Debate over the proposed airport redevelopment erupted in the House of Assembly again after Finance Minister Bob Richards tabled a draft letter of entrustment from the UK.

Mr Richards told the House that while the Government is of the legal position that the entrustment would not be necessary, the Ministry remains in talks with Government House to ensure that all parties are on board, describing it as “a matter of belts and braces”.

“We have a long-term relationship with the UK Government and we want to keep that relationship so we want everyone on board,” he said. “Just because we ask someone doesn’t mean we’re required to ask someone.”

Government announced earlier this month that it had signed a Memorandum of Understanding (MOU) with the Canadian Commercial Corporation (CCC) to redevelop the LF Wade International Airport. Under the proposed deal, Bermuda would receive a state of the art $200 million air terminal, which would be gradually paid for using future revenues.

However, the Progressive Labour Party has repeatedly attacked the proposal, describing it as “privatisation through the back door without a tendering process”.

Speaking in the House of Assembly yesterday, Mr Richards said the Ministry came to the decision that they did not require a letter of entrustment after receiving legal advice from international law firm Bennett Jones, with the office of the Attorney General involved.

Asked by Opposition members if the law firm had a relationship with CCC, Mr Richards said he was not aware of any and that if there was a conflict of interest the firm would be required to say so.

He was then asked if he was aware that Bennett Jones had represented CCC in respect to a review of engineering firm SNC-Lavalin. Mr Richards said he did not know about it but that it had “nothing to do with Bermuda”.

Questioned by Opposition Leader Marc Bean about how CCC was selected, Mr Richards said he and the Ministry was aware of CCC through their experience in the financial services industry and the Canadian body had “ticked all the boxes”

Mr Richards also responded to a series of questions regarding the project’s time line, reiterating that he received approval from the Accountant General to move forward with the project before the Memorandum of Understanding had been signed, however he declined to provide the House with a copy of the Accountant General’s approval.

“If this matter ever goes to the Public Accounts Committee, they can do what they want to do, but I don’t believe it’s appropriate to question my veracity on the floor of the House,” he said. He later added that under PATI legislation the public will be able to request such information.

The Finance Minister also stated that the first draft entrustment letter was received prior to the signing of the Memorandum of Understanding with CCC, but that the Cabinet had already approved the MOU in July.

“We had a legal opinion that we didn’t need a letter of entrustment and on that basis we scheduled the signing and the announcement of the signing of the MOU,” he said. “It’s the view of the Government that the letter of entrustment was not required. It’s not relevant.”