FOURTEEN MEASURES TO CUT COST IN PUBLIC SERVICE ANNOUNCED

Wednesday June 23, 2010

His Excellency the Governor Mr. David Pearey and Premier and Minister of Finance, the Honourable Ralph T. O’Neal, OBE announced at a press conference today fourteen decisions taken by Cabinet to manage the growth of the public service.

The Governor said that it is important to know that, “The strategies to be implemented were agreed upon after consultation with the Civil Service Association, Prison and Police Welfare Associations and the Teachers Union.

He explained that the, “The operating personnel cost in the public service is recorded at $115 million and represents 40 percent of the Territory’s operating budget. Controlling the growth, size and operating cost of the Public Service is a necessity if we are to come through any financial crisis, which might affect this Territory.”

In his remarks, the Governor highlighted nine areas of cost-cutting initiatives however, he emphasised three points namely the sharing of human resources; suspension of external hiring and the mandate for all government departments to develop additional revenue raising and money saving strategies.

The Premier echoed the Governor’s sentiments about the importance of cutting cost in the public service. He shared that the 2010 projected combined financial, technical, physical and human resources costs for operating the public service is approximately $235 million.
“This is enough reason to take stock of the Government’s financial survivability and exercise fiscal prudence as the best option to manage the growth of the public services.” the Premier said.

The Premier made it clear in his remarks that civil servants will not lose their annual increments once they have met the required standards needed to receive the annual increase.

He also spoke at length about the use of Government vehicles. “Effective, July 1 no government vehicles will be allowed to be used in private capacities. Officers will be given the option of purchasing the vehicles at market value,” the Premier said.
Stricter measures are currently in place after the implementation of a Motor Vehicle Procurement and Use Policy, Procedures and Guidelines by Cabinet recently, which stipulates that departments introduce tighter procedures on the use of official vehicles and that any abuse of the procedures will be a disciplinary matter.

The estimated savings is projected at $960,000. The Premier explained that these measures are just the beginning, “We must take personal responsibility to ensure that we can survive any financial fallout with a greater resolve and I can assure you that this is not the end but the beginning of securing the Territory’s future.”

Prior to the press conference the Governor and Premier released statements to civil servants about the new measures. Following the press conference the Governor and the Deputy Governor held an Extraordinary Heads of Department (HOD) Meeting to brief the HODs on the new measures and to give them the opportunity to ask questions.

Given the current economic challenges, Government is committed to making tough decisions, which will help control the growth of the public service while ensuring delivery of services to its customers.