The Government is "talking out of both sides of its mouth" when it comes to the Town of St. George, according to Opposition leader Kim Swan.

He said while Government last week announced that it was considering a gas tax to help the city, it had also put forward legislation which would cripple the Corporation of St. George.

Meanwhile, Mayor of St. George, Kenny Bascome praised the tax idea and said he is confident the corporation and the town are here to stay.

On Wednesday, Acting Tourism Minister Zane DeSilva said that Government was considering a one-cent tax on every gasoline purchase to go towards St. George.

The tax, which would raise around $1.2 million annually, was broached during a meeting between Mr. Bascome and Premier Ewart Brown.

That same day, Mr. DeSilva put forward amendments to the Municipalities Act that would keep the Corporation from charging wharfage fees a major source of income and force it to pay land taxes on its properties.

If the amendments passed, the Corporation would also lose control over Ordnance Island.

The PLP caucus shot down the amendments on Wednesday saying that there was not enough time to properly reflect on them before debate.

The legislation is now unlikely to be debated until after summer, but with none of Dr. Brown's likely successors appearing to support it, the amendments may never see the light of day.

On Friday, Mr. Swan questioned the intentions of the proposed gas tax, saying: "Is Government contemplating revenue-raising measures to help the Corporation manage the town, or is it contemplating the tax to help the town once the Corporation is gone?

"While the Government seems to be finally taking an interest in the needs of the Old Town, we think there are better ways to do it than adding another new tax on the people, as mooted by the Acting Minister."

He said that the Government had made a number of moves that hurt the town, including the closing of the St. George's Golf Course and allowing the number of cruise ships in the town to fall.

"Government priorities lie elsewhere, as is evidenced by its decision to develop a mega-yacht facility at Dockyard.

"Or, is the running down of the Old Town part of a larger strategy to fatally weaken the Corporation for takeover?"

Mr. Bascome said that during the meeting with Dr. Brown, a number of issues were discussed, including the gas tax idea and the future of the Corporation.

Mr. Bascome said: "Regarding the Municipalities Act, he said let's just see where the discussion goes.

"As far as I'm concerned, it's a non-factor. It's up to the Government. I'll let the chips fall where they may.

"At the end of the day, I believe the Corporation of St. George will still be here."

He said he fully supported the idea of the gas tax, and that the money would primarily go towards the general upkeep of the town.

"If Government is able to pass this legislation, the first thing we would do is find more staff for the work crew," he said.

"We would want to have a total assessment of the town to see if we can get it up to scratch. There are some things like the sewer system, which is terribly antiquated. That's one of the major issues.

"If the Premier can pass it, he would be my new best friend."

Head of the East End Division of the Chamber of Commerce Cheryl Hayward-Chew agreed that the money should go towards the general maintenance of the town.

"I don't think there is one particular area where the money should be used," she said.

"The new revenue source could be put to good use to properly maintain the town infrastructure, including streets, lighting and sewage, benefiting both residents and businesses alike.

"It is also essential to keep the standards set for the UNESCO World Heritage Site designation."

Although it could be a while before the tax is tabled, much less start providing the East End with additional revenue, Mr. Bascome said that the Corporation is moving ahead with plans to bring more people to the town.

"We're having another family fun day on July 17 with disc jockeys playing between 3 p.m. and 11 p.m.," he said. "There are going to be food vendors and other activities. I think it's going to be a great day.

"I've also been talking with retailers about having a discount day in St. George's.

"We're not just sitting back. We're doing things. St. George's is going to be the place to be."