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UBP: What happened to putting locals first?

Shadow Finance Minister Bob Richards

Government is spending close to $15 million a year on foreign consultants in seven ministries, the Opposition United Bermuda Party said yesterday.

Shadow Finance Minister Bob Richards attacked what he described as a massive reliance on overseas experts and asked why more contracts are not handed to Bermudian companies.

According to responses to Parliamentary questions, one group, Atlanta-based Ambling International Consulting, has scooped three jobs within Works and Engineering, Tourism and Environment, claiming $460,000.

Mr. Richards claims Ambling was selected over at least four other locally based groups who bid for a contract to overhaul Planning Department procedures and legislation.

Local competitors only found out they had not won the contract, he said, when they received a survey from Ambling for their views on planning issues.

"The PLP Government appears to have abandoned its commitment to Bermudians first through a massive reliance on foreign experts," said Mr. Richards in a statement.

"This is illustrated in answers to Parliamentary questions showing millions of dollars spent on what amounts to a private army of specialists to help it run the country.

"The PLP Government revealed it is spending close to $15 million on foreign consultants in seven ministries.

"This number does not include consultants hired at pay rates as high as $233 an hour nor does it include contract add-ons for transportation and accommodation that can add hundreds of thousands of dollars in extra billings.

"We are seriously concerned about this huge reliance on overseas consultants, not because any one of them is unqualified to do the work but because it appears the government routinely favours them over Bermudians."

Ambling's contract is to provide advice on hotel development to Tourism; advice on the Southlands land swap, Morgan's Point clean-up, Club Med demolition and Park Hyatt development to Works and Engineering; and advice on the impact of special development orders to Environment.

Other big winners include New York-based Kurron Shares, run by Premier Ewart Brown's friend Corbett Price, which has a five-year $11 million contract to give management assistance to Bermuda Hospitals Board.

American Henry Johnson, consultant to the Education Ministry as it implements recommendations of the Hopkins Reports, picks up $250,000 a year.

Kansas-based HNTB Corporation Southeast Division gets $2.2 million to provide "professional airport planning services" for a 20-year master plan for Bermuda International Airport.

Halcrow Group of the UK gets a total of $815,000 for a feasibility study for the new crossing at Castle Harbour.

Mr. Richards continued: "The widespread hiring of overseas consultants, particularly for basic job functions in various ministries, suggests the Government has no faith in Bermuda's civil servants to do the job.

"Proposals by the Premier in Parliament to hire a foreign consultant to analyse Government's own travel expenses plus another to shore up Bermuda's international image is evidence of a growing addiction to foreign consultants.

"We believe the Government needs to make a clear statement about its overseas hiring policy, with specific reference to the Ambling contract award."

The UBP says it calculated the $15 million figure from responses to questions given last week by the Ministers of Tourism and Transport, Education, Environment and Sports, Finance, Works and Engineering, Culture and Social Rehabilitation, and Health.

Finance Minister Paula Cox last night defended her own Ministry's use of consultants and said there was "nothing to demonstrate a lack of fiscal prudence or extravagance".

"The consultants that have been retained on behalf of the Ministry of Finance provide good value for money for the services they provide," she said.

"Consider, for instance, a man of the ilk of Dr. Andrew Brimmer who, as a senior economic advisor to the Ministry of Finance at a fee of $150,000 dollars, represents considerable value for money and provides enhanced credibility."

The Deputy Premier added that other Ministers were the CEOs of their Ministries and were therefore the ones to comment on spending on consultants within those Ministries.