The Corporation of St. George is expected to meet with Government today in hopes of having an annual grant to the Old Town increased.

Government has collected tax from properties owned by the Corporation for the past six years, and handed over the $350,000 grant in exchange.

According to St. George Mayor Kenneth Bascome, it's no longer enough.

He said the annual rental value (ARV) of Corporation property has risen twice in the past six years and it's time the organisation benefited.

"Government said they would pick it up for us six years ago now," he said. "The ARV has been increased on two occasions, and the Government have been collecting it, but we haven't seen it."

The decision to have Government collect the taxes was made to help end double taxation.

The $350,000 grant goes toward the day-to-day running of the Corporation wages, maintenance of the infrastructure and garbage collection.

Senators passed the Municipalities Reform Act 2010 this week.

Hamilton Mayor Charles Gosling had earlier claimed the bill would lead to "death by financial strangulation" by preventing his municipality levying wharfage and ports dues worth $7.5 million annually.

Government insisted the bill was primarily put forward to modernise the Corporation, particularly its electoral system.

Senator David Burch told the Upper House on Wednesday that the same agreement Government had with St. George would now be applied to the Corporation of Hamilton.

"We collect on their behalf. We have eliminated double taxation, eliminated duplication of services and supply an annual grant.

"In fairness to the Mayor of St. George's, he has recently indicated that that sum should be increased and having made the case, we are looking at that proposition."

Mr. Bascome yesterday expressed his belief in that commitment: "I believe that Government will come back to us and engage in further discussions. "I'm going to be talking to the Finance Ministry [today] and I'm optimistic. Most of the times I speak, I'm able to persuade people to do the correct thing."

City Hall launched an aggressive campaign against Government's plans to reform the two-century-old municipality. The Corporation of St. George was far less vocal on the issue.

Yesterday Mr. Bascome said he understood the Corporation of Hamilton's concerns, but felt the municipality overreacted.

"I think Hamilton went a bit too far," he said. "I voiced my concern to Mayor Gosling and told them that they weren't going to garner any more support than they had already garnered.

"They were entrenching themselves, and the Government had already made up its mind. The Government did what they were going to do, and now they will come back and talk with us about how to move forward."