Mr. Speaker, I rise today to give an update on the ongoing merger between the Bermuda Land Development Company (“BLDC”) and the West End Development Corporation (“WEDCO”).
Mr. Speaker, let me start of by saying nothing in Government moves fast.
Almost 2 years ago in July 2022, I announced the intention to amalgamate the BLDC and WEDCO. From a business perspective, this makes complete sense since these two quangos share similar objectives, mandates, skills, accounting procedures and staffing levels.
From the time of that announcement the following operational activities have taken place to prepare for this transition:
- Creation and implementation of new identical Union Collective Bargaining Agreements for both WEDCO and BLDC
- Job description reviews and internal policy assessments have been completed.
- Merged WEDCO and BLDC servers and software – essentially running all finance and IT systems for both entities from a single location.
- The Chief Financial Officer at WEDCO is now acting in a dual role for both entities.
- Compiled the asset and liability schedule for both entities.
- Established a Marketing and PR joint strategy for the new entity.
- relocated key staff to assist with the transition initiative; and
- Liquidators have been appointed.
Not only has all this taken place Mr. Speaker, but you may also recall in March 2023 this Honourable House approved the dissolution of the BLDC to ensure the seamless amalgamation of the entities.
As I have said before Mr. Speaker, a lot of work has been done already and both entities are ready to merge.
Kudos must be given to the team of technical officers who worked diligently - ably led by Mr. Andrew Dias in his dual role as General Manager of WEDCO and CEO of BLDC, as well as the respective Boards of each entity. At the BLDC AGM last year – steps were taken to align the Boards. The remaining administrative staff at BLDC are moving their offices to converted space in the Maintenance building and Triton House, their headquarters will be rented out to the private sector.
Mr. Speaker, before I move on let me remind colleagues why the Government is undertaking this initiative.
Originating on 16th July, 2002, the then Cabinet decided that the Central Policy Unit should complete a review of 17 Quango’s which focused on 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 to develop mechanisms for ongoing review.
This review culminated in a report entitled “UNTANGLING BERMUDA’S QUANGOS - A review of Quangos in the Bermuda Government” presented in October 2003 as well as subsequently mentioned in the Sage Commission Report presented a decade later in 2013.
Mr. Speaker, this Government took the decision early in our administration shortly after returning to government in July 2017 to have another look at the reports and their recommendations with a view to actioning some of those items – one of which is this amalgamation.
Simply put, the Ministry views the merger 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.
Mr. Speaker, this now brings me to the key update as of today. While it was the full intention for this initiative to be completed by January 2024 – and I must clarify that operationally, this target has been met. The company is fully ready to complete this transition.
However, there has been a delay regarding the legislative amendments needed to complete the project.
Resource challenges within the Attorney-General’s Chambers, Mr. Speaker – namely staffing – the bill to complete the merger has not been finalised. As such, the transition teams are currently in a holding pattern until this portion is completed.
I repeat what I said in July 2022, “We have got to find a better and quicker way to make progress going forward”.
The merger team stands ready to complete the consolidation once the necessary legislative requirements are concluded. The final process after legislative approval is estimated to take an additional six (6) months based on specific steps laid out for closing a company in accordance with the Companies Act 1981.
Mr. Speaker, I must again commend the management and staff of both organisations – many of whom did not believe we would proceed and that their jobs would be in jeopardy if we did. I am particularly pleased to commend both the Bermuda Industrial Union and the Bermuda Public Services Union for collaborating with us to revise the Collective Bargaining Agreements so that they are identical, and the amalgamated entity can flourish.
Mr. Speaker, this has been a long and arduous journey that both you and I – and perhaps a few others in this House have lived through. I am certain though that if other Government entities wish to pursue a similar course of action – the process employed in this exercise would be an excellent template to follow.
Mr. Speaker, you and the Honourable colleagues will be aware that we have reached the end of this journey when the Bill is tabled in this House.
Thank you, Mr. Speaker.