£43m. bonus but States ‘must freeze spending’
Friday 5th June 2009, 2:30PM BST.
TREASURY is looking to freeze States spending, it emerged today.
‘There will be a need for continued restraint in public spending and I am sure that the Fundamental Spending Review initiative led by my department will be key to the delivery of a real-terms reduction or a freeze in overall States expenditure,’ said minister Charles Parkinson (pictured).
This news comes despite the revelation that the island’s finances fared much better than expected in 2008.
The department released the States’ 2008 accounts this morning and these showed that general revenue income for the year was £349m., which was £43m. more than originally predicted.
It was also £22m. ahead of the revised forecast included in the 2009 budget, which was debated by the States in November.
‘These are very satisfying results for 2008 and in large part due to the continued receipt of company income taxes during the year,’ said Deputy Parkinson.
‘However, this position is not forecast to continue into 2009 and the expected deficit as a result of the change to our fiscal policies underlines the need for continued public sector expenditure restraint.’
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No point in freezing spending at a level where the States are already spending too much – that just gives them carte blanche to carry on spending too much.
They need to cut spending and target the limited budget toward the most essential projects.
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Now I wonder where I heard a similar little speech:
Ah! now I remember.
Chamberlain came of a plane waving a piece of paper saying “I have an assurance…blah blah.”
Therefore I thing that remark about curbing spending is an insult to the intelligence of the GUERNSEY people.,
I wish to say to that minister :” On yer bike, and make it a bicycle made for two!”
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‘must freeze spending’
Unfortunatley it’s rhetoric as, unlike the UK, the Treasury doesn’t set budgets. It asks nicely of departments would not mind spending too much which is then completely ignored.
If there is one department that needs absolute power over budgets it is the Treasury Department.
Sases in point appear to be cheque-book Trott and his airport pay off. Where was the freeze there?
Roffet a couple of years ago that arrogantly ignored all restraint to the tune of nearly a million.
With departments pating lip service to restraint and without Treaury having a form of executive power it is al just political rhetoric.
As CD rightly points out the spend should not be frozen but drastically reduced.
The unfortunate reality of our ‘politicans’ is thathat they are effectively spineless and in for an easy ride a nice earner or top up and a great pension so why rock the boat?
Bernard Flunkits disaster of an incinerator, the scam that is the GHA, Healths inability to deliver any savings whatsoever, the insanity of Guernsey’s pay negotiation and the seeming inability to reduce staff without it costing millions in redundancy. Add to this the fact that the civil servants effectively employ themselves poor old Charles has an impossible task on his hands.
A decent man restricted by the Trott 0/10, employment contracts and amateurish politicians.
Really not very good at all. Good luck CP you need it.
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Moo – your first post on this thread is just a moan, and an ill informed one at that.
What would you suggest as a VIABLE alternative to the waste problem?
How do you propose we stop people getting sick or explain that a new treatment is avaliable but the island can’t afford it?
Should an accountant be deciding what healthcare we receive?(it’s what happens in the NHS and those that deliver patient care will tell you it stinks)
The airport “payoff” is an example of what would happen if we gave more control to departments as in executive or cabinet government, do you still want them to have more control?
“Civil servants employ themselves” examples please, not your perception but proof.
I think it’s a case of mouth in motion before brain in gear!
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I was going to add at the end of my last post that this is essentially a good news story that has been twisted by the GP into a downer.
43 million extra, that’s 12.3% up on what was considered an optimistic prediction at the time. What does Guernsey PLC need to do to get any credit Mr Digard? How many businesses do you know that are publishing figures like these?
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So within 2 weeks we’re £2.5 million missing from the tip, £50 million ‘missing’ from some reserve account somewhere (maybe?) £25 million ‘missing’ from our Electricity company and now a £43 million windfall……….
Does anyone still actually believe or alternatively have any confidence in any figure produced by any of the States bean counters?
When the pro public borrowing camp eventually steam roll their misguided scheme through exactly how are they not going to make a hash of it???? Each and every States department and trading body seems to operate in a singularity where the usual rules of accounting cease to apply.
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Have any of you, or any of you remember that game at Christmas parties?
Called donkey; The object of the game was to blindfold a member turn him around then let him face a drawing of a donkey; he had a Tail with a pin and he had to stick in on the donkey;
Now the object of that was to get it in the right place:
I see a similarity of that game with our noble states. Are they playing DONKEY.?
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@Civil servants employ themselves” examples please, not your perception but proof@
Every ‘revue’ is conducted by civil servants, HR are civil servants, they never ever get sacked, they never ever reduce posts. And the debacle at the airport shows how scared or useless the political process is. You employ yourselves Cliff.
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Moo – that’s not proof it’s perception.
On your first point “every revue (review) is carried out by CS’s” and your second “HR are CS’s”. Who else should be doing these things, would Barings let Barclays choose their staff?
Your third and fourth points are also wrong. Any CS that does not fulfil his/her duties will be removed from post. Departments regularly have established posts vacant for long periods because they choose to use budgets in a different way. If our poulation falls or there is some other change in the socio-economic environment which would require less CS’s then posts would of course be shed.
The reduced tax take as a result of 0/10 may mean that there isn’ t the budget for as many established staff but this could be easily achieved through natural wastage. I hope that the GP never get to run the headline that I believe they would want above all others “Civil Service redundancies”.
Personally speaking I get no pleasure whatsoever when I read of other people being made redundant.
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