This Is Guernsey

By Nigel Baudains

GOVERNMENT is out of step with the private sector when it comes to controlling costs, business leaders said yesterday.

Confederation of Guernsey Industry director Peter Budwin (pictured) said private firms had traditionally been better than government when it comes to ‘working smarter’.

‘Business will look at retraining staff, doubling up jobs and refining things,’ he said. ‘This is where I believe government falls down and it doesn’t look to streamline the system - or at least it hasn’t in the past.’

The States payroll this year is expected to rise 2.3% above inflation and by 2.7% next year. Chamber of Commerce president Paul Luxon said his group found the figures disappointing.

The States’ plan to keep expenditure, both payroll and general, below RPI was regarded as a good start in controlling government spending and simply had to be achieved, he said.

‘Businesses are having to assess their cost bases in the light of the dramatic economic backdrop that has arisen over the past few months to ensure that organisations are fit for purpose and the same must apply for those employed by the States of Guernsey.’

‘We recognise that those States workers on very low pay bands perhaps have a more relevant need for careful consideration through the pay-negotiation process, whereas perhaps those on mid- to higher-level salaries could possibly manage with slightly lower percentage increases.’

Private sector employers had to assess affordability linked to sustainability when arriving at annual pay reviews, he said.

‘Fairness to States workers in terms of reasonable pay for a reasonable job done is important, but government affordability through taxpayer contributions should also be a priority.’

Chief Minister Lyndon Trott said the fundamental spending reviews announced during his term as Treasury minister should help ensure public spending allocations were appropriately set.

They should also identify areas of efficiency savings as well as helping the States to further reduce waste.

Mr Luxon agreed that such reviews were of critical importance in establishing how government could spend less each year without compromising key services that islanders deem essential.

Deputy Trott said that whether the machinery of government as it stands was strong enough to deliver high-level corporate spending targets remained to be seen.

‘If it can’t, then there will justifiably be increased calls for further reform,’ he said.

And chairwoman of the Guernsey branch of the Institute of Directors Shelagh Mason said public sector pay increases were only one element when it came to setting corporate spending targets.

‘There are many factors that need to be taken into account and the public-sector staff are crucial to the smooth running of the island,’ she said. ‘A lot of work has been carried out to achieve realistic targets for the departments. We should not prejudge one aspect until the process is complete and we are able to assess if the States is strong enough to deliver a workable and cohesive policy in this respect.’

Article posted on 19th November, 2008 - 11.30am