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Civil Service job cuts inevitable, claims BDA

Civil Service redundancies are inevitable as even $150 million savings won’t be enough to steer Bermuda through the economic crisis, according to the Bermuda Democratic Alliance.Finance spokesman Michael Fahy said Premier Paula Cox will need to step up her fat-trimming proposals as a shrinking tax base will lead to decreased revenue in the coming year.Bermuda Public Service Union president Armell Thomas said the union would be working with Government to ensure all full-time jobs remain safe.However he said Ms Cox has alluded to cuts in temporary staff and people not being replaced through attrition, while spending on consultants will also be reduced.Shadow Finance Minister Bob Richards yesterday repeated his call for Government to tackle its consultants bill, which he says has “grown extravagantly”.The Premier yesterday would not reveal how she’s going to make savings, saying her plan for dealing with the recession would be laid out in next month’s Budget.Both Opposition parties and the Chamber of Commerce yesterday welcomed an agreement between Bermuda Industrial Union and Government to cut overtime saving $1.5 million a year on the condition that Government trims costs from the top-down.Mr Fahy said: “We support the union’s call for a cut in consultants, however our fear remains that this will simply not be enough now to do what is required.“We have said that it is important to save jobs and prevent redundancies, however given what is happening in the private sector it is apparent that redundancies will be the most likely outcome in the Civil Service.“With major law firms and top Bermuda-based companies making announcements regularly about redundancies it is only a matter of time.“There needs to be a serious reality check: over 50 percent of the Budget is on salaries. What choices are there left, especially with amount of income projected by the Premier likely to be well off base?”Ms Cox has pledged $150 million savings in her first fiscal year as Premier, but Mr Fahy said: “Given that there is most likely going to be a revenue shortfall based on the last budget projections $150 million is simply not enough.“The fact is the tax base is shrinking. Sadly these are best ‘guesstimates’ given the inadequacy of the statistics provided by Government.”Mr Richards said: “We support yesterday’s union decision to accept overtime cuts. It says workers are prepared to play their part to help the community through these tough times.“We also compliment the union for attaching a condition to its consent whereby the Government is supposed to cut spending elsewhere.“This may be the first time Government has allowed itself to be held accountable for its spending. We applaud the union for this breakthrough. Its members know what they are dealing with and the deal, as it stands, should force Government to hold up its side of the bargain.“But no one should get carried away that this a game-changer. The overtime cutbacks are nipping at the edges of a much bigger problem, which is that the Progressive Labour Party has saddled Bermuda with a Government that has become too expensive for the Country.“There are many areas of unchecked growth the Government can review to get a grip on spending. One of the ripest is the more than $100 million a year it spends on professional services, also known as consultants.“Its use of consultants has grown extravagantly, soaking up ten percent of the Government’s Budget.”A press officer for the Premier disputed what Mr Richards said about $100 million per year being spent on consultants. He said just $44.5 million of the $100 million professional services budget for 2010/11 related to the services of consultants. The rest comprised of payments including security and maintenance contracts, legal aid and board and committee fees.Chamber of Commerce president Stephen Todd welcomed yesterday’s announcement on overtime cuts, telling The Royal Gazette: “Every little bit helps in terms of cost-cutting and it’s very gratifying to see the efforts of Government in this direction.“It shows they are actively looking to manage expenses and reduce expenditure where possible, with the cooperation of the unions.”Mr Todd also praised Government for inviting the Chamber and other groups to a roundtable discussion on the economy.Reacting to Mr Fahy’s redundancies warning, BPSU president Mr Thomas said: “We met with the Premier and our membership on separate occasions.“The Premier alluded to cuts with temporary staff once their contracts are up in most cases consultants and not filling posts through attrition.“We will be working very closely with the Premier and her team to ensure that transitions are productive and full-time posts are secured.“We have to also support our temporary staff in securing full-time positions in our community. If not we risk paying great amounts with Social Assistance.“Now is not the time to be adversarial with the Government. We have to come together for Bermuda and its people.“We had a membership meeting and the membership decided to delay negotiations until we see the Budget. We don’t mind supporting the cutbacks within Government as long as they are the right cuts.”Yesterday, this newspaper asked Ms Cox and Economy Minister Kim Wilson how widespread overtime costs will be and what help can be given to workers who lose overtime they have relied on to support their families.We also asked what other ways Government intends to save or generate money throughout the recession, and what measures people can expect in the Budget.A press officer for Ms Cox replied: “The Premier and Minister of Finance has stated that the strategy to deal with the recession would be laid out in the National Budget Statement in February.”