Bermuda's municipalities are set for reform for the first time in eight decades after MPs passed historic legislation last night.

But Minister Zane DeSilva said the Corporation of Hamilton might be able to continue collecting revenue from wharfage and ports fees, despite the Municipalities Reform Act removing its legal power.

"It may well be that this arrangement continues uninterrupted," Mr. DeSilva told the House of Assembly last night.

"The important point is Government must be satisfied that the taxes imposed on its people are just, and not motivated by a formula based purely on profit."

Hamilton Mayor Charles Gosling had said his municipality would face "death by financial strangulation" because the new law would stop it collecting $7.5 million a year revenue from wharfage and ports.

During a House debate lasting more than eight hours, politicians from all three parties agreed the Corporations of Hamilton and St. George are in desperate need of electoral reform. The bill gives all city residents on the electoral register the right to vote, repealing the original 1923 act which allowed one vote per residence, but multiple votes to business owners with many properties in the city.

Both Opposition parties raised concerns aspects of the bill could leave the municipalities strapped for cash — but there was no hint of the backbench rebellion which would have stopped it in its tracks.

A number of potentially opposed Progressive Labour Party MPs were absent, including former Premier Alex Scott, who had declared he was against the initiative but had to fly off the Island for a prior engagement, and Dale Butler and Randy Horton.

But backbencher Terry Lister, who was said to be instrumental in getting the bill delayed in caucus earlier this month, voted in favour. "We don't have a shutdown of the Corporations; we don't have a repeal of the old act; we don't see Corporations being pushed to the side.

"What we do see is fundamental change taking place," Mr. Lister told the House.

Deputy Premier Paula Cox also spoke publicly for the first time on the bill, putting paid to suggestions she wouldn't want to be saddled with the legislation if she succeeds Premier Ewart Brown later this year.

The Finance Minister said the bill would "level the playing field" despite the backlash from sections of the community.

Dr. Brown, in what appeared to be his final House appearance at the time of going to press, attacked the Corporation of Hamilton for an "arrogant" publicity campaign.

And Mr. DeSilva said it would "remove the last vestige of a system designed to preserve an unnatural imbalance in favour of the few".

Mr. DeSilva made his pledge over wharfage and ports dues during the committee stage at the end of the debate.

He said the bill would not come into effect until April next year and that the Corporations and Government could now take part in "mature discussions" over the way forward.

Bermuda Democratic Alliance MP Mark Pettingill, who had suggested there should not be an outright ban on the Corporations charging wharfage, was invited to take part in those discussions.

Dr. Brown and Mr. DeSilva then took a number of other recommendations from the lawyer "under serious advisement".

Mr. Pettingill said Bermudian building tenants, registered business owners and employees could be given the city vote as well as residents, as an "olive branch" to disgruntled businesses.

"They are the real stakeholders in that municipality," said Mr. Pettingill.

He said similar reforms have been made in the City of London and major Australian cities with municipal governments.

Dr. Brown warned extending the franchise beyond residents could be a "slippery slope" and "you could be headed in the same direction from which you came".