HIRED transportation companies have been driven into a state of shock by the 1 000 per cent increase in visitors' driving permits announced in Monday's budgetary proposals.

A visitor's driving permit valid for one year was previously $10 but has now been increased to $100. Of most concern with the business owners is the affect the increase will have on short-term rentals.

"They have the whole hired car industry in a state of shock," said owner of Stingray Car Rentals Ray Straker.

"It's outrageous," said Coconut Car Rentals manager Guy Myles who predicted that the increase would wipe out one, two, and three-day rentals as visitors would be unwilling to pay the $100 permit fee for this short amount of time, on top of the car rental fees.

David Magson owner of Fat Jack's Mokes and Car Rentals said that Government should be made to reconsider the amount. He said he is considering going out of business, and has heard the same from fellow hired car business owners.

For the 20 years that Magson has been operating his business he said there had been no increase in the permit fee.

"It's just gone up out of all proportion," he complained. "One question I want to ask you . . . does anybody living in Barbados know anything that has gone up [1 000 per cent] in their lifetime?"

Hired cars aren't the only transportation rental businesses feeling the pinch.

Managing director of Demario's Cycle World Ralph Redman who operates a small motorcycle rental business in the port, said he did not believe tourists would cough up $100 for as little as a day of riding.

Members of the hired transportation business community plan to meet tomorrow at 10 a.m. at the Barbados Yacht Club. (JH)