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Govt. slashes bill for consultants by $12.5m

Fees cut: King Edward VII Memorial hospital recently cut ties with its US consultants, Kurron. Now government is slashing its consulting fees by $12.5 million.

This year’s Budget delivered on widespread expectations for cuts in one of Government’s most contentious expenses: consultants.The combined cost of consultants for 2010-2011 was $43.5 million, $6.6 million less than in the previous year.Now it will be cut by $12.5 million.$17.9 million was paid out to local consultants, while $25.6 million went overseas.In the latest Budget, estimated spending on local consultants is cut by almost half, to $9.27 million for this financial year.Spending on overseas consultants has been reduced from $25.67 million to $21.78 million for the coming year.Earlier this week, Bermuda Public Services Union president Armell Thomas called for “the right cuts” to be made, adding: “Let’s have a really good look at consultants.”He conceded that some would remain on contract from the previous administration.During a response to the National Health Plan at the start of the month, Shadow Health Minister Louise Jackson told the House of Assembly that spending on health consultants was “absolutely obscene”.Bermuda Hospitals Board subsequently dropped its five-year contract with health consultants Kurron Shares. The $13.5 million contract with the New York firm was cut short by 18 months.Bermuda Democratic Alliance finance spokesman Michael Fahy has said that with Government spending 50 percent of the Budget on salaries, “a slashing of consultants is an absolute necessity”.