Finally, the truth about States waste
Thursday 26th March 2009, 3:44PM GMT.
ONE of the most unhelpful aspects of the way the States of Guernsey has responded to persistent criticism that it is too expensive, employs too many people needlessly and gets involved in areas that it should not has been the complete refusal to take such comments seriously.
Over the years, ministers and their officials have insisted that government runs a tight ship and that every penny and every civil service post can be fully justified. There is, taxpayers have been assured, no waste and no further scope for economy.
Today, those claims are revealed as false.
The truth is that the States has become an organisation whose primary aim is to spend as much public finance as it could whether there was any value in doing so.
Consultant Tribal Helm has revealed an extraordinary catalogue of financial mismanagement, incompetence and waste that was allowed to build up while Guernsey prospered.
Because money was plentiful, there was no need to take care with it, to prioritise or even to spend it sensibly. ‘Hence,’ says Tribal Helm, ‘a financially profligate culture was able to flourish.’ In other words, not only was the States recklessly extravagant, those responsible were happy for that to be so, while pretending that they were being frugal with taxpayers’ money.
Perhaps worse, while falsely claiming to be careful with islanders’ cash, politicians are now demanding even more so they can waste that, too.
It is an exceptionally grave situation because the only people who can change an entire government culture – the officials and the deputies – are the same people who are responsible for allowing it to continue and attempting to justify it as a model of efficiency.
The other news in Tribal Helm’s report also nails the myth that government is joined up. Rather, it says, the States is a collection of almost autonomous business units that are able to choose if or when they subscribe to corporate policy or initiatives.
This damning catalogue is what successive States have tried to keep from taxpayers and it is now clear that all departments are to blame. What islanders now want to see is how this States intends to make amends for years of wasting their money – and how quickly.
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You say in the Comment “This damning catalogue is what successive States have tried to keep from taxpayers and it is now clear that all departments are to blame”
I rather feel the truth is that successive States have ignored taxpayers who have told them the truth about wastage.
Dare they ignore this report?
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I agree with the comments but there are two points here:
Was it not a waste of £350,000 plus to tell us what we already know. All these comments and recommendations have really come from within or were already known.
Is there a hidden agenda, that of cutting services, outsourcing and privatisation, all issues which should be approached with a great deal of caution.
The answer is to investigate the spending of public money by T and R and indeed other States departments which blow money on consultants.
Tony Webber
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The “hidden agenda” of cutting services and increasing costs, seems to be part of the report. It’s there and not difficult to find.
Besides its easier to implement than true savings.
As Mr Webber says the content of the report came from within or were known.
Doesn’t fill you with much confidence if you expect true savings.
The usual States department attitude will prevail.Savings are essential, but in every other department, except mine.
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I think we, the public and taxpayers, need to decide which services we can do without. This report so far has not indicated anything not already known. As stated above the information given to Tribal Helm has come from within the States/Civil Service – it has never been hidden. Let’s not forget that every time a politician wants a report or asks for information on something, a civil servant has to find that for them – this takes an awful lot of time up and takes people away from doing other things.
The other thing to remember is that the report has cost £350,000 so far – but this is only phase one. I would not be surprised if the total cost is much higher. Just because some services may be outsourced and therefore not paid for by the States they will be paid for some other way – it doesn’t really save money in the end!
Just look at the change in the reciprocal health agreement. We are no longer able to access free healthcare in the UK which is apparently saving the States about £500,000. Well, the RPI will go up as we all have to take out extra health insurance now (my current travel insurance policy does not cover the UK so my insurance broker is trying to find one that does) – and it may well affect the tourism industry (what we have left of it).
What goes around comes around. The public perception that the Civil Services is a gold plated service with highly paid staff sitting around doing little is completely false. Many many staff work over and above their working hours (and senior officers do not get paid overtime). Hopefully the Tribal Helm report will also show how hard staff are working and which areas are providing extremely good value for money.
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Merlin
You raise important points.
Outsourcing has usually been accompanied with lower standards and higher costs. It seems that there is a significant chance of that happening in Guernsey.
If there is reduction in services and or increased charges, this will flatter the States accounts by reducing the direct charge on the taxpayer, but increasing the stealth charge element, as the consumer will be paying extra, whilst the cost will be off States accounts, making them look more efficent than hey really are.
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