years.

Senators approved The Motor Taxi Amendment Regulations 1996 on the last sitting of the year and sent them to Governor Lord Waddington for the Royal Assent.

And Government Senator Larry Scott warned that the taxi industry -- like others -- would have to learn to accept the challenge of changing conditions.

Sen. Scott praised the contribution the taxi trade had made to the Island's prosperity.

But he said: "In a changing market it is incumbent, we believe, on the taxi industry, like other institutions, to take a look at themselves and make changes in relation to what visitors and conditions demand.'' Sen. Scott said that everyone was becoming more "thrifty'' with money and Bermudians and tourists alike were today as likely to use a bus or ferry rather than a cab.

The news that Government had plumped for a 20 percent increase, linked to a two-hour cut in the late night surcharge hours, sparked fury among cabbies.

They picketed the House of Assembly last Friday, but MPs passed the regulations.

Drivers had wanted a 25 percent increase on metre rates -- and no cut in surcharges.

But Bermuda Taxi Federation spokesman Joe Brown said the industry would accept 20 percent -- he insisted, however that the 25 percent add-on to fares late at night should stay unchanged.

Sen. Scott told the Senate that some people might be put off using a cab by the 10 p.m. start-up for surcharges -- and he pointed out that some people might be put off going out altogether, which would hurt other businesses as well.

And he said although the increases were not exactly what drivers seemed to want, it went some way to satisfying them.

But Sen. Milton Scott , who counts taxi-driving among his skills, said Government had mismanaged the taxi industry.

And he pointed out that the 10 p.m. to midnight surcharge was regarded by drivers who did not own their own cabs as an incentive to hit the road and maximise their income.

Government Senate Leader, Sen. Lynda Milligan-White , said everybody needed to take a step back in reviewing the taxi industry.

She admitted the Island had a fragile economy and contrasted the success of business interests with the decline in tourism.

Sen. Milligan-Whyte said: "All drivers are service providers who provide a service at the airport and the hotels and we are looking at how to build a partnership to promote a higher standard in tourism.'' Independent Sen. Alf Oughton said: "One of the things that concerns me about this issue is the atmosphere which exists -- once again we find ourselves in the midst of strike action, even though it may be only limited.'' But he added that the cost of living had gone up by about 30 percent since taxi drivers saw their last increase.

Sen. Oughton said: "I can understand where the taxi drivers are coming from.'' Sen. Walwyn Hughes called for more regular reviews of the fare structure, with smaller increases at shorter intervals.

He said: "Whether the consumer will tolerate such an increase is very questionable and 20 percent will probably be a shock to many.'' UBP Sen. Yvette Swan said she was suspicious of surcharges and had had houseguests in Bermuda who had commented on the extra cash added to taxi travel on the Island at night.

She added she could "see the logic'' of moving the surcharge time to midnight -- but said she agreed taxi operators merited an increase.

Sen. Neletha Butterfield said that taxi drivers were often the first people visitors met arriving in Bermuda.

She added: "I don't want to see taxi drivers becoming an endangered species.

We are a small community and I think taxi drivers make a vital contribution to that society.'' And she said: "I believe if something is working, why fix it?'' Sen. Butterfield added the taxi fare increases were "long overdue'' and hoped that in the future the rates would be more regularly reviewed.

The UBP's Sen. Gary Pitman said: "It is becoming increasingly difficult to strike a balance between preventing erosion of drivers' income and addressing customers' resistance to large increases in the fares.'' He pointed out that bus and ferry passenger figures had all gone up by more than ten percent in recent years -- and that visitors were increasingly price-conscious.

He added: "I certainly sympathise with the drivers having the 10 p.m. to midnight surcharge removed -- the last thing we need is for our visitors to think they have been ripped off.

"I would maintain that even though it's been in place for seven years that doesn't make it right.'' Independent Sen. Noella Haycock agreed that regular reviews of fares were needed because huge increases at irregular intervals were "unfair to the passengers and to the taxi drivers themselves.

She said: "It's most important for all of us to realise the role they play on the the Island is a vital one.'' But Sen. Haycock said today's visitor had too many other choices and was in a position to demand high standards at a reasonable price.

And she added: "They expect taxis to run on Sundays and holidays and don't expect to pay extra for it.'' She said she had been involved in a survey involving people with time-shares at the St. George's Club. The survey showed, said Sen. Haycock, that 90 percent complained it was hard to get a taxi in the evenings in the town.

Sen. Haycock said: "We must start looking at how we move our visitors around the island.'' Sen. Haycock said Bermuda must be one of the few tourist destinations which did not have a limousine service and said there was no reason why taxi drivers could not move into this area.

She added: "Bermuda's businesses have to change and I am not just singling out taxi drivers.'' Senators agreed to send the regulations to the Governor for the Royal Assent without division.

It was also agreed to back the sale of Post Office Cottage in Middle Road, Devonshire, by Government. Senate approved the $250,000-plus sale of the cottage and land as surplus to requirements.

Sen. Gary Pitman Sen. Yvette Swan