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Report says some quangos should merge to better serve Bermuda

Thirteen of Bermuda?s 17 quangos should retain their present status while others should be merged, a report from the Cabinet?s Central Policy Unit has recommended.

The report recommends that instead of competing against each other, the West End Development Company (Wedco) should combine with Bermuda Land Development Company (BLDC), or that both merge with Bermuda Housing Corporation (BHC) to provide plans for affordable, sustainable housing.

The 500-page report, made available earlier in the week, is entitled ?Untangling Bermuda?s Quangos: A Review of Quangos in the Bermuda Government?. It suggests selected quangos merge to become more efficient.

Each year Government spends about 14 percent of its budget (roughly $81 million) on the semi-autonomous bodies. The first ever review of quangos was conducted to find out if they were meeting Government?s needs.

Out of all quangos, the Bermuda Housing Corporation (at 42 percent) and the National Sports Centre (at 56 percent) received the lowest approval rating of 707 Bermudians randomly polled.

The Bermuda Monetary Authority had the highest satisfaction rating among members of the public, with a 92 percent satisfaction rating, followed by the Island?s three government-owned golf courses ? at 86 percent ? and the Bermuda Small Business Development Company, at 86 percent.

Listed in the report were suggestions for quangos to improve their image in the community and effectively address social issues.

The report also says that the BLDC and Wedco appear to place more emphasis on profit rather than social concerns, while doing business.

According to the report, the Ministry of Finance and the Ministry of Health and Family Services should have joint responsibility and sponsorship of the newly merged quangos. In a section devoted specifically to the merger, the report suggests new legislation be enacted with consultation from stakeholders as a first step.

?In addition, consultation with the unions will be necessary to ensure smooth transition, since there are likely staff reduction implications.?

The report suggests merging these organisations as Government?s initiatives in relation to social housing are dispersed among the three quangos. The BHC is responsible for specific housing developments in Southside, the BLDC is responsible for affordable projects in Southside, and Wedco is responsible for the housing development in Boaz Island. The report points out that if the three organisations were to merge, it would allow for collaboration and better development plans of the Island.

?Competitive practices, whether private or public, without an overriding strategy for the entire country, will only lead to mismanagement of this limited precious resource? states the report. ?Moreover, there is better oversight if all housing and the commercial development sector were considered in an integrated framework.?

The proposal means reducing the number of general managers and having only one board of directors, with a broader scope. According to the report, the Board would then be able to develop a strategy that takes into consideration both commercial business and social housing.

?A merger would allow the directors and management to have a more holistic approach to development within Bermuda.?

Patrick Jones, Chief Executive Officer of the BLDC told The Royal Gazette yesterday that he had not seen all of the report, but said a merger between the two major land development companies would be ineffective as their offices are at different ends of the Island and finding a central location could be very expensive.

Mr. Jones suggested Government work with each quango to develop a master plan to identify areas of social need.

The report was compiled under the CPU by senior management services officer Ianthia Wade, corporate services officer Marva Jean O?Brien, Alexandra Storie, an information technology officer seconded from accounting firm KPMG, and Oronde Walker of the CPU.