SCRUTINY chairman Jean Pritchard has vehemently denied claims that its review had prevented the price of milk from going up. ‘That’s a complete and utter cop-out,’ she said.
‘There was absolutely nothing in the review that stopped Commerce and Employment putting up the price by RPI - nothing.
‘It seems to me that Commerce and Employment has badly managed the Dairy and has to take responsibility for that itself.’
The claim was made by minister Stuart Falla following the announcement that Treasury had been forced to allow a £150,000 overdraft and agree a £500,000 loan as the Dairy’s cash reserve had been spent.
Deputy Falla said that both the Scrutiny recommendations and States resolutions have eaten into that money.
Deputy Pritchard questioned how the department had managed to lose so much money when the Dairy’s previous administrator, the Agriculture and Countryside Board headed by Deputy Peter Roffey, had built up cash reserves in excess of £500,000.
‘It’s been mismanaged,’ she said. ‘Where did all that money disappear? And why was there no contingency plan made when they saw the account was in such a bad situation?’
She said it was absolutely nothing to do with the review by Scrutiny, which published its report in May 2006.
‘Although they messed up in the first place, in particular when they dealt with the milkmen, there was absolutely nothing to stop them from doing something while the Scrutiny Committee review was going on.’
She said that Commerce and Employment should have put the milk price up by RPI annually.
‘Then they wouldn’t be having to play catch-up so much.’
Deputy Pritchard said an inevitable hike in the price next year, on top of the 18p rise last Monday, would have the greatest impact on those on a low income.
She said questions needed to be asked and answered about the whole matter.
‘What the States have failed to do is identify why Commerce and Employment let it get to this level over borrowing money.’
She said some States departments needed to look at the way they conducted themselves.
‘The Dairy seems to have dropped off the radar at Commerce and Employment.
‘There are a lot of other things going on and the Dairy has been forgotten.’
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