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Error leads to confusion over budget item

Works and Engineering Minister David Burch reassured the Senate yesterday that his ministry had not ?lost our minds? and spent an extra $8 million on consultants.

Sen. Burch was responding to an Opposition question from Sen. Bob Richards on planned spending in his department.

He said the bulk of that sum had been spent on repair and maintenance. The way the $8 million total had been presented in the Budget figures, listed under professional services, had created confusion, he added.

The figures in the department?s current account spending show that ?professional services? rose from $4.8 million in 2005/6 to an estimated $12.8 million in 2006/7. Repair and maintenance fell from $8.9 million to $1 million in the same period.

The Opposition has tabled a parliamentary question asking how much each major Government department had spent on consultants since 2003.

A response from the Ministry of Works and Engineering and Housing has not yet been made public and Sen. Burch yesterday said it was being worked on.

Earlier Sen. Kim Swan raised concerns about waste levels at Tynes Bay waste treatment plant and potential dangers to workers.

He urged Government to do all it could to ensure the plant functioned at the ?optimum level? to reduce the pile-up of trash.

In response, Sen. Burch said he was aware of the situation at Tynes Bay and said action was being taken to cut down the backlog.

He added that staff were not getting full cooperation from residents bringing bulk waste to the site, and said they were acting like this year?s January shutdown was a new development.reported last August how Tynes Bay residents were living in fear of another inferno at the plant. A problem with a shredder then led to a growing pile of refuse ? seen as possible ammunition for an arsonist. And the problem stoked memories of the Christmas Day 2004 arson attack at the Devonshire facility, which sparked a fire that lasted three days.

Progressive Labour Party senator Raymond Tannock read the proposed amendments and told the Senate that they would help the Government meet its goal of maximising returns while being prudent of investment risks.

The amendments allow the committee which advises the Minister of Finance to involve more people. Currently the maximum number of committee members is five, the number can now rise to seven people.

The committee, comprised of private sector members and Government technical advisors, makes recommendation to the Minister about how funds should be invested.

Another amendment will increase the scope of funds the committee can invest in, in particular addition types of securities will be allowed.

Senator Tannock said the addition securities would allow the committee to ?embrace more modern methods of portfolio management and pension fund investing?.

He also said that it would maximise returns while maintaining a prudent level of risk. The committee will now be able to invest in private placement, asset backed and mortgage back securities.

In 2005 the Contributory Pension Fund grew by almost $93 million and broke the $1 billion mark. Last there were also investment gains of $83.1 million for the Contributory Pension Fund. Its annual rate of return is 8.85 percent.

The Superanuation Fund also saw an increase in 2005 of $24.8 million bringing the fund to $358.2 million. Its annual rate of return is 8.87 percent

United Bermuda Party Senator Bob Richards and Independent senator Walwyn Hughes agreed that the amendments were a positive step and said they reflect the current investment market on the Island.