An economist says Government will have to cull its Bermudian as well as international consultants to make savings to meet the recent salary rise for civil servants.

Government this week reached an agreement with members of the Bermuda Public Services Union (BPSU) on a salary increase of 1.5 percent for 2009-10.

A Government spokeswoman said: "The Bermuda Government and the Bermuda Public Services Union (BPSU) are pleased to announce the successful conclusion of their 2009/2010 salary negotiations for some 2,200-plus officers whose posts are under the sole bargaining agent of the BPSU."

Union members however, are disappointed. BPSU president Armell Thomas said workers had expected more but accepted the offer as a means of curbing Government spending in the current economic downturn.

Mr. Thomas said they would now act as "watchdogs" to ensure Government kept its end of the bargain in reducing spending, by freezing hiring of consultants.

"We look at this 1.5 percent as Government is tightening its belt. Well, if they don't tighten their belt, they're going to see me and I won't be pleased," he said.

"If the Government continues to bring in consultants, I will show up with the membership and I will not allow these people to go back to work until its sorted.

"If the workers continue to tighten their belts and the Government doesn't tighten its belt, we will be showing up in force."

Yesterday Peter Everson, chairman of the Bermuda Chamber of Commerce's economics committee, warned that Government would not only have to cut spending on overseas consultants but "the local ones will have to be culled as well".

Commenting on the 1.5 percent pay rise for civil servants, he said: "Government will be challenged to meet the recently approved Budget because the economy is shrinking, and thus expected revenues will fall short.

"Thus Government must reduce spending in order to balance the books, just like you and I.

"With this in mind, if Government has given undertakings not to reduce numbers then the onus will fall on cutting the spending on consultants.

"[Finance Minister] Paula Cox focuses on overseas consultants but the local ones will have to be culled as well. Non-renewal of all consulting contracts will achieve some of the required savings."

The 2010-11 Budget has allocated $27 million on overseas consultants, 2.7 percent of Government's operational budget.

In 2008-9 it is estimated $25 million was spent on international consultants.