Legislative Assembly has voted into law a bill to reduce the salaries of civil
servants by 3.2 per cent, effective Thursday, 1 July.
Public Service Management (Amendment) Bill, presented by Deputy Governor
Donovan Ebanks, immediately and temporarily reduces civil service staff pay and
benefits. The law does not specify a date when the pay cuts will be reversed.
Civil Service Association earlier agreed to the salary cuts.
salary, benefits and other cuts within the Civil Service will save the government
up to $9 million, including $5.4 million in salary reductions, $3.1 million in
health-care costs, and $300,000 in the suspension of travel benefits for
overseas contracted staff, said Mr. Ebanks.
will also be reductions of 50 per cent to 75 per cent in overtime, temporary
relief, call-out allowances, vehicle upkeep and freight and recruitment
expenses. There will also be a temporary halt in entertainment allowances and
in laundry allowance for
Ebanks said the cuts
included a rollback of the 3.2 per cent cost of the last cost-of-living
adjustment awarded in July 2008. “It is a monumental and historic development
for these islands to find myself here having to roll salaries backward,” he
the 2010-2011 budget demonstrates, there can be no dispute – reversing the
government’s deficit position is a national imperative,” he added.
coming financial year’s budget forecasts an overall deficit of more than $31
million, following borrowings of $155 million.
need for prudence and restraint in what we spend cannot be over-stressed,” Mr.
were also made to the Public Service Pensions Law to deal with the calculation
of pensions payable to staff whose wages have been reduced.
amendments to the pensions law were introduced to ensure the civil service pay
cuts would “not negatively impact the pension entitlements and legitimate
expectations of both current and new retirees”, Mr. Ebanks said.
the contributions payable to the public service pension funds on behalf of
civil servants or the benefits payable to retired staff will be affected
negatively by the cuts.
more cuts could lie ahead for the Civil Service following a review of four of
the government’s highest-spending departments.
Ebanks said teams from the public and private sectors had reviewed the
Department of Tourism, the Public Works Department, Prison Department and
CINICO, which among them accounted for an eighth of overall government
expenditure, and presented a report in March.
thanked Jim O’Neill, managing director of Caledonian Bank, Wil Pineau, CEO of
the Chamber of Commerce; David Kirkaldy, president of Massive Equipment Rental;
and Colin Reid, chief operating officer of Bodden Holdings for helping to
identify savings of approximately $17 million within the four agencies.
Ebanks said if similar savings could be found across the remaining seven-eighths
of government departments and agencies that could lead to a $100 million drop
steps recommended in those reviews have already been implemented or were under
consideration, Mr. Ebanks said, including the closure of some overseas Department
of Tourism offices and remote court appearances by video link for prisoners on
also voted to amend the law to prevent performance-based remuneration of civil
servants from coming into force on 1 July this year, instead changing the
wording so that the Governor in Cabinet will name a future date for that
provision to come into effect.
provision would meant that pay raises for civil servants’ would depend on their
performance on the job, similar to the