Report: Cabinet accepts civil service cuts

The Cayman Islands Cabinet has green-lighted nearly $24 million in cuts to the civil service over the next year, to take effect in the next fiscal year’s budget that begins 1 July, 2013.

The reductions were set out in the Strategic Policy Statement made public in the Legislative Assembly Monday.

The proposals result from three phases of efficiency reviews completed by the public service that will be implemented in “the short to medium term”, according to the policy statement.

The reductions proposed for the 2013/14 budget year include:

*Discontinuation of the government’s housing assistance programme – savings $3.7 million

*Reductions in the PRIDE programme and Nation Building Fund – savings $2.8 million

*Attrition in the civil service [during the 2013/14 year only] – savings $5 million

*Consolidation of statutory authorities – savings $4.9 million

*Centralisation of procurement operations – savings $2.4 million

*Improved risk management [through self-insurance] – savings $3 million

*Reduction of interest costs [debt repayment] – savings $1.9 million

Additional reductions in the 2014/15 and 2015/16 budget years include further attrition-related reductions in the Cayman Islands civil service of $8 million, and reductions in the Nation Building Fund of $2 million.

The government also expects further reduction in interest costs over those two budget years.

Please see much more on this story in upcoming editions of the Caymanian Compass.

Cayman Islands Government Administration Building

There may be fewer civil servants working in this building by the next budget year.
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4 COMMENTS

  1. interesting that there are no immediate staff reductions. This leads me to believe that they think the government is not currently over staffed.

    It will also be interesting to see how they will reduce their interest costs. The only way is to funnel increased revenues towards debt retirement or channeling current spending towards paying down debt. But budget cuts seem to come in the form of not spending money that they realize they don’t already have, not reducing current spending patterns.

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  2. Why not just get rid of the nation building scheme full stop and let the private citizens build this country for ourselves. If we do nothing then that is OK at least it is what the people want and can afford.

    For example church’s already don’t pay duty or work permits and how many places of worship do we need as we already have a lot of churches here. Eliminate the fund and give back the money by less tax – say lower the fuel duty tax then everyone will benefit.

    Make government cars pool cars which means you have a central pool of cars, which are used by everyone who needs it for government business only i.e. not travelling to work or other personal business. Install trackers so that department heads can compare actually mileage vs. expected mileage. This will save both petrol and wear and tear to vehicles.

    Any public servant who has a private business has until 1 July 2013 to decide to close it down or leave the public sector but we can’t have both any more because why should the average person pay to subsidize a civil servants private business. This will save money.

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  3. Its very interesting that the Compass has not published a story of a Motion passed this week that affects all Civil Servants.

    A motion was passed this week allowing all Civil Servants to be able to withdraw funds from their Pensions, as is allowed in the private sector, to use as a deposit to purchase a piece of land or purchase or construct a house or pay off an existing mortgage.

    All news relating to the Civil Service should be published – not just the news where there may be reductions.

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