Government is proposing to increase taxi fares by around 20 percent ? but many owners at a meeting this week said it will not be enough to cover rising costs.

Taxi owners and drivers heard about Government?s proposed changes ? the first since 1997 ? at a meeting on Wednesday night and are due to decide whether or not to accept them at a meeting in the near future.

Asked if drivers were happy with the proposals made by Transport Control Department Director Kevin Monkman, Bermuda Taxi Owners Association spokesman Lee Tucker said: ?I wouldn?t say they were pleased but they were happy to here a proposal from TCD.?

The proposals will see most fares increase by between 19 and 20 percent (see box).

At the meeting, part of which was attended by , many of the operators present felt that the increases did not go far enough, and Mr. Monkman held out the prospect of making some concessions on the number of taxis an operator can own and on limousine ownership.

After hearing the ideas for new rates one member of the crowd said: ?Your rate increase is no where near what we have recommended.?

Mr. Tucker claimed taxi drivdrivers face annual expenses of about $20,750 with fuel costing approximately $10,800, Licensing and insurance $1,750, radio $1,200, repairs 3,000, and depreciation of car $4,000 per year.

Their average gross income as of January 1 last year was $43,000, and the net wages after deducting the total expenses is $22,250.

Tips were not included in the statistics and would push up the gross income by five or ten percent, according to Mr. Tucker.

?If Hurricane Fabian had never happened our income would have been ten percent higher,? said Mr. Tucker.

?In 1991 we were receiving more as gross and net income than we are today.?

Asked why, he said: ?Less tourists and greater expenses have depleted our income.

?If Global Positioning System (GPS) is implemented then that will push our costs up about $2,000 per year. We should get some type of compensation for it.?

Mr. Monkman said he was moving the rates forward for the taxis.

He also said Government was considering lifting the four-vehicle limit on taxi ownership entirely ?so people can own as many as they want?.

Mr. Monkman also said Government is considering taking 50 taxis out of the 600-vehicle pool and allowing them to be converted to limousines.

?We are looking to have limousines operate out of a base where you would need to make a reservation,? he said. ?The rates would be up to the limousine operator. Limousines will only be allowed to be limousines and taxis will only be allowed to be taxis. So, limousines can not run on a meter.

A few members of the audience said they felt 50 limousines may not be enough.