The ancient Corporations of Hamilton and St. George's are set for an overhaul this year, Government said yesterday.

Governor Sir Richard Gozney announced in the Throne Speech: "The Corporations of Hamilton and St. George's have served their respective municipalities well, but the framework within which they operate is outdated and it can be argued that it does not reflect modern good governance.

"Accordingly, amendments to the Municipalities Act 1923 will be considered to modernise the Corporations, and to better serve the people of our past and present capitals."

Although Government did not go into any detail, Mayor of Hamilton Sutherland Madeiros agreed it is time to modernise the Corporation as little has been done for almost a century. The Corporation, he said, began its own review last year.

"I guess they're following our lead. We've already enacted a legislative committee to review the Municipalities Act," he remarked after hearing the speech.

The operation of the Corporation of Hamilton has been the object of criticism from some quarters of late. Former Deputy Mayor Sonia Grant wrote to a British inquiry into the overseas territories last year to complain that about the administration of the last Mayoral election, which she lost to Mr. Madeiros.

She described the election of October 2006 as "an absolute disgrace, with the rule of law being tossed out the window".

Miss Grant also alleged that the City of Hamilton election franchise is not based on universal adult suffrage, and breaches the European Convention of Human Rights and Fundamental Freedoms. Although she did not specify what she meant by this, critics have in the past complained that because business owners have one vote each while residential owners have one vote per household, the system is unfairly biased toward property owners.

The Corporation also came under fire for a decision to boot the Bermuda Society of Arts out of City Hall – a move that was deferred for a year after a public outcry. Minister for Culture and Rehabilitation Dale Butler called on the Corporation last month to reinstate Bermuda's oldest arts society or risk legislative changes to the way it is run.

The Corporation has a $20 million annual budget raised through taxes, wharfage charges and parking fees. It employs about 120 staff and is responsible for the administration and maintenance of the City of Hamilton. However, meetings are closed to the public.

Corporation members have in the past cited the 1923 Act as the reason for not holding meetings in the open, as they do not have the same protection from libel action as MPs have for speaking in the House of Assembly.

Mr. Madeiros said these issues would be reviewed as part of the committee's remit. However, he refuted the Government's allegation that the Corporation may not be a good example of governance, telling The Royal Gazette: "I think it's been run extremely well over the years."–Mayor of St. George's Mariea Caisey could not be contacted.

Premier Ewart Brown told a press conference yesterday it was anachronistic to have two separate corporations operating in 22 square miles under separate rules.

"I think events of the past month or so have only heightened some of the contradictions that exist in that model. We are going to take a look at it and see if we can modernise it and make it work for all of Bermuda."