Overseas firms could be tempted to take over running services like the airport if the SAGE Commission’s proposals on privatisation take off.

And construction firms would be eager to move into new areas if Government maintenance contracts in areas like roads and buildings — boosting income as well as providing more job security for workers.

Kaissa Construction chief and president of the Construction Association of Bermuda Charles Dunstan said: “I guess the answer has to be yes.

“If there was to be an increase in demand for services, employers would be less likely to be looking at lay-offs next week, next month or at the end of a particular project.”

He added: “The companies that survive a downturn are usually those who are a bit more innovative and looking for opportunities to diversify generally.”

Peter Everson, an economics expert and business consultant, who sat on SAGE, said total or partial privatisation could provide new opportunities for Bermuda businesses to start new ventures or add roles to existing firms.

Mr Everson said: “There will be people ready, willing and able to bid on everything.”

He said that some areas — like parks and building maintenance and roadworks — could be provided by existing firms diversifying or by new start-ups, while technical areas like airport operations could involve partnerships.

Mr Everson said: “Bermudians might want to form partnerships or consortia with overseas groups — a foreign company might have great expertise but no knowledge of Bermuda. A partnership with Bermudians would provide a better outcome.”

He added: “Canada and the US are our closest neighbours. If Bermudians needed some specialist knowledge, they could have people on specialist contracts to help them get started or sign an affiliation agreement with them.”

He added that, with a major slowdown in construction on the commercial and domestic front unlikely to end in the near future, many firms would be glad of a chance to expand into new areas.

Mr Everson said: “If you are in these sectors, you have to find something else to do.”

And he added: “At the end of the day, it’s value for money. What SAGE has really said is that Government is trying to do to many things and the taxpayer can’t afford all of them.

“The bits it has to do, we have to find ways to to do it most efficiently.”

Mr Everson was speaking after the 140-page SAGE report into Government efficiency, which included a section on privatisation and outsourcing of some services, was considered.

Bermuda College senior lecturer in economics Craig Simmons, who also sat on the SAGE Commission, agreed that Government could either approach overseas investors direct or allow Bermudians in the private sector to discuss partnerships.

Mr Simmons added: “There are companies that specialise in running airports. The question is, is there something to be gained from engaging with these companies or allowing Bermudians to engage with these companies?”

The SAGE report said that privatising or outsourcing would cut costs for Government and provide opportunities for Government cost savings and private enterprise.

Mr Simmons said, however, that the remit of the subcommittee looking at privatisation and outsourcing was to “investigate whether or not there might be an interest”.

Among the services identified as possibles for privatisation, or part-privatisation of some parts of the service, were the airport and civil aviation, highways, marine administration and marine and ports, and public transport.

The SAGE report said that the criteria it used was whether Government could afford to provide some services and whether they were regarded as necessary.

The report said: “Those working in the public sector are likely to view the subject with suspicion and scepticism, given the inherent threat it represents to employment; those in the private sector generally see opportunities for entrepreneurship and business development.”

It added: “We feel if these two questions are kept uppermost as privatisation and outsourcing opportunities are considered, decisions are likely to be made in a pragmatic and objective manner to the greater good.”

But the report warned: “However, while these decisions should be made in a measured and thoughtful fashion, the dire situation Bermuda finds herself in demands urgent action.”

SAGE also recommended a new commission with a six-year remit to examine opportunities to look at the potential for sell-offs of Government services.

Mr Simmons said: “It’s not to say these things should be privatised — it’s that it should be investigated further.”

He added that he believed a full or partial sell-off to the private sector of some services currently provided by Government could be a way of cutting costs, improving services and providing better services to the public.

But he added: “This would be definitely the early stages — the private sector is only going to engage if it feels it will earn a profit. The private sector is not engaged in philanthropy.”

Kevin Grant, president of the white-collar BPSU, which represents many Civil Servants, declined to comment on the privatisation proposals.

But it is understood a joint statement on the SAGE report will be made today by the Bermuda Trades Union Congress (TUC).