Good afternoon,
Thank you for joining me this afternoon for an update on operational changes at three of the four Quangos that fall under the Ministry of Public Works – they being the Bermuda Land Development Company, the Bermuda Housing Corporation, The West End Development Corporation and Golf Courses.
Before getting into the specifics of those changes – it is worth providing some background to the genesis of this entire project. A project that actually began on 16th July, 2002, when the Cabinet decided that the Central Policy Unit should complete a review of 17 Quango’s which focused on the following objectives:
- Determine whether Bermuda’s Quangos as currently constructed are meeting Government’s aims and if not recommend methods of achieving alignment;
- Determine whether there is accountability to the Government and if not, recommend an adequate structure to accomplish this; and
- Develop mechanisms for ongoing review.
The scope of the review covered a wide range of topics covering the establishment and governance of each body; its existing relevance, feasibility, effectiveness levels of accountability to Government, expenditure, income, whether the work could be more effectively (or more efficiently) carried out within Government proper; or by some other means;
Determine governance and best practice in other jurisdictions and develop a mechanism for ongoing review.
All laudable goals – sadly that report entitled “UNTANGLING BERMUDA’S QUANGOS - A review of Quangos in the Bermuda Government” presented in October 2003 and the subsequent Sage Commission Report presented a decade later in 2013 have largely languished on a shelf during those intervening years.
This Government took the decision early in our administration to have another look at the reports and their recommendations with a view to actioning some of those items. Upon assuming this role – I asked the 3 CEO’s to meet on a regular basis to discuss ways we could merge operations utilizing the recommendations of the Quango Report as the basis for those discussions.
It makes no sense that on an island of only 21 square miles that we have three (3) organizations (3 CEOs and 3 CFOs) and all the attendant offices, machinery and staffs carrying out very similar functions for the most part - with the full demonstration of bureaucracy on display. As an example, the BLDC have oversight of properties in the west end of the island. That means they regularly deploy staff and equipment from St. David’s to cut grass in Somerset and Southampton – when it would seem logical to have the team in the west, cut the grass in the west. There are many more examples of duplication of effort that were evident during those discussions – and I am certain more will be uncovered now that the circle for discussion has been expanded to the respective teams at supervisory level.
In July this year a decision was made to take some action as a result of those discussions. In consultation with the other shareholder of the BLDC, the Minister of Finance we agreed that Phase I would be some reduction in expenses and merging of functions between the BLDC and the BHC.
As a result the following decisions have been made:
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- On the 28th September a freeze on all new hires was issued to all 3 Quangos.
- On October 31st under a mutual agreement the CEO Mr. Francis Mussenden will separate from the BLDC.
- We are having further discussions with the CFO Mr. Anthony Richardson about his future with the BLDC as he focuses on the completion of financial audits for the 6 years that remain outstanding.
- Effective November 1st the BHC General Manager, Major Barrett Dill will assume management responsibility for the BLDC in addition to his responsibilities at BHC.
- Effective November 1st as well the BHC Finance Manager, Mr. Mark Melo will assume financial responsibility for the BLDC in addition to his responsibilities at BHC.
- The process of handover of both of those responsibilities will commence on Monday next.
- Responsibility for Daniels Head will shift to Wedco – who have been tasked with its management and as a first step the removal of the accommodation frame and canvass structures.
- The BLDC Board will remain intact and continue their work under the new management team.
Leading up to the events above I have this week met with the staff at BLDC, BHC & Wedco to brief them on these changes directly and answer any questions they had. I assured front line staff that their jobs are secure and in fact in some instances there may be expansion in some areas. With regard to next steps in this exercise – the focus of Phase II will shift the spotlight to Wedco and in a similar collaborative approach the team will review their operations with an eye on recommending greater efficiencies there as well.
As the Ministry of Public Works contains the largest number of industrial workers within government – I also arranged to brief the President of the BIU, Mr. Chris Furbert on the forthcoming changes at the Quangos.
With regard to the fourth Quango under the Ministry – Golf Courses – the internal Board discussions are ongoing but I expect to be in a position to report in the not too distant future on movements in that area as well.
We view these changes as an opportunity to immediately effect some cost savings by reducing duplication of roles, combining responsibilities and bringing a sharper focus to deliver on the governments mandate to control costs and operate more efficiently. The process is ongoing and those discussions will continue with key stakeholders and further enhancements can be expected going forward and the public will be kept informed of developments.
I wish to thank the outgoing CEO of the BLDC, Mr. Francis Mussenden, for his years of service leading the BLDC, Mr. Andrew Dias for leading the team at WEDCo, and Major Dill for agreeing to assume the interim leadership of the BLDC while also leading the BHC team.
And finally, I would like to take this opportunity to thank the members of the Boards of all four entities - who willingly give of their time and talents in support of our community.
Thank you.