Norwegian Cruise Lines has committed to bringing 56 cruise ships to Bermuda each year in return for concessions and berthing rights, tourism minister Michael Fahy told the Senate.

Mr Fahy made the announcement as he outlined spending in the Ministry of Tourism, Transport and Municipalities as senators debated the Budget.

He also addressed the continuing problems with buses and said four new vehicles would arrive on island in the third quarter of 2017. The Government is also looking to buy eight more buses in the coming fiscal year.

Mr Fahy urged the unions to accept the bus schedule that has been put forward, saying it would significantly reduce overtime and allow a massively improved maintenance schedule.

“Currently to run a peak service we need 88 buses,” Mr Fahy later told The Royal Gazette. “Under the new schedule, we would need 46 buses.

“This failure to agree by the union has now become a serious issue and must be resolved. We must put the public first and the new schedule will complement our other efforts to improve service and safety for passengers.”

Meanwhile, the NCL agreement, which expires in 2022, will see NCL-branded ships and their smaller luxury cruise lines including Oceania Cruises, Regent Seven Seas and Prestige Cruise Holdings visiting Dockyard, Hamilton and St George’s.

NCL also committed to acquiring tender lift at its own expense that would be leased or built to help transport NCL passengers in the West End, to and from St George’s.

Mr Fahy said: “Pending the signing of the lease agreement, a vessel has been identified to be chartered by NCL from May through October 2017, while NCL continue to build two smaller purpose built tenders to service Bermuda between 2018 and 2022.

“The tender is intended to be licensed for 400 passengers and will operate on days when NCL ships are in port.”

As part of the agreement, Bermuda has agreed to upgrade Penno’s Wharf to as well as the provision of fresh water for each cruise ship call.

Speaking about the Department of Marine and Ports, Mr Fahy said that the ferry Millennium would continue to operate until the end of the 2017 season, but the contract would not be renewed.