The corporations of Hamilton and St. George's vowed yesterday to fight a Cabinet plan to abolish them. The two municipalities — which came into existence more than two centuries ago and employ almost 200 people — held a joint press conference at City Hall at which Hamilton Mayor Sutherland Madeiros revealed that Government was to get rid of both.

Mr. Madeiros said the corporations were told of the decision in a letter from Cabinet Secretary Marc Telemaque on Wednesday but were "not given any reason for this course of action".

He said both bodies were "absolutely" against the plan and were taking legal advice on how to oppose it.

Deputy Hamilton Mayor Courtland Boyle described the move as "appalling", while Hamilton councillor Kathryn Gibbons, who last year spearheaded a review of the law governing the two organisations, said it was a "bombshell".

St. George's Mayor Mariea Caisey said: "We do not want to see the corporations taken over by Government at all. As far as I'm concerned, if it's not broken, why go out and try and fix it. This is a shock to us both."

A Government spokeswoman would not confirm last night that Cabinet had agreed to wipe out the Island's main tier of local government. She said Premier Ewart Brown would address the issue in a statement to MPs today.

Mr. Madeiros shared with the media a copy of Mr. Telemaque's letter, which said Government would be inviting private firms to bid for a contract to carry out reform of the municipalities.

An attached RFP (request for proposal), to appear in the Official Gazette today, states: "In its Throne Speech of 2008, the Government of Bermuda undertook to reform Bermuda's municipalities; in considering the best means to do so Cabinet determined that the most practical, efficient and effective reform would be to repeal the Municipalities Act 1923 and transition the operations of the municipalities into the relevant government departments."

Ed Benevides, Corporation of Hamilton chief operating officer, said Mr. Telemaque's letter was "a bit vague" but that the RFP appeared to suggest that all the services currently carried out by the municipalities, such as garbage collection, sewage disposal and street lighting, would become the responsibility of Government.

"I have never known any country that distributes its services at a local level from central government," he said. "Effectively, it is removing all local government. From my perspective, it's very difficult to deal with local issues from central government."

Government pledged to overhaul the corporations in its Throne Speech of February 2008, describing both as having served their municipalities well but adding: "The framework within which they operate is outdated and it can be argued that it does not reflect modern good governance."

The two bodies responded by producing a joint report on how the Municipalities Act could be updated and amended, which was presented to Government eight months ago.

Mr. Madeiros said yesterday: "Since last October, the corporations have made repeated requests to work with the Bermuda Government to modernise the structure of the corporations and expand the franchise.

"Despite numerous requests to meet with Government, all requests for consultation have been ignored, except for a letter acknowledging receipt of the document.

"The first response to our requests is the letter you have before you.

"The Government has not given any reason for this course of action. Nor have they explained how abolishing two local municipalities would be 'practical, efficient and effective reform'."

Last night's statement from the Cabinet Office said the Premier would outline the proposed reform of the Municipalities Act in the House of Assembly today.

"Tomorrow's ministerial statement from the Premier will mark the beginning of an exhaustive consultative process," it said. "Proposed reforms will be debated fully in the Legislature and both corporations will be extensively surveyed for their input.

"Also tomorrow, a request for proposal will be published in the Official Gazette.

"It is hoped, through that request, the Government can recruit the professional assistance needed to implement agreed reforms of the act."

Dr. Brown told a PLP meeting in St. George's this week that having a Corporation of Hamilton and a Corporation of St. George's was "archaic". He said steps would be taken to bring legislation before the House to change the situation.

Corporation of Hamilton workers were told of the decision at a meeting immediately prior to yesterday's press conference.

One worker, who asked not to be named, said: "It's a shock to me but it's not totally out of the blue. I heard through the grapevine that they were trying to do something. The question is: when will it happen?"

Another worker said: "We hope it will be for the best and that workers will be able to benefit from whatever decision is made. We are not too worried."

The Corporation of Hamilton has suffered a string of controversies under Mr. Madeiros' mayorship, including industrial action, the resignation and removal of members, an independent review questioning its "accountability, transparency and legitimacy", and rows about the placement of the Sally Bassett statue and the proposed eviction of Bermuda Society of Arts from City Hall.

Former councillor Graeme Outerbridge blew the whistle on bitter feuding behind the scenes at the municipality last August. He said yesterday that getting rid of it altogether would be a mistake but that reform of the franchise was badly needed.

Former Hamilton Mayor Lawson Mapp said: "I'm sad to see that the Municipalities Act 1923 would be abolished. I would love to have seen the status quo stay."

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Corporation's–rough ride

It has been a stormy few years for the Corporation of Hamilton. The Royal Gazette looks back at some of the controversies to have hit the municipality under Mayor Sutherland Madeiros.

• October 2006 — Mr. Madeiros becomes Mayor following an election being called after the unexpected death of his friend and predecessor Jay Bluck.

• December 2006 — A rebel group of councillors and aldermen demand Mr. Madeiros' resignation. He refuses.

• February 2007 — Former Deputy Mayor Sonia Grant drops her claim in court that Mr. Madeiros was involved in election interference.

• April 2007 — Nineteen people are injured after a horse stampede at Harbour Nights, which prompts CoH to say it will consider the future of horse tours.

• December 2007 — The Corporation agrees to terminate Bermuda Society of Arts' (BSoA) lease at City Hall after almost 50 years, sparking criticism from across the community, including from Culture Minister Dale Butler, when it is revealed at the start of 2008.

• January 2008 — Industrial staff stage a two-day walk out, gaining union recognition soon afterwards. The Royal Gazette's A Right To Know campaign calls for the Corporation to be more transparent and hold its meetings in public. We reveal that Mr. Madeiros could have used his power of veto to stop the BSoA eviction — but didn't.

• February 2008 — Government says in its Throne Speech it plans to modernise the municipalities of both Hamilton and St. George's. Graeme Outerbridge claims that members of CoH are holding secret talks on how to oust Mr. Madeiros. The Mayor says again that he will not resign. The same month, an inquiry is launched into claims that Mr. Outerbridge and alderman David Dunkley are ineligible to serve

• March 2008 — Bill Black is deposed as Deputy Mayor, saying he feels "betrayed" by fellow members.

• April 2008 — Mr. Dunkley pays back thousands of dollars to the Corporation of Hamilton for personal overseas calls made on his Corporation cell phone. Junior Tourism and Transport Minister Wayne Caines chastises the Mayor for "overstepping his authority" by imposing a ban on horse-drawn carriages during Harbour Nights.

• June 2008 — Mr. Outerbridge resigns as councillor. Later that month, councillor W. Carvel VanPutten also leaves. Mr. Dunkley, meanwhile, is told he is ineligible to serve but appeals the decision. That appeal has yet to be heard in court. Also in June, a leaked resignation letter from outgoing treasurer Geoffrey Bell blames Corporation secretary Kelly Miller for many of the municipality's problems.

• July 2008 — Mr. Black is removed as alderman, after it is discovered that he is ineligible to serve. It is also announced this month that Ms Miller has left the Corporation — with no explanation of why or when.

• August 2008 — Mr. Outerbridge blows the whistle on behind-the-scenes feuding at City Hall with a dossier revealing the extent of internal strife. Mr. Madeiros defends his record but admits he has struggled to get consensus.

• October 2008 — The Corporation begins making its decisions public for the first time in 213 years.

• November 2008 — New councillor Anne Kast steps down to avoid controversy about her right to be on the city's electoral roll. The Mayor refuses to have a statue of slave Sally Bassett erected in the grounds of City Hall outside his office.