controversial cellular tower.

General Manager Norm Mastalir confirmed that top lawyer Jai Pachai was still working out the hotel's rights in a tussle with Bermuda Digital Communications.

BDC have started building the 40-foot cell-phone mast on hotel-owned land at Faraway in Warwick.

They insist the tower will be safe, claiming fears about cancer-causing radiation are unfounded.

But lobby group CARE, Communities Against Radiation Emissions, say other countries have much stricter standards than Bermuda's own limits.

And they are still fighting to have the tower pulled down, saying Bermuda's telecommunications can run with three or four towers instead of 38.

Mr. Mastalir has already confirmed the hotel is trying to represent the concerns of its staff, many of whom live in the shadow of the tower at Faraway Cottages.

Scores of employees presented him with a petition.

Now they are planning to ask for a move away from their present accommodation.

Mr. Mastalir said: "I am now waiting for that request for them to be moved out.

"Our own investigations with our legal counsel continue and we haven't made any decisions one way or the other yet.'' The hotel's dilemma is that a lease is already in place allowing BDC to build the tower, to be used for CellularOne cell-phones.

But that agreement was signed by previous owners Princess Hotels.

And Canadian Pacific are hoping to be freed from the terms of the lease so they can ease the fears of their staff.

BDC General Manager Michael Leverock said: "I haven't heard from the hotel yet so I cannot make any statement on their position.

"All I can say is that the building work is in progress.'' Telecommunications' Minister Renee Webb told the House of Assembly on Monday that a health department consultant had already started an inquiry into cellular towers.

She said: "The consultant will look specifically at the tower site issue. We think it is important enough because it is so topical.

"There are concerns out there, we don't want people to be hysterical.

"If it is deemed that the towers are harmful, then what are we going to do, are we going to put in 600 ft towers? But one thing is for sure, people want to be connected to the outside world.'' Renee Webb