The council’s taxi liaison committee believed it had reached an agreement with the trade following consultation and a report detailing a new set of charges was presented to the licensing committee for approval.

However, the proposals contained in the report raised four objections and three of the objectors — the taxi branch of the TGWU union, the Dundee Taxi Association and taxi driver Charles Smith — argued at today’s meeting that the changes would actually mean a reduction in their income and not an increase.

Under the proposals, the short distance fare of £2.20, which presently covers the first 704 yards, would be extended to 800 yards. Thereafter, there would be an effective increase in charges with the result that average journeys would cost £1.10 per mile instead of the present £1.

The objectors argued that this was detrimental to taxi drivers who only operated during the day as they would miss out on some of the benefits built into the proposal for those driving at night.

Graeme Stephen, chairman of the DTA, said the proposed changes were not enough to take account of escalating fuel costs.

Mr Smith, a taxi operator for 35 years, said the changes did not represent an increase as far as he was concerned.

There would be no increase for the taxi driver until the fare reached the £3 mark.

The TGWU claimed the changes would not cover the cost of recent fuel increases and that the proposed rise in fares should be reviewed as a matter of urgency.

Representatives of taxi companies 505050 and 203020 both argued in favour of the changes, urging the committee to implement them.

Steve Cashley of 505050, who said he had represented many members of the trade during the consultation period, said the proposed increases would be “very favourable” for the trade.

The objectors, he said, had already delayed the introduction of the new charges by at least two months.

203020 proprietor David Young said the new fares represented an increase of 10% on taxi drivers’ incomes.

The objectors, he said, were not happy because they were day-shift drivers.

He said, “I represent over 250 drivers and we don’t know where the objectors are coming from or who they represent.”

Mr Young said that, although taxi drivers would be slightly worse off when it came to small journeys, these were just 5% of all journeys and their lower cost would benefit the elderly and infirm.

Councillor Julie Sturrock said they should go away, figure out what they want, and then come back to the council but “stop wasting our time”.

She added “It’s ridiculous that the trade can’t get its act together. I think we have been extremely generous.”

Councillor Neil Powrie said the trade’s antics had stretched the committee’s patience “to the limit. It’s time for the taxi trade in this city to get it’s act together and start speaking with one voice,” he said.

“You are spending too much time sniping at each other instead of singing from the same hymn sheet.

“If we can’t leave the taxi liaison committee knowing exactly where we stand, there’s no point in a liaison committee.”

Committee convener Bruce Mackie said that it if the issue was not agreed today it could be months before the committee was in a position to implement a revised fares structure and taxi drivers would lose out until then.

However, he said he did not like to see arguments within the taxi trade and, with the committee’s agreement, moved that the issue should be deferred for further negotiations.