Emissions Control on TCD, Costs & More

Bermuda Emissions Control Ltd [BECL] said they wish to clarify a February media report about the hearings of the Public Accounts Committee. The first sentence below is the taken from the report, and the box quote contains BECL’s reply.

‘He was asked if TCD could run the facility cheaper than BECL, he said: “Sure. We could run it for $1.4 million less.”

It is a fact that a private business exists to make a return (profit) for its shareholders/owners. The public sector operates on a zero profit basis. Also, staff costs would be lower if run by TCD as some of the staff employed by BECL would not be required. So the statement attributed to Mr. Rochester is rather obvious.

However, we strongly dispute the sum of $1.4 million which seems to have been pulled out of the air. It is worth noting that TCD, the Ministry of Transport and successive governments, have been aware for many years, if not decades, that the process and equipment used by BECL in the vehicle safety and emissions testing lanes was readily available and employed in other jurisdictions, but chose not to introduce it to Bermuda.

That initiative was solely due to BECL. It has taken Donal Smith over twenty years to bring this project to fruition.

‘He said Government has been paying for the utility bills, maintenance fees and repairs for the equipment at the TCD emissions testing centre for the past two years’.

It is a fact that not one single maintenance fee or repair bill for any of the equipment or part of the facility operated at North St, and totally for the facilities at Southside and Rockaway and used by BECL, has knowingly been passed to TCD or paid by TCD.

BECL has paid and continues to pay all its maintenance and repair invoices as required. In addition, BECL pays completely for the rent, phones, electricity, landscaping, office cleaning, building repairs, equipment repairs, air conditioning, security and IT systems at Rockaway and Southside, and for all technical training of its staff.

We have been made aware that although there are two electricity meters at North St, there is still work to be done to split the electrical network appropriately and that this will be completed in the near future.

‘Mr. Rochester was asked to estimate how much profit the owner of BECL, Donal Smith, is receiving from the contract, based on the operational costs. He said it would be somewhere between $400,000 and $600,000’.

Donal Smith is not the sole owner of BECL. There are three shareholders, none of whom hold more than 50% equity. Due to the high start up costs, the costs of employing consultants and specialist staff in the years running up to opening for business in April 2009, and loan repayments, the company has not, to date, made any profits nor have the shareholders received any dividends.

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