The Opposition have accused Government of orchestrating a "land grab" on Hamilton and St. George's.

United Bermuda Party MPs made the claims in the House of Assembly on Friday, saying it was another example of "unilateral" style Government.

Their comments followed a statement by Minister without Portfolio, Walter Roban, in which he said the repeal of the Municipalities Act 1923 and transfer of Corporation operations to Government was "necessary".

"It is simply impractical and unwieldy in 2009 in such a small jurisdiction to have competing arms of government," said Mr. Roban.

"Electoral reform has not been effected in a manner that gives comfort to those of us who value the franchise.

"Fiscal prudence demands that we eliminate potential double taxation, duplication of services, unwitting subsidies and the like, all of which do not make best use of the public purse."

He said the Cabinet Office, Central Policy Unit and MP for Constituency One, Dame Jennifer Smith, had undertaken "an exhaustive review" with the aim of reforming the municipalities, as Government pledged in the 2008 Throne Speech.

Mr. Roban said: "The considered view of these groups and as approved by Cabinet is that the Municipalities Act 1923 should be repealed and the operations of the municipalities be transitioned into the relevant Government departments.

"The decision to effect the repeal of the Act, while important, is only the first stage of this transition.

"Honourable Members should know that in the course of a number of meetings in which this issue was canvassed, Cabinet considered several options to facilitate this necessary transition."

He said a Request for Proposal was now inviting firms to submit proposals for "the oversight, management and implementation of the integration of the municipalities of Bermuda into the Government of Bermuda within one year".

Mr. Roban added that correspondence to Hamilton mayor Sutherland Madeiros and St. George's Mayor Mariea Caisey had said the firm picked would "seek extensive consultation with each Corporation".

"I wish to make it clear that all of the rights and employment terms of those employees of the Corporations will be respected and preserved," added the Minister.

"In fact, it may well be that they are enhanced by this process."

The overhaul of the Corporations was criticised by Opposition MPs during the Motion to Adjourn.

Louise Jackson, Shadow Health Minister, said: "Here we go again Mr. Speaker, government by ambush. We have this Government taking over two of our historic sites, St. George's municipality and the Corporation of Hamilton, who by the way, have been there for two centuries.

"There was no consultation about this, the decision was already made. We have heard the Corporations sent a letter to the Bermuda Government last October. It was a letter basically asking for consultation with various ministers.

"Nothing came afterwards and then we had a letter on Wednesday from the Cabinet Office to the Corporations, saying the Bermuda Government intended to reform the municipalities, by abolishing both the Corporations of Hamilton and St. George's."

Mrs. Jackson said: "This is another unilateral decision and I'm going to refer to it as a land grab. Some have estimated the Corporation of Hamilton's holdings at $250-500,000 and you're talking real estate of billions of dollars."

But Mr. Roban said: "I find the suggestion of land grab fairly misleading. This is a promise we made in our 2008 Throne Speech, to put forward reform for the Corporations of Hamilton and St. George's."

Mrs. Jackson replied: "The Corporation of Hamilton is debt-free. I can't say that for this Government. They are running at a great deficit.

"This is a matter of heritage and history, and to take two of these priceless little towns and turn them into what? It is local government being swallowed up by Government.

"We see this happening in Third World countries and I watched this happen in Europe many years ago during the 1930s. It speaks again of dictatorship and of one person and again the Cabinet."

Mr. Roban pointed out the Corporation of St. George's was "almost fully funded by the Government".

But Mrs. Jackson said: "There was no consultation on this. I find that terribly insulting, to leave them hanging for almost a year, and then to say, 'Now we are going to take you over'.

"There's no due process, there's no consultation, and there is no integrity."

Mr. Roban responded: "We are beginning a process, it is not an event. They are not going to be wiped out, we are starting a process to reform.

"This Government is always a listening government and we listen to them and to others."

Shadow Finance Minister ET (Bob) Richards then said: "I think that certainly no one would disagree with the observation that many of the rules and practices of the Corporation are outdated.

"The Corporation of Hamilton certainly recognises that themselves and had applied to Government for assistance in trying to update their rules and bring themselves up to the 21st century, and to expand the franchise and expand democratic values."

But he added: "I find the part this morning that Government would increase efficiency as utterly laughable. The Government itself is not efficient or a pillar of good governance.

"This is a land grab Mr. Speaker, no more, no less."

John Barritt, Opposition spokesman on legislative reform, told MPs: "I think most right-thinking people embrace the motion that it is time for reform. But as far as the Corporation tells us, they got no response. When people are ignored they get upset and angry, so I'm not surprised both Corporations are angry and are digging their heels in already.

"This has to be the wrong way to go about doing this. It all comes down to process. There's no question there's going to be a swoop here, a land grab, a money grab."

Mr. Barritt called for more transparency in Government. He said: "This is not the way to go. We should be doing this by way of a White Paper to let everyone in.

"All this stuff starts to come out, drip by drip by drip, after the fact. It's like the Chinese Water Torture in reverse. It shouldn't be this way within transparent government."

Patricia Gordon-Pamplin then described the move as akin to "using a sledgehammer to crack a nut".

Echoing Mr. Barritt's call for more transparency, she said: "Bring everyone along at the same time and we will not be having these types of demonstrations we are having now almost on a weekly basis."

Opposition Leader Kim Swan said the reform proposals were "a slap in the face" for St. George's as it celebrated Bermuda's 400th Anniversary of Permanent Settlement.

"I would ask the Premier and the Government to rise and report progress on this assault on the Corporations of Hamilton and St. George's," he said.

"I will not stand here and allow, and I cannot endorse, the preservation of this town to be placed in the hands of such a careless government. I wouldn't put it in the hands of any future government.

"In our 400th year, I think it is insulting to be treated as such."