Christmas Island tourists and locals can no longer hail a cab, after the island's sole taxi operator says he was forced to close his doors at the end of June.

Key points: Christmas Island's only taxi was given two weeks' notice to install cameras and electronic meters

Christmas Island's only taxi was given two weeks' notice to install cameras and electronic meters Mr Carr says meters require regular calibrating, while the other option is an app needing 3G or 4G to work on a network that only supplies 2G

Mr Carr says meters require regular calibrating, while the other option is an app needing 3G or 4G to work on a network that only supplies 2G With compliance impossible, Mr Carr says he had no choice but to close down and reopen as a charter business

Chris Carr had been operating Island Taxis for the past two years and was not long into the job before the WA Department of Transport, which acts in the place of the Federal Government, issued him a notice saying he had two weeks to meet new regulations.

Among the regulations, Mr Carr was required to install electronic meters and all of his cabs were to be fitted with cameras.

"The conventional meter needs calibrating every so often and that's mandatory by law," Mr Carr said.

"There is nobody on the island who can do that and the option that WA Transport gave me was to use an app. Unfortunately we only have 2G on the island, and all these apps need 3G or 4G to operate."

Mr Carr had been operating on a per-kilometre fare system, which was how the service had run since it began in 2003 — at that point then under NT local government law.

Stuck between a rock and a hard place, Mr Carr said he was lucky enough to get the support of the Island's highest power — Indian Ocean Territories Administrator Natasha Griggs — who granted him a one-year extension, under her overarching powers.

While the cameras were not as much of an issue for Mr Carr, electronic meters made compliance impossible.

He said the entire process had been a "logistical nightmare".

"A lot of the things that I've mentioned [to the department], they were just totally unaware of — like the 2G system," he said.

"They were also unaware about the costs that are involved to run what I believe is Australia's most remote taxi service."

Local law makes life harder

While many small towns operate without a taxi service, the situation on Christmas Island is more difficult because of a bizarre local law that makes it illegal to walk up the town's hill after dark.

Local Lin Gaff said the changes could have forced people to break the law.

"Years ago, they introduced this after-dark rule on our main hill, which goes from the bottom settlement up to Silver City and Drumsite, and a lot of people live up there and a lot of the events that we have here on the island happen down in Settlement ," she said.

"Basically you can't be a pedestrian on that road after dark, and it's the only road that goes up there — there's no other access.

"If they're avoiding driving under the influence, if they couldn't call a taxi, the next option is to walk home and that's not allowed either.

"They have to break the law either way."

Christmas Island visitors Beth and Joe pictured with Chris Carr. ( Supplied: Island Taxis )

Christmas Island Tourism Association destination development manager Philip Tubb said just last week he was forced to find an alternative option for one travelling couple.

"I had a couple arrive here at Christmas Island and they walked up to me when I was at the tourist desk at the airport and said 'Could you call us a taxi, please?'," he said.

"And I said 'Well actually, we don't have one'.

"They are on holidays, they just want to get a ride form the airport to their accommodation.

"I think from an Island point of view too, it's very convenient if you're at The Golden Bosun, the pub we have here, and you have one glass or two too many then you can ring up Chris and know what days they are going to be operating and say 'Well actually, I'll have a drink that night and know I'm going to get home safely … and I won't lose my licence in the process'."

Christmas Island Shire president Gordon Thompson said the Government had the ability to adapt the law to fit the island.

"It is a necessary service so other people can comply with the law when they go out and so on," Mr Thompson said.

"We are a very remote, isolated community where a service is necessary, and the service has been made impossible by the blanket application of WA law.

"The Commonwealth has the ability to make an ordinance to adapt law to the conditions … so that's what the Commonwealth can do, and a reasonable government would act in that way."

Traveller information about Christmas Island on the Australian Government's website as of this week still listed Island Taxis as an option for visitors, despite Mr Carr being unable to operate for more than three months.

Christmas Island locals relied heavily on the one-and-only taxi, as walking after dark in certain places is against the law. ( ABC News: Tom Joyner )

Crabbie transport

Mr Carr and his wife, Ange, have spent the past few months trying to meet the new standards, but in August the pair decided it would simply be easier to apply for a charter licence.

The couple reintroduced Island Crabbie Transport Services yesterday, stating it was "the same service, under a new name".

On Wednesday afternoon, a spokesman for the Department of Infrastructure, Transport, Cities and Regional Development, which is the overarching governing body of the island, said they had been working closely with Mr Carr to support him to meet requirements.

"It became a requirement in July 2019, under the new Transport Act 2018, for all rank or hail taxi vehicles in WA and the Indian Ocean Territories to have a working fare calculation device, appropriate signage, and from July 2020 onwards an approved camera surveillance unit," the spokesman said.

"As Mr Carr sought to operate as a rank or hail, he was obligated to comply with these conditions."

Mr Carr said while he could now operate again, he had always wanted to avoid being an on-demand service.

He said the cost of the ordeal had impacted upon his family.

"We haven't been able to run since the end of the financial year, that is three months so far … there's no income coming in," he said.

"It's put us under a lot of financial stress and emotional stress.

"I have a child with special needs as well and it makes it hard to see the future when we haven't got an income and even to get his medications is a bit of a struggle at times."

Mr Carr said his pleas for help had gone unanswered.

"With the [Transport] Minister I have written two emails, I haven't had any response whatsoever. I've rung her main office in East Perth, then I rang her suburban electoral office and they said they would try and get a message through to her about me wanting to speak to her," he said.

"I still haven't heard anything. I've had no correspondence back from her whatsoever.

"We're not rich. We work hard and we promote where we live, so listen to us for a change and have a bit of flexibility.

"Please listen. And respond. At least respond."

The Christmas Island crabs are a major drawcard for tourists to the island. ( ABC News: Tom Joyner )

Island Taxis were given an Australia Day Award last year by Administrator Ms Griggs for "Commitment to sustaining a professional and reliable transportation service for the Christmas Island community".

Mr Carr will now operate under his new business as a charter provider, but said he had also lost about $14,000 each for the three taxi plates he purchased when buying the business because the WA Department would not buy them back.

The Department of Infrastructure, Transport, Cities and Regional Development also said yesterday they would issue a short-term licence for Mr Carr to continue operating his taxi service until he was issued his charter licence.

The licence was however issued by the state that morning, several hours before the Federal Government had responded to questions from the ABC.