Government says the City of Hamilton has “stepped back” from a project to install a new X-ray scanner at Hamilton docks to detect contraband hidden in shipping containers.Minister Without Portfolio Michael Weeks said the move resulted in an additional $4.5 million cost to the Ministry of National Security.Hamilton Mayor Charles Gosling has refuted the suggestion, saying the municipality is investing $2.8 million in the project.Finance Minister Paula Cox said Government has budgeted $3 million in the next fiscal year for the completion of the long-awaited equipment.It will enable Customs officers to examine each container arriving on the docks without having to search them by hand. It is hoped the effort will combat the smuggling of guns and drugs.In comments about the new Department of Border Control within the Ministry of National Security, Mr Weeks told the House of Assembly during the Budget debate: “The Corporation has stepped back from the project [which] resulted in an additional $4.5 million cost to the department.”Asked about this, however, Mr Gosling said: “I am not sure what we stepped back from. We have been, and continue to be, a partner in this project.”He added: “In 2008 or 2009 the national Government made the decision to implement a policy whereby all incoming containers would be scanned for illegal items such as drugs, guns and ammunition.“A national policy to be led, one would expect, by Government.“In December 2009 the Corporation of Hamilton passed its 2010 budget which included funding for the X-ray project.“This number varied back and forth from about $3 million and may have been as high as $4.5 million at one point, as we were unsure of the extent of the work necessary to uphold our part of the project.“HM Customs began a series of meetings with the Corporation of Hamilton setting out the scope of the project, reviewing and completely revising the construction plans as well as working on a memorandum of understanding on who was responsible for what in terms of work and expenses.“A number of meetings were held and during the whole time there was no significant disagreement on how the work was being divided between the two parties.“These meetings stopped around the same time as the Municipalities Reform [Act] was being debated by Parliament.”That reform bill threatened to stop the Corporation benefiting from the wharfage fees generated from the docks.According to the Mayor: “It was felt that if the municipalities were no longer receiving the wharfage revenue from the docks, how could the Corporation of Hamilton be expected, or able, to pay for their part in the installation of the infrastructure surrounding the X-ray building?“The discussions stopped well before completion of the document. Simply, there was no final agreement on the full allocation of costs. The ball was dropped.”The Corporation was later told that it would continue to benefit from the wharfage fees after all.“Talks started again with Customs in the last quarter of 2010, about the same time as we were advised that the current method of distributing wharfage would continue in 2011,” said the mayor.“Our 2011 budget was based on that letter. We approved $2 million on the project having spent $550,000 over the last year and lost revenue from the destruction of the Number Seven car park.“We have also identified where changes to the access to the docks will force us to budget a further $300,000 to ensure safe placement and access to the reefer containers.“This will total over $2,850,000, very close to our original expectations.”The municipality has since lost the right to directly collect wharfage fees from ships using its docks. It will instead receive a $5 million grant, as detailed in the 201½012 Budget.Deputy Premier and Public Works Minister Derrick Burgess told The Royal Gazette last week he didn’t know when the scanner would be working.“We are trying to get it up as quickly as possible,” he said.Mr Weeks made his comments in the House of Assembly when he was filling in for Minister of National Security David Burch, who is a senator.