THE JAMAICA Bureau of Standards is now self-supporting and, as of this financial year, will be removed from the Government's Budget.
Minister of Commerce, Science and Technology, Phillip Paulwell, made the achievement public on Wednesday when he spoke in the Sectoral Debate in the House of Representatives. He said that he was "extremely pleased" with the strides made by the Bureau.
He said that the Bureau would put back into the Consolidated Fund, which finances the budget, $250 million which had been underspent and would in the future finance all its recurrent and capital expenditure.
$250 MILLION REALISED
According to the Minister, the $250 million was realised from reserves accumulated over the last two years of operation at the executive agency, established in 1968 to ensure compliance with the Standards Act, the Processed Food Act, as well as the Weights and Measures Act.
An executive agency is a Government entity which focuses primarily on the delivery of services with a result-oriented approach. In exchange for managerial autonomy, the chief executive officer is held accountable for achieving results in an economic efficient and effective way.
Minister Paulwell said the savings were achieved through the combination of "a rigorous organisational restructuring of the Bureau, which has resulted in significant cost-savings, a mechanism for funding the cost of performing the standards compliance programme and various efficiency gains and cost-saving measures implemented by the new management."
Speaking with The Gleaner yesterday, the Bureau's executive director, Dr. Omer Thomas, indicated that the organisational restructuring included a staff cut from 319 to 135. "Of the 42 who were in management posts, we are now left with six," he said. Each of these managers is accountable for a budget, he added.
VOLUNTARY REDUNDANCIES
Also speaking to The Gleaner yesterday, Minister Paulwell said of the staff cuts, that many of the former members of staff had volunteered to be made redundant. He further claimed that, given their levels of qualification, a number of the former members of staff are already employed elsewhere.
The staff cuts, the Minister said, were accompanied by reduced expenditure on utilities and all operational needs.
Over the past three years, the Bureau has seen increasing benefits and decreasing expenses as a result of measures taken to increase efficiency. According to Dr. Thomas, operational income has increased by 43 per cent, from $173 million to $248 million, while operational expenses have decreased by 14 per cent, from $249 million to $214 million.
Net earnings in 2002, he said, were 38 per cent higher than net earnings in 2001, while employee compensation has decreased from $171 million to $139 million.
