Unintended consequences

Looks like the Government's decision to give itself a massive pay rise (with no increase in accountability) has put it on a collision course with both the civil service and the police.

Should be interesting to see which gives way first: fiscal responsibility or the PLP's allegiance to its labour roots.

Comments

[observor on 21.06.06 at 13:40]

I have no problem with paying people what their worth in exchange for capable, efficient, reliable and measurable results concurrent with full disclosure of their actions and absolute accountability for same.

However, this pay raise is yet another item in the unfortunately long list of examples where this government acts first without thinking matters through properly.

Unfortunately for us most of this current batch of MPs really have no clue about how to run a business or a government. Thank goodness we have a competent civil service (as proven by the previous government) who can get the job done when given proper direction.

However, lets be honest here, it's no wonder they need the pay rise given their lackluster (at best) successes in the private sector before entering politics. This is their way of taking as many bites from the apple as possible now and into retirement.

What a shame.

[SmokingGun on 21.06.06 at 13:45]

So the Police are going to demand huge pay raises because the Government Ministers have decided they will be getting them?

Way to go spanky. I'm absolutely 100% for increasing our Police officers wages by a minimum of 20-25%. We do not need anymore highly paid part-time politicians but we certainly do need more qualified and properly compensated Police. Higher pay will create incentive to join. This goes for our teachers, hospital staff, firefighters etc. as well.

The country's Senators should demand a moratorium on the pay raises until a real cost can be determined and presented as to where we will be going forward. The pension increases alone will be enough to hire half a dozen more Police.

[silencedogood on 21.06.06 at 14:24]

Not surprising. If there's money enough for politicians people might believe there is money for other things too.

Real leadership would have been to give raises to others who deserve it first before dipping into the trough yourself. I don't think the jokers in office even know the word.

I think fiscal responsibility is already gone, and so govt. will pay up.

[SmokingGun on 21.06.06 at 14:42]

silencedogood - there is plenty of money that can be put towards people that deserve it. Unfortunately it's getting spent willy nilly on things that are extremely irrelevent to the well being of Bermuda, it's people and it's future.

And while this whole thing is going on we still do not have an Auditor General in position to review and question policies and expenditures. How can a CEO of a company make a worthwhile decision on compensation when half his companies divisions haven't even filed their annual reports in three or four years? This is pure and simply a Gold Rush that seeks to benefit a very small cadre of indivduals.

[silencedogood on 21.06.06 at 15:06]

SG, I couldn't agree more. The salaries paid to government employees are miniscule in comparison to the waste that occurs in government budgets.

I hate to return to it yet again, but the money wasted on Berkeley or the tourism travel budget increase could raise the salaries significantly of everyone employed by government.

If there are 2,000 govt. employees (I have no idea the actual number) each would get a raise or bonus of $31,000 just from the Berkeley overrun. Let's hope an election is soon and we can oust these idiots.

[Tiggy on 21.06.06 at 15:15]

What a can of worms they have opened! First the police, then the fire service, teachers, and all other government employees. Should be interesting to just sit back and watch!

I don't think anyone should get any pay rises until they account for the missing $80 million (or was it $800?) in government expenditures!! The government needs to account for it!!

[ken on 21.06.06 at 15:34]

You all kill me with the "missing $800 million dollars" as if its totally missing. And you say it with such conviction.

[The Right Reverend Uncle Elvis on 21.06.06 at 15:39]

So.. um... where is it? Where did it go? Do you deny that there is $800 million gone... somewhere?

[SmokingGun on 21.06.06 at 15:41]

Tiggy - $800 mill isn't missing it's just not been fully audited/accounted for. So far ;-)
As for the can of worms I just find it hilarious that not one of the Ministers, Senators on either side of the table actually chose to raise the point prior to the debate or decision. This issue has the same ear-markings as the Renee Webb bill. I won't say anything unless you do first.

The fact that it is the Union leaders who are putting it front and center is going to put things over the edge. Of course the ministers will get their raises, of course the long line of civil servants will get their's (and the line gets longer each day) and of course the Police, Teachers, Firefighters, Nurses etc. must get their raises.

Certainly some definitely deserve raises but others do not. Let's not forget a 35 hour work-week over a 40 hour week with the same pay is a raise as well. The PLP has motioned in a law that "must" force them to be fiscally irresponsible if they want to survive in power.

[ken on 21.06.06 at 15:41]

It is my understanding that the $800 million has yet to be accounted for in the financial statements, which are backdated, not that the $800 million has vanished into thin air.

[Tiggy on 21.06.06 at 15:43]

I did say "missing government expenditures that need to be accounted for". I know it hasn't just vanished into thin air...but then again, who knows?

[Tired of Politics on 21.06.06 at 16:03]

Bottom line is that this government has to go. They are out of control and seem to be doing nothing good for the country in the bigger picture. Yet... they still like to applaud themselves and give themselves a raise? I am amazed that a vote of no confidence can't be called and has NOT been called yet.. Is Berkley done yet? ;0

-Tired of Politics

[Adjustah on 21.06.06 at 16:27]

Hmmm, not missing, just not there yet? ;)

[RedOnion on 21.06.06 at 17:35]

Ken is right, the $800 mil is so far unaccounted for. Of course, it will be a while longer before it can be tracked down and documented since the AG's office is in such turmoil following their forced relocation recently. Guess it gives someone more time to 'account' for the money.

I hate friggin politics!

[Bill Cook on 21.06.06 at 17:41]

There is no doubt that if we have our priorities we do need to attract better police officers by paying an attractive salary, however police are paid as they are promoted also and with the present time limits imposed who in their right mind is going to get interested in making a career for 5 years and on to the next place ?
This works fine for our transient hotel workers and chefs etc but to be an effective police officer means blending into the community to gain their cooperation and assistance takes time ergo you are in a no win position with no solution in sight with this policy in my opinion.

[SmokingGun on 21.06.06 at 17:45]

Excellent deduction Officer Bill. You have raised an extremely valid and important point.

[RedOnion on 21.06.06 at 18:13]

Looking at the big picture here, and the long term picture, the present Government may just grant these large increases to the Civil Service, partly because they cannot justify not giving them when they are getting them and partly because the huge increases in the cost of running Government as a result of increases may not be their problem after the next election. If the UBP win the next election you can be sure the PLP will be on their case in no time about the size of the Civil Service a, problem the UBOP will inherit.

Bill, you are absolutely right, continuity and longetivity are critical in a Police Service.

[Martin on 21.06.06 at 18:26]

What was the old saying...you don't get better performing monkeys if you pay them more?

Performance is the key...then look at the pay.

[Bill Cook on 21.06.06 at 18:59]

Smoke, its not just pay but the attitude that police have to contend with.

There was a very strong anti UK police atmosphere created by the then opposition and almost daily critcism etc so much so that through my connections over that side I strongly advised no one to come here in such an uncertain and hostile environment.

I think the heart and soul of a pretty good police service was permanently damaged and never recovered but politicians continue to prosper travel in luxury while the police headquarters are a national disgrace, not many knighthoods handed out to police chiefs eh ?

Now it is becoming very tough to recruit good police officer material and our soiled reputation is common news in the UK.

[abc on 21.06.06 at 20:57]

Does anyone think that the police pay issue and the teachers had an effect on the Govt Leader in the Senate, Attorney General Mussenden not bringing the topic up today and preferring to hold it over for discussion? Is it possible that the government might decide to decrease the increases or change them in some manner?

[Michael H. Dunkley on 21.06.06 at 21:03]

I find it very interesting to read the comments re the pay increase for Members of Parliament and now the call by others for the same type of treatment.
I guess many in the community expected the cry to come and now the government find themselves in a bind on both issues, the pay increase for MP's and what to do about current salary reviews.
As far as the Police are concerned, it is my opinion that the mess is much deeper than the public are aware. We are all aware of the poor facilities they deal with daily as they work. We are also well aware of the manpower issues faced and thus we see no police on the beat whether it be in town or cruising the streets from east to west. This transpires into very low rates of apprehending offenders or solving crimes and to top it off due to the high turnover of staff the experience level of our service is extremely low, I am told that 75% of the service has less than three years service! This is a worrying position to be in especially when it appears that this government is not worried about the current state of affairs within the Police Service.

[abc on 21.06.06 at 22:03]

Mr Dunkley,

I see you are a frequent contributor to this site now...as Deputy Opposition leader, how would you rectify the issue of low police morale? It is very easy to criticize from the sidelines but if and when you are charged with the mandate of governance, you will have to come up with solutions. With regard to the pay issue, do you in fact feel that the MPs do not deserve it? And I am not talking specifically of PLP MPs vs UBP MPs, I am talking about the positions themselves. I am of the opinion that 78K a year is hardly a sufficient salary for the leader of a country regardless the political party. If you oppose the salary increases, are you as an Opposition MP prepared to decline it? Or will you accept it because it is instituted? Also if the pay raises for Govt MPs is instituted, and the UBP is elected into office, will you backtrack and reverse these salaries that the Opposition seems to think are unwarranted? Maybe I am cynical but I believe that the UBP are playing politics very well in this regard, because they know that their votes are worthless in this, and that if the government passes it, it will be enacted at a certain point in time, and the Opposition will benefit anyway. So you can voice your opposition because you know you will benefit in the long run.
I would like to hear your answers on this.

[The Right Reverend Uncle Elvis on 21.06.06 at 22:04]

So, wait...

it's not missing, we just don't know where it is?

Is that how we're rationalizing it?

[Rev. Goat on 21.06.06 at 23:12]

Whilst the rest of the world is concerned about inflation and trying to combat the effects of it Bermuda has gone on an all out spiraling wage increase lead by the government. We shall all pay dearly for the example they have set. The civil service has become like little children that discovered where mummy hid the cookie jar.

This government has borrowed heavily, taxed heavily and are now sucking out all the cash they can. What will happen in the next world wide economic slow down? Where will the money come from to pay for all this extravagance...more taxes?

[KJD on 22.06.06 at 07:48]

ABC,

While I fully agree that $78,000 is not a lot to pay the leader of a country, let's not forget 2 important things:

1) Bermuda is NOT a country; it's a tiny island with a population of 60,000 people; about the population of a mid-sized town elsewhere in the world. To say that the position should be paid similarly to world leaders in lunacy.

2) Don't confuse salary with total compensation. Even if our Premier's salary may seem low to you, don't forget that it's basically pocket money for him; he lives rent free, travels free, etc.. Consider just the house; ARV of $10K a month? That takes his compensation to $200K before you even begin to consider the other perks of the job.

K

[ken on 22.06.06 at 08:58]

KJD,

Looking at your comment to ABC, I see what you mean, however you are confusing compensation with take home salary. And yes the housing allowance takes his total compensation to 200K however he doesn't see any of it. Whether Bermuda is a small country or large country is irrelevant to the fact that the position requires a great deal of responsibility and sacrifice. YEs there are perks received for it, however 78K for a Premier is nothing, when I know of other professionals in Bermuda getting paid much larger salaries than that for positions that do not require as much attention and public scrutiny. I am not saying he should be paid the same as President Bush or anyone like that, but to be honest I don't know what Bush's salary is. However, I do believe that he, and all the MPs should be given an increase. If they are gonna devote the majority of their time to the country then they should be able to without having to work fulltime jobs on the side just to draw even. It traditionally wasn't an issue in the previous government because most of their MPs and Ministers came from wealthy stock and didn't have to necessarily work for other people. The low salaries for MPs was done traditionally to keep the best & the brightest of the PLP supporters out of politics. We all know this...whether we want to accept it or not.

[observor on 22.06.06 at 09:08]

The low salaries for MPs was done traditionally to keep the best & the brightest of the PLP supporters out of politics. We all know this...whether we want to accept it or not.

Well I guess that explains why most of the current slate of PLP MPs are so utterly useless.

[Raptor on 22.06.06 at 09:22]

Did some Googling: George W. Bush earned $115,345 as Governor of Texas (a bit larger place than Bermuda).

As President he earns $400,000, plus $50,000 for expenses, $100,000 for travel, $19,000 for entertainment, and he gets free housing.

[Bill Cook on 22.06.06 at 09:28]

It is not true to infer that most of the old UBP were of wealthy stock.
The solid core were of middle class stock as mentioned in another blog, people like John Stubbs, Harry Viera, Syd Stallard, Bill McPhee,Quentin Edness,Jim Woolridge,Ann Cartwright etc etc these people came from modest beginnings that they rose up was by dearth of their own hard work not inherited wealth.

Part time politicians also have to manage their own business and part time pay is or was never intended to be the main support and sure was not for all the above, I worked closely with one and know.

[Trebliso on 22.06.06 at 09:32]

It is difficult to divorce the current rabble from what can be a challenging job and if done on a full time basis probably does require a moderate hike in remuneration. However, comparisons with other jurisdictions should account for the fact that Bermuda outsources Foreign policy, monetary policy and defence. Scrutiny and accountability are far higher elsewhere. An enforceable members interests register and transparency of incomes and liabilities (quick - get a glass of water for the good Doctor!)

In the UK we put together a structure linking members salaries to FD civil servants that provided an acceptable consensus for future discussions.

Bermuda's "leaders" are little more than administrative functionaries with delusions of mediocrity - I couldn't give a monkeys what they pay themselves but I would be intrigued to see how they cope with the spectre of stagflation should a public sector wage pissing contest start.

[ken on 22.06.06 at 09:33]

Raptor,

Thanks for the info. I don't believe however that we can strictly compare salaries based on population or geographic size. We have to take into account the economy, and the cost of living here is much higher than that of the US.

[observor on 22.06.06 at 10:01]

ken

I think its fairly safe to say the Premier's ancillary benefits comfortably take care of any major cost of living expenses.

[Bill Cook on 22.06.06 at 10:23]

Of course P can always fall back on his aquired wealth from the successful SCOTSCRAFTS which he ran for some time with great energy and ability ! not only the UBP were self made men and women he is a good example of what the PLP members were capable of also.

Any hard working MP who accomplishes results deserves compensation and our support if it improves our quality of life here.

[Michael H. Dunkley. on 22.06.06 at 10:57]

abc,

As an elected Member of Parliament I have the duty to stay in touch and listen to what the people of the island are talking about. I do that through many avenues and I enjoy this site.
Let me answer your questions:
The police morale issue is one that has been allowed to build over the years and it will not be rectified over night but it can be improved over time. As I mentioned briefly in my last posting on this site, manpower and facilites need to be addressed asap. The police are not happy with their shift situation nor are the numbers right. This needs to be looked at and then dealt with based on the assessment. As far as the facilites that they work with everyday, again, for too long we have paid lip service to them in regards to improvements. How long have we been talking about a new Hamilton Police Station? Based on these unkept promises year in and year out can anyone blame a police officer for becoming disillusioned?
I appreciate your comment about being critical from the sidelines. In response I say that as the opposition part of our job is to reveiw government policies. This means being critical as well as showing support. The suppoprt part is never covered in dpeth by the media as it does not make for good news!
I look forward to the opportunity, if that is what the voter wants at the next election, to sit on the other side of Parliament as the Government and make the decisions to deal with our problems. The community will be asked to decide soon which party is best suited.
In connection with the pay increase, I do feel MP's deserve an increase, but it should not be done by the MP's themselves.
It is my belief that it is wrong for MP's to decide their own renumeration. In the past when yearly cost of living increases were approved I was uncomfortable with it but did not make a big fuss as the increase was only keeping up with inflation etc. I can not accept this proposed change unless it is done by an independent group that looks at the entire matter. The remit of the group that made the report to the House was to narrow and did not cover all matters. In addition, while I agree that salaries should be reviewed I have a problem with not also putting in some new levels of accountability for MP's. In the past some MP's never showed at the House but got paid! Is that right? I believe that with increased pay should come increased standards of performance. I could go on and on but I think I have given you a brief overview as to how I feel on this issue.
One other comment on this issue, in the past people got involved in politics to serve the island, not to get rich and make a career out of it. While one should be compensated fairly for the work they do we also need to be assured that we do not allow our elected officials to become to fat and happy with a position and thus never be able to remove them!
Will I accept the increase? In time you will find out if the increase goes through.......

[jsm on 22.06.06 at 11:07]

"As an elected Member of Parliament I have the duty to stay in touch and listen to what the people of the island are talking about"

...unless they're gay...'cause they may want equal rights, and that's too icky for me....

[abc on 22.06.06 at 11:32]

Mr. Dunkley,

Thank you for your responses.

I do agree that the Police morale issue is one that needs immediate attention, and is due to many factors, however, these factors did not just begin in 1998 and morale was slipping prior to that as well. This government does need to find an answer to it, however, it cannot be blamed on this government entirely.

I do concede that Opposition support for Government policies is not covered as much as their opposition is. And that is unfortunate. However not suprising due to the biased media outlets that we have in Bermuda. However I will say that the times that I have heard the Opposition support something, it is always backhanded and dismissive. I believe that you as the UBP would have much more credibility in the eyes of the public if stopped crying over petty things every night on the tv and picked your battles more wisely.

Regarding the MP's pay raises, I thought that there was an independent committee set up to do the review. And I also thought that it comprised members of both sides of the house. If I am mistaken, which I may well be, please enlighten me. I agree that the MPs themselves as a separate entity should not necessarily calculate what their raises should be, but I am not entirely convinced that had a totally non-political entity come up with the same figures, that there still wouldn't be disdain for the raises.

As far as you not letting us know if you would accept the raise, unfortunately that is what we have seen to be a regular occurrence with the UBP. A wait and see approach. Rather than taking a stand on an issue.

[The Right Reverend Uncle Elvis on 22.06.06 at 11:53]

Good one, jsm!

[SmokingGun on 22.06.06 at 12:02]

$78,000 per annum for our Premier is too little. Salaries should be fair and if the job entails full-time work then they should include incentives and penalties. The biggest issue is the accountability and openness as to full disclosure. If there are numerous perks involved then they should be clearly stated and known. And anything that is unbecoming of the position should be investigated thoroughly and punished accordingly.

[silencedogood on 22.06.06 at 12:31]

I don't believe however that we can strictly compare salaries based on population or geographic size. We have to take into account the economy, and the cost of living here is much higher than that of the US.

Posted by ken on 22.06.06 at 09:33

Are you serious? The President pays taxes on his salary, the premiere doesn't. Even if he did, the Premiere has no cost of living. Has a free house, car, and travel. I agree that a 1:1 geographic comparison is not appropriate but you can't throw all comparisions out the window, especially when, as someone stated above, his salary is pocket money. Maybe he should take over Tourism--I hear they have a great benefits package.

SG--the info I've seen in the RG was that he's paid $111,000 a year.
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20060622/NEWS/106220062

That's not the highest salary in Bermdua but considering all the perks, it's not that bad. It probably makes the Premiere one of the few people in Bermuda today who could afford to buy a home. ;)

[SmokingGun on 22.06.06 at 12:44]

silencedogood - you are correct on both accounts. Not sure where I picked up $78,000. I think it was from Ken. I'll have to research before I go on Ken's word again. ;-)

The tax point is well made. $111,000 is roughly $160,000 before taxes in the US. However there are often write offs etc. I would be comfortable with a salary around $150,000 with all the benefits that come with the job if it were full-time.

[ken on 22.06.06 at 12:57]

I believe the salaries for MPs right now is approx 40K...then there is the 78K for being the Premier, so i think his take home is the two combined (before deduction).
I could be wrong on the actual figures. Maybe Mr. Dunkley can assist.

[Simon on 22.06.06 at 13:27]

Ken is correct, there is a basic salary for being an MP and then various additional amounts depending on the office held.

[Raptor on 22.06.06 at 13:40]

"Thanks for the info. I don't believe however that we can strictly compare salaries based on population or geographic size. We have to take into account the economy, and the cost of living here is much higher than that of the US." (Posted by ken on 22.06.06 at 09:33)

Depends on where you live in the U.S. Add in applicable federal income tax, state income tax, state sales tax, city income tax, town real estate tax, excise tax for vehicles and insurance costs, heating costs, etc.

[Michael H. Dunkley on 23.06.06 at 11:57]

abc,
The committee set up by the House had no members from the House on it and, as I said before, to narrow a remit to consider. They did interview the entire Cabinet, some PLP backbenchers and only one UBP member was invited to give a view.
In response to your questions re me accepting the raise, how can I answer when the increases are not passed yet? (They may never come!)
There was a question asked by Ken about salaries at present. MP'S now get about 39.4k and the Premier gets 39.4 plus 72.2. The Deputy Premier gets 39.4 plus 49.2 and Ministers get 39.4 plus 39.4. Senators get 26.2.
Hope this helps.

[Michael Taylor on 23.06.06 at 12:04]

Michael Dunkley,

"In response to your questions re me accepting the raise, how can I answer when the increases are not passed yet?"

Easy! Would you, or would you not? Yes or no.

[SmokingGun on 23.06.06 at 12:14]

Shadow Boxing at it's best. With all due respect Mr. Dunkley, it is a tad silly to try hiding behind that defense.

[Bermudian on 23.06.06 at 12:24]

Mr Dunkley,

If you can't answer that very simple question I will highly doubt your ability to find an answer to Bermuda's more pressing problems.

What is so hard about it?

[Simon on 23.06.06 at 12:52]

What is it with politicians from anywhere - they will never answer a straight question with a straight answer. That's why I refuse to vote, I have never felt that there is a politician out there who I could trust enough to give my vote to.

[Ali on 23.06.06 at 13:33]

I suspect taht what Mr. Dunkley is saying is that he would vote for reasonable increases and not vote for outlandish ones. There is also the accountability issue tied in. If the Ministers were working full time and paid accordingly, the increases may be justified relative to what CEO's can earn in the private sector, assuming of course that any of our Ministers could actually qualify as a CEO. As usual the legislation has been put forward without proper research and qualification and in my opinion the Senators should send it back for ímprovements'.

[SmokingGun on 23.06.06 at 13:52]

Ali - you are being very generous. However I definitely agree that the Senators should send it back and have a moratorium until we as a people have a very clear understanding of what the "true" cost will be and what will be committed to with regards to Police, Teachers, Nurses, Firefighters etc.