Government has tabled a bill to ensure taxis drivers have their GPS systems switched on, sparking fears the clampdown could be the death knell for two of Bermuda's three taxi companies.

The GPS law came into force in February 2006 making it mandatory for cabbies to have the devices which allot jobs to the nearest driver.

But several drivers have told The Royal Gazette that the majority were not using it.

Mike Ray, who recently stepped down as head of the Island's largest taxi firm, BTA dispatching, said he had expected Government would tighten up the law and said BTA was the only company using the technology.

He told The Royal Gazette: "It certainly closes the loophole enabling dispatch companies not to use GPS and it will certainly increase response times."

Opposition Transport spokesman Shawn Crockwell said he feared the legislation could have the effect of forcing the two smaller companies out of business as he claimed both Co-op Taxis and Radio Cabs did not have the GPS system running because of cost.

He said: "The Minister should give some time and flexibility for these entities to get their affairs in order or it may be an issue of Bermudian companies going out of business.

"It is certainly not welcomed by the drivers I have spoken to."

Calls to the heads of those two companies were not returned last night while Junior Transport Minister Wayne Caines said he was not able to comment as a formal press statement was being worked on.

Veteran driver Lee Tucker, who has always opposed GPS, said: "In my estimation it's hurting the industry even more. We had it so-so before, now we have poorer standards."

Mr. Tucker said the system didn't take into account the Island's topographical layout so it meant drivers in Spanish Point were being summoned for jobs in Dockyard because they were "closer" even though in reality cabs would have to drive miles to get to the job.

He said: "The Minister needs to work with us, not legislate for people's behaviour."

Making it mandatory to have the machines switched on drivers wouldn't make any difference, said Mr. Tucker, as drivers would not accept jobs they felt were too far away or placed them in harm's way.

He said: "We have quite a few lady drivers who are not interested in going into areas where they will endanger themselves."

And he said rising fuel prices made long treks for small jobs uneconomical.

Mr. Ray agreed with Mr. Tucker that the price of gas was hurting drivers as was the lack of a cruise ship in Hamilton.

He said the logical thing was for drivers to head to Dockyard for the mega cruise ships but buses and mini-buses were taking the business and drivers were sitting there without jobs for hours at a time.

He said: "There are no restrictions on what the mini-buses can charge per head. We can't charge per head. To me it's pretty unfair."