“Business Cost Measures That work”

Friday 09.06.06 @ 08h45

Pearl Beach Hotel, Flic en Flac

Mr Dennis Zandaza, President, Mauritian Quality Institute,

Mrs Mohinee Napaul, MQI Director,

Ms Leong Beng Choo, Trainer, Management Development Institute, Singapore

Distinguished Guests,

Ladies and Gentlemen.

Good morning to all of you…I am thankful to the President and Director of MQI for inviting me to launch this workshop in view of sensitizing managers and decision makers on the importance of cost reduction as a means to improve efficiency and effectiveness within business organizations.

The theme of this workshop is - “Business Cost Reduction - Measures That Work”. I am also given to understand that the Mauritian Quality Institute has teamed up with the Management Development Institute of Singapore to make this event possible.

The objective of this workshop is in line with Government’s policy geared towards controlling public expenditures and costs. This policy would be pursued in a way that does not at all affect the quality and reliability of services offered.

This one-day workshop would no doubt help managers to acquire new ideas as they embark on a proactive programme to apply policies that are best suitable to contain cost, and reduce, as far as possible, cost of operation of organisations. The objectives of the training workshop, as I am given to understand, is to inculcate the principles of good management practices. This also implies that participants would argue on how to implement measures that bring to light unnecessary or excessive budget expending.

Many of you attending this workshop belong to high profile private business organizations. And as managers, you are very conversant with the internal affairs of your respective organizations, including specific issues like administrative management, financial management or human resource management.

Ladies and Gentlemen,

Worldwide, the trend now – be it in running businesses, or in managing public affairs - relates to this policy – minimizing expenditure and maximizing results. In the business world today, this concept has given rise to new policies like clustering and merging.

In Mauritius, and in the agricultural field more specifically, we hear a lot about mecanisation, about derocking schemes, about Voluntary Retirement Schemes etc etc.

All of these policies are geared towards achieving one main goal – minimizing expenditure, maximizing results.

In today’s business world, where competition is rampant, no organization, be it public or private, can afford to allow expenditure to grow unchecked. The end-result of such policy is no less than failure.

However, the policy for minimizing expenditure and maximizing results is not the sole attribute of private sector organizations that want to succeed.

This policy is also true and is also warranted when it comes to managing public affairs. It’s more precisely about Government.

Those of you who have heard, or have read the words uttered by the Prime minister on Saturday last, at a press conference, know exactly what this Government means in terms of public affairs management.

At my own ministry, and since assuming office in July last, I have systematically directed all senior cadres to implement effective measures to contain public expenditure.

I can tell you that, at all levels within my ministry, the guidelines set are clear – minimum expenditure, maximum results. At the heart of this policy, lies the strong political determination of prudent use of public resources.

Ladies and Gentlemen,

You will also recall that, very recently, the DPM and minister of Finance announced Government’s decision to put in place an audit team within each ministry and public body whose overall responsibility would be to oversee public expenditure within each organization.

On Tuesday, this week, at a meeting with staff of one organization falling under the aegis of my ministry, I informed the personnel that unless we get results, I will not hesitate to take whatever decision I deem fit to protect public interest at large.

All these are but clear indications that this Government means business.

I must emphasize that this Government has not only a political mandate to make sure that Public Interest is protected at all times, but more so, it has the political will to take bold decisions.

In this context, I must commend the initiative of MQI and the Management Development Institute of Singapore for having organized this workshop. I would expect that participants attending this workshop will have more good reasons to effectively reduce costs in their respective organisations without sacrificing the quality of services provided.

With these words,

Ladies and Gentlemen,

I thank you for your attention. I wish all the participants fruitful deliberations and interactions with Ms Beng Choo who is a highly qualified banking and finance professional and has extensive experience in the financial services sector.

I now have the pleasure to declare open today’s workshop.