Shadow Transport Minister Lawrence Scott aired concern over the security of Bermudian jobs after further progress was announced on the controversial deal for a new airport terminal.

Finance Minister Bob Richards yesterday said that an entrustment letter from the British Government had been received and accepted, removing ambiguity over the authority of the government to proceed.

According to Mr Richards, the document will remove any potential legal barrier to Bermuda engaging with the Canadian Commercial Corporation in constructing the new terminal.

But Mr Scott said that the move presents the “thin side of the wedge” towards the Government privatising other public services.

Mr Richards dismissed Mr Scott’s claims over jobs and privatisation as scaremongering.

Mr Scott told The Royal Gazette: “My main concern is the job security for those who work in the airport.

“Now you have 43 individuals who could possibly be made redundant and replaced with non-Bermudians.

“We are disappointed at the decision because it does not seem to be an open and transparent bidding process. It seems as though not everyone was allowed to showcase their talents and also there is no way for us to definitively prove, test or see that we are getting the best value for our money.

“This is the thin side of the wedge to privatisation throughout this country which has been the seeming MO of the OBA (One Bermuda Alliance) since its inception. You will see Marine and Ports, then Parks Department, then you will see the Public Transport Department.

“Bob Richards’ government ignores the fact that there is $14 plus million not properly allocated — I am talking about the departure tax which is going to the consolidated fund when it should be, by international regulations and standards, filtered and cycled back into the running of the airport.”

Mr Richards rubbished Mr Scott’s claims as “sheer speculation” and “scaremongering in the extreme”.

He told us: “We made it clear from the start, from the first time I met with CCC and [developers] Aecon, that we are not interested in solutions that cause our people to be put out of work.

“As far as I know the plans for the airport will increase the number of people working at the airport.” Speaking of the claims that this was the first move towards privatisation of government services, Mr Richards added: “This is a P3 [public-private partnership]. This is not privatisation. I have said what this is and that fact remains.

“And, right now, departure tax is part of the consolidated fund but it has been part of the consolidated fund since the departure tax was invested.”

In a press conference yesterday, Mr Richards said that government had previously received legal advice stating that the transaction it sought with CCC did not fall within the requirements for an entrustment from the UK which he said would have posed a “significant problem”. However, he said, after striking a dialogue with the UK “that ambiguity had been removed”.

David Burt, Acting Opposition Leader and Shadow Finance Minister, said in a statement that the UK issuing a Letter of Entrustment does not mean that the airport redevelopment project has received the green light.

Mr Burt also highlighted the Deloitte report on the OBA’s approach to the airport redevelopment saying that, while Mr Richards “glossed over the point”, it highlighted “fundamental gaps in the process which mean that the important measure of value for money cannot be guaranteed”.