MPs To Debate SAGE Report On December 13th
Minister of Finance Bob Richards said the SAGE report will be debated in the House of Assembly on Friday, December 13th.
Minister Richards said: “Since the SAGE Report has been tabled and made available to the public there has been widespread comment and debate in various circles including within the Government, unions and the general community. This is healthy and we encourage further discussion.
“As I said in the House on November 15, the Government is conducting a full review of the SAGE final report with the intent of implementing those recommendations to make Government more transparent, accountable, efficient and cost-effective, with the ultimate aim to reduce overall Government expenditure.
“I have made a “Take Note” motion on the SAGE Report to allow for a full debate of the Report in the House of Assembly, which has been scheduled for Friday December 13th.”
In light of questions raised by union representatives and members of the public concerning outsourcing and privatization, Minister Richards said: “The Government is sensitive to the concerns raised by the unions and, by extension, members of the Civil Service.
“I can assure civil servants and the public that consultation will anchor the SAGE process going forward. We will consult all stakeholders before recommendations are implemented.
“The process will also see the Government assess what recommendations can be implemented in the first year and the formulation of a timetable for recommendations that can be implemented in the following years.
“I look forward to a full and frank debate in the House as we continue to work to revive our economy through policies and actions that grow the economy and jobs on the one hand and government efficiencies on the other.”
The full SAGE report is 140 pages, some of the highlights are below and the full report is here [PDF]
Reducing Size of Cabinet/House of Assembly
- Cost of Bermuda Legislature reduced by 15%, approx. $911,000 of $6,079,000.
- House of Assembly be reduced from 36 to 30 seats.
- Size of the Cabinet be reduced to a maximum of 8 Ministers, including the Premier.
Possible Privatization
- In alphabetical order, the SAGE recommends that the Authority consider part or all of the following services for privatization or for placement in a quango: Airport Operations, Civil Aviation, Highways Management, Maritime Administration, Public Lands & Buildings, Waste Management, Water & Sewage Management
- The report called Highways, Ministry of Works & Engineering a “prime candidate for privatisation” saying they employ 12% of the Ministry’s total staff of 571 and expenses are 10% of the Ministry’s operating costs which total $61.4 million.
Pensions
- “The stark reality is that promises made regarding pensions will have to be broken,” SAGE said.
- SAGE recommended increasing the retirement age to 68
- If continued in their current form, due to the low funding levels, all of the schemes will run out of funds in the next 35 years.
Sick Days
- High proportion of Government workers [33%] who take an unusually high level of sick leave.
- Group is responsible for the bulk of the almost 42,000 sick days taken in 2012/2013.
- Sick days cost Government over $10 million
MAWI
- SAGE said duplicated services are provided at the KEMH and at MAWI because the two facilities are operated on two separate sites, and substantial savings would be generated from operating both facilities on one site.
Post Office
- SAGE said the Post Office is at least 80% overstaffed [over 100 too many staff]
- Last decade saw cumulative losses of $56 million [compared to $7m loss and $1m profit in prior decades].
- It is clear that the Post Office’s current business model is no longer sustainable
- If no action is taken, losses of approximately $134 million are projected over the next decade.
- Close all post offices, but leave 3: one in Hamilton, one in the East and one in the West.
- Reduce staff to the level needed to service 3 post offices and deliver mail to the cluster boxes.
Marine & Ports
- Maintenance of the ferry service, tendering operations for cruise ships, and government-operated ship slips and cradles be outsourced.
TCD
- Eliminate testing of vehicles by TCD
- Outsource to licensed garages who would charge customers & pay Government a fee to be licensed to do so.
- Government would still receive the vehicle licensing fees, but the garages would compete for the testing revenues.
- This arrangement delivers more convenience to the consumer
- Will save the government $2.3 million on the emissions contract.
Personnel Reduction
- Terminate poor performers first.
- If more savings are required: Require personnel who are past the retirement age to retire.
- If more savings are required: Incentivise personnel who are eligible to retire (and can access their pensions) to retire.
- If more savings are required: Reduce salary and wages of all personnel to achieve the required savings. We recommend that reductions are not applied across the board but are levied, least on the lower paid and more on higher paid, in an amount sufficient to reach the required amount of savings.
It is quite a comprehensive document. Wonder how many attempted to go through it, how many read the highlights & didn’t do either & have formed an opinion based on what others say?
I finished the first two sections, and put it down for the night intending to pick it up and review the next two sections on pensions and privatisation/outsourcing. Then life happened and I haven’t been back, lol!
How about yourself – how much of it have you been able to read?
I didn’t really have too much issue with the first two sections. I suspect the pensions and privatisation bits will be more of an issue for me personally, but I look forward to understanding their proposals and reasonings thereof.
Must admit, I picked at it, only hitting sections that really interest me. Even that was enough to make the mind go fuzzy.
The bottom line does not say anything not already known. The cost of running Bermuda Inc. has gone way over the top. Far too many people doing far too little. The Peter Principle reigns supreme in Government. People are promoted to their level of incompetence.
Time to make drastic changes in how things are done or we sink.
Debate??????? Sage = OBA/ubp
Yet another bit of smear from “Mazumbo”. Tiresome.
*cue his attack dogs asking if I have a life…*
No it wasn’t the OBA who did this report … really !
They commissioned it from an independent group.
SAGE=/=OBA
Like the Hospital Board. LMAO
No. Nothing like the hospital board.
The two things aren’t related at all.
But don’t let truth and honesty get in the way of your desperate need to smear.
Is Jennifer Smith in the OBA now then?
Majority rules!
What frikkin drivel you talk. Moron.
Produced by experts who know how to run an organiztion efficiently. Have a problem with that, or is it you dont mind paying millions $ to people who sit off all day and take 35 sick days a year…?
YOU HAVE PROOF OF THAT??????? EXPERTS FROM WHERE?????
It’s not difficult to check… why don’t you, before you start yelling?
Oh come on. You might not like what sage says, but your best answer is to suggest the commissioners might not be experts?
All of the four CA firms donated senior management time to assist SAGE commission
They are yet to debate the report, and Dunkley has already s#!%canned the idea of abolishing the NDC, and kicked off another 5 year drug control “plan”. If we add up how much money has been thrown away on this folly over the last 30+ years we might realize how much it has contributed to our economic collapse.
Doesn’t the NDC provide support to those who are most vunerable ?
How come no march for this?
Nice if they could televise the debate and discussions……
Why would you, of all people, care what attendees at a PLP meeting think ? Hilarious.
It would be nice. I’d like to see how they debate and what they say as compelling arguments.
Debate will be a waste of time anyway. The shortsighted PLPbiu will shut down with a march anytime OBA try to implement anything. Unfortunately they and their sheep are still the real ones (indirectly) running the show.
Take action to correct the 14 yrs of destruction.
that is your line, care to elaborate. as far as i know the GDP started to decline in 2008, thats 10 years after they where first voted in. so please with the 14 years nonsense.. also check that 2008 date and look back and research when the global economy started to suffer, particularly in the western hemisphere.
Again, I am not saying the PLP where perfect, as they certainly where not, just like the OBA isnt but lets not change the truth. .
It seems on this website that if people say things enough, they become the truth.. smdh
“It seems on this website that if people say things enough, they become the truth”.
That is a tactic learned from the PLP propaganda handbook. Been played by them for years. Example: The UBP failed miserably. But when called upon to provide some compelling examples all that we got was silence. It worked on the easily fooled though.
I love this “Oh, it’s the global economy” trope, and then the “they weren’t perfect, but…” deniability.
Sure, the global economy was hit hard.
However, there HAS to be recognition of the mismanagement of our country that caused the global decline to affect us – and CONTINUE to affect us – as badly as it did.
It’s a myth about the “global economy”. Canada never went into recession. USA was out within 18 months.
Bermuda could have avoided it entirely if we weren’t borrowing like nutcases and chasing away employers.
Privatise the lot…Do what you are paid to do or get FIRED!
Plenty folk in Bermuda that will DO what they are paid too and without any union interfering.
You certainly can’t be so naive to think that Bermudians will be the ones hired if these departments are privatized?
Why not? Those with the right attitude towards the job will be the first ones hired back on. The ones who take sick days for no reason. The ones who refuse to do anything slightly beyond their job description. The ones who do not put a minutes more than what is required into the job than what is required. These people will be on the outside looking in.
In an idealistic world maybe. But when it comes to saving/making money who cares how eager and reliable staff are.
I’m sure if this newly formed private company will find creative ways to justify hiring cheaper (foreign) labor. It’s about profit, not rehiring the good workers. Why pay a keen qualified Bermudian $$$ to do the job when you can hire an equally keen foreign worker $ to do the same thing? Or better yet, outsource the service all together.
Hey, it works wonders for Apple. No need to pay those lazy, starving, struggling Americans a decent wage when we can pay those cheap, overly oppressed Chinese workers peanuts!
I mean, we are talking about just some lowly blue collar jobs right? (sarcasm). Capitalism at its finest!
Apple employs 80,000 people worldwide, including over 60,000 in the USA. Did you actually have a point, or are you just throwing around stupid slogans about “capitalist companies” who “won’t employ Americans”?
Yeah, the point is compainies like Apple will save money where they can, regardless of the negative impact it could have on a community.
They’re in business for making a profit, not for stimulating an economy. Also, I’m sure if they could find a way to ship out more of those 60,000 you quote, they would, if it saved cost. It’s called outsourcing. Maybe next time you do some research on your iPad, think about who put it together. And that’s if their still breathing. But hey, we can’t all be wealthy right.
And lastly, America was built on Capitalism. To deny it, or simply chalk it up as a “stupid slogan” would suggest you’re probably oblivious to the struggles of the less fortunate.
So the “no need to pay those Americans” argument turned out to be crapola.
That capitalism that you hate so much employs 80,000 people, including 60,000 Americans, just in one company.
But you carry talking s***. I’m sure all those socialist economies, like North Korea, are great places to live.
Why would SAGE recommend privatizing Civil Aviation if it had a $13,062,000 operating profit? Shouldn’t government keep this department if it making a profit.
That’s an easy question to answer. Actually, you answered it yourself. 13mil profit!! Who wouldn’t like to sink their teeth in that. You don’t actually think this whole thing was just about making government more efficient do you?
Union Interfering. the unions around the world have stood up for many workers rights and many of the benefits you now enjoy on your current job came from the result of unions fighting for its members.. be they white or black, blue or orange..
to stand up for someone’s rights and demand just treatment and equality in the work place should not be viewed as interfering.
The members pay a fee each week to have the unions represent them, if the Unions where not standing up for their members, then they would be accuses of stealing the people money, am I wrong? It is their role as a union to stand and represent their members, they don’t “interfere” just for the hell of it..
I totally understand that changes need to be made, but do we ever stop to ask what the social impact these changes will have on our community.
These are living breathing people we talk so carelessly about. Fathers and mothers trying to feed their families, yet we talk about them with such contempt. The sentiment usually seems to be, hey we been out here struggling, now it’s your turn! How typical of the small minded society we live in, also referred to as Crab Mentality.
What I would like to see is a 120 page report of new and innovative ways to stimulate the economy and create jobs. How refreshing that would be.
Have you thought about the “social implications” of NOT making these changes?
If you want to see what happens when the money really does run out, look at Haiti, or Greece. There won’t be “debates about the commission’s findings” then. Things will just close, overnight.
I agree with you completely. My only concern is that it seems as though we will be solving one problem, only to create another. Austerity measures work, but also come at a price of increased social unrest.
I simply would have liked to also see an equally comprehensive report from our business experts with ways government can generate revenue and stimulate the economy.
Cuts need to be made, but rest assure that it will come at a cost.
No, the “increased social unrest” comes when the money runs put and government has no choice but to run on skeleton staff. That’s when Greece happens.
I’ll use PTB as an example. As it stands now, the main objective from government is to provide a quality, affordable service for the community, as well as jobs for Bermudians. As a result the department runs at a deficit.
If it were to be privatized, you can throw all of those points out the window. The arguement can be made that at least govt can wipe their hands clean of the loss. Great! But at what cost.
All of a sudden it’s no longer about service and jobs for Bermudians, and becomes a money making venture. That means significant cuts in pay or looking to bring in foreign drivers willing to work for less. That means no more free transport for students. Expect a steady increase in fares. No real competition to keep prices reasonable.
So yes, government is saving money on one end. But on the other end, we now have jobs that most locals wouldn’t be able to afford to live off of, so a sudden boom in foreign drivers. Citizens paying outrageous prices to catch the bus etc…
If you don’t think so, just research any other jurisdiction where an essential service is privatized with no other like service to compete against, already in place. We live in a Capitalist society, so it’s not rocket science what would happen.
We just do not have the money!
The civil service is TOO LARGE.Bermuda is now in the real world ,not LALA land.
For fifty years, we had a growing economy and Bermudians just do not know how to deal
with the situation.
You state what ifs but no solutions or answers.
What you say is very true. That is why I ask the question of what next? We downsize the Civil Service with outsourcing and privatization. Then what? What happens to all the staff losing their jobs as a result. That money is no longer being filtered into the economy. Applications for govt assistance increases.
It’s all great that government saves some money, but what about the people? What about the mortgages/rent not being paid, school fees, empty bellies.
Major corporations use the same line of thinking. Screw the little workers, who’s jobs can now be outsourced to save a buck, so long as we keep the investors happy.
Where do all of these blue collar workers go? Most are not nearly qualified to apply for these IB jobs that govt are so keen on stimulating. In one breath you give concessions to certain entities to stimulate growth, for other you bring down the axe. Who guarantees that jobs will be created as a result of the breaks?
If we learned anything about the golden years of Reagan, trickle down economics only benefit the wealthy. And if the wealthy are renowned for anything, it’s how to save/make money, for themselves.
If one wants to keep cheap bus & ferry fares Government will still have to subsidise a private company to run the transport. The difference will be that the private company will be much more efficient & the subsidy put in by the taxpayer will be much smaller.
I’m not a big fan of the post office’s operation, or its rude staff. I think what the sage commission recomended to do is a great idea.
I know someone that went the other day to get stamps.
The stamps cost $5.50
Customer paid $20 note and $0.50 in change.
Customer should receive $15
But no not at the post office!
Customer got $25 change and $5.50 worth of stamps!
Government is out of pocket $10.50 for a transaction that should just take seconds.
Honest mistake? (this time) or do you think this happens all the time due to “inefficiencies”???
New math. Blame it on the education system that nobody can fix.
MPs TOOOOOO debate Sage Report. Y’all are jumping the gun.
I really like the sage report. It is straight forwarded and explains where we have been losing money. 10 million is sick days alone! I just hope we can do something with those facts!
Did S.A.G.E. mention all the expensive reports commissioned only to be disregarded and ignored ? Will the Sage Report be shelved with the multitude of previous ones ? The Minister for public safety has already started by ignoring what these experts said should become of the NDC , I believe their expert opinion was “should be abolished” and governments response is to kick off 5 more years of waste.Was it the Hopkins report (another expert) which said the Dept. of Education has to go ? File 13 .