Premier Michael Dunkley has warned that the financial foundation of Government is being threatened by huge running costs.

And he said that Government’s structure needed “realignment” in order to continue delivering services in the face of essential budget cuts.

Mr Dunkley spoke out after the Bermuda Public Services Union rejected Government proposals for Civil Service reform through the Public Bodies Reform Bill and the Public Services Reform Initiative (PSRI).

He said he appreciated the dialogue being expressed over the proposals and said he was committed to ensuring that all viewpoints were heard and considered.

But he added: “The public will recall that the SAGE Report contained more than 200 recommendations aimed at determining the best means of structuring Government, streamlining Government processes, improving the delivery of services, and introducing cost saving measures coupled with greater transparency.

“What is critical for the public to appreciate is that the cost of running Government and our substantial debt threatens to destabilise the financial foundation of the organisation.

“Further, public expectations coupled with budget cuts requires realignment of the organisation and the delivery of services. The Public Service Reform Initiative evolved as a strategic platform for the implementation of S?AGE Recommendations as well as output from other reports and reviews.”

Mr Dunkley acknowledged the PSRI was “a significant undertaking” but insisted it will make Government more efficient and reduce operating costs.

And he pointed out that the documents had been compiled only after considerable work over the last 11 months.

“As a reminder, several working groups have been established and have already set about the work of ensuring efficiency in multiple areas throughout the Civil Service,” Mr Dunkley said.

“And in the spirit of inclusiveness, and in an effort to include a wide cross section of views in the implementation process, each of the working groups will include representatives from the unions, the private sector as well as highly skilled technical officers.”

He said that an the Efficiency and Reform Authority and more working groups will be set up.

“The authority will, unlike the other working groups, have statutory authority, however it fits very neatly into the implementation framework that is designed to look across the service at a number of areas to create efficiencies,” he said, adding that it is intended that there is union representation on the Efficiency and Reform Authority.

Mr Dunkley noted that consultation responses to the Bill were still being analysed and revised drafting instructions were currently being prepared.

“We remain fully committed to ensuring an open dialogue regarding the PSRI with the community and the unions,” Mr Dunkley said.

“Next week, on October 15, we will be hosting a public meeting to discuss Public Service Reform, and the public is encouraged to come and share their views regarding the initiative.”