This Is Guernsey

By Thom Ogier

HEALTH AND SOCIAL SERVICES must accept it cannot overspend, the Treasury minister has warned.

Deputy Charles Parkinson (pictured) has stepped into the row over the department’s assertion that it expects to go over budget by up to £8m. next year, the equivalent of every taxpayer finding an extra £177.

And he has bluntly told Health minister Hunter Adam to toe the line on spending.

‘The minister of HSSD gave a warning in the Assembly that his department would be looking for a budget increase for 2010 of 8% to cover medical inflation,’ he said.

‘But the fact is that the States have entered new territory where public sector revenues are under severe pressure and expenditure restraint is an absolute necessity.’

He said States members would have to accept that fact and work together to deal with the consequences, which would inevitably involve making very difficult decisions.

‘Only last week, in debating the States Fiscal and Economic Plan, the States expressly accepted the statement contained in that plan that “additional aggregate expenditure on new services is unaffordable in this context: the States needs to match expenditure to income”.’

Deputy Parkinson pointed out that his department has delegated authority to approve a budget increase of up to 2%, or just under £2m., for HSSD.

The matter would then be reported to the States, he said. ‘T&R can of course choose not to use this authority and the department concerned would have to approach the States.’

The £8m. overspend figure concerned 2010, he said, for which Treasury had not yet established budgets, nor had the States agreed them.

He said any minister or member could bring an amendment to the budget report in December to increase expenditure in an area.

‘T&R would encourage and expect the proposer of such an amendment to also identify where the money could be found to fund their amendment.’

Chief Minister Lyndon Trott was unavailable for comment.

Article posted on 30th July, 2009 - 1.00pm