Saturday, 22nd November 2008

GP Opinion

Damage is done over loans affair

LESS than a year ago, the States was being urged on grounds of cost to introduce student loans and stop the existing system of grants which has been used for years to enable local youngsters to complete their studies.

It was an unhappy episode for many families and students and an unknown number will have been deterred from going on to university because they would not want to burden themselves with massive debts.

It was also a seismic shift in how this community regarded its obligation to help all its children reach their full potential.

Now, however, with much of the damage already done, everyone - Education, Treasury, Policy Council - is backing down.

The States got its sums wrong and Guernsey can, after all, afford to do its best by students and retain the grants system that has worked so well for so many over so many years.

When the new House meets later this month and puts loans quietly to sleep, it will mark the passing of a particularly shabby episode and one that is very damaging. Quite apart from the concerns it will have caused for families, it also raises questions about the ability of departments to get financial forecasts right and also about the believability of the States itself.

In re-examining the situation in the light of ‘latest’ figures, Education has concluded that ‘loans are unnecessary at this time’ and everyone agrees. Yet can such a short period of time really make such a difference?

The answer is no. And even if it could, that says much about those responsible for preparing the first set of figures for the States.

What looks far more believable is that the whole loans-versus-grants affair was actually about political and not money. Now - faced with a revolt by a majority of the new House which  wants to keep grants - the establishment has backed down and ‘latest figures’ have been used to try to justify the U-turn.

The change is, nevertheless, to be welcomed but not just because grants will be retained.

It also demonstrates that bad, questionable decisions do not have to stand and that deputies can very effectively challenge dodgy facts and figures.

Article posted on 5th September, 2008 - 2.51pm

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