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More than $13M cut in Public Service for reserve fund

- Legislators take "small" cut on housing allowance
Public Servants gathered this morning at the Central Admin Complex, Breezeway to learn more about the expenditure cuts that will affect them. Photo: VINO
Financial Secretary Neil Smith.
Financial Secretary Neil Smith.
ROAD TOWN, Tortola, VI – A recent decision by Cabinet to increase its reserve fund has led to a cut of more than 13 million dollars for expenditure in the public service, which is reflected in a 50 percent reduction in employees’ performance increments and seven percent of operational expenditure in government departments.

The expenditure cuts are expected to take effect after the 2012 Budget is passed. The budget address is slated for January 17, 2012.

An HR Talk session was held this morning January 10, 2011 to further discuss the reductions with public servants following an announcement made yesterday Monday January 9, 2012 by Premier Dr. D. Orlando Smith regarding Cabinet’s decision on the reductions.

Speaking this morning at the event held at the Central Administration Complex Breezeway, Financial Secretary Neil Smith explained that the increment of three percent of employees’ salary 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. He said the accumulated cut will amount to $13.3 million.

Smith said those monies will be put into the reserve fund, which will be built to enable the country to run without revenues for three months in a worst case scenario.

He 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.

According to the Deputy Governor Inez Archibald, such a move should not have come as a surprise since it has been talked about for a while. She said she was happy that the cuts were not deeper.

Meanwhile, several public servants took the opportunity to ask questions regarding the cost cutting measures and offer recommendations of other areas that they believe can be cut.

One asked if he was making changes in his department to cut cost and others were seen spending wastefully, how would that make him feel. He was informed by the Deputy Financial Secretary Wendell Gaskin that if someone sees such actions they should not just sit there but bring it to the attention of the department to have it addressed.

Gaskin said he was an advocate for no cuts on increments a year ago but has now come to the realization that he would rather have a job.

Another public servant suggested that Government tighten its screws in the collection of revenue from parking tickets as there is not a system in place for accountability or to ensure that persons pay their tickets.

The issue of telephone usage by those who get telephone allowances and housing allowances for contract workers were also recommendations given by public servants as ways to help reduce the cost in the public service. In response to this concern, Acting Human Resources Director Michelle Donovan Stevens said the areas of telephone usage and allowances are areas that have been looked at.

Legislators cut on housing allowance

Meanwhile, part of the expenditure cuts for the 2012 budget also include a cut in Legislators' pay packages. According to Virgin Islands News Online's sources, that cut reportedly represents only $500 off their housing allowance which this news site understands is currently $2000 per month.

26 Responses to “More than $13M cut in Public Service for reserve fund”

  • billy b (10/01/2012, 13:39) Like (0) Dislike (0) Reply
    This seriously affect me and the money I bring home, but hey, anything for my country, whatever it takes, do what you guys have to do. It's time for all of us to put our money where our mouth is and help out our situation.
    • billy b (10/01/2012, 13:44) Like (0) Dislike (0) Reply
      Here's another suggestion, cut the DG salary by 100% and send her packing. That'll do us some good,
      • Brap (10/01/2012, 13:55) Like (0) Dislike (0) Reply
        Lol, not funny. Seriously, no one should be exempt for this new movement.
      • Wildwest (10/01/2012, 15:46) Like (0) Dislike (0) Reply
        What did the DG do to you to send her packing? Perhaps you overstepped your bounds and she had to reign you in why you are complaining about her? What happen, you want her job? You can't see they don't want you, so go and stop bad-mouthing people and look within to see those who have double agendas when they are working for Government. God is standing by and looking on. Be careful with your thoughts.
        • billy b (10/01/2012, 18:39) Like (0) Dislike (0) Reply
          she aint have to do a thing to me, but she has done enough to others. ENOUGH, but keep outta my business, I know what I saying, she know too
      • Adonijah (10/01/2012, 17:57) Like (0) Dislike (0) Reply
        Here is another suggestion...cut the indiscriminate issuing of contracts to Party cronies and supporters. That should save us close to 100 millions dollars or more.
  • rex (10/01/2012, 13:51) Like (0) Dislike (0) Reply
    I say legislature shouldn't get housing allowance; they were paying for their homes b4 they were elected, why we have to pay for them now?? Pay for your house just like how we pay for ours (with our own salary) Dont' be like the VIP, make that additional sacrifice
  • Sly (10/01/2012, 13:59) Like (0) Dislike (0) Reply
    What about Vehicle usage after hours and putting a freeze on obtaining new vehicles. Also a central motor pool were all vehicles will be asign on a daily basis and not every department getting 60,000 dollar SUVs
    • billy b (10/01/2012, 14:07) Like (0) Dislike (0) Reply
      @sly. But wait!!!! We ain doing that already??? What they need to do is re-enforced it some more in addition to a limit of $15 a week gas. School children say on a Friday the government vehicle dem line up at pwd to full up for the week end, how much running up and down they need to do on a weekend when everything slow down or even closed. They full up during the week probably 2-3 times and still full up for the weekend
      • town man (10/01/2012, 17:15) Like (0) Dislike (0) Reply
        dem going beach,laungry ect with government vehicle and dem salary big enough to buy dem own
  • Govt Worker (10/01/2012, 14:07) Like (0) Dislike (0) Reply
    None should not be getting housing, vehicle and entertainment allowances. What am I hearing here. I think that only heads of departments and legislators should be given telephone allowances and should be put on an unlimited plan. If their bill go over $99 then it would come out of their pockets.
  • Confucius (10/01/2012, 14:32) Like (0) Dislike (0) Reply
    Until legislators make a “meaningful” effort to help reduce government spending and overspending, it is not feasible nor fair to ask other government employees to sacrifice. If it is true that the only sacrifice being made is $500.00 off the housing allowance for elected officials, that is straight up BS and an insult to all BVIslanders. I repeat ... “IF” it is true. Our elected officials must lead by example and not by the time honoured tradition of “do as I say ~ not as I do”! Keith Flax was made a mockery of by many, (including some who are now in office) for his constant whining about what perks elected officials should be entitled to. The VIP were also taken to task for voting a raise for themselves not very long ago. If our leaders want us to believe that they truly have the best interests of the BVI at heart, they should roll back that pay increase and do away with the housing allowance altogether. Other perks such as entertainment expenses for elected officials should also be reviewed and cut. It is time for our elected officials to PROVE to us that we made the right choice in November. Actions speak much louder than words!
    • Mmm (10/01/2012, 16:20) Like (0) Dislike (0) Reply
      At least they were willing to make that sacrifice....do you think the previous legislature would have ever made such a cut on themselves (small or otherwise)....I highly doubt it.
    • Real Talk (10/01/2012, 17:11) Like (0) Dislike (0) Reply
      I agree 100%!!!!!!!!!! The entire $2,000.00 housing allowance should be forfeited, no questions asked!! Donate the money to fix the leaking schools, that's a start!
    • DarkVader (11/01/2012, 14:11) Like (0) Dislike (0) Reply
      Confucius: You honestly think a legislator gets paid? I am not one or do I ever want to be one. Like some of you want them to work for nothing. These people have no personal life. They tend to the people's business 2407..they receive no pay raise but took a pay cut from what i see as a small salary for an elected official. Look in the budget report and see what some of the elected officials make. There are more civil servants getting higher salaries than elected officials. They are the ones that needs to be cut. I could not be a legislator making that kind of money. You PS, Commissioners, Doctors, Heads of Different Departments, Finance etc making more money than legislators. You need to look at their salaries but only legislators own some of you can see. I beg some of you all, look at the budget or where ever else salaries are listed before you trash the elected officials.
  • critic (10/01/2012, 15:42) Like (0) Dislike (0) Reply
    people.. ayo dont accept this unless oj and claude take a cut too
    • Blah Blah Blah Blah (10/01/2012, 16:11) Like (0) Dislike (0) Reply
      Better yet.....sent home....these two contracts were HUGE and in my humble opinion. NOT NEEDED!
      • Tola for Life (10/01/2012, 19:05) Like (0) Dislike (0) Reply
        I agree with you 100%. The favour that the Premier is doing for those guys comes at a hefty price; a price that they claim that we cannot afford.
  • insider (10/01/2012, 16:34) Like (0) Dislike (0) Reply
    the NDP dem tis crooks..only $500 dem cutting form dem allownaces..dem full of sh$t deman
  • righton (10/01/2012, 16:44) Like (0) Dislike (0) Reply
    Those senior over 65 need to go home for real they still working and still getting pention thats not right at all
    • facts man (10/01/2012, 22:08) Like (0) Dislike (0) Reply
      why you aint give us a list of who they are "RIGHTON"...what got me throw is these NDP tricksters only taking off $500.00 from there housing allowance and calling it a pay cut...people you all need to rise up the NDP must go and go fast they are worst than the VIP!
      • Truth Is (11/01/2012, 23:10) Like (0) Dislike (0) Reply
        Oh so you would have rather the civil servants be sent home? The legislators took a cut and I admire them for that.Other civil servants did not have to take a pay cut. They are getting 50% of their expected raise..the legislators (who most are new) are not getting a raise..I dont understand what all the noise is about. The VIP should have gotten back in then you all would have been under England hands of mercy for they would have come in and taken over anytime VIP was elected again..say I said so..just think as to why the governor was not saying or doing anything when he knew VIP were running a corrupt government.
  • Our Future (10/01/2012, 17:05) Like (0) Dislike (0) Reply
    I SUPPORT THIS INITIATIVE WHOLE HEARTEDLY I would like to commend the Government on their decision and I am a proud Public Servant. I am of the opinion that increments should have been discontinued when they started the hiring freeze a while back. I think Government was generous with just cutting it in half because if we followed the economic news of other countries both private and public sectors this would have been already addressed. As such I offer the following contribution towards decreasing costs: commend this move. Civil servants should be glad it is only their increments that are being cut and NOT their salaries! Second - I would recommend finding ways to increase revenues such as - 1. Increasing land and property taxes. 2. Adding taxes to items that have negative effects on the community. For instance, cigarettes and alcohol. 3. Increasing work permit fees for positions that pay $50,000 plus annually. 4. Since police have seemed to increase their ticketing ensure that a system is linked with the DMV to ensure that all tickets are paid in full prior to licensing an individuals vehicle. 5. Ensure that companies or consultants tha tcome in to do work pay taxes back into the country on all money earned prior to departure. I guess stipulations can be in place to waive this percentage if it is a crucial area. 6. Salries over $60,000 annually should be at a higher rate. 7. Address land ownership issues at certain banks for persons that make under $40,000 annually. 8. Fully utilize Public Servants in their area of study rather than just sticking them any where. Also ensure that all workers are productive and get rid of them if they are not. Reason being, some Public Servants get paid to do a job that they can't and/or do not execute but get paid for it and make their departments and nthe entire Government look bad n the process. 9. Put a freeze on paying for Masters degrees even at a local level at that CMI program. If GOV paid for an officers Bachelors and Associates, I think its about time the officers come out of thier pockets. Nothing is wrong with educating your people but others should have an opportunity for a degree as well. A Masters is a luxury, some people just finish school and don't try to put what they learn to use but instead GOV pays for them to go back without first ensuring that they actually got value for money. 10. Lastly, Government should invest into online classes for persons on study leave. This way they don't have to pay out full salary, room and board, and all the other perks that come with it. At least if they explore this option individuals could still live at home and just be on paid leave while doing their studies. With the exception of some areas that must be learned on site such as medicine etc. This is providing that they issue study leave to immedeiate priority areas. I am also of the opinion that GOV study leave should be ceased unless it is an immediate priority area. This would allow for those that are already on leave to finish up and ensure that the youth that go through MEC are still afforded the opportunity to go to college. Because when these people are all finished schools there are NO jobs for them. This is proof that HR forecasting is definitely falling short, so Training and HR are not in sync.
  • Notes...... (11/01/2012, 15:32) Like (0) Dislike (0) Reply
    You want to have a Government Vehicle?? Fine!! then you buy the gas and maintain it!!! and of story


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