Cab fares in CBRM facing possible 30% hike as fuel costs soar

Cab fares in Cape Breton Regional Municipality are likely going to get more expensive after councillors voted in favour of a 30 per cent hike in rates.

Fares have not changed since 2008, Coun. Steve Gillespie said during a council meeting on Tuesday.

At the same time, insurance, maintenance and fuel costs have risen steadily, he said, and especially in the last week, the price of gasoline has skyrocketed.

"Before the war started in Ukraine, they were expecting $2 a litre by the end of the summer," Gillespie said. "Well, we're going to see $2 a litre by the end of the week."

Gasoline prices in Nova Scotia, which are regulated, have risen about 30 cents a litre since last week. The minimum price for regular unleaded gasoline in Cape Breton was set at188.1 cents per litre earlier this week.

Paul Burt, CBRM's manager of building, planning and licensing laws, said for many residents, taxis are the most reliable form of transportation.

He said taxi companies are asking for a fee hike now to offset increasing costs and to ensure they can stay in business.

Fuel prices, in particular, are at risk of driving out cab operators and owners.

"It affects the owners running the business and their costs," Burt said. "It affects the drivers and their ability to make a decent living wage for driving a taxi, and it also affects the fare payers who depend on these taxis."

Burt also said it is important to make sure the industry is sustainable.

"These aren't luxury rides or optional rides," he said. "These are rides to get the groceries and doctor's appointments and work and stuff."

Some councillors were concerned about the impact of rising prices on users.

"There's no question that gas is going up and insurance and all that," said Coun. James Edwards.

"We all know that, but to someone on a fixed income, everything except the income is going up, so we have to be careful how we proceed here."

Seniors and people with low incomes rely heavily on taxis, especially in rural areas where public transit is infrequent or non-existent, said deputy mayor Earlene MacMullin.

However, she said, the price increase is necessary, especially if one of the two cab companies in the Northside area folds.

"For the vast majority of my residents, if we lose our cab company, they have no option for transit," MacMullin said.

Burt said company owners were not united on the amount of increase needed, but he recommended a 20 per cent hike as a reasonable temporary compromise.

The taxi bylaw has been under a wide-ranging review since last year and the rates could be further refined when the bylaw comes back to council, probably in a month or so, he said.

At that point, an annual cost-of-living index will likely be included in the rates.

Burt said a survey will also show that users feel the current rates are not unaffordable.

The recommended increase would not be enough to help cab companies stay in business and retain their drivers, said Coun. Gordon MacDonald.

"For God's sakes, 20 per cent is not enough in any way, shape or form," he said."We've got to do better than that."

Because the rates are contained in a bylaw, council is required to hold a public hearing before any changes can take effect.

Councillors voted 11-2 in favour of a 30 per cent hike, which is expected to go to a public hearing later this month.

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