OVER recent weeks, Treasury and Resources and its minister have become increasingly irritated by criticism from this newspaper that it has demonstrated little interest in controlling public sector expenditure despite that having been a central plank of the zero-10 tax strategy.

That irritation – the minister would say it is based on the Guernsey Press getting it wrong – has provoked his response, which we reproduce today on pages 14 and 15 and are happy to do so.

While elements of restraint – real or professed – are arguable, what is fact from T&R’s statement is that payroll costs and the so-called formula-led expenditure is not influenced by it and the department’s 2009 Budget report shows that half of all income is spent on staff and a further 13.7% on formula costs.

No other organisation could claim it was operating competently if nearly two-thirds of more than £300m.-worth of income was not under control of some sort.

Whether the need for effective restraint has been established might also be a point for debate – perhaps half of this present Assembly believe the answer is to keep on spending and take more money off islanders.

What is inescapable, however, is that if the States of Guernsey needed or wanted to turn off the cash tap, it is unable to do so.

The previous T&R had some success in holding back hitherto unsustainable expenditure increases but its job on payroll, ‘formula’ and pension costs was far from done.

The current Treasury team, on the evidence of today’s ministerial letter, demonstrates no enthusiasm for continuing with that vital work.

Instead, as we reported last week, it has commissioned a report crucial to widespread government borrowing which says that Guernsey’s tax burden is comparatively low.

Islanders need to be nervous indeed of that statement for it forecasts more calls on their earnings to maintain a public sector that is literally out of control.

T&R’s number two priority according to its mandate is to advise government on ‘the regulation and control of States financial affairs’.

After reading the department’s letter, islanders might conclude it is time it started doing its job.