The deadline for taxis to get GPS licenses has been extended indefinitely while Government explores whether it is legal to fail individual cabs.

Operators were told to get licensed by January 31 or face being taken off the road, but Government is reviewing its regulations after drivers claimed the system was unfair.

Government introduced the Motor Car Amendment Act 2008 last summer to force cabbies to switch their GPS on.

Cabbies argued it was unfair to pass cars prior to December 1 but then fail those after that date. Some also blamed the dispatching companies for not switching their system on.

Since December 1, it is estimated up to 200 cabs were failed by the Transport Control Department (TCD) because their Global Positioning Systems were not connected under test.

Lawyers from Trott & Duncan were to pursue the matter against Government in court on behalf of Radio Cabs, contesting whether it was legal for TCD to fail cabs from December when others were passed in previous months.

But on January 29, TCD was told to halt the process. Junior Minister of Transport Marc Bean said at the time: "I am not confident that we are on firm legal ground with regard to the Motor Car Act. Our focus should be on the dispatching company issues as opposed to the individual operators.

"In the interest of resolving this issue as soon as possible, I have, with the Minister's consent, decided to take a different approach."

Government lawyers are now reviewing the legislation.

Senator Bean said yesterday: "The different approach is engaging in more negotiations and working around the table to make sure we create the most effective taxi service in Bermuda.

"We're looking to find a solution with the dispatch companies rather than the individual operators. We will be looking to sit down and have discussions with the relevant parties in the industry as soon as possible."

He said: "One thing is for sure, the Government will not reverse its position on GPS as a whole. We have a responsibility to make sure it's complied with and enforced.

"Once we are able to look at all the relevant information we will have more discussions with the dispatching companies.

"The problems that have arisen have been with one or two dispatching companies rather than the operators themselves."

Asked for a timeline on the licensing suspension, Sen. Bean said: "I'm not in a position to comment right now. We're still working out the issues so we can't give you a definitive date and whether it will be temporary or not.

"We're still reviewing whether that decision complies with the Motor Car Act 1951.

"So in the meantime we're continuing to allow the taxis to get licensed so they can provide a quality service to the public."

Last night Raymond Robinson, president of BTA Dispatching, said: "I don't wish to comment because we don't have any beef."

George Scott, secretary of Bermuda Taxi Co-op said: " We would welcome the discussions.

"We don't have any issues with 'computer dispatching'. It's much quicker than talking to people individually. Everybody in your fleet gets the same information and it tells you who is the closest to the job, so we support it."

Mr. Scott, chairman of GPS equipment firm Advanced Tech Solutions, added: "I don't want to point fingers, but I think if all of us work together we will reach the goal of a more efficient taxi industry. Putting taxis off the road is not efficient."

However, Radio Cabs boss Edward Darrell said: "The issue for GPS is cost. The Government can say what they want but they're not paying."

Mr. Darrell said it has cost around $90,000 to install a GPS system in the office, but some drivers refuse to turn the technology on, forcing the company to resort to voice dispatch at times.

He is also taking Government to court because Radio Cabs has allegedly been told it can't force its cab operators to pay their monthly $145 fees to the company.

Mr. Darrell said most of this money had to be paid to companies in North America to cover the costs of GPS technology and the satellite service.

The dispatching company also has to pay an additional $2,000 a month for the overseas connection, maintenance and subscription fees.

He said up to 35 percent of Radio Cabs' operators approximately 70 cabbies, were dodging the monthly fees.

"The problem is if we suspend the drivers then we can't get the work done," said Mr. Darrell. "Government told us we couldn't charge the monthly GPS fees, so that is why we're going to court.

"But the main issue is all the money is going overseas. GPS is costing the local companies every month, paying out to overseas vendors, but the Government doesn't understand that."