Govt wrong to cut public servants increments - Hon. Fraser
Government had announced on January 9, 2012 that the increment of three percent of employees’ salary, which is retroactive from January 2011 will now be reduced to 1.5 percent while the operational expenditure of running the various government departments will be cut by seven percent or equivalent to some $11.8 million.
Financial Secretary Neil Smith had said those monies would be put into the reserve fund, which would be built to enable the country to run without revenues for three months in a worst case scenario. He had further related Government’s commitment not to lay off workers as he said the choice was either to decrease the size of the civil service or make expenditure cuts with the existing institution.
But according to Hon. Fraser, Government was wrong to cut public servants increments that were already worked for. Hon. Fraser was at the time debating the Customs and Duties Bill, which was passed in the House of Assembly on February 14, 2012. The Bill allows for duties to be lifted on Freight and Insurance of imports by business persons.
The bill will cost Government some 3.7 million dollars in revenue yearly, which Hon. Fraser believes would be wrong to make public servants make up for the shortfall.
“There is no way that this government can go and take from those public servants, their increments this year because the increments start from 2011, you can’t take it from them this year. And there is no way you can think about using that to make up for the short fall. How are we going to make up this 3.7 million that we are going to be taking away from the revenues of the Territory. How is the government going to explain to the public servants of this territory that they are going to cut their increments by 50 percent which I heard equates to 1.5 million. On the other hand, you giving the merchants 3.7 million dollars of your revenue?” Hon. Fraser asked.
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