Angry taxi drivers could strike in a row over funeral homes being allowed to run limousine services for mourners.

And members of the Bermuda Industrial Union taxi division could cause traffic chaos on Friday with a picket of the House of Assembly in protest at the move -- which they claim will run them off the road.

BIU taxi division president Neville Darrell said: "We wouldn't rule anything out at this juncture, quite frankly.

"The members are very disgusted with regard to the way they have been treated.'' But Transport Minister Ewart Brown said income from funerals was only "a very tiny portion'' of taxi drivers' incomes.

And he added: "I would hope this does not mean that every time a transportation option is offered to the public that taxi operators feel we're trying to undermine their business. Nothing could be further from the truth.'' Dr. Brown insisted: "Transportation is more than a taxi issue -- it's about providing transportation and transportation choices to the public.'' Dr. Brown also appeared unmoved by the veiled threats of industrial action by cab drivers.

He said: "They have to be responsible for the growth of their business -- if they think that's best achieved by industrial action, they should do what they have to do.'' He added: "This Government recognises the right of the taxi operators to question or protest a decision of the Government. On the other hand, to the extent that operators are not at business, they are eroding their own industry.'' And Dr. Brown said: "It's the primary aim of the taxi drivers to be successful in business -- but it's not Government's responsibility to guarantee that success.'' But Mr. Darrell insisted that allowing funeral home owners to run their own transport services was the thin end of the wedge and that other sectors would attempt to follow.

He said: "In the past, we have been quite careful in trying to avoid withdrawing our services.

But he added: "History has shown that labour has to take some action and it looks like we're being forced in that direction.'' Mr. Darrell added: "The PLP Government does not appear to see taxi operators as a part of their new Bermuda.'' Cab drivers protest funeral limo plans And he said that the taxi industry played a part in helping out the PLP campaign in last year's General Election -- but had been treated badly by Dr.

Brown.

Mr. Darrell insisted that Dr. Brown broke a pledge to the industry to consult the BIU's taxi division before tabling the Bill.

But last night Dr. Brown -- who arrived back on the Island just hours earlier -- denied a breach of promise.

He said: "I promised the taxi drivers I would consult with them and I spent over an hour with the union, which they acknowledge.

"I promised them only I would not table the bill on the day that we met and I didn't. They may not agree with me but I haven't lied to them.'' Mr. Darrell added traffic conditions in Bermuda were bad enough without allowing even more vehicles on the roads.

And he said the taxi trade had already been hit by hotel closures and the decline in tourism on the Island.

He added: "It just seems ludicrous to consider putting more traffic on the road without fully utilising the existing taxi service.'' And he predicted: "It would be very unlikely that it would be just one person who will have this service.

"Others will demand it -- and to have just one would perhaps be discriminatory.

"Our concern is the opening up of this avenue and the effect it will have on the industry overall.'' The bill to allow a funeral home operator to run its own limousine service is due to come before the House for debate on Friday.

Only one limousine has been applied for, with a maximum potential number of five.

The BIU taxi division is said to represent more than 200 operators out of a total of 600.

But Mr. Darrell urged both union members and non-members in the taxi trade to turn out in force on Friday at 9.30 a.m. to show opposition to the proposed funeral home law.

He said: "It will affect everyone who operates a taxi, but the union are taking the lead in this regard.''