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'There is an appetite in some places to privatise some services' - Premier Smith

- said his Gov't plans to privatise some industries in the territory to make services more efficient
Members of the public service have been on edge since the passage of the hurricane of September 2017 on whether they will be laid off. Photo: VINO
Dr The Honourable D. Orlando Smith (AL), Premier and Minister of Finance, expressed that his government is looking into privatising some of the territory's service industries to make them more efficient. VINO
Dr The Honourable D. Orlando Smith (AL), Premier and Minister of Finance, expressed that his government is looking into privatising some of the territory's service industries to make them more efficient. VINO
Members of the public and private service during a recent appreciation dinner hosted by Governor Augustus J. U Jaspert. Photo: VINO/File
Members of the public and private service during a recent appreciation dinner hosted by Governor Augustus J. U Jaspert. Photo: VINO/File
ROAD TOWN, Tortola, VI - Since the passage of Hurricane Irma on September 6, 2017, the public servants have been on edge wondering if they will be laid off as Dr The Honourable D. Orlando Smith (AL), Premier and Minister of Finance, was flip-flopping on whether job cuts will or will not be made.

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.”

23 Responses to “'There is an appetite in some places to privatise some services' - Premier Smith”

  • think he smart (30/03/2018, 09:30) Like (16) Dislike (3) Reply
    AFTER PRIVATIZATION WILL COME LAYOFFS AND THE GOVERNMENT CAN'T BE BLAMED
    • More bvi than bvi (30/03/2018, 11:53) Like (7) Dislike (5) Reply
      We locals want the juiciest fish cuts first.
    • think he smart (30/03/2018, 12:07) Like (12) Dislike (2) Reply
      Let’s keep everyone on governments payroll so we cannot invest in roads, education & healthcare- wait - maybe NOT!
      • Nickels (31/03/2018, 13:42) Like (5) Dislike (0) Reply
        The same government managers use contractors to do what government workers should be doing. The same government managers use consultants to do the work they the government managers should be doing.

        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?
  • AKA (30/03/2018, 10:20) Like (10) Dislike (1) Reply
    Lay offs and make more positions redundant
  • @ @ @ @ (30/03/2018, 11:16) Like (14) Dislike (57) Reply
    We cannot trust Dr Smith he tells to many lies in my opinion

    We need an election now
  • street reporter. (30/03/2018, 14:19) Like (11) Dislike (0) Reply
    The Airport Authority need help bad. Long long lines lots of guards standing around one xtray machine not working. Flight leave late because they have to wait on passengers to go through that slow slow screaning process with a back up line...that needs looking into..
    • jake (30/03/2018, 15:08) Like (7) Dislike (1) Reply
      Flights leave late because flights and everything in the BVI is late or not at all. Passengers taking into consideration a long wait and passage through the screening process should arrive at the airport way in advance of their scheduled flight and when booking ,staff should advise passengers accordingly.
      • @_Jake frequent traveller.. (30/03/2018, 19:23) Like (4) Dislike (0) Reply
        Take a visit to the Airport. Checking- in is done on time. Liat is doing much much better with their service. The Screening process is slow. Thia could be because one of the screaning machine isnt working..but it's slow...
  • E. Leonard (30/03/2018, 15:05) Like (13) Dislike (1) Reply
    Due to the VI small size and small open economy, government by necessity is a major employer. As such, though no job is totally secure, government employees need to be assured that their jobs are relatively safe and secure or not. Any talk about a reduction in force (RIF) undoubtedly will cause anxiety among workers; this anxiety can result in lowered production and low customer service delivery. RIF no doubt is a sensitive political decision. Government has 2 modes of delivering services, ie, in-house or outsourcing. From my perspective, there is a difference between outsourcing and privatizing. In outsourcing, government, agency, company........etc contract the service out to a third party, eg, garbage collection, street sweeping, secuirity services, road maintenance., water or sewage treatment plant operation.......etc; government retains owner of assets. In privatizing, government sells or gives an asset(s) to a third party to use for delivering a service, eg, garage for light and heavy equipment repair...........etc; government turns over ownership of assets to third party.

    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.
    • Diplomat (30/03/2018, 22:06) Like (7) Dislike (0) Reply
      @E. Leonard, you put a polite spin on the size and performance of civil service. No doubt government is a major employer. It is an open secret that the civil service is bloated. However, no politician has the stones to say so publicly; it is almost sacrilegious for a politician to say it is. The bloated civil service is not sustainable; there is no more room to kick the can down the road.

      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. ,
      • @Eleonard and Diplomat (31/03/2018, 12:04) Like (3) Dislike (0) Reply
        Both of you made good points. However, the civil servants 9temporary and permanent and pensionable), contract employees and consultants need to prepare for the inevitable: job cuts, salary cuts, transfers, retirement and non-renewal of temporary appointments, contracts, and consultancies. The impact should be minimized by re-tooling of persons through training, counseling, entrepreneurship and financing for that venture.. This is necessary to lessen the impact of the sudden shift of human resources upon whom many persons in families depend on for daily living. I am hoping that the Office of the Premier sees this or told about it and get the ball rolling.
  • Boo (30/03/2018, 18:07) Like (9) Dislike (0) Reply
    He could send home some of those old stagnant heads of department a few come to mind
    • @ Boo (31/03/2018, 12:53) Like (2) Dislike (2) Reply
      Even though that may be how you feel sincerely, you should not express it. Karma is may come back to haunt you as you will get old too and you may experience similar difficulties as some of these persons are now going through. please be respectful in your remarks...pleeeeaaaassseee.
  • Usual (30/03/2018, 18:53) Like (6) Dislike (0) Reply
    People complain about services but dont want the necessary done to improve it. I will never understand this place.
  • Frigdims (30/03/2018, 19:31) Like (6) Dislike (2) Reply
    Mehson I want to privatize the NDP members make them into private citizens again. No further representation is needed from the rugrats.
  • sam the man (30/03/2018, 23:04) Like (4) Dislike (0) Reply
    Privatization is not the solution
    • pat (01/04/2018, 23:00) Like (1) Dislike (1) Reply
      Privatization creates competition between for-profit companies. the public loses out in service and spends more.
  • wondering (31/03/2018, 15:42) Like (3) Dislike (0) Reply
    Really? The BVI can't take anymore drama. People are suffering deeply post Irma/Maria. Please wealthy (disconnected from the average BVIslander) politicians leave us alone. Some lost jobs, some have jobs. Some have cars some lost cars. Some have roofs many, many don't. Just breathing and finding a smile to wear are energy sucking activities for us survivors. Please stop scaring us. Elections are soon. Stop abusing the voters, Please!
  • watcher (03/04/2018, 17:34) Like (0) Dislike (0) Reply
    Virtually every country in the world has privatized utilities. Even Russia. Yet some in BVI cling on to the outmoded concept that government can actually run the things properly. They can’t.


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