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Despite opposition, concessions for tour operators pass with 10-4 vote

Opposition Senators failed to defeat a motion giving commercial land and boat tour operations the chance for duty concessions under the Industrial Development Act yesterday.

The motion was passed with Senate President Alf Oughton backing Government despite his own strong misgivings.

The bill allows commercial land and boat tour operations to defer Customs duties for up to five years.

And they will need only Cabinet approval, and not the approval of the House of Assembly, allowing them to be approved at any time during the year, instead of having to wait for approval if the House is not in session.

Introducing the motion, Government Senator Raymond Tannock said it was vital with tourist ventures to be able to move quickly and the duty relief could make a venture into a viable option.

He said applications would be vetted by the Finance Ministry and the Ministry of Transport and Tourism.

But Opposition Senate leader Kim Swan said it represented an erosion of transparency by bypassing the House of Assembly, which was there to guard the public purse.

Independent Senator Walywn Hughes was also against the motion, saying the Industrial Development Act had been to help with the building of the Southampton Princess decades ago and now other stuff was being tacked on to it.

He said someone could apply for relief if they brought in two bicycles for a tour. However, he did point out the legislation defers payment but it still gets collected.

United Bermuda Party Senator E.T. (Bob) Richards and Sen. Oughton echoed the concerns and vote was forced which Government won 10-4.

Afterwards Sen. Oughton said the Act was a bit airy-fairy and Government should get specific legislation to cover such matters.