The Corporation of St George’s has been given a $750,000 cash windfall from Government to pay for operational expenses and upgrades in the town.

And the municipality can expect further revenues estimated at $2.5 million a year when it starts collecting wharfage fees and cash from the UNESCO fund.

Announcing the donation this afternoon, Home Affairs Minister Michael Fahy said that, although the town had received $1.2 million in Government grants in recent years, the Corporation “had faced its share of challenges in recent months and years in meeting their operational costs”.

“This wasn’t the only concern they faced,” added Mr Fahy said.

“They have struggled with infrastructural issues due to years of neglect and lack of planning. They have seen a decline in tourism in part because of a lack of a dedicated cruise ship, and they have seen some of their businesses close up shop because of the economic crisis.”

Mr Fahy said that $500,000 will be used for operational expenses, while $250,000 has been earmarked for “urgently needed” repairs and upgrades to the King’s Square bathrooms.

“I think it’s also important to highlight that this Government understands that cash flow to the Corporation must be sustained, hence our decision to provide continued financial support via the UNESCO fund and the collection of wharfage fees,” the Minister said.

Mr Fahy confirmed that the municipality would begin collecting wharfage fees from April 1, which will provide an estimated $2 million in funding. It will also pick up around $500,000 each year from the UNESCO fund.

“So without question this represents a tremendous windfall for St George’s. I have said before and I think it bears repeating — St George’s is one of our Island’s historical beacons. It occupies a unique pace as part of Bermuda’s heritage. It was the site of the Island’s first settlement and in the last decade it has garnered the distinguished status of being named a UNESCO World heritage site.

“The old town was once a place bustling with tourists, commerce and cruise ships and this Government is working hard to see St George’s restored to those heights again. I am pleased to say that today’s grant is a demonstration of our solid commitment to St George’s.

Town mayor Garth Rothwell thanked Mr Fahy “for championing our request for funds”.

He said the Corporation had already purchased a trash truck and pick-up truck, while repair work to the town’s sea wall will begin next week.

“The Corporation is working on a five-year plan to tackle other concerns with our ageing infrastructure and projects to enhance the town for both our residents and visitors,” Mr Rothwell said.

“This plan will provide the information necessary to facilitate a rebalancing of the budget in the next few years in favour of St George’s, which has not received its fair share of funding for far too many years.”