by PHILIPPE AIMEY

CAR RENTAL COMPANIES are adamant that the $90 hike for the visitor's driving permit will drive them out of business.

The permit stood at $10 for the past 20 years until Monday's Budget presentation by Prime Minister David Thompson when it was raised to $100, to come into effect from August 1.

Letter sent

Executive vice-president of the Barbados Hotel & Tourism Association, Sue Springer, said yesterday that a letter had already been sent to the Ministry of Finance on behalf of the operators highlighting the difficulties they would face if the permit fee was raised.

She also said a proposal was made to keep the fee at the $10, but change the length of its validity from one year to two months.

Her comments came at a meeting at the Barbados Yacht Club yesterday morning where more than 20 car rental companies were represented to voice concerns.

On Wednesday night during the wrap-up of the Budget Debate in the House of Assembly, Thompson said he did understand the concerns raised by operators on Tuesday, and would be waiving the fee for a short term, but thereafter the persons would have to pay the full cost of the permit.

The major issue raised by operators in yesterday's meeting was the fact that those visitors who only needed the service for a few days, would not want to pay the same price they paid for the car as for the permit. Car rental fees start at $120 per day.

Another suggestion was the permit be waived completely and the intenational licence recognised, as was the case in Europe and North America.

Sales and marketing manager of Top Class Rentals, Albert Scheper, said it would profit Government more to keep the rental companies in business than to wait on the earnings from the permit.

"We need to look at how much money would be lost or gained in comparison to what the permits make, in comparison to what we contribute to the economy in relation to taxes and the general service we provide."

In 2005, the contributions from the car rental industry totalled close to $30 million.