.png)
'There is an appetite in some places to privatise some services' - Premier Smith
During a press conference held on March 28, 2018, at the Central Administration Complex in the Premier's Office, Dr Smith dodged questions posed by reporters on whether public servants will be laid off.
Asked, with the new bill that was passed, what position does it put the public servants in terms of employment, Premier Smith said:
“If we do not get the loans that we require over a period of time then we will not be able to continue the recovery and the development of the BVI. If there is no guarantee and no loans then the issue would have to be looking at our economy and see what we need to do because certainly if we are going to be $50 million short for this year then we would have to look and see what we can afford to do without that $50 million.”
He continued, “I’m saying that we have gone through a process. We’ve looked at the Bill that has to do with the guarantee and the setting up of the agency and we are satisfied that it is a good Bill and we are expecting that the governor will also look at it from our point of view and that we will be able to move on.”
Reports have it that workers at the BVI Ports Authority have received pay cuts but Premier Smith could not confirm or deny but stated that no directives came from his government.
Using privatisation to make VI industries more efficient
Meanwhile, the embattled Minister of Finance, responding to a question of whether engaging in privatisation will cause layoffs, he said his government is looking at using privatisation to make different industries more efficient for the people of the territory and the international community.
He explained, “What happens is that all governments must look at how they provide services in the country. It is a common saying that the private industry is more efficient in providing services and so there is an appetite in some places to privatise some services. For example, we have created several statutory bodies like the BVI Electricity Corporation (BVIEC), Financial Services Commission and they run like private institutions and they run very efficient.”
Premier Smith further indicated that there are areas where his government is planning to create a “private-public partnership” and noted that the airport expansion will be considered for that partnership. “It will be more efficient and get what we need for the people of this country without over-exposing the government.”
In addition, he mentioned that his government is looking into privatising the Fisheries Department.
He explained, “We all agree that it is ok also to look at the position where we think it is important. For example, we had discussions on a few occasions, not formal discussions about the possibility of privatising the Fisheries maybe because we feel with our Fisheries Corporation, where all the fishermen are involved, it might make for more efficiency.”
.png)
.png)
Follow Us On
23 Responses to “'There is an appetite in some places to privatise some services' - Premier Smith”
When they do work, three workers do the work of one. And when they do work, managers do private work on public time.
Makes my head hurt. And we the taxpayers should agree to continue this madness?
We need an election now
Moreover, whether a service is performed in-house or outsourced, government has to ensure that the best service(s) is being delivered at the least cost. Outsourcing has been around for decades with mixed outcomes. Outsourcing is not a panacea for improving services or reducing costs. Cost savings invariably is often the prime reason for outsourcing. However, there are a myriad of reasons why an entity may want to outsource services, including reducing cost of service, improving service quality, contracting out non-core services to focus on core services, accessing readily infrequently needed services, accessing specialty skills, indefinite delivery and indefinite quantity services (debris clearing and removal after a storm).......etc.
Further, if government decides to outsource services it must 1) be mindful of the perils of low, responsive and responsible contracts( low bid +plus poor performing contractor spells challenges), 2) cost creap(over time the cost of delivering services by contract may be more than if the services were performed in-house, 3) maintain some service delivery capability/capacity in-house just in case contractor folds up tent and leaves, 4) award contract with a base year plus several options (provides felixiblity in competing services and parting ways with a poor performing contractors, and 5) contract should include clause for (a)convenience and (b) default.
Government needs to lower the cost of delivering services. It needs to enhance productivity, look at vertical and horizontal cuts to some services, cut the size of the civil service, consolidate some services, eliminate some departments, centralize some services ( ie Human Resources), reduce number of statutory bodies, implement a hard hiring freeze, privatizing some services...........etc. Revamping the civil service will not be easy but it is necessary; change is never easy; kicking the can down the road is easier, especially if the tough decisions can be left for others to make.Nonetheless, revamping the civil service cannot be done in a vacuum; a holistic approach is needed.
Specifically, government must create the framework for building the economy to provide more private sector jobs to absorb the loss of jobs in the public sector. ,
Need is what matters..Need De Party ( NDP).