The council scrapped its policy of limiting the number of taxi licences

The drivers have threatened to strike unless the local authority takes on board concerns such as over-provision and space at ranks.

There have also been complaints about private hire companies breaking the terms of their licences.

The demonstration, by about 100 drivers, was organised to coincide with a meeting of the licensing committee.

There were angry scenes when the owner of a private hire firm turned up for the meeting.

He was moved on by police after exchanging words with the crowd.

'Our rights'

Graeme Stephen, of Dundee Taxi Owners Association, said he hoped the lobby would convince the council to listen to their problems.

He said: "They have their decisions made before they speak to the trade and they kid on they're going through a process, and they're just totally denying us a lot of our rights.

"If we don't get sitting round the table with Dundee City Council to start ironing out some of these grievances, then the possibility of strike action is very real."

We want to make sure the city keeps moving, but we need each and every one of these issues to be addressed properly Stewart Hosie Dundee East MP 'Taxi war': the issues Opinion split over strikes

Talks to try to avert a walkout were due to take place between licensing officials and local MP Stewart Hosie.

He said: "The guys have about 10 or 12 different concerns, all encompassed by this taxi policy heading; the position of ranks, conditions of licence and so on and so forth.

"We need representatives from the council to sit down with the trade to bottom out every single one of these issues.

"We want to avoid a strike, that's the bottom line.

"We want to make sure the city keeps moving, but we need each and every one of these issues to be addressed properly."

Regular meetings

However, Dundee's lord provost said he was "extremely disappointed" the dispute had gone so far.

John Letford, who chairs the licensing committee, said the council had a "very good relationship" with the taxi trade and had regular meetings with representatives.

He blamed the "taxi war" on an ongoing dispute between a number of firms and some private hire companies.

Mr Letford said talks between the factions were held in the city last week to try and diffuse "the serious situation."

He added that the council was unable to restrict taxi numbers for legal reasons.

Mr Letford said: "There was a court judgement in Aberdeen in a case by a taxi company which prevents us from denying anyone an application.

"We are very strong on special taxi access and drivers don't get a licence without meeting wheelchair regulations.