The Island’s airport is set to be first to be moved out of Government’s hands, Finance Minister Bob Richards said yesterday.

Mr Richards added that the airport building — some of which dates back to the 1940s — was in serious need of upgrading, but that Government did not have the cash to do it.

He said that a variety of options, including leasing the site to investors, as well as outsourcing of operations and privatisation or a public-private partnership arrangement, could all be considered.

Mr Richards added: “All of these options are on the table — I just know my first customer as regards outsourcing is the Bermuda airport.”

And he said: “That can help us with revenue, jobs and all that other sort of stuff.”

He was speaking after he and Premier Craig Cannonier discussed yesterday morning’s Budget statement — which saw cuts of more than $70 million but no tax increases of job losses — at least in this financial year.

Mr Richards said: “People have built up monsters in their minds. I said it would be more aggressive than the SAGE Commission recommendations and it was.

“But people had the idea we would lay off 1,000 people and that’s just wrong.”

Earlier, Mr Richards said: “I am very keen on these infrastructure projects ... particularly as it relates to the airport — investors overseas are very experienced in building new airports.”

And Mr Richards added a modern, well-run airport was vital to presenting a good image of the Island and its level of sophistication to both tourists and business travellers.

Mr Richards added that the size of the Civil Service had to go down — and that hiving off parts of it was the only way to cut costs without shedding jobs.

And he said: “Some people feel threatened by this — the threat is laying people off. That’s the real threat.”

Mr Richards added that a new body would be legislated for and would make recommendations on which services should move out of the public service.

He said that the SAGE Commission, set up to look at cutting the cost of Government, had only made its recommendations last October and there had not been enough time to adopt major recommendations in time for this year’s Budget.

And he added that he also wanted time to consult with trades unions so “they are comfortable with what we do”.

Mr Richards denied that any moves towards outsourcing was “union busting” and that public service workers transferred to the private sector would retain trades union rights.

Mr Richards added that some signs promised the start of recovery — but that Gross Domestic Product figures continued to be poor and that it was unlikely Government would be able to produce a balanced Budget by 2017-18.

And — in line with Budget predictions — he confirmed that the 60/40 rule which guarantees Bermudian majority ownership of local businesses. which has already been amended for the Island’s banks, would have to be relaxed.

Mr Richards said: “It needs to be further relaxed, in my opinion. We have relaxed quite a bit of it already.

“In view of the fact our whole growth strategy depends on capital from abroad, the whole notion of telling these investors what to do is an outmoded notion.

“It was quite prevalent in days gone by, but that notion doesn’t fit today. There has never been a period in Bermuda’s history where we needed foreign capital more than we need it now.”

Premier Craig Cannonier added: “I believe it to be a well-measured and balanced approach to where we are in our history.

“What encourages me is we’re now looking at an overall deficit $273 million — 19.4 percent down from the previous year and a seven percent reduction in Government spending.”

He added that $120 million would also be wiped off the country’s debt this year.

Mr Cannonier said: “These are good things, they are indicators in the right direction and that we are getting Bermuda on the path to recovery.”