Car firms could have to lay off staff after Transport Minister Dr. Brown ruled out increasing car sizes before the next General Election.

Some updated ranges of family cars are now too big because safety features such as side impact bars have been added.

Recently Government has been consulting on increasing the allowable limit on private cars which is 169 inches long and 67 inches wide.

Asked about increasing car sizes Dr. Brown told The Royal Gazette: "I have not been able to move that forward.

"It looks as though that will not happen at least across the board for all vehicles before the Election."

Continental Motors General Manager Jeff Stirling said: "I am disappointed. We were looking forward to it.

"We had some models we were hoping to introduce which we can't now. We were counting on it very much, we will have to re-plan."

Asked if jobs would be lost he said: "Possibly - especially in the sales side."

The new Peugeot 307 which has a third row seat will not be coming even though the company had advertised it in the yellow pages of the phone book in the hope the law would change soon.

Mr. Stirling said the 307 family saloon was the replacement for the 306 which had been selling around 120 a year.

Eurocar owner Richard Davidge will be barred from importing the new Renault Migane range.

He said: "It's very unfortunate. It's going to kill small businesses but it is something I have no control over. No one makes cars for the Bermuda market - they make them for everywhere."

Asked about job losses, Mr. Davidge said: "If I have seven vehicles and I go down to two I won't need the support staff.

"I won't need to upgrade the service department anymore and I am not in a position to train any more people."

Mr. Davidge said the indefinite restriction would play havoc with his ordering because he had to think a year ahead, but it was impossible to tell when the election would be.

By law it must be held before February 2004.

Two years ago the industry had been pushing for a modest increase of four inches longer and two or three inches wider and was close to sealing a deal, said Mr. Davidge.

The Royal Gazette understands a paper had even gone to Cabinet.

But Mr. Davidge said Star Motors' John Bento had wanted a much bigger increase.

By the time consensus was gained, Government had put it on the backburner, said Mr. Davidge, as it concentrated on the Bermuda Transport Plan with its emphasis on public transport.

He said Mr. Bento had resigned from the Bermuda Automotive Distributors just before he was about to be expelled.

Star Motors owner John Bento admitted leaving the association which he described as "self-serving".

He said: "I don't subscribe to cartels. It's not in the best interests of the customer."

Bermuda Automotive Distributors Association head Anthony Steede, who is also boss of Bermuda Motors, said he would not comment until he had heard something official from Government.

It is understood Mr. Steede will met with Transport Permanent Secretary Marc Telemaque today on the issue.

Opposition Transport spokesman Trevor Moniz said it wasn't the job of Government to keep particular car dealers in business but to act in the public interest.

But he said he was sympathetic to modest increases along the lines of those suggested two years ago.

Mr. Moniz, who has four young children, said there was hypocrisy in the law.

He said it was annoying for family men to suffer car restrictions when single men could ride around in enormous two-litre jeeps because they worked in construction and they were classified as a commercial vehicle.

He said: "It's a common practice. They never use it for anything dirty. It's never seen active work.

"But when someone wants a space wagon which is smaller they can't get it."

He said Government was dithering on the issue but he said a small increase along the lines suggested by the Bermuda Automotive Distributors Association would be acceptable.

Corporation of Hamilton Secretary Roger Sherratt said the Corporation were concerned about increasing the size of the vehicles.

He said: "If width increases by a few inches it would impact on parking spaces."

Transport Control Department Director Kevin Monkman said he could not comment about the issue until an official announcement was made later this week.

HWP chief executive officer Jonathan Brewin said: "Without actual clarification from the Minister to the automotive industry on this issue it would be inappropriate for us to comment at this time."