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House: New airport fees come under attack

New airport fees that will cost each traveller leaving Bermuda up to $20 more have been passed by the House of Assembly despite intense criticism from the Progressive Labour Party.

The fees come on the back of the hike in the departure tax from $35 to $50 that was announced by the Bermuda Government in its budget earlier this year. The new $16 per person airport improvement fee and an increase in the aviation security fee were tabled by Bob Richards, the Minister of Finance yesterday.

The Air Terminal Fees Amendment Regulations will see the aviation security fee rise from $4.25 to $8.25 for travellers flying to the US, while for travellers flying to Canada and the UK the fee will rise from $4.25 to $7.25.

Mr Richards told the House the fees would take effect from September 1 and bring in an extra $6.25 million in revenue per year to help fund the airport redevelopment project. But PLP MPs slammed the “outrageous” move claiming it made no sense and would deter visitors from travelling to Bermuda and damage the Island’s tourism sector.

Lawrence Scott, the Shadow Minister of Transport, said the hike would inevitably be passed on to passengers.

“Two months ago Government raised the departure tax from $35 to $50, now they are trying once again to increase the cost of doing business,” said Mr Scott.

“It increases the cost of business to airlines and yet we are asking them to increase airlift. If they start adding on these new fees they are pulling the plug on our tourism product.”

Mr Scott added: “These regulations are increasing the costs of living in Bermuda on every level and in every demography. It does not allow for the have-nots to have more, it takes away from everyone.”

David Burt, the Shadow Minister of Finance, accused the Government of “putting the cart before the horse.”

This was because they had set up a fund for the airport redevelopment before the project had been agreed on.

“This is poor policy, this is poor economics and poor visions. It does not make sense,” he said.

“For the OBA to bring this here means they do not understand and are clueless as to the results of this.

“This regulation gives a stream of income to a Canadian company which has been given an untendered contract.”

Marc Bean, leader of the Opposition, launched an all-out attack on Government accusing them of ignorance and arrogance by bringing in the new fees. He branded the airport project a “non-starter” and claimed the Government was motivated by self interest.

Meanwhile Wayne Furbert, the Shadow Minister of Economic Development, asked whether the Government had gone mad in imposing the new fees, while Zane DeSilva, the Shadow Minister of Tourism branded the move “outrageous”.

But Shawn Crockwell, Minister of Tourism Development and Transport, defended the move saying: “Our problem is attracting tourists, it is not our fees”.

He added: “No one wants to increase any type of fee, but this is done out of necessity.

“We need to modify our airport and these fees are required to make that happen.

“This is not something we are thrilled about, but we have to do it.”

Mr Richards turned on the Opposition accusing them of “schoolyard bully politics” and maintained that the money raised by the fees would go towards the construction of the new airport.

He dismissed suggestions that an extra $20 would deter visitors from travelling to Bermuda as “utter nonsense”.

The regulations were passed along party lines by 18 votes to 14. MPs Kenneth Bascome, Michael Scott and Kim Wilson were not present for the vote.