Concerns that duty-free goods may be being used for projects other than their intended purpose have not been fully answered by Government, Opposition MP John Barritt has complained.

Mr. Barritt's queries raised in Parliamentary questions after he was contacted by worried goods suppliers were addressed by Finance Minister Paula Cox. However, he said he will seek further detail on her responses after Parliament's Easter break as they did not fully answer all his questions.

Mr. Barritt asked Ms Cox by what means the Ministry of Finance ensures that duty-free items are employed only for those projects which qualified for duty exemption and are not sold or re-used on other projects.

He also asked if Ms Cox would detail the procedures by which the Ministry of Finance and Customs ensure that quantities of construction or other materials which are covered by an approved duty-exempt scheme are reasonable and appropriate for each specific project.

Finally, he requested that she advise how many importers who have received duty-free exemptions on landed materials over the last three years have subsequently sought the permission of Customs on those materials to use them on other projects which did not qualify for duty free exemptions, and paid duty as a result.

Mr. Barritt later told The Royal Gazette: "I was prompted to ask the questions by concerns which had been raised with me and which I in turn discussed with my colleagues by suppliers of goods who were concerned to know if, and just how, the duty-free schemes were actually administered and enforced.

"They had a concern that some of the goods may not just be being used on the projects which qualify for duty-free exemption, and are possibly being re-sold or used on other projects.

"They have no hard-proof, only sketchy anecdotal evidence. In the circumstances, I thought it would be entirely appropriate simply to ask how the schemes do work, hence the three questions.

"We in the Opposition would like to know ourselves as we supported duty relief in appropriate cases like housing and hotel development."

Ms Cox answered the first question by explaining that Customs staff "employ a multi-pronged approach as part of their due diligence and compliance measures to prevent avoidance and unauthorised diversion of goods that have received duty relief. This includes communication and information, regular monitoring, compliance checks and intelligence gathered from informants."

She said in answer to the second question that there is more than one duty-relief regime, with each administered by the Ministry responsible. The Permanent Secretary is provided the request along with a package of supporting documentation, initialled by a technical officer, which he then reviews and signs authorising the importation utilising the Customs Procedure Code.

Ms Cox added in respect of the third question: "Given the large number of duty relief schemes that are administered manually, it is not feasible to provide a precise number of consents given in each case over the last three years. Suffice it to say that there have been several authorisations granted for diversion of duty-relieved goods in the last three years.

"Examples include diplomatic requests. In addition, the Bermuda Fire Service was authorised to sell (a) tanker truck. The Bermuda Police Service was authorised to sell bikes and vehicles. A hotel that was subject to redevelopment was authorised to sell off furniture and furnishings. Some tour boat operators paid duty so that their boats could be used for private functions."

Responding to Ms Cox's answers, Mr. Barritt said: "I was disappointed at some of the lack of detail, particularly to question number one. I think it would have been useful to know how regular monitoring and compliance checks are carried out, for instance. That was the point of the question and goes to the heart of the matter.

"Similarly I think it would have been useful to know just how many schemes there are, that is how many consents have been granted... across the board."

Mr. Barritt said that although Parliamentary rules did not allow him to ask follow-up questions before the House of Assembly's Easter break, he will follow up on the issue when it resumes.