Archive for April 26th, 2014

EY gets $155K to review PS

EY gets $155K to review PS

| 26/04/2014 | 57 Comments

(CNS): Government is about to spend over $155,000 dollars on another review of the public sector to see what services could be sold off, delivered in partnership with the private sector or streamlined to be more efficient and to review the reviews. In a statement released on Friday by the Portfolio of the Civil Service, officials announced that Ernst & Young had been selected following a competitive tender to carry out the latest assessment in what was described as phase five of the rationalization programme regarding the goal to slim down government and the civil service in general.

With over 80 core-government entities and 25 statutory authorities and government companies, as well as numerous boards, committees and commissions, portfolio officials acknowledged the growth of government, which, it said, was due in part to the fact that historically it had to provide most public services as there was no alternative because Cayman did not have a mature private sector. 

However, with more than 3,000 people working in public authorities, a budget of over half a billion dollars a year, burgeoning public sector debt, and a tax burden that the sluggish economy is struggling to carry, the pressure to slim down has increased significantly over the last five years or more but expectations among the public and the regulatory requirements of the private sector make cuts easier said than done.

“The Cayman Islands economy has grown considerably and the government seeks to evaluate opportunities to engage the private sector where this would result in improved service delivery and greater efficiency,” officials stated in a release from the portfolio on Friday evening.

In what will be another one of countless reviews and reports about government efficiency, or lack thereof, costs, duplication and what needs to change, Ernst & Young will receive a fee of CI$155,000.00 plus undisclosed expenses. The firm will undertake what was described as a “strategic overview of the public service and identify those functions that would better be carried out with private sector involvement,” officials stated.

The management consultant will also assess those recommendations which have not yet been implemented arising from prior internal and external reports – of which there are many. EY will also review the number of bespoke government entities to identify ways to streamline government’s structure and what could be realistically sold off where a fair market exists. The review also requires the consultants to develop a roadmap for execution.

Officials did not specify how long the process would take but stated that it would include stakeholder consultation and that the Foreign and Commonwealth Office is assisting by providing strategic advice.

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