Saultites could soon pay highest taxi fares in the province

There's bad news brewing for people who use taxicabs in the Sault.

First there will soon be substantially less competition, with Checker Cab buying Eazy Cab in a deal set to close later this month.

Second, the Sault Ste. Marie Police Services Board was asked yesterday to jack up local rates to the highest anywhere in Ontario.

Third, City Council is being asked to make our city the first in the province to entirely remove taxi rate caps.

Sault Ste. Marie Police Services Board decided yesterday to recommend that City Council remove the cap on the drop rate - the price that cabbies can charge you just for stepping into their vehicle.

The companies asked yesterday for permission to hike the drop rate to $4.50.

Right now, you pay $3.90.

Instead, police board members made a precedent-setting decision: to allow Sault taxi companies to set their own drop rates.

All other cities in the province regulate taxi drop rates, allowing companies flexibility on that they can charge per kilometre.

Also yesterday, the local police service board recommended an increase in the mileage or range rate - from $1.30-$2.00 up to $1.50-$2.50, as requested by the companies.

If City Council follows the board's recommendations, Saultites can expect to pay at least $3.90 for drop rate, plus anywhere from the current $1.70 a kilometre that the four local companies are charging, to $2.50 a kilometre.

Four local taxi cab company representatives were at yesterday's board meeting to plead their case.

"Wages account for fifty percent of our business expenses right now," said Darryl Buck, owner of Checker Cab. "The 60 cent increase request was based on the 75 cent increase in minimum wage plus the 15 percent benefit cost divided by our average number of trips per hour."

Sault Ste. Marie and Thunder Bay are currently tied for the two highest taxi drop rates in the province, said a report to the board by prepared Sergeant Lee Campbell.

If council accepts the police board's recommendations, Sault Ste. Marie will become the highest.

Buck said this reflects the reality of the industry.

"Sault Ste. Marie and Thunder Bay are unique in the province. Because they are under close scrutiny by the Ministry of Labour to make sure their drivers are paid at least minimum wage plus benefits and have the required half-hour break in a shift," he said. "Other cities use a system of owner-operated taxis that are essentially contracted by the companies."

After his presentation to the board, Buck said that he thinks the hourly wage system is one that can work effectively for everyone, if it's given an opportunity to be viable.

Local cab companies would rather increase the drop rate than the range rate, because the drop rate is consistent and easier to predict for and plan around.

They also say that much of their business depends on longer-range fares that they fear may seek other alternatives if it costs a lot more to take a taxi.

Buck said that, if the companies aren't able to increase their fares, they will have to look at reducing their resources.

"That would mean fewer cars, fewer drivers and longer wait times. We could see people regularly having to wait longer than 20 or 30 minutes for a car."

After yesterday's police board meeting, Police Chief Bob Davies said that the board's recommendations to change the bylaw should be ready for the next City Council meeting on April 28.

The board also recommended yesterday that a limousine ride should cost no less than $90 an hour.

The board recommendation, which requires City Council approval, would leave limo operators an option to charge for half-hour rides.

Right now, limos in the Sault typically run about $55 - $180 and there's been no cap on prices the companies can charge.

The police services board recommends that prices for this luxury service continue to be market driven, said Chief Davies.