Bermuda's Corporations face losing millions of dollars in wharfage and port fees – while picking up costly land tax bills – under legislation tabled in the House of Assembly yesterday.

The Municipalities Reform Act would also push through electoral reform, abolishing the property vote and meaning any Hamilton or St. George resident is entitled to vote in local elections.

And the municipal register – the official list of mainly business owners who are allowed to vote and stand for election – is wiped out.

The bill, tabled by Minister without Portfolio Zane DeSilva, confirmed Hamilton Mayor Charles Gosling's worst fear by repealing the Corporations' right to claim wharfage and port dues, worth an estimated $7.5 million a year in Hamilton.

It also means the municipalities would no longer be exempt from land tax, which Mr. Gosling has said would cost his Corporation a further $200,000 a year.

Mr. Gosling yesterday said he was taking advice over confusion surrounding possible changes to the city boundaries.

A map on the bill indicates areas such as Par-la-Ville car park, Bermudiana Road and Albouy's Point would not be moved outside the city, as had been suggested in a draft of the bill; such boundary changes would have stripped Hamilton of $850,000 in property tax.

However, another section of the act repeals the municipal areas, which Mr. Gosling says could dramatically affect the size of the municipalities.

And he still believes the overall financial hit would spell long-term ruin for the Corporation of Hamilton.

Mr. Gosling called the amendment a land grab and a tax hike masquerading as reform.

"If Cabinet systematically takes away the Corporation's revenue and thereby assets, the plan cannot be called anything but a takeover," the Mayor said.

Yesterday morning, Mr. DeSilva stressed Government was delivering on its promise to modernise the Corporations and that local elections would now mirror national elections.

"The effect of this bill will be to eliminate once and for all the last vestiges of the property vote that we recognised as flawed many decades ago," he told the House.

Reflecting on the wharfage and ports changes, he said: "In a 21-square mile island, there is no rationale for any tax structure other than the national one, which reflects the elected Government's policy.

"This bill will also address this issue by ending the ability of the Corporations to levy those charges based solely on their ownership of the Island's ports."

The Minister acknowledged such revenue is vital to the Corporations, but described the change as "a matter of principle that is in fact honoured already in its practice".

He added: "While the Corporation levies the fees and taxes, the Collector of Customs does the administrative collection. This practice has no place in a modern democracy."

Mr. Gosling maintained the Corporation will lose out on valuable income, saying if Government intends to subsidise it: "Show me the money."

On the land tax change, Mr. DeSilva said: "The Corporations' balance sheet will be required to reflect the reality for most hard-working Bermudian families."

Mr. Gosling has said the bill will lead to "death by financial strangulation" for Hamilton's municipalilty. He said it will leave it in such dire straits, it will have no choice other than to be rescued by Government.

Mr. DeSilva said yesterday: "Not one service provided by the Corporations is transferred to the Government.

"No jobs are affected and no employee should be or feel threatened as a result.

"This bill represents reform, in some areas repeal, but above all it represents justice and equity.

"The modernisation that will result is desperately required and if there is truth to the desire of some to work this Government, this bill provides a useful starting point for a round of meaningful discussion, free from the glare of media spotlight and unaided by full-page ads."

He said the changes would take effect on April 1 next year, to allow adequate preparation on both sides. Before that, an independent audit of the Corporations' assets, liabilities, income and expenditure will take place.

The bill, said to be one of outgoing Premier Ewart Brown's biggest remaining ambitions, is likely to be debated at one of two extra House sittings next week. It was passed by Progressive Labour Party caucus on Wednesday despite vociferous opposition from a number of backbenchers.

PLP sources say a three-line whip could be put in place to ensure total Government support. However, some backbenchers are said to be so against the bill they may risk being disciplined by voting against it anyway.