The Bermuda Government neglected to “do its homework” in committing blindly to rebuilding the terminal for LF Wade International Airport, according to chartered accountant Craig Mayor.

Appearing before the Public Accounts Committee, Mr Mayor pulled no punches in his report on the proposal — saying the debt-saddled island risked financial catastrophe by putting itself at any further financial risk.

Although the public-private partnership has been championed as being off the Government’s balance sheet, Mr Mayor insisted that the Government would still be liable through its revenue guarantee for Project Co, the entity that has been created to build the terminal with the backing of Canadian Commercial Corporation and its contractor, Aecon.

Saying the airport’s costs had been understated by $810 million, Mr Mayor told the PAC that its total undiscounted cash flow costs for the duration of the project should have been reported as $1.395 billion — adding that “errors of this magnitude are inexcusable”.

He raised the spectre of projects such as the Grand Atlantic housing development, which failed to attract buyers, or the poorly planned new airport for the island of St Helena, where high wind shear made the new facility unusable — and said the Government had not looked seriously at the cheaper option of short-term repairs to the existing airport.

Earlier the PAC heard once more from Anthony Manders, the Financial Secretary, who said the government-to-government deal with Canada would mean Bermuda foregoing departure taxes equivalent to 2.5 per cent to 3 per cent of overall revenue.

Mr Manders clashed with committee chairman David Burt, of the Progressive Labour Party, who maintained that estimates suggested the Government would lose $18 million a year on the deal — and repeatedly challenged Mr Manders to give his verdict on the assertion that the airport deal would free up public funds for the island’s seniors and schools.

Mr Manders listed off multiple Ministry of Finance reports that will have to be tabled shortly when MPs return soon to the House of Assembly.

Legislation for the project will also go before Parliament for a vote, in what will likely be an especially gruelling day in the House, where sides have been sharply divided across the political aisle over the proposal.

• To read Craig Mayor’s report in full, select the PDF above under “Related Media”