Government may have to borrow more money in order to keep civil servant jobs and social programmes next year, Shadow Finance Minister Bob Richards has warned.

On the heels of Finance Minister Paula Cox's promise that there would be no layoffs in spite of her suggestion that Ministries look at ways to trim their budget, the Opposition MP insisted the Government faces difficult decisions if it hopes to keep both pledges.

"There are going to be hard choices ahead about what they are going to have to cut," he said. "Civil servants account for a large part of the budget, I would be looking at how many jobs we could loose through attrition, people nearing retirement age, and tell the Bermuda people that."

Salaries, wages and overheads accounted for $471 million, almost half of the $1.1 billion Government budget for 2008. Ms Cox's suggested budget cuts of 10.5 percent per Ministry, could trim $110 million off last year's figure.

The news came as the Bermuda Sun revealed an independent report recommending raises for MPs had been handed to the Speaker of the House, and on the heels of ads for at least three new Government posts – a director for a Hospitality Learning Centre to be launched next month, a director for the African Diaspora Heritage Trail Bermuda Foundation (pay scale $93,928.92 to $100,369.40), and a consultant for Government's workforce development initiative.

The latter position is for only one year and comes with a salary of $110,000.

Announcing the cuts on Tuesday, Minister Cox said: "As a guide, each Minister has been encouraged to identify savings of 10.5 per cent within their existing cash limits. This is a target and a guide.

"Some Ministries will not be able to do this given their people-oriented focus whereas other Ministries may be able to identify savings."

She added that the Finance Ministry was not looking for a "reduction in employment levels" and is not looking to raise taxes. For her full speech go to page 4.

However Mr. Richards maintained that Government does not have many options: "With falling revenues and so many of their expenses already locked-in, something is going to have to give. I believe what is going to give is the borrowing. I believe they are going to have to further draw down on that.

"I think this has caught them flat footed."

Last night Premier Ewart Brown refused to say what the committee had recommended on salaries and he admitted there was sensivity about the issue in light of Government belt-tightening.

He said: "We have not finished with it yet, we have one recommendation, our caucus is reflecting on it so we don't have a final position."

Cabinet Secretary Marc Telemaque declined to comment on the Bermuda Sun article.

The report is not expected to be made public until it is brought up in the House of Assembly.

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n Editorial – Page 4