The Association of Bermuda International Companies (ABIC), through its Executive Director, today expressed concern about the rapid growth in public service employment – together with its spiraling salary, travel and communication costs incurred by taxpayers.

A recent review of statistics suggest that the number of public employees has risen from 4,898 in 2006 to an estimated 5,725 for 2008-2009 – an increase of nearly 17 percent.

“International business fully supports increases in social services and education, and expenditures for seniors, our children and those in need,” said ABIC Executive Director Richard Winchell.

“However, we note with some concern that one in every seven employees in the Bermuda market is now an employee of the Government – an inordinately high proportion, and almost 50% of the budget now supports employee costs.”

“In the current financial climate, Bermuda should be strictly controlling expenditures at all levels, and commit to creating a surplus to reduce our reliance on debt,” he added. “Instead, we seem to be seeing a situation where expenses are rising to meet income.”

“We therefore urge Government to commit to control growth of manpower levels. This does not necessarily require layoffs but can occur through natural attrition,” said Mr. Winchell.

“We believe much efficiency can be introduced in the public sector. At present, the cost of each public servant to the taxpayer has risen from just over $51,000 per person on the payroll in 2006, to more than $60,000.”

ABIC, the voice of international business, represents more than 140 international companies in Bermuda.