Government this week offered to subsidise the cost of the new global positioning system (GPS) for the taxi industry, according to Bermuda Taxi Operators Association (BTOA)spokesperson Lee Tucker.

But the offer was rejected.

"We are not trusting the Government because they have broken promises in the past," Mr. Tucker said.

Mr. Tucker revealed that a meeting was held on Monday with Government to try to resolve a dispute over the technology that Government says would improve service in the industry.

A Bill which would require taxi drivers to install the equipment, as well as an alarm system, has already been tabled in the House.

Last week, the Association called on the Island's drivers to withdraw their services for a day in protest, saying that talks on options to the controversial system were still ongoing.

Mr. Tucker said that the Association's request that GPS be made optional was also rejected by Government at Monday's meeting.

On the subsidy offer he said that it did not come with a commitment that the monthly fees to the dispatch companies would not be continually raised.

Works and Engineering Minster Alex Scott, who was acting Premier when the talks were held, said he was disappointed the talks had failed but he said acting Transport Minister Dennis Lister knew more about what was offered.

Mr. Lister could not be reached for comment last night.

Mr. Scott said: "I do know Cabinet was prepared to make a significant gesture. It's regrettable Mr. Tucker is digging his heels in.

"It's unfortunate the taxi drivers have closed their eyes to any offer outside taking GPS off the table." He said GPS would help Bermudians and tourists alike while helping reduce taxi's operating costs while bringing in more business.

The Minister said Government was offering to help taxis reinvest in their industry just as Government had done with hotels with the Hotel Concession Act. The act saw businesses reinvesting in their product in return for tax breaks.

Mr. Scott said taxi drivers had been complaining about the expense of GPS, which some estimate at $1,500 to install, but had failed to respond when help was offered.

Speaking after last week's strike Mr. Tucker had said cabbies wanted Government to make GPS optional or pay for it. He said: "If Government want it they can provide it. We can't afford it."

Mr. Scott said Mr. Tucker's reasons for turning down the offer were peculiar as Government had not broken promises.

"I don't know what he's referring to. We made the offer in good faith," said Mr. Scott.

He said Government will continue to try to work with drivers to resolve the issue.

Not all taxi drivers are against the introduction of GPS and the extent of opposition is not clear. Last week's strike was deemed successful by the organisers who claimed that some 400 cabs stayed at home.

But that figured remains unconfirmed and a number of striking cab drivers were seen picking up people at the airport in their private cars.