Mr. Speaker, I rise to advise of the final chapter of the amalgamation of two (2) Government Quangos – the West End Development Corporation and the Bermuda Land Development Company.
Mr. Speaker, later this session I will table the West End Development Corporation Amendment Act 2024 in this Honourable House. This is the culmination of six (6) years of hard work by this PLP Administration.
Mr. Speaker, some honourable members may recall in July 2022, I stood in this place and announced some decisions relating to the operational changes at the quangos under the remit of the Ministry of Public Works.
These decisions were:
•In September 2018 a freeze on all new hires was issued to all 3 Quangos. These being the West End Development Corporation (“WEDCO”), The Bermuda Land Development Company (“BLDC”), and the Bermuda Housing Corporation (“BHC”).
•Effective November 1, 2018, the then BHC General Manager, Major Barrett Dill assumed management responsibility for the BLDC as interim CEO in addition to his responsibilities at BHC.
•Effective November 1, 2018 as well the BHC CFO, Mr. Mark Melo assumed financial responsibility for the BLDC in addition to his responsibilities at BHC.
•The BLDC Board remained intact and continued their work under the new management team; and Effective January 29th, 2021 the Wedco General Manager, Mr. Andrew Dias assumed responsibility for BLDC as the Interim CEO in addition to his responsibilities at Wedco.
Mr. Speaker, its worth repeating some of the history of this entire project.
In July 2002 the then Cabinet decided that the Central Policy Unit should complete a review of 17 Quangos which focused on the following objectives:
1.Determine whether Bermuda’s Quangos as currently constructed are meeting Government’s aims and if not recommend methods of achieving alignment;
2.Determine whether there is accountability to the Government and if not, recommend an adequate structure to accomplish this; and
3.Develop mechanisms for ongoing review.
Mr. Speaker, the scope of the review covered a wide range of topics including the establishment and governance of each body; its existing relevance, feasibility, effectiveness, levels of accountability to Government, expenditure, income, whether the work could be more effectively (or more efficiently) carried out within Government proper; or by some other means; Determine governance and best practice in other jurisdictions and to develop a mechanism for ongoing review.
All laudable goals which resulted in a report entitled “UNTANGLING BERMUDA’S QUANGOS - A review of Quangos in the Bermuda Government” presented in October 2003 and the subsequent Sage Commission Report presented a decade later in 2013.
Mr. Speaker, this PLP Government took the decision early in our administration shortly after returning to government in July 2017 to have another look at the reports and their recommendations with a view to actioning some of those items. Upon assuming this role – I asked the 3 Managers to meet on a regular basis to discuss ways we could merge operations utilizing the recommendations of the Quango Report as the basis for those discussions.These meetings resulted in the aforementioned operational changes. However, this was not the end…but only the beginning.
Mr. Speaker as mentioned before in January 2021, the WEDCO General Manager assumed responsibility for BLDC as the Interim CEO and throughout that year Mr. Andrew Dias in his dual role, curated a draft strategic plan to merge the West End Development Corporation and the Bermuda Land Development Company into one new entity. This strategic plan was submitted to the Ministry in June 2022. Credit must be given to Mr. Dias and his team because throughout that year, he along with everyone else in the world was also managing the remnants of the COVID-19 Pandemic.
This strategic plan outlined the vision for this singular entity as the two quangos shared similar objectives, mandates, skills, accounting procedures and staffing levels. In that plan, it recommended that the BHC would remain a seperate entity as it has different mandates, goals and objectives.
Mr. Speaker, this plan was submitted for consideration and was subsequently approved by the Cabinet in July 2022. This amalgamation is an opportunity to immediately effect some cost savings by reducing duplication of roles, combining responsibilities and bringing a sharper focus to deliver on the governments mandate to control costs and operate more efficiently.
The then Permanent Secretary – Mr. Randy Rochester – and I then visited the respective staffs and Boards of the affected bodies to inform them of this decision. Many welcomed the move and are looking forward to the future.
Mr. Speaker, this now brings me back to the July 2022 statement in which I explained that this process originally started twenty (20) years ago and that I shall not rest until this is accomplished…a commitment I am keeping today.
Mr. Speaker, upon that Cabinet approval a team was immediately formed comprising of technical officers of WEDCO, BLDC and the Ministry to Manage the transition.
Over the past two (2) years the following operational activities have taken place to prepare for this amalgamation:
•Creation and implementation of new identical Union Collective Bargaining Agreements for both WEDCO and BLDC. Thanks are given to our union partners – the Bermuda Public Services Union and the Bermuda Industrial Union – for being instrumental to ensure that their members and our employees move forward with us.
•Job description reviews and internal policy assessments have been completed.
•Merged WEDCO and BLDC servers and software – essentially running all finance and IT systems for both entities from a single location.
•The Chief Financial Officer at WEDCO is now acting in a dual role for both entities.
•Compiled the asset and liability schedule for both entities.
•Established a Marketing and PR joint strategy for the new entity.
•relocated key staff to assist with the transition initiative; and
Liquidators have been appointed in accordance with the provisions outlined in the Companies Act 1981 – as the BLDC is incorporated as a Limited Liability Company.
Not only has all this taken place Mr. Speaker, but you may also recall in March 2023 this Honourable House approved the dissolution of the BLDC to ensure the seamless amalgamation of the entities.
While it was the full intention for this initiative to be completed by January 2024 – and I must clarify that operationally, this target has been met. The merger team stands ready to complete the consolidation once the necessary legislative requirements are concluded. Hence the Bill being tabled later today.
Mr. Speaker, as I have said, we are in the final chapter.
The newly named entity the Bermuda Land Management Corporation or (“BLMC”) will manage all assets that both the formally named WEDCO and the soon to be dissolved BLDC owned. While the specific provisions of the West End Development Corporation Amendment Act 2024 will be debated at another time in accordance with the Standing Orders of this Honourable House, I wish to take the time to clearly state:
“There will be no job losses resulting from this merger.”
I must again commend the management and staff of both organisations – many of whom did not believe we would proceed and that their jobs would be in jeopardy if we did. I am particularly pleased to again thank both the Bermuda Industrial Union and the Bermuda Public Services Union for collaborating with us to revise the Collective Bargaining Agreements so that they are ready for the Bermuda Land Management Company.
Mr. Speaker, it took successive Governments twenty-one (21) years to get to this point today and this PLP Administration will bring this across the finish line.
Mr. Speaker, first thanks are given to the transition team comprising of Ms. Nichol Gift, Ms. Carmen Tucker, Mr. Stephen Tucker, Mr. Kent Bascome, Ms. Joanna Cranfield, Ms. Latanya Carmichael – all ably led by Mr. Andrew Dias in his dual role as General Manager and CEO of both existing entities.
Thanks are also given to the drafter, Mrs. Cathryn Balfour-Swain and our lawyer Ms. Shantal Bailey at the Attorney General’s Chambers, whom even with their limited staffing resources, were able to ensure that this Bill is ready within this legislative session – as mentioned in this year’s Throne Speech.
Mr. Speaker, I also would like to extend thanks to those officers within the Ministry who assisted in this process as well – namely those in the Estates Section of the Department of Public Lands and Buildings: Ms. Sudell Joseph, Mr. Sean Patterson, Ms. Regina Ferguson and last but not least Mr. Steven Conway, the Director for the Department who will retire at the end of this month. It is an amazing curtain call in bringing this twenty (20) plus year initiative to a close. I would also like to extend a special thanks to Mr. Stephen Symons, our Consultant Policy Analyst who performed exceptional work in ensuring the finer details of the merger, including the policy development and legislative implementation, were manged with the utmost care and attention. As the old saying goes, the Devil is in the details and for this merger there were plenty, but Mr. Symons kept all parties in coordination and was instrumental in the delivery of this Bill today.
And finally, Mr. Speaker, I would like to thank not only the current Boards of both WEDCO and BLDC which are led by the Honourable member from Constituency 26, Mr. Neville Tyrell, but I would also like to thank all former board members who were involved in this process since 2018 including the former Chair of the BLDC, the Honourable member from Constituency 3 – Ms. Lovitta Foggo.
Mr. Speaker, this has been a long and arduous journey that you, I and the Deputy Speaker have lived through. I am certain though that if other Government entities wish to pursue a similar course of action, the process employed in this exercise would be an excellent template to follow.
Now that we are reaching the end Mr. Speaker, I look forward to the upcoming debate and the bright future the Bermuda Land Management Corporation will have.
Thank you, Mr. Speaker.