by cabbies was last night lifted.

A short statement issued by the executive of the Bermuda Taxi Federation said: "We have reviewed our position regarding the planned industrial action on Christmas morning.

"As a result of that review, it was agreed that all planned industrial action has been cancelled.'' The statement added: "However, we will be working very closely with the Taxi Advisory Committee with a view to satisfactorily resolving the outstanding issues.'' The news came after an emergency meeting of the executive of the Taxi Federation yesterday.

Last night Taxi Federation secretary Joe Brown refused to elaborate on the statement.

But it is understood that executive members did not want to appear hard-hearted -- especially over the season of goodwill.

Last night Transport Minister Wayne Furbert welcomed the news as a triumph for commonsense.

He said: "I am glad that the Taxi Federation is not going to inconvenience the public on Christmas Day.

"I'm delighted that they have come around and seen that it didn't make any sense to cause problems for the public.'' Mr. Furbert declined to speculate on why the taxi drivers had called off industrial action.

But a Ministry of Transport insider claimed that industrial action was not a popular option among many drivers and that calls for a strike lacked support.

Fury erupted in the taxi trade after Government last week approved a 20 percent increase on the metre -- but coupled it with a two-hour cut in the late night surcharge period.

Drivers -- whose rates had remained unchanged for nearly eight years -- wanted a 25 percent increase and no change in the late-night extras.

Around 50 cabs -- only a fraction of the 600 on the Island -- circled the House of Assembly in protest at Government's proposals.

And drivers hit their horns as they drove around to create a racket clearly heard in the debating chamber.

Immediately after the 21-17 vote to pass the new taxi regulations, Mr. Brown announced a campaign to force a U-turn.

Tactics were to include a boycott of hotels -- with the first to be The Reefs, owned by Tourism Minister David Dodwell, who angered taxi drivers during the debate on the fares restructuring by suggesting a hotel limousine service.

The Taxi Federation also said drivers would refuse to drive between 10 p.m.

and midnight and stop driving for Bermuda Hosts, in which Transport Minister Wayne Furbert has an interest.

And the Federation issued veiled threats that drivers would block the airport access road off at a peak period.

Mr. Furbert said yesterday that he had always said the new regulations would be reviewed between now and February.

He added: "There are maybe other ways that Government can assist the taxi industry.

"My colleagues and I will be discussing the issue and we will let the industry know which direction we are headed in -- probably before February.

"I am hoping that things will settle down now and we can get back to business.''