ONE of the benefits of third-party scrutiny of government activity is that it can provide a different perspective on familiar issues – which is the value of Professor Geoffrey Wood’s independent fiscal review of Guernsey’s financial strategy.

In it, for example, he highlights what an incomplete picture of the island’s finances it provides by looking in isolation – as it has for years – at general revenue figures only.

While that gives an indication of day-to-day States expenditure, it is only by factoring in the significant sums raised and spent by Social Security that a true overview is obtained and expenditure is under less control than claimed.

Net general revenue increased by 6.5% in real terms in the four years to 2010 but SSD’s spending raced ahead by 16% in real terms over the same period. There are reasons for that, but the point remains that expenditure has to be paid for, which is why there is an annual Budget.

What the professor has also highlighted is that whichever set of figures are used, including or excluding the effects of SSD, very nearly 80% of everything that government now spends is taken from individuals.

Introducing zero-10 really has put islanders in the firing line and every £1 spent or wasted by the States represents 80p taken from everyone else’s pocket.

That makes the £10m. Treasury and Resources is allocating for public sector pay rises particularly interesting at a time when the department is also taking money off people for higher taxes on real property and increased duty on fuel, drinks and tobacco.

Many islanders won’t get a pay increase this year but the taxpayers and consumers among them will nevertheless have to find an extra £238 each to give a rise to the public sector.

According to T&R’s own Budget, that’s equivalent to gifting an extra £2,000 a year to all public sector employees who were at the end of 2009 already costing an average of £40,275 a year.

On top of that, the number of full-time equivalent staff rose by 140 from 2008 to 2009 despite the alleged restraint being exercised.

The cost of that? On average figures, £5.6m., which has to be found by everyone else.

And that’s why petrol’s going up 4p a litre.