DEPUTIES were yesterday wavering over plans to restrain public expenditure increases to less than RPI. It is one of the key planks of the zero-10 tax package.
The House approved the latest report on the proposals and rejected a call from Deputy Chris Brock for debate on a goods and services tax to be held this year.
But in summing up debate on the Brock amendment, Treasury minister Lyndon Trott said he had detected a worrying trend in the speeches.
‘One of the takes I have on the debate thus far has been increasing reluctance to stick to what we decided in the Government Business Plan,’ said Deputy Trott.
‘That was our desire to constrain our public sector expenditure to RPI or less - we can do it.’
He pointed to millions in unspent balances that would assist the policy.
‘We’re not to the bone and it’s irresponsible, I think, for members to suggest otherwise.’
Two of the most vocal on the issue head the big-spending departments.
Health minister Peter Roffey warned that spending cuts were stretching departments to the limit.
Education minister Martin Ozanne agreed with concerns about the long-term effects on public sector staff.
The Treasury minister also had to respond to repeated calls from deputies for more scenarios on the effects of the tax package on the population.
Deputy Trott said he was sympathetic.
‘I’d ask States members with a particular scenario they want to have analysed to write to us. We’ll collate the data and ask our statistics team to provide answers as best they can.’
After the debate, Deputy Brock was philosophical about the loss of his amendment, It was rejected by 32 votes to 12.
‘It’s highlighted the importance of information being produced which is open and honest to business and the public and we do have more facts and figures in the fire,’ said Deputy Brock.
He said it had been inevitable the debate would move from whether GST should be debated earlier to whether it should be introduced at all - but that was not the intention.
And debate on the amendment also highlighted a shortage of staff working on the strategy, he said.
Article posted on 31st May, 2007 - 12.00am
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