A businessman is set to take legal action in a row over a controversial decision to issue a licence for a limousine service to a new operator.

And MV Longtail owner David Durham -- who tried for three years to set up a luxury bus service from the Airport -- said he felt cheated over the May award of a licence to Bermuda Small Properties chief Stephen Martin.

Mr. Durham said he first tried to forge a partnership with and then tried to buy one of the two existing operators -- Bee Line -- three years ago.

But he said: "I was advised by my lawyers to go my own route and try and obtain the seats on my own.

"The Transport Control Department came back and said it wouldn't be right to issue the seats to us without giving everybody the opportunity to bid on them.'' But a furious Mr. Durham only learned that Mr. Martin had been awarded a licence from reading a story in The Royal Gazette .

Now Mr. Durham has contacted lawyer Richard Hector to take up the fight.

The embittered businessman said: "I'd be stupid not to feel cheated.

"We have got to go after the Minister of Transport because what they told me was good for me should have been good for Steve Martin as well.

"It should have been advertised and everybody should have had the opportunity to try for it,'' he said. "I want to know how he got so far when I'd been trying for three years.'' But he vowed: "It's going to make me work a little harder and I'm not going to give up.

"I've done everything I was supposed to do -- by the book -- and look what's happened. They didn't even write to me to say `thanks, but no thanks'.'' TCD director Donald Dane yesterday referred questions on the row to senior traffic officer Terry Stevens. Mr. Stevens did not return calls from The Royal Gazette .

The news came as the Bermuda Industrial Union taxi drivers' section demanded Mr. Martin's licence be withdrawn -- and an inquiry into the circumstances surrounding the issuing of the permit.

BIU president Derrick Burgess said the union's taxi committee had been meeting regularly with Minister of Transport Erwin Adderley to voice their concerns.

Bus row rolls on But Mr. Burgess said: "In the meantime, the drivers have been confronted with another problem -- that of the issuing of a licence for a new company to operate at the Airport.

"The t axi committee is angry and certainly disappointed with the ease in which the Minister accepted the decision of the Public Service Vehicle Licencing Board to grant Steve Martin of Bermuda Small Properties a licence to operate buses out of the Airport.'' And he warned that the granting of permission would "further erode'' the viability of the taxi industry on the Island.

He said: "Drivers' income has already been substantially reduced due to the low tourist numbers and this new grant will only further diminish their income.'' And Mr. Burgess added: "In particular, there was no consultation with the other licensed ground transportation companies or even the Taxi Advisory Committee.'' Mr. Burgess echoed claims by the Taxi Owners' Association that cabbies were charged $50,000 for a permit for a six-seater cab, while bus companies were not hammered financially for their much greater number of seats.

And he warned: "This form of discriminatory policy must cease. At this juncture, the taxi committee wishes to put Government on notice that decisions of this sort will no longer be tolerated.'' The controversial issue will be discussed at a general membership meeting of the BIU taxi division next Monday at 7 p.m.

AIRPORT FLY