Over budget

SmokingGun and Tiger Bay pointed out these nuggets in today's Royal Gazette:

The House also heard that the memorial for those lost at sea at Great Head Park, St. David’s, had cost Government $250,000 more than was budgeted for.

and

An arson attack on a bus depot was largely to blame for the Government having to spend an extra $875,000 on drivers’ wages, the House of Assembly has heard.

A quarter of a million dollars over budget on a statue? Almost a million dollars in overtime when there were more drivers and fewer buses?

The explanation for the overtime payment was particularly baffling:

Finance Minister Paula Cox said that because all the buses that were damaged were from the Somerset area, drivers from other areas had to be used. “They were doing something outside and above their normal duties,” she said.

So what were the drivers who should have been driving the Somerset buses doing?

Comments

[ace on 15.03.06 at 17:53]

I read that today too re: the buses.

It seems like our politicans make it up as they go along. Almost a million dollars spent and THAT is the explanation?

[Zoom on 15.03.06 at 18:08]

Does anyone know the original budgetted amount for the memorial, before the $250000 overrun? Are past Bermuda budgets available online?

[SmokingGun on 15.03.06 at 18:09]

I was wondering where that went Limey. ;)

I have another: Compliments of amcan1940 over at Bermuda Free Speech. He points out that Tourism is giving away a $25,000 pink sports car to one of 1000 people who register online for a brochure about Bermuda. Amcan1940 makes a very good suggestion: Why not give a free trip away to a couple who can invite ten others to join them.

We'd get spending on the island and a dozen people heading back to Deutchland spreading the good word. Instead all we are going to get for our money is some 45 year old white guy driving around in a pink sports car.....

Yup. I went online and registered a thousand times under different names.

[ken on 15.03.06 at 18:21]

I was handed this information as i walked through hamilton on saturday. I concede that I don't know the accuracy or inaccuracy of it, but as we talk about being overbudget, it may be relevant. It is related to the UBP government's handling of the Finance Ministry from years 1994-1998 under Dr. Gibbons.

It says "While the Accountant general collected 10 million dollars in stamp duties on land and property transfers in 1998, a review of the Land Evaluation office indicated that stamp duties of 16 million dollars should have been collected, a short fall of 6 million dollars. (the 1997 shortfall was almost 10 million dollars). Unfortunately, records were not maintained by the Accountant General to identify the land transfers on which the $10 million was collected. Therefore the transfers on which stamp duty was not collected, also cannot be identified.

During 1998 Departments spent approximately $21 million more than they were authorized to spend according to the 1998 Appropriation Act without first obtaining appropriate supplementary estimates.

Project records for 1998 showed the Cedarbridge Academy and the Middle Schools Capital Development projects exceeded amounts budgeted by $11.3 million and $?? million respectively (unable to see the amount however it looks like $83 million)"

This handout goes on to go more in depth regarding the former UBP's mismanagement of the pension accounts, and the policies concerning them. Also it mentions how companies were allowed under their government to not contribute the pensions and use the 'supposed' contributions to run their businesses.

My point is that hardly any government project runs on budget. Is that acceptable? Not totally, but there are always things in any project that might cause overruns. The horse has been flogged on Berkeley, so I won't go into that, but on other projects there probably will be overruns. As there would be under any government. I don't recall such a public crucifixion when the UBP government's projects exceeded the budgeted allotments. My personal opinion is that many people inately believe that we as in black people cannot manage money, and that we therefore are going to squander the wealth of the country. Conversely, we as a society believe that white people are more used to having money, so they will be able to be better financial handlers. I know this will incite some people to say that I am bringing race into a non-racial situation, but am I? Most situations are racial, because thats they type of society that we happen to be...unfortunately. I don't expect those of you who believe that blacks can't manage money to admit it. It is something so deeply ingrained in you that you don't even realize it is there. And therein lies the problem.

[Simon on 15.03.06 at 18:46]

Nice one Ken, attack is the best form of defence! You can't defend the current government so attack the previous one. I really don't give a toss about what happened before 1999 as I wasn't here. Deal with the current issues and maybe we can get things sorted out.

[Bermudian on 15.03.06 at 18:57]

Simon,

Ignorant comments like that are why there are conflicts between locals and expats.

You and others must realize that Bermuda's history did not begin in 1999. Your reasoning is illogical. I mean, imaging someone coming to Bermuda today and saying they dont care about what happened since the PLP came in...i'm sure you would have a "but what about ..." that you wanted to talk about, right?

[SmokingGun on 15.03.06 at 19:13]

Ken - are you getting paid to do this? If so I want to know what the budget is for your compensation.

Actually, in all seriousness, you should drop the black men can't swim attitude. There are some perfectly good examples that you guys are good on the water. Take the NHL for example.... just kiiiddding :)

The truth is when someone says they are going to put up a statue and they create a budget. One would assume that they could be damn close on figuring how much it will cost. A quater million dollars over is ridiculous.

And to say we had to pay almost a million bucks over-time because they brought in drivers from other parts can only mean some people were getting full salaries to sit off at home. That's all this is about - lousy management and decision making. Not race.

[Simon on 15.03.06 at 19:22]

My comment was ignorant - how so? You can not justify the current government's inability to stick to budget through the inability of prior goverments to do the same. I don't care what prior government's did (unless it is directly impacting the Bermuda that I am living in today). I do care about the impact the inability of the current government to run the country for its people. I am not able to comment on the UBPs inability to run the country since I wasn't here.

[Zoom on 15.03.06 at 19:36]

Ken, your pamphlet verifies that our civil service is badly managed. The UBP did not have great control over it, and the PLP does not either. But their solution is to hire more bureaucrats! The costs are spiralling and organisational gridlock is getting worse.

$250,000 overbudget for a friggin statue?!

[Martin on 15.03.06 at 20:15]

Is this yet another example of Bermudian greed?

Like the "one and a half bedroom Executive apartment going for $3600 rent a month I saw recently. As if the tag "Executive" is needed to justify the price.

We tend to blame the Government on most of these things, and in some cases that is probably spot on. But - sometimes it may just be simple greed.

As far as the buses are concerned...mmmm...that's a strange one.

[RedOnion on 15.03.06 at 20:33]

I can't find any reference to the statue in the RG archives online. But I'm sure that Bill Ming, a Bermudian artist now residing in the UK was commissioned to produce this statue. I also cannot remember the price tag ... but I really don't recall being overly surprised by the price at the time, but I sure as hell am suprised at the overrun on it .... would be interesting to see what the final price tag is. The statue was of an upended punt, it seemed to be fairly complex, and I can appreciate that it would not be cheap to produce, I also assume it will be imported duty free, maybe the MON will pick up on the story so we can all get the scoop.

[Rev. Goat on 15.03.06 at 20:45]

"I don't recall such a public crucifixion when the UBP government's projects exceeded the budgeted allotments. "

Really? What was it that happened in 1998 after all these budget discrepancies?

And now the current incumbant incompetants will enjoy some of the same.

[It Does Matter on 15.03.06 at 21:24]

ONE QUESTION:

Is Bermuda running a deficit or a surplus? Since 1998 were there deficits or surpluses?

I dont know the answer. Will somebody who does respond?

[Bill Cook on 15.03.06 at 21:33]

How does the cost of this sculpture compare to the Somers statue by Desmond Fountain ?

Maybe the a better memorial would have been a residential complex for old retired fishermen facing hardship ?

[SmokingGun on 15.03.06 at 21:44]

IDM - Deficit or surplus? Haven't got a clue but then again been too busy trying to figure out how to spend it so therefore no time to figure it out. Besides we'd only get dumped on for spending money on trying to figure it out anyway, so why bother.

Bill Cook - Where were you when they had the meeting about how to spend the money on the sailors lost at sea program? Sheesh. They could have put it up near St. David's Lighthouse.

[ParadiseFound on 16.03.06 at 05:23]

It's an Alien Planet

[ace on 16.03.06 at 08:10]

It Does Matter:

Phil and I had an interesting discussion about surplus vs deficit over a year ago.

http://www.limeyinbermuda.com/latest_news/2004/09/in_surplus.html#comments

The situation is no more clear to me now than it was then.

["Intrigued" on 16.03.06 at 08:59]

"I don't recall such a public crucifixion when the UBP government's projects exceeded the budgeted allotments. "

Perhaps there was no uproar because there were no blogs. No easy public discussion. Perhaps the PLP were an ineffective opposition party. EIther way it doesn't matter.

Two wrongs don't make a right. And even if they are hypocrites the UBP still have a duty to raise a stink about lack of sound fiscal management.

I am astonished that this has become a race issue yet again. How can the questioning of seemingly inconceivable overruns be read as "black people can't manage money".

I looked at the comments again and again and the overriding concern is that the current government has no control. Their job is to control and so we should be validly askign questions.

Our government is the size of many mid-market companies and should be easy enough to control. Sure there are always frauds and wayward staff, but on balance the big tuff shouldn't be getting out of hand. If I were the minister of finance heads would roll at the top as they have clearly failed to implement stringent controls. I don't know who the heads of finance and public works are, i.e. the beuracrats but they are the ones who should be getting the heat. No indication that PLP are doing so. Don't know why because they could get some credit for correctign the mistakes even if they did happen on their watch.

[silencedogood on 16.03.06 at 09:37]

I love how anytime someone criticizes the present government at least one of its supporters chimes in with a post stating generally that "the UBP did it too".

Then we become trapped in discussion death spiral where all we talk about for the next three days is how the UBP was bad too to placate the PLP supporters. (I'm generalizing of course)

Ken, is it really so hard to admit a government you generally support has faults or has derailed under its current administration? Surely doing so won't invalidate your support for the core party ideals will it?

[p on 16.03.06 at 09:51]

Ken,
You say you don't know the accuracy or inaccuracy of those statements.

If they are true, the PLP in opposition did a really poor job of exposing them.

[Thomas Paine on 16.03.06 at 09:56]

Political pamphleteering! I love it! Can't make a case through public forum, so they have to resort to below-the-radar smear campaigns.

[observor on 16.03.06 at 10:14]

ken

Perhaps you can reveal the identity of your deepthroat contact who conveniently handed [you] this information as [you] walked through hamilton on saturday.

I don't know who is the bigger player here ... you ... or the puppetmasters at the Central Policy Unit who have overseen the expenditure of (and I'll say it again and again and again) billions and billions of our money with little to show for it save for some new (and now mysteriously broken) fast ferries, an overdue bus terminal and renovated housing for cabinet members and their families....

Please stop trying to divert attention away from what matters ... the here and now ... with your cloak and dagger sources.

[b,w&p?? on 16.03.06 at 10:30]

gotta love it...the PLP is bending Ken over and pipping him up the ass, but they hand him a pamphlet showing him that it is OK because the UBP pipped him too - and he's telling everybody!!
Here's a news flash Ken - and anybody else who uses that dumbass 'they did it, so we can do it' argument - THE UBP WAS VOTED OUT. Hopefully in 2008 the voters who want good governance will say to the dumbstruck outsted PLP 'we did it to them and we did it to you'

[Denis Pitcher on 16.03.06 at 10:35]

It says "While the Accountant general collected 10 million dollars in stamp duties on land and property transfers in 1998, a review of the Land Evaluation office indicated that stamp duties of 16 million dollars should have been collected, a short fall of 6 million dollars. (the 1997 shortfall was almost 10 million dollars). Unfortunately, records were not maintained by the Accountant General to identify the land transfers on which the $10 million was collected. Therefore the transfers on which stamp duty was not collected, also cannot be identified.

"Spin-master" P must have wrote this one...

Let's analyse this for a second shall we... 10 million in stamp duties were collected, 16 million should have been.

The first thought that jumped into my head on this one: What about all those people who rent their property without a lease?

You can easily come up with stats like that by looking at the total collected, then looking at the total number of assessment numbers and doing a quick calculation.

Sure, 16 million should have been collected... but I mean how many people are really that honest and don't actually cheat government on taxes no matter who it is?

[Two Cents on 16.03.06 at 10:36]

Ken wrote:
"While the Accountant general collected 10 million dollars in stamp duties on land and property transfers in 1998, a review of the Land Evaluation office indicated that stamp duties of 16 million dollars should have been collected, a short fall of 6 million dollars. (the 1997 shortfall was almost 10 million dollars).

Perhaps I am ignorant or naïve on how “big business” works, but how does one transfer/sell property or land without paying the Stamp Duty? In my limited real estate dealings, I wasn't allowed to take possession of the property deeds until I (my lawyer) produced a receipt for stamp duty being paid to the accountant general. I just don't understand how this extremely large amount of money could possibly go "uncollected" I hope someone can explain this for me.

Furthermore a better, more accurate explanation regarding the $850,000 which was "drivers wages" was spent, it seemed by reading it in the paper that drivers were (a) paid more to drive in Somerset (b) Somerset drivers didn't drive, but were still paid. I JUST DON"T UNDERSTAND...Please tell me what's going on here.

[SmokingGun on 16.03.06 at 10:36]

"Does anyone know the original budgetted amount for the memorial, before the $250000 overrun? Are past Bermuda budgets available online?" - Posted by Zoom on 15.03.06 at 18:08

Does anyone know the answer? I've got a sinking feeling we spent a lot of money on this thing.

[Denis Pitcher on 16.03.06 at 10:40]

In terms of surplus/deficit:

It's bad enough when the UBP left us with $150 million of a "credit limit" for our government to be able to borrow, with no idea of how much was actually borrowed.

The PLP has increased this limit to $375 million as of a year ago.

My question is, how much do we as a country truly owe anyways?

[Uncle Elvis on 16.03.06 at 11:22]

Ken,

My personal opinion is that many people inately believe that we as in black people cannot manage money, and that we therefore are going to squander the wealth of the country

I just want to point to this sentence. You seem to be decrying people for having an opinion of black folks by having an opinion. Do you see what I mean here? It's denouncing generalizing by generalizing.

Anyway...

Actually, back in the day, when the UBP were fucking up the budget, we DID protest. We didn't have blogs and stuff, but there were tshirts made blasting the budget, there were letters to the editor, there WAS protest. I understand your frustration, but please don't rewrite history, or state as fact stuff you don't know about or don't remember.

Plus...
As someone said above, it is the JOB of the Opposition to kick up shit when the Government messes up. They've messed up here. You yourself said, "My point is that hardly any government project runs on budget. Is that acceptable? Not totally.... The Government messed up. They ran over budget. Yes, it happens, but it's not acceptable. It is the duty of the Opposition to call them on this. It's the duty of the citizens of Bermuda to call them on this. Regardless of WHO the Government is.
This is OUR money, amigo. All of us. Colour don't matter, 'cept the green. And blue. And orange. And pink. And purple...
Man, that line works so much better when you're talking about American money, doesn't it?
Anyway. It's our money. We should be able to see where it's going. We should be able to bitch and moan when it's being overspent.
Think about it this way. If it was your brother, doing some work on your house, and he goes, "Oh, I can get you a nice statue for over here", then, a couple months later goes, "Yeah.. um... that's gonna cost a TEEENSY bit more that what we thought..."
You can still love and support your brother, but he DOES deserve a kick in the ass for messing up like that, no?

[ace on 16.03.06 at 11:23]

"My question is, how much do we as a country truly owe anyways?"

If you look at the old thread I referenced above, back in September of 2004 I was wondering EXACTLY the same thing.

[ken on 16.03.06 at 11:23]

I don't believe that its ok for the PLP to do it because the UBP did it. I don't agree with that concept in the least.
However I believe that all of you anti-PLP posters should recognize the fact that if the UBP is re-elected, their track record is not all that glorious.

[Uncle Elvis on 16.03.06 at 11:27]

and the current administration's is?

[SmokingGun on 16.03.06 at 11:32]

And Ken I will probably have to buy you breakfast so that you can toss the egg straight at my face and then we can rub salt in each others wounds.

Actually, I agree with you on the UBP track record thing, and to be honest I can't say I've seen them out their training much.

[b,w&p?? on 16.03.06 at 11:38]

Ken,
As pointed out on numerous occassions by the PLP...the 'face' of the UBP has changed quite a bit since 1998. I have enough respect for the current members of the UBP to give them the benefit of the doubt that they have minds and hearts of their own and are therefore not only a new face but a new era of UBP from the one which was voted out in 1998. I would also expect that they have learned from the mistakes of both their predicessors and the PLP and are ready and willing to take on the task of righting the wrongs and providing this country with good government. If you want to talk 'track' record lets start with the current bunch of pricks who've been on the track for 8 years and are still going around the wrong way!

[Shipwrecked on 16.03.06 at 11:43]

I think you can compare the UBP and PLP with how they treat their cow (Bermuda).

The UBP were (and still are, I'm sure) vampires. They sucked the blood from the cow to fatten themselves, but they kept the cow healthy and never took more than it could handle it one go. The healthier the cow the more they could suck.

The PLP are butchers. They cut chunks of meat off the cow. They get as much from the cow as the UBP from each cut, but the meat doesn't grow back- it forms a scar. The more the fatten themselves, the more unhealthy the cow gets.

Neither one is good, but one is a pest and the other is terminal.

[ken on 16.03.06 at 11:43]

The faces of the UBP might have changed a bit but if they are re-elected I expect to see Grant Gibbons as Minister of Finance...if the allegations in the post are correct then how are we so sure that his administration won't repeat the same mistakes. Sure, they may have learned, but also they may not have.
I realize the PLP have been over budget in many areas, and no this isn't acceptable, but I really don't see this as an election issue because I believe that going forward both governments will be managing the economy in pretty much the same manner. I have little faith that a UBP government will show fiscal responsibility.

[Tiger Bay on 16.03.06 at 11:46]

You want to rein in government?
1) Get government departments to cooperate more fully with the auditor instead of fighting it every step of the way.
2) Actually implement the auditor's recommendations! The same issues come up year after year after year.

[silencedogood on 16.03.06 at 11:52]

As I've said repeatedly if voters toss out the PLP based on the budget it just might send a signal to the UBP that they had better hire a damn good accountant for finance minister. If scandal and waste is ok with the voters there certainly is no incentive for any government to stop.

The only problem with this scenario is understanding which reason why the PLP might be voted out—overbudget? Lack of accomplishments? Berkeley? Independence? Dismal race relations? Secrecy? Hostility to dissent? Housing restrictions? And the list goes on…

[b,w&p?? on 16.03.06 at 11:56]

May have learned, may not have learned - so what we stick with current incompetence and arrogance, NO...don't you get it, this is a democracy and if there weren't dumb jackasses who voted for the PLP based solely on skin color but who actually voted so as to hold the elected officials to task then we would see more substance and less glitter. Both political camps would have a clear message that they are in government becuase the people put them there and they could easily be removed for lack of performance.

[Canuck in Bermuda on 16.03.06 at 12:12]

Ken,

What the UBP will do, or did do, is irrelevant. This is a discussion of a now problem, not a future one, not a past one. For the sake of discussing the current situation, it really doesn't matter at all who the next finance minister will be - it could even be the team of Big Bird and Snuffleupagus, it just doesn't matter right now.

The current administration should be held to the standards of responsible government, and if the next admin fails then their feet will be put to the fire too. Doing (or allowing) a poor job just because "the next guy will probably screw it up anyways" is a horrible way to run well, anything, at all, ever.

[SmokingGun on 16.03.06 at 12:24]

Aaah Canuck, you do get a lunch break.... ;)

[Denis Pitcher on 16.03.06 at 12:26]

Shipwrecked,

ROFL!.... I'll officially respond with - no comment.

Ken,

What I gather from your position is that both government's suck, so your just going to vote for the PLP.

I hate this attitude. I think there are alot of people who are sick and tired of both parties.

What we NEED is accountability from our government, it doesn't matter who that is.

The whole point of this thread, and other discussions like it is that the people need to start demanding it from their leaders. It doesn't matter if your a UBP or a PLP supporter. Both need to step up to the plate.

We need to start demanding from both parties that we want to see accountability. We want to be able to have set terms in office. We - the people - want to be able to recall our government to election, and we want to participate in key issues.

It's like this whole independence debate. We don't need independence from the UK... we need independence from our own government.

[Guilden M. Gilbert, Jr. on 16.03.06 at 12:27]

The more I read these posts the more I realise how divisive party politics in Bermuda is. We go at each others throats over our political affiliations or leanings. At the end fo the day this accomplishes nothing positive.

I too have been guilty of this PLP versus UBP thing but in sitting back over the last few days just observing the comments it is much clearer to me that we need a much better system of government than we currently have.

It matters not what each party does because when our support rest with a particular party we will make excuses, for want of a better word, to justify our support.

The reality is both parties have done both a service and a diservice to Bermuda and we can argue back and forth as to which was better of the two evils but I think it is time to put our support for party aside and seriously look at what is in the best interest of Bermuda and Bermudians.

My preference would be to ignore ideology and focus more on complete transparency in government affairs and along with that comes honesty and those that serve the country must be held accountable for their actions and inactions.

I think as many have said in the past good governence has to be the preferred goal.

[Two Cents on 16.03.06 at 12:31]

No-one has answered my question posed in my earlier post ...........How does one transfer/sell property or land without paying the Stamp Duty? That doesn't seem to be right that there were $10 million in unpaid stamp duties.

[Uncle Elvis on 16.03.06 at 12:40]

Big Bird for Finance Minister!
Mr. Hooper for Premier!
Luis for Works and Engineering!
Gordon for Race Relations!
Oscar for Sanitation!
Cookie Monster for... actually, Cookie Monster, with his uncontrollable appetite would fit in on either side of the political divide! *grin*

I'll bet if Ernie and Bert get voted in, we'd have that Human Rights legislation that Ms. Webb proposed!

[dynamite on 16.03.06 at 12:45]

I'm getting tired of people defending the actions of the PLP by pointing to something the UBP did in the 90s that was similiar. Why is it that these people think two wrongs do make a right. The UBP got thrown out of power for these things and so should the PLP. I'm sure we'll see the government go on another rant against the press or play the race card over this issue, they always do.

[Uncle Elvis on 16.03.06 at 12:53]

Amen, Guilden, amen

[Phil on 16.03.06 at 13:20]

I'd like to thank ken for making his points without getting snarky.

I'd also like to remind everyone that this thread is about budget overspends. Please stay on topic.

[ken on 16.03.06 at 13:29]

Denis,

I actually don't think that the PLP government sucks. At all. I think they have their issues in certain areas, but I think they have the capability to manage the country's affairs adequately. I also think that the UBP if elected will do an adequate job. So I don't see doomsday in either situation...

But we have gotten off topic, and the topic was the budget. Yes the PLP need to ensure they stay on budget with capital projects, I do agree.

[ken on 16.03.06 at 13:31]

I clicked post prematurely...

If I may continue, I will say that the PLP does need to stay on budget, however, going over budget to me does not condemn them to the depths of hell if I believe they are doing a decent job in other areas, which I do.

[sandgrownan on 16.03.06 at 13:38]

Ken, I suspect that you've just opened yourself to a fair bit of abuse. To say that PLP have challenges only in budgetory matters is to ignore the facts of their record over the last 8 years. What vexes most folks here, beyond the outrageous waste of our money, is that budgetory mismanagement is just latest is a series of PLP governmental disasters. On top of that the refusal to answer questions, be criticsed and to play the race card at the drop of a hat creates so much venom it's unbelievable. You couldn't make this stuff up.