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Furbert outraged as courier firms introduce new fee

A war of words broke out yesterday after courier companies introduced a new charge on parcels going through a new Airport handling centre.

And Transport Minister Wayne Furbert slammed a decision by the four courier companies to charge $7 for every incoming dutiable package which passes through the new Government-built clearance building -- which could rake in more than $2 million a year.

A furious Mr. Furbert said: "They're blaming the Government and that's totally wrong.

"All they're doing is finding a way to make money and we are getting the blame.'' And he challeged the firms: "It's extremely unfortunate what they're doing.

Let them show us why that cost is there.'' He added: "It's going to be passed on to the businesses. Either they will absorb it or pass it on to the consumer.'' But last night lawyer Tim Marshall, who represents the four companies, insisted the charges were fair and the joint operation was not designed to make a profit.

Mr. Furbert said the only new charges Government was making for the $300,000 renovated building was $50,000 a year in rent. The courier firms will also be responsible for electricity costs.

And the four firms also installed at their own expense a new X-ray machine which will cost about $32,000 a year over five years.

But Mr. Furbert said he estimated that the company formed by the couriers -- Bermuda Air Express -- would rake in $2.1 million a year from the new charge.

He added: "For years, Government has not been charging them rent at all at the Airport. All we've taken, through the Ministry of Finance, is 90 cents a package.

"The only cost increases I see for them is the $82,000 in rent and for the X-ray machine. They're not being charged much and they've never been charged anything before.

"These couriers have done very well in Bermuda -- I can't figure out why they are imposing such a charge on the public.'' The war of words broke out after courier firms wrote to customers advising them of the new charge -- effective from yesterday.

The letter said: "As a result of recent initiatives by the Department of Airport Operations we have had to collectively change our clearance methods.'' It added that a "terminal handling fee'' of $7 would be introduced and applied to all shipments requiring a Bill of Entry.'' It insisted the fees were retained by the central company and not handed out to the four companies -- DHL, Federal Express, IBC (Bermuda) and UPS.

The courier companies earlier this year agreed to move to a new building after a bruising battle with Government over charges for the new building. The settlement was reached after Customs officers refused to work in the run-down shed then used and clogged up the airport baggage area instead.

Mr. Furbert said: "When I saw the letter I was outraged. I'd love to charge $7 a package for Government -- that would reduce our deficit significantly.

"But we were trying to help them and the consumer out. We bent over backwards to help the courier services.

"Something is wrong here and they should justify why they're charging such a high rate, especially considering everything Government has done for them.'' And he added: "They say the money is not going to the couriers. But it will go to the shareholders eventually and that's the couriers. They're not running a charity.'' But an unrepentant Mr. Marshall insisted: "But for the change in policy by the Bermuda Government, there would not be a need for this charge.

"It's put in place to deal specifically with the increased operation costs which is a direct result of a change in policy.'' Mr. Marshall added: "I think the Minister is mistaken about the figures. I hope it's not going to make a profit. It's not supposed to.

"And the situation will be reviewed from time to time -- if it turns out the expenses charged to this paticular facility decrease, there will be reduction in accordance.''