Budget battle hots up over Treasury’s freeze
Tuesday 17th August 2004, 12:00AM BST.
HEALTH minister Peter Roffey may be prepared to upset States spending plans if budget cuts threaten patient care. He has threatened to rebel against the Treasury and Resources Department’s plan to freeze departmental budgets for 2005.
‘If the budget allocation means that we have to make cuts which adversely affect patients in Guernsey, then, while I respect the need to live within our needs, I think there are other areas of States spending which should be reduced first,’ he said.
‘I’m not saying we will be putting forward an amendment to our allocation, but I’m just saying that I cannot guarantee that we won’t.’
Treasury minister Lyndon Trott has warned that it is envisaged that most department budgets will be frozen in real terms and, where possible, cash terms.
‘Although this may well prove difficult to achieve, it is essential that States revenue expenditure is controlled, not least to enable money to be set aside for high priority capital expenditure,’ he said.
The Budget will go to the States in December.
Deputy Roffey, who failed to gain a seat on the Treasury Department in the May election, warned that he would also fight for the cash to which he thought his department was entitled.
‘I am giving notice that there is a possibility I will be putting forward an amendment if I feel we do not get the necessary allocation. We have been very well resourced in the past but the signs are that money will be much tighter,’ he said.
‘Health, though, has to get in excess of RPI just to maintain services, because health inflation is ahead of general inflation.
‘In just about every other area of the States, expenditure could be cut. I am not saying that money is wasted, but in areas such as drains or culture and leisure, I think cuts can be made more readily. They are very important but not compared with the need to look after islanders who are ill.’
Housing minister Dave Jones said that he was prepared to fight his department’s corner, but he realised that the island would have to live within its means.
‘All departments are struggling for resources and not just financial ones,’ he said.
‘I believe departments are going to have to try and see where there is too much waste in the corporate government as a whole and eradicate that before cutting back on health, education and housing.
‘All three of those will probably be severely curtailed anyway because the island does not want to get into the position Jersey finds itself in now.’
Deputy Jones said his department, like Education and Health, would prioritise elements of the corporate housing programme to cut back on resources.
‘We will pursue the policies that benefit the majority in need rather than niche projects.’
To save more money, the department may pass more responsibility to the Guernsey Housing Association and only part-fund projects. He said, though, that he expected to get funding for the most important aspects of the programme.
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