Increased Use of Crown Corporations

As we move to diversify our economy over the next decade, we must also increase efficiency and productivity in the civil service. The next PLP government will make increased use of Crown Corporations. The structure is simple; instead of selling government assets to the private sector, assets and employees are transferred to a Crown Corporation that is wholly owned by the government. This Corporation is given the flexibility to manage its own affairs under the oversight of a Board of Directors. The Crown Corporation will operate at arms length from government and its executives will have the responsibility to increase productivity, efficiencies and profitability. When the organisation is successful and earns a profit, those profits are transferred to the people of Bermuda. A Crown Corporation can be used for the redevelopment of our airport and other government departments where the structure can assist in increasing productivity. The calls for privatisation of government services is based on the premise that the private sector can provide the same service at a lower cost; in theory, that may be correct. However, what happens in practice is that unions are busted, employees are made redundant, benefits are reduced and end user costs are often increased. Another by-product of privatisation is that public assets are transferred to the private sector often at below market rates which inevitably results in the ‘haves’ having more.


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