Moving to end the criticisms
Tuesday 7th April 2009, 3:26PM BST.
UNDERSTANDABLE concern has been expressed by Guernsey’s deputy chief minister about yet another review into the way the States operates, this time commissioned by the Public Accounts Committee about corporate governance.
After all, there have been that many investigations and ministers and chief officers already have enough on their plates with running their departments and responding to a highly critical report as a result of phase one of the fundamental spending review.
That said, however, the Wales Audit Office involvement is actually essential following the Tribal Helm report, which showed that the States has a culture of reckless extravagance with taxpayers’ money. If the way departments spend cash is doubtful, what of the processes that lead to that expenditure?
While members might feel beleaguered about the constant questioning of their performance and that of their officials, it is not critical in the sense of dissatisfaction but is more an issue of whether the States of Guernsey adopts best practice in these areas.
As Tribal Helm defined the problems, ‘The challenges the organisation face centre around the fact that governance in the States is neither directed, nor controlled as a single corporate entity. The result is that operational best practice is not captured or adopted by all departments, and economies of scale are forfeited by local actions. This has a material impact on how efficiently the States of Guernsey’s resources are used.’
The WAO will look at how senior managers go about their tasks and how they account for that authority and the need for openness.
The UK was late embracing the concept and Guernsey’s government is still further behind, if only because there is no common understanding of corporate governance throughout the operation.
Among the six questions the WAO will ask are, does the States engage with local people and others to ensure robust accountability, and does it develop the capability of States members, non States members and officers to be effective?
Islanders will have their own views already but the need to ask such questions is self-evident.
With Tribal Helm and the WAO – assuming members embrace the findings – they have an opportunity of moving the States towards something beyond criticism.
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One question missing is who actualy runs Guernsey.
Who are the real power brokers? Is it the States, or civil service, law officers, a mixture of all?
If this was done then we would know who has the real authority, who is responsible and who is performing and who is not.
I must say that the necessity to bring, at significant cost of course; another consultant is worrying. I hope its not just PAC flexing its muscles.
Seems that Tribal Helm have got on top of the problem, so why bring in someone else?
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Surprised no one has commented on the duplication of consultant fees.
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Perhaps because it is becoming obvious to the States that Tribal Helm are not going to say exactly what they want them to say??? IF Tribal Helm do their jobs properly they will not just report on the areas which can be improved but the areas which are already working well and saving public money – and others which can only be forced to save money by reducing public services.
So to the original question by the GP opinion article: who is actually running the States and why are they not capable of answering all the questions without having to bring in endless companies to undertake reviews. The Government Business Plan has already been thrown out as unworkable and in need of rewriting.
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Merlin
Interesting points and probably true.
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Merlin
Your posts are always well considered.
The article states that there is a “culture of reckless extravagance with taxpayers’ money”. This statement is an inflammatory and extreme interpretation of the FSR report. We are not in the fortunate position of having an opposing force in print in the Island. This it would seem is because we do not have enough talented political journalists for one publication let alone two.
On the subject of saving money – How much would GP customers save if we didn’t have these recklessly extravagant colour photos in every edition?
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Can outsourcing public services really save money or does it just cost more but that cost is still borne by the tax payer i.e. creative accounting.
I am no accountant but if say a States Department are doing a job and TH want to outsource it, then undoubtedly some staff will be made redundant but surely the job will still need to be done by someone, somewhere? I have never seen anything outsourced cost less unless it is substandard to the previous service supplied – just paid for in a different way. The public sector may end up employing less people but the States will still be paying for the services somehow.
Look at the UK: The NHS is in a mess, outsourcing cleaning, catering etc has cost millions and the quality of care/standards has arguably decreased. The prison service has outsourced much of its work to private firms and the same applies. There are many such examples I could think of here.
I am waiting with interest for the final TH report – I think the Government have paid for yet another wasted consultancy report when there are already people working within, that could have sorted out the problems. The real problem is that there is no ‘Centre’ from which all other plans stem and what we need is someone at the helm but not Tribal! Perhaps that is what the new Government Business Plan will be?
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Merlin
An excellent post that shows how the theory behind privatisation is destroyed by practical greed and exploitation.
I am sure someone will counter with an exception but the picture you paint is so right.
The problem with the Government Business Plan is it was based on theory and taken from a text book.
It reminded me of Sir Richard Greenbury of Marks and Spencer fame who commented on a similar type of document written by a colleague as being as being “700 pages of garbage produced by 10 management consultancies”
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Yes agreed. Well let’s hope that any sectors which are recommended for outsourcing are given the opportunity to answer back and explain exactly what they are doing and why and the cost (which should include the staff contribution through tax and insurance) – and that the politicians will be able to compare the costs of outsourcing with what is currently supplied on a like for like basis.
The UK is going through a recession at the moment (more than Guernsey) so no doubt there will be some companies prepared to cut their profit levels substantially in order to keep work …. but when the economy picks up things will go pear shaped and it will be too late then!
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