Government has denied accusations of cronyism after an associate of the Premier was awarded the Island's first limousine permit.

In The Royal Gazette sister paper, the Mid-Ocean News, on Friday, Opposition Senate leader Bob Richards suggested Government had given entrepreneur David Durham an unfair head start in the new industry, by either giving him advance notice of what the regulations would be or by writing the law to fit his particular Lexus models.

Sen. Richards also said tax breaks on import duty for the new limousines were introduced ahead of Mr. Durham's vehicles arriving in Bermuda.

Calling it "cronyism" for someone he believes is a friend of Premier Dr. Ewart Brown, Sen. Richards said it appeared Mr. Durham "has the ability to see into the future", because the regulations dictate the colour, trim and dashboard as the Lexus limos he has imported.Mr. Durham launched Executive Limousines a fortnight ago. According to the Mid-Ocean News, the businessman has stated that he began importing his vehicles six months ago (April), before guidelines were issued this summer on the particular make, model and colour of those allowed to operate in Bermuda.

Transport Control Department (TCD) Director Randy Rochester said the guidelines were available back in February.

In a statement concerning the TCD's limousine service legislation, Mr. Rochester said: "The introduction of a limousine service and the subsequent drafting of its legislation has taken several years to reach fruition.

"As this was something that was new for Bermuda, much consultation took place regarding this project, as we wanted to be sure that we had accurate information on hand in order to make informed decisions.

"The concept of a limousine service first came to light in 2003. The Limousine Bill was drafted in April of 2006 and passed in the House of Assembly in December 2006.

In essence, there was roughly three to four years of research to ensure that we had a solid foundation to draft this legislation.

"As it relates to David Durham and his application to operate such a service, the facts are as follows: Mr. Durham applied to the Public Service Vehicle Licensing Board ('the Board') in January of 2007 and was interviewed in February 2007.

"The public should be aware that Mr. Durham was not the first to be approved. In fact along with Mr. Durham, a number of other entrepreneurs in the community were subsequently given approval by the Board to operate and own limousine services.

"So, the suggestion that there was favouritism or preferential treatment towards any one person as it relates to this initiative is incorrect.

"Regarding the guidelines of the limousines, TCD considered several vehicles for this category, but after extensive consultation and research, the Lexus model continually came out on top in the areas of owner satisfaction and mechanical reliability.

"Additionally, a study in a 2006 US Quarter Three vehicle industry report showed the Lexus model repeatedly outperformed other top brand cars such as Mercedes and BMW.

"Such results only reinforced our research and subsequent decision to choose this model as the flagship for Bermuda's limousine services.

"Once formalised, the guidelines were available in February 2007 to all approved persons and those interested in the new limousine service, to ensure that they were aware of what was expected of this new upscale service.

"The chosen colour of the vehicles, the Smokey Granite Grey was indeed chosen by the Minister responsible for Transport, who is also the Premier (Dr. Ewart Brown). "Under the relevant regulations, the Minister responsible for Transport is required to prescribe the style, make and colour for public service vehicles, and in the case of limousines this did apply.

"And to be sure, there was extensive consultation with the Board as well as with technical officers at TCD before the final decision was agreed."

Mr. Rochester said the final regulations were approved in May 2007.