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