The government’s implementation of recommendations made by the Orane Report on reducing waste in the public sector has saved a total of $209 million over the last two financial years.

The Cabinet Office’s annual report for 2000-2001 says the savings were made in seven main areas, namely: rental and space utilisation; the rationalisation of overseas missions; public sector allowances and domestic and overseas travelling; the introduction of an advanced card system in some ministries and departments, and through energy audits.

The report said that rental and space utilisation cost saving initiatives effected by seven ministries during the 2000-2001 financial year saved $22 million. Ministries instituting cost savings included: the Ministries of Finance and Planning, Transport and Works, Agriculture, Local Government, Youth and Community Development, the former Ministry of Environment and Housing and the Office of the Prime Minister.

By the relocation and closure of some offices in overseas missions savings of $8.6 million were achieved. The JAMPRO Trade Commission in Tokyo which has been relocated to the Japanese embassy’s premises has resulted in $4 million in savings and closing the JAMPRO office in Brussels has saved $3.75 million. Another $886,000 was saved through cost saving initiatives in 10 missions.

Over the last two financial years the allowances paid to teachers, some categories of staff in the health sector and in Jamaican missions have also been rationalised. The report said that the allowances of nurses and staff in the Fire Brigade were rationalised in 1999/2000 and that some allowances for dietitians, nutritionists and pharmacists were rolled into their salaries. The allowances for the home-based staff of overseas mission were also frozen and four allowances for diplomatic staff in Jamaican missions overseas, were consolidated into one. Clear guidelines were issued to ensure that specific allowances were paid in accordance with rules, the report stated.

Stricter monitoring and management of domestic travelling allowances resulted in significant savings in several ministries. They include the Ministries of Local Government and Community Development, Finance, National Security and Justice and Labour and Social Security.

Ninety eight per cent of the entities representing 15 ministries and 108 departments have been placed on an Advanced Card System that is expected to save $15 million annually.

Measures implemented by the Ministry of Labour and Social Security and the office of the Prime Minister in regard of overseas travelling reduced their expenditure by $8.7 million over the previous year. The Ministries of Local Government, Youth and Community Development; Industry, Commerce and Technology and Foreign Affairs and Trade also achieved combined savings of more than $5.6 million on overseas travelling, the report stated.

Implementation of the recommendations of the Demand Side Management Unit (DMU) of the Jamaica Public Service Company (JPSCo), which has been mandated to co-ordinate and conduct energy audits of government buildings in all ministries is expected to result in savings of $500,000 per annum, the report said.

It was also noted in the annual report that the Cabinet Office was continuing to monitor and co-ordinate the recommendations that were accepted in the KPMG Peat Marwick strategic review of the four largest Ministries – Health, Education and Culture, National Security and Justice and Finance and Planning.

KPMG recommendations resulted in the doubling of the total earnings of the Ministry of Health in 2000-2001 over 1999-2000. The estimated earnings in 2000/01 totalled $700 million compared to $381 million in 1999/00. Major achievements of the Ministry of Health included: reduction in doctors’ sessions by 20 per cent; outsourcing of security, laundry and catering services in the Western Regional Health Authority; continued privatisation of 12 hospital morgues, and continued cost improvement programmes to reduce utility and procurement costs.

The focus of the Ministry of Education and Culture during 2000/01 included: completing the establishment procedures and controls systems for the staffing of all institutions, and commencing the second draft of the National Literacy/Numeracy plan. The transfer of responsibilities from the ministry to regional offices and schools to simplify administration and release staff for other priority work, also continued.

The Correctional Services of the Ministry of National Security and Justice as recommended by KPMG, in 2000/01, subcontracted night transportation of all juvenile centres and the Tower Street Adult Correctional Centre. New sentencing options were recommended to Parliament and the number of community service officers was increased from 879 to 1,279, the report said.

The ministry also instituted a risk assessment programme under which all inmates will be classified and which will see inmates with sentences of 12 months and less being removed to open institutions. The “civilianisation” of the Passport Office also began with the training of two batches of personnel to replace the present staff.

The Ministry of Finance and Planning’s implementation of the KPMG was evidenced in work carried out to bring about the merger of operational functions of the Budget Division, Financial Management Division and PAMCo into one unit, the Public Expenditure Division.

The ministry also started to provide improved one-stop service to clients in the areas of planning, budgeting, financial reporting, internal audit and assessment management, the Cabinet Office report said.

The Cabinet Office report also noted that some of the KPMG recommendations were not accepted because of “far-reaching social, political and economic implications” that would result in the closure of hospitals and police stations in some rural areas and the reduction of the size of the Jamaica Defence Force. Some other recommendations cannot be implemented until negotiations are carried out with the trade unions, the report said.