SOMBA K'E/YELLOWKNIFE - A new taxi bylaw drafted by the city this month, which is to go through first reading at next Monday's council meeting, will not include a cap on taxi licences held by one individual or one company.

Council heard taxi companies and drivers' arguments about the hotly contested bylaw at this week's Priorities, Policies and Budget Committee meeting. Drivers want a freeze on taxi licences in order to stop the saturation of cars on the road, but some councillors prefer to let the market sort it out.

"Freezing the cabs at this point isn't the way to go," Coun. Bob Brooks said during the two-and-a-half hour discussion. "It's not going to make things better. It's just going to make things onerous."

Yellowknife has one taxi for every 140 or so people and most cabbies on the road end up waiting between 30 minutes to an hour for a fare, something driver Mohammed Basha doesn't like.

"We want to close the door," Basha said. "We don't want to suffer any more than we already are. We are not asking for too much. This is our job."

Sections 16 and 17 of the livery licence bylaw are to be removed. The sections state each individual, company, corporation or partnership could possess up to three licences at any time and those currently holding more would be grandfathered in, but once the licensed vehicle is no longer operable, the licence would not be renewable.

The decision to remove the two sections came after a presentation by Diamond Cabs owner Ted Yaceyko. He argued the two sections would create serious problems for his company because he provides vehicles to his drivers through a weekly lease agreement.

"In a free enterprise system, companies are able to structure their own resources and personnel to meet their vision of how they can best serve their customer's needs," Yaceyko read from a letter he presented to council and media. "I cannot run a business with three cars. This change will put us out of business."

Cabbie Vaughan DeValle said leasing a vehicle removes any responsibility for repair and prevents him from losing out on possible income if his car does break down.

"I couldn't provide for my family if I didn't lease," he said. "It's a tremendous advantage to be able to do this."

Coun. Dave McCann said the new bylaw failed to address the essential problems. He said including mandatory training and testing would provide better service for the city and could help keep the number of cabs in check.

Coun. David Wind said he could not support the new bylaw, as it does not specify when fare rates can be increased, and does not regulate the number of licences in the city.

"We have to come to grips with the number of licences for taxis on the road," Wind said.

DeValle suggested an increase in the number of cab stands in the city to 32 locations from 14 .

The driver said staggering cabs between the two companies - Diamond and City Cabs - at each cab stand (where cabs wait for fares) would make for more fair competition between the two companies. Dennis Marchiori, director of public safety, said they discussed this possibility during an early July meeting with taxi representatives.

"We said it was between the two companies to work out," Marchiori said. "They did say it would be something they could work out."

If the city were to increase the number of stands, they would have to remove parking meters. Marchiori said the average meter brings in $1,900 annually, compared to the $700 fee charged to cab companies for each stand.