DeSilva defers to court ruling on municipalities changes
Plans for a major overhaul of the corporations running Hamilton and St George could change, according to municipalities minister Zane DeSilva.
Speaking on Wednesday at a press conference outlining spending plans for the Ministry of Housing and Municipalities, Mr DeSilva called it premature to say how the municipalities might be reshaped until a court ruling is handed down from the Privy Council in London.
A legal battle with the Corporation of Hamilton over the fate of the municipalities began after MPs approved legislation in 2019 giving the minister responsible for the two bodies the power to appoint mayors and half of the councillors, with the rest of the councillors chosen by a selection committee.
Under existing rules, mayors and councillors are elected by ratepayers.
The Corporation of Hamilton took the case to the Judicial Committee of the Privy Council, Britain’s highest appeals court, last December.
Government lawyers argued that everyone in Bermuda had an interest in the assets in the capital city, “yet a select few seek to hold on to the right to manage” them.
A ruling is expected this year.
Mr DeSilva did not mention the municipalities during his Budget statement but was questioned by reporters on the topic.
Zane DeSilva outlined affordable housing programmes that his ministry will oversee this financial year.
He said that almost $23 million in grants and contributions will fund transformational housing and infrastructure projects, with $17 million of that figure allocated to the Bermuda Housing Corporation.
He said that 49 homes will be fully refurbished in the next year while repairs will be carried out at other BHC properties.
Mr DeSilva added: “These are not just maintenance projects but investments in dignity, security and quality of life.”
The minister said that the BHC was exploring “innovative ways” to increase the rental stock with no cost to the taxpayer.
He said: “One such example is the Private Sector Refurbishing Programme, which, while not part of the allocated Budget, is nonetheless a vital initiative.
“With $5 million in funding approved through Bermuda Commercial Bank, this programme supports private property owners in renovating vacant or underutilised units.
“To date, 24 owners have expressed interest. Each participating unit is eligible for up to $125,000 in renovation funding, repayable over five years, with rental contracts extending up to seven years.
“Work on the first units will begin shortly, following budget approvals, any planning permits required and contractor selection.“
He said that legislation was in the pipeline to streamline the reclamation and redevelopment of vacant and derelict properties, accelerating housing delivery and expand the availability of affordable homes.
Mr DeSilva said: “Although newly formed, the Ministry of Housing and Municipalities’ priorities are clear, its strategy is strong and its resolve is unwavering.
“This Budget is not just numbers on a page. It's a plan for action, a promise to our people, and a reflection of our belief that Bermuda works best when it works for all of us.”
Asked if the Government intended to take control of corporation revenues, Mr DeSilva said: “I disagree. I think it’s important to let the people of the country know that I as the Minister of Municipalities have had two meetings with the corporation already and we are waiting for the result from the Privy Council.
“Once we get that result, we will then move forward. But to anticipate what we do before we get the ruling is not where we are at this stage.
“The thing is, we’ve had some very fruitful meetings and I think they will be fruitful going forward.”
Asked why the Government planned to abolish elected councillors, Mr DeSilva replied: “Well, let’s wait for the Privy Council ruling before we anticipate what we’re going to do after.”
Pressed by reporters, Mr DeSilva said that the Cabinet would make a collective decision on the corporations’ future, but added that municipality elections had not yet been abolished.
He agreed that there was a possibility that elections could still be held and that there were a number of possible outcomes.
“Absolutely. Like I said, let’s not get ahead of ourselves,” he said.
“Let’s wait for the Privy Council and you’ll get a lot of information thereafter. We can do anything we want.
“The reason why we’re heading in this direction is that the corporations were created a long time ago and I think there are many services that can complement each other if we amalgamate — but that’s if we amalgamate.
Asked how much the Government had spent in legal fees contesting the appeal, Mr DeSilva said: “You might want to ask that question to the corporation, to the mayor. I don’t know what they have spent, I don’t know what we’ve spent either. I’ve only been here an hour.”
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