of favour with party colleagues after a second clash with a Cabinet Minister.

Following his fall-out with Public Safety Minister Paula Cox earlier this week over the employment of non-Bermudians in the Police Service, the Bermuda Industrial Union president could now find himself out in the cold over the question of possible Bermuda Telephone Company price hikes.

The Telecommunications Commission is currently considering a request by BTC to increase the cost of local calls, which the company claims is needed to compensate for lost revenue in long distance calls.

On Thursday The Royal Gazette reported that as many as 100 staff -- a quarter of the company's 400 strong workforce -- could face the axe if the Commission fails to give the price increase the go-ahead.

Yesterday, after meetings with BTC management and one member of the Telecommunications Commission, Mr. Burgess said he was confident the proposed price-hike will be approved, enabling the company to avoid redundancies.

But his support for the increase could be out of step with Government colleagues. Telecommunications Minister Renee Webb refused to discuss the matter, saying it would be inappropriate for her to make comments which might influence any pending decision by the Commission. She also refused to comment on Mr. Burgess's call for the increase to be approved.

And a Government spokesman also attacked BTC management, claiming the company had deliberately stalled rebalancing its rate structure.

"I did speak to one member of the Telecommunications Commission yesterday and I am optimistic that things will work out -- I like to have a positive outlook at all times,'' Mr. Burgess said.

"Everything will depend on them getting the rate increase for domestic calls.

They should get an answer before the month is out but at the moment BTC is losing about $33,000 a day.

"If they don't get the increase then those jobs definitely will go. I think we need to all come together to save those jobs because if you get 100 people without a job then people are going to have to pay through social assistance.

"We are just hoping that things work out but what we must remember is that our domestic rate is one of the lowest in the world because it's always been subsidised by the long distance rate.'' Burgess backs BTC on rate hike In reply, Ms Webb said: "I really can't comment on that. The Commission advises me -- I don't advise them -- I can't try to influence them.

"I can't say what they will or will not do because they will determine what needs to be done and then make a recommendation to me.'' But a spokesman for the Ministry of Telecommunications then launched a broadside at the company. Confirming that the Commission had last month recommended that BTC cut its long distance call rate, the spokesman said: "The Commission would have reported much sooner than it did but was prevented from doing so by the Bermuda Telephone Company, which took an inordinately long time to send its comments to the Commission.

"The Government believes BTC has deliberately delayed its responses to Government efforts to help it prepare for changes in global telecommunications practice, in the expectation that to do so would allow them to continue to reap the benefit of artificially high rates as long as possible.

"Why does the Commission insist on holding a full review before they will allow BTC's rate increases to be adopted? Because the Commission believes the delays which have occurred are of BTC's making. It sees no reason why its duty to protect the public should be short-circuited as a result.'' Last night BTC representatives were unavailable for comment.

It is the second time this week that Mr. Burgess has fallen out of step with party colleagues in the Cabinet.

On Tuesday he clashed with Public Safety Minister Paula Cox in a dispute over Bermudianisation of the Police Service.

When the Minister admitted that some officers will still have to be recruited from overseas, Mr. Burgess countered that the Government must lead by example in securing posts for Bermudians.

"There is no need to go outside and bring in Policemen -- we can find these Policemen here,'' he said.

Derrick Burgess Graphic file name: BURGIE Graphic file name: RENWEB Renee Webb