as to avoid lengthy delays and paperwork.

“Unless the fuel rebate is received at the time of buying the fuel it does not have a benefit to the operator,” he said.

“The Government has granted a rebate to fishermen and tour boat operators, but where is ours? Other organisations have received this, but we are the largest consumers of fuel in Bermuda. We shouldn’t have to ask.

“I am not attacking the Government but I just want to highlight the decline in the standard of living for those of us in the taxi industry due to high cost of fuel, and equipment, and our inability to offset these costs in a timely manner.

“At present almost one-third of the cost of petrol at the pump is duty. In the past the Finance Minister has been prepared to adjust her fiscal policy to assist the residents in Bermuda. I would herein request that consideration be given to reducing the levy on fuel back to the 1992-1999 rates of $0.54 for petrol and $0.34 diesel.”

He added: “I am asking the Minister of Transport to assist the cash flow of taxi operators by an immediate meter fare increase coupled with an ‘adjusted fuel rebate’. This composite approach (a reduced rebate, as oppose to a full rebate, coupled with a reasonable meter increase) will lessen the impact on expected earnings of Government and would allow residents and tourists to travel in taxis at a reasonable fare.”

Mr. Tucker said this would also result in an increased cash flow of 15-20 percent for taxi operators.

“In the event that Government is not in favour of awarding the taxi industry an increase, then in fairness, the matter should be referred to the Price Control Commission for their consideration,” he said.

The Government refused to comment on the issue.