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Corporation’s poor start

The election of the Corporation of Hamilton solely by resident registered voters has been hailed as a great step forward for democracy.And in many ways it is. Certainly, the end of the property vote in the City of Hamilton was seen by any as the overdue death of an anachronism. In the circumstances, it would be understandable if the new Corporation, which, with one exception, consists entirely of new members, would stumble from time to time. Especially in the early going.And it should also be noted that the new Corporation took office at a time when revenues are shrinking fast as the Bermuda recession continues. There have also been some good decisions, including the naming of the Earl Cameron Theatre.But none of that really excuses a poor start characterised by errors, some large, and some small, typified by the decision to levy a fee on the Santa Claus Parade a public relations disaster which someone in City Hall should have seen coming. You just don’t mess with Santa.There is no doubt that the Corporation inherited a difficult position. The same legislation that abolished the property vote stripped the Corporation’s right to collect wharfage fees from the docks. Although this was replaced with a grant, the grant was less than the tax revenue previously collected.Couple that with declining revenues for car parking, construction permits and so on, and it’s no surprise that Hamilton is short of money. There are only three things any government can do in those circumstances spend less, find new sources of revenue (or raise taxes) and borrow.The Corporation has tightened its belt and it has not, fortunately, borrowed. But in trying to raise new revenue, it is making politically unpopular and inept decisions.Trying to tax awnings and signs on the businesses who now pay the bulk of the City’s taxes and have just lost their own say in the operations of the Corporation is clumsy, especially when there seems to have been no effort to assuage this already aggrieved group. A government that depends on property taxes and retailers bringing people into the city to park and shop should not be giving already struggling retailers one more reason to close their doors.Hitting a large taxpayer which spends tens of thousands out of its own pocket for a Christmas parade with a tax is just inept.Still, that’s not the worst of it. Both of the above issues, although badly handled, are relatively small matters and easily fixed. What is more worrying is the apparent lack of self-awareness of the new Corporation.The members have delayed signing a code of conduct, which by all accounts is a perfectly reasonable document. Instead it has been sent off for expensive legal consideration.Secondly, the appointment of Alderman Donal Smith as chairman of the development committee is bizarre. Until recently, Mr Smith was the vice president and prime mover behind the developer of a hotel on Par-la-Ville Car park.This is a major undertaking and one that will be the centrepiece of the Corporation’s efforts to revitalise Hamilton. But it is also controversial. It was not that long ago that the Corporation was suing the developer, and the same developer has missed one deadline after another for financing and moving forward with the project.Under the circumstances, it would have been wise for Mayor Graeme Outerbridge to ensure that there was not even a hint of a conflict of interest. Instead, Mr Smith has a massive one. Worse, no one seems to care.This is a worrying sign. The Corporation seems determined to go ahead with the redevelopment of the waterfront and it is critical that this be done in a cleaner than clean and transparent manner. But the Corporation, at the moment, gives every indication of not knowing what that means.