At a Government Press Conference on Friday May 16^th the details of the review of the Civil Service to be executed by Ernst & Young (EY) who were appointed at a cost of over $155,000 was announced.

The Civil Service review has been called the Phase V Public Services Rationalisation Project.

Cayman Islands Premier, Alden McLaughlin welcomed everyone present, introduced the participants and provided a high-level overview of the Phase V Public Services Rationalisation Project. He outlined the projects objectives and anticipated outcomes.

The Deputy Governor, Franz Manderson, who gave a review of the project intent, engagement process, guiding principles and key objectives, followed the Premier.

Two members and partners from Ernst & Young (EY), Dan Scott and Larni de Courtenay gave a review of the experience of the international and local team assembled for this project, the process of the project, timelines and deliverables.

 

What is the Public Services Rationalisation Project?

It is a comprehensive analysis of public services and government assets through information gathering from all stakeholders and previous reports and recommendations, which will result in an implementation plan to right size public services.

 

What is the purpose of this project?

It is a strategic restructuring initiative to evaluate opportunities to engage the private sector to deliver public services. This may include a broad range of solution such as asset sale, consolidating existing entities, privatisation, public private partnerships, outsourcing and other strategies.

 

How is this project different from previous reports?

Prior reports and reviews targeted individual entities and operational efficiencies whereas this project addresses structural changes of all public services including Statutory Authorities and Government Owned Companies and will provide a roadmap and implementation plan.

 

What is the scope of this project?

The scope of this project is a strategic and comprehensive review of the entire public service excluding judicial services.

 

What is the process?

EY have been contracted through an RFP process which identified the organisation as having the ideal level of expertise for this type of project and the commitment to deliver on promise providing extraordinary value for service. The process is a three stage process;

Stage 1 | Information gathering with stakeholders.

Stage 2 | Analysis of data, previous reports and information gathered; prioritize recommendations as per organisational readiness and delivery implications, and test market readiness.

Stage 3 | Deliver key findings, risk analysis and recommendations, timeframes and process of deliverables including a roadmap and implementation plan – July 2014 with ongoing accessibility.

 

GUIDING PRINCIPLES

The Project will be governed by a set of seven guiding principles. These are;

1. To preserve or enhance service levels and standards.
2. To communicate with stakeholders throughout the process.
3. To ensure fair and equitable treatment of existing employees.
4. To attract local participation to provide public services and/or ownership of government assets where a fair market exists.
5. To promote fair competition in the market place.
6. To maximize employment for Caymanians.
7. To consider the economic, financial and social implications.

 

PROJECT OBJECTIVES

1. Undertake a strategic review of public service and current market conditions for the feasibility of implementing previous recommendations provided in internal and external reports.

2. Review the number of bespoke government entities to identify opportunities to streamline Government’s structure, reduce operational costs, and improve public service.

3. Identify opportunities where there is a market appetite and capability for private sector engagement with public services.

4. Review the government’s assets and recommend those that could be sold to the private sector where a fair market exists.

5. Review and report on financial, social and economic benefits, costs and risk to Government on recommendations.

6. Minimize impact on Government employees, public services levels, private sector relations and any legislative requirements required for recommendations.

7. Deliver a comprehensive and detailed roadmap of implementation and management for efficient and effective public service reform of the Cayman Islands Government’s Ministries and other entities.

 

EY Bios:

Dan Scott

Regional Managing Partner

 

Qualifications

► Certified Public Accountant of the State of Florida and Certified Public Accountant of the State of New York

► Bachelor of Science in Accounting, University of Tampa

► Chairman of the Cayman Islands Judicial & Legal Services Commission

► Member of American Institute of Certified Public Accountants (AICPA)

 

Background and relevant experience

► Dan has served on numerous government, statutory and service organization

boards and committees to help the development of the financial services industry in Cayman with an aim to create positive social & economic opportunities for local business and the community

► Dan is the regional managing partner for the Bahamas, Bermuda, British Virgin Islands and Cayman Islands region of EY’s Financial Services Office.

► Dan is a Member of the EY Global Hedge Fund Steering Committee, which provides strategic direction to the global practice

► Member of the Cayman Islands National Security Council

► Chairman of the Cayman Islands Judicial & Legal Services Commission

► Director of Cayman Finance

► Notary Public and Justice of Peace

► Past Member of Ernst & Young Americas Advisory Council

► Past Member of the Cayman Islands National Advisory Council

► Past Board Member of the Cayman Islands Stock Exchange

► Past President of the Cayman Islands Society of Professional Accountants (CISPA)

► Past Chairman Cayman Islands Housing Development Corporation

Larni de Courtenay

Partner

Operational Transaction Services t.            +61 292 485 178

 

Qualifications

B.A (University of New South Wales)

► MBA (University of New England)

► Associate Member, Institute of Chartered Accountants in Australia

► Golden Key International Honour Society

 

Background and relevant experience

► RMS Strategic Review: Led a number of commercial reviews for NSW Road and Maritime Services’, including a structured review of which services/businesses should be divested, PPP’d, outsourced or retained by Government based on a set of evaluation criteria. Included development of a strategic roadmap of divestments and documentation of associated benefits

► WA Government Asset Sales: Part of the team reviewing 10 state owned assets to determine saleability, value and develop a pipeline of asset sales for Government

► WA Department of Transport: Led the options analysis for the Optional Number Plates business to determine whether to concession to the private sector or retain the function in-house

► VicRoads: Led a strategic review for VicRoads, including identification of options for Government revenue growth, divestments, new businesses and government partnerships

► CITEC Divestment Scoping Study: Co-led a detailed strategic options analysis for DSITIA’s large ICT business, CITEC. Our work involved testing a number of strategic options, including sale, outsourcing or retention, against the Government’s objectives

► RMS (previously RTA): Led EY’s separation and accounting workstream for 15 months in order to plan, facilitate and execute the concession (outsourcing) of the special number plates business. Work included developing the ongoing operating model, the commercial arrangements with the concessionaire and the IT separation of the core operational systems

► Transport for NSW: Led a 6 month engagement to wind up a Government entity

(CRIA) and merge it with Transport for NSW

► Tasmanian Electricity Reform: Led our work reporting on the options to merge the Aurora Energy and Transend network businesses, including costs, benefits, issues, risks and implications

► NSW Electricity Reform Process: Led a program of work to separate the retail assets from the network, assess separation readiness, develop and price TSAs and identify impacts on the retained business

► Endeavour Energy / Integral Energy: Led a project to manage the separation and completion of the NSW retail sale. Involved TSA mobilisation and transition planning