Keeping the joint mail processing centre and Customs post at the airport is too expensive to consider, Minister for Government Reform Lovitta Foggo told MPs today.

Ms Foggo said that — if the two centres stay in their current premises — in addition to a $600,000 penalty and rental costs to be paid to airport developers Aecon, there would be other costs.

She explained: “The airport project scope will change. Aecon will be released from its obligation to develop and construct the prefunded cargo facility.

“Aecon will also not have to undertake any maintenance or repair work for the space occupied by the Post Office.”

Ms Foggo told the House of Assembly last week that post office and Customs staff would have to relocate by the end of this month or pay rent to airport management firm Skyport at the market rate.

She added that could amount to $30,000 a month until the end of December — when the $600,000 penalty clause would also kick in, plus monthly rent from then on.

Ms Foggo said it was planned to move the two agencies into a rented building in Mills Creek, Pembroke, at a cost of $360,000 a year.

She added that it was unlikely the move would be completed by the end of September, but that Government would work with the airport developers in a bid to avoid financial penalties and get an extra month to move.

Ms Foggo told MPs: “So to be clear, paying the $600K penalty, having to continue to pay rent for a government owned facility, and increasing the cost of the airport project overall as a result of an agreement made by the former government is in real terms too costly a proposition.”

“Efforts continue towards vacating the space in a timely fashion.”