UBP Senate leader Michael Dunkley has lambasted Government for spending $800,000 on a review of the Corporations of Hamilton and St. George's.

In a debate on the Cabinet Office budget on Friday, Sen. Dunkley pointed to a $602,000 increase in the Central Policy Unit budget, part of which goes toward paying consultants hired to review the Corporations and part towards an internship programme.

He said the Opposition supported the internship programme, Jump Start, which places young Bermudians in various Government departments, but he could not justify the Corporation review.

He said: "In the CPU we saw a huge increase of $240,000 last year and it seems the increase is even larger this year. Now we see a $1.24 million total budget for this department.

"The honourable minister who is presenting this brief and left the chamber did break down the Jump Start programme side. We support the Government on this side. We think it's an important project and it's exciting. What's also good with that is when Bermudians are starting out of college they get the chance to learn.

"I applaud the Department and the Premier for starting the programme and we think it's a worthwhile project. However, we cannot support the side where we hear it's to examine and review what's taking place in both Corporations.

"Why is there the need to examine and review these Corporations when it appears, in the language we have seen from the Minister, it is anything but a review.

"It appears to be a takeover. We know the Corporations are worried about this. This seems like an exorbitant amount to spend on a review when the public haven't been given any reason why.

"I am very concerned with this approach. I believe the Corporation of Hamilton and St. George's can run their operations more efficiently than a Government can."

The fate of the Corporations has been muddled since the announcement of a reform in the 2008 Throne Speech. Last year Government announced consultants had been hired for $800,000 to complete this review.

Cabinet Minister Walter Roban, who was until recently heading the review, has always denied that Government intends to close the two municipalities.

But Hamilton Mayor Charles Gosling shared a letter with The Royal Gazette, signed by Mr. Roban, which stated in part: "The Government is committed to the repeal of the Municipalities Act 1923."

Government Senator Walton Brown said that the reform of the Corporations was needed and had to start with a review by consultants.

He said: "It's the City of Hamilton and it's the City of St. George's and in any city there are people. In 2010 the City of Hamilton is not a democratic council or democratically run.

"The City of Hamilton and how it is run needs to be examined so the reform can come about. I wholly support what we call the reform of Hamilton."

Government Senate leader Senator David Burch, who was responsible for presenting the Cabinet Office Budget, said the Municipalities Act, which governs the Corporations, was far too old.

He said: "The Municipalities Act is dated 1923. It's 87 years old and so as a result it's necessary to do a review. That $800,000 is a cap."