Finance Minister Paula Cox has pledged Government will boost efforts to share out its small contracts as she mounted a defence of the untendered award of a $1 million-a-year contract to a relative of the Premier.

Controversy has raged after Bermuda Emissions Control — run by a cousin of Ewart Brown — won the sole contract for vehicle pollution testing on the Island.

In an interview with The Royal Gazette, Ms Cox was asked why the public couldn’t be told what the general policy was on why a sole bid could accepted instead of inviting multiple tenders.

She said: “I think the general policy would have been articulated in the answer to the parliamentary questions, but generally contracts over $50,000, usually it’s a Cabinet policy that we tend to advocate them going out to tender.

“If you are going to abrogate that rule there has to be for good reason — either because you are talking about specialist expertise or because there is a limited pool or only one provider for those services.

“Generally the rule is over $50,000 you go to tender but there is a rationale if the case is made and it’s defensible by the Cabinet to have an exception.”

Asked why that emissions contract couldn’t have at least been opened up to multiple bids she said the rule could be modified on occasion because of time constraints or issues of expertise.

The Finance Minister was challenged on why Financial Instructions, the rules which govern the awarding of contracts could not be made public.

But she stuck to the line that it was internal Government business.

“I don’t think it is appropriate that they are put out into the public domain.

“What is seen as important is when you have contracts and RFP’s (requests for proposals), that they go out and people have the opportunity to bid and they know what is being advertised.

“There is a move by Government to let people know in a timely fashion about a number of Government contracts so you have more people subscribing for them.”

Ms Cox said more “relatively small contracts” of $10-$30,000 would be widely publicised, perhaps via a directory or notices in newspapers.

“We are trying to compile a listing so people are aware to make things more open and transparent.”

But she was unable to say when the policy would materialise.

“People sometimes don’t realise they could bid on things which we think are not sophisticated or glamorous but they are necessary — whether it’s toilet paper, soap or coffee. Things of that nature.

“We are looking at the tools in our remit to expand opportunities.

The Minister said mortgage subsidies from the Ministry of Finance for people to buy houses might also be a tool used by Government for helping the economically disadvantaged in innovative ways.

“We don’t need to reinvent the wheel. You can look at models done elsewhere.

“We in Finance aren’t in the business of providing housing but we are in the business of helping manage the economy and suggesting to other ministries what they might do in bringing down the costs of issues like housing.

“It may be by subsidies or by providing lower interest rate mortgage help.”

Concerns about the price of housing, which could fuel a brain drain or social unrest, were also being tackled by the Housing Ministry’s moves on geared-to-income housing, said Ms Cox.

She said the economic empowerment zone, debuted in North Hamilton, to help developing businesses with tax breaks might be copied in the east and west of the island.

But expansion to the Island’s extremities is not expected for at least six months as the starter project beds down.

She said: “There is a mountain of work that remains to be done — the levelling of the playing field and creating greater opportunity. We have to look at how we can include more — the economic empowerment is just the tip of the iceberg.

“We have to also look at how we can encourage greater equity ownership so we don’t just talk about the fact we want more businesses.”

In their Budget Reply the Opposition put forward a policy of eliminating payroll tax for those earning less than $36,000.

Asked if the PLP had anything similar she said: “No, I thought that was a good policy for an Opposition party. Our budget and policies are always sensitive to the needs and I don’t expect that will change.”

But she refused to divulge if the PLP were thinking about anything similar.

Ms Cox also said international businesses wanted more inclusion in policy and planning.

“We want to make sure they have the opportunity to have a greater degree of dialogue and partnership.”

Ms Cox said this applied not only to lobbying the US but also being available as a resource locally.

“We have to not be shy to build on that.”

Asked about the Premier’s plans to have a Council of Economic Advisors made up of industry leaders, local businesses and Cabinet members she said: “That is being driven by the Premier, as far as I know that is still on track.

“But I believe he has been busy with a number of other roles but there’s been no lessening of commitment to that.”

Ms Cox was critical of Ewart Brown when he mounted his ultimately successful leadership challenge saying she couldn’t see what was new in his platform.

Asked what was new now about the Dr. Brown agenda she said: “I think it’s a different style of leadership. He has ushered in a wave of change. I think he is more action orientated and impatient to see results sooner rather than later.”

Asked for examples she said: “The Ministry of Finance has always been productive.”