Police board says no to a proposed taxi rate hike

The city’s police service board denied taxi companies a fare hike Tuesday.

The Thunder Bay Police Services Board held its regular meeting Tuesday and heard that taxi companies would need the fare increase to help offset the incoming harmonized sales tax. The board heard from Ron Bourret, manager of Licensing and Enforcement for the City of Thunder Bay, about changing the rates.

A rate increase proposal asked for an additional eight per cent for regular fares. The police board members denied the proposal by a majority decision.

Bourret said the decision leaves taxi companies with the burden because without a rate increase the companies will pay the additional eight per cent created by the HST. He added that while the decision might seem like a win for the customer, there is more to the story.

"This will certainly impact these companies that employ people," Bourret said. "I know the companies discussed this and they might have to lay people off and look at different ways of operating to cut costs."

Although he didn’t readily know how much loss the companies would suffer in dollar amounts, he said they would be hit hard.

"At the end of the day, the board has the power to make these decisions on tariffs," he said.