Former Bermuda Monetary Authority boss Matthew Elderfield's reported annual pay packet of $730,000 was yesterday the subject of a row between the Finance Minister and her Shadow counterpart.

Minister Paula Cox refused to give direct answers to Bob Richards' Parliamentary Questions about Mr. Elderfield's salary, housing allowance, travel allowance and other perks, amid claims it dwarfs that of anyone else in Bermuda's public service.

Mr. Richards argued the salaries of the governor of the Bank of England and the chairman of the FSA in the UK are all made public.

However, Ms Cox's answers didn't reveal any figures because, she says, BMA is independent from her Ministry and sets its own remuneration levels.

"That $730,000 a year (reported in The Royal Gazette last month) is way in excess of anybody's compensation that I'm aware of in Bermuda public services, from the Premier all the way down," Mr. Richards told this newspaper.

"I asked the question to find out if it's true. I believe that her response is unacceptable.

"The BMA is firmly a part of the public service. Its capital is owned by Government; its excess profits are paid to Government; the Finance Minister appoints all the directors and there is a clause in the BMA Act that allows her to direct the BMA to do whatever she wants."

Ms Cox replied that Mr. Elderfield's remuneration was not paid out of public money, and that it is important for her Ministry to keep an arms-length relationship with BMA, especially as its new CEO is her brother Jeremy Cox.

She told The Royal Gazette: "The BMA chair and board would undoubtedly be pleased to respond to queries raised and to provide an overview of how they set remuneration levels and to detail relevant information pertaining to the personnel issues, which are not the remit of the Ministry of Finance given that this pertains to operational control issues.

"However from established parliamentary practice, the general tenet if one were to refer to Erskine Mays Book on parliamentary practice is that on an issue of general policy and matters of overall financial control it is appropriate to refer to the relevant Minister.

"This is distinctly different however in respect to matters dealing with operational issues. In fact Mays stipulates that parliamentary questions on matters dealing with the day to day administration and which do not fall within government responsibility are not in order.

"The arms-length relationship is even more critically important given that the current CEO of the independent regulator, the Bermuda Monetary Authority is my sibling so it is even more important for the separation of the ministerial role and responsibility and non-intervention in operational issues of the Bermuda Monetary Authority is pellucidly transparent."

Her written responses to Mr. Richards' questions state in part: "The board of directors of the Authority has sole responsibility for setting the remuneration levels and other benefits for employees of the Authority and these expenses are not a charge on the Government's Consolidated Funds."