DEPUTIES should consider all ways of reducing States expenditure, including freezing pay for public sector workers, according to the Chamber of Commerce.

President Paul Luxon (pictured) was responding to Jersey’s decision not to give its government employees a pay rise in an effort to save money.

Mr Luxon said Guernsey was faced with a similar situation and the States had to cut expenditure.

He said all avenues to reduce costs had to be looked at.

‘Chamber is not saying “yes, freezing pay is what government should do” but we do have to do something about the ever-burgeoning £350m. annual public expenditure budget,’ he said.

‘We feel that Guernsey’s government has to deal with that problem in some way. Whether or not this [freezing public sector pay] is the way to do it I do not know, but it should be considered.’

Mr Luxon said Jersey’s decision was appropriate, given the current economic climate.

‘It is an issue the Guernsey government may want to look at,’ he said. ‘Having said that, we have to recognise that there are already pay deals in place that give some public sector employees fixed increases for beyond this year.’

Peter Budwin, chairman of the Confederation of Guernsey Industry, said a pay freeze could be looked at – but it must be done so alongside other measures that could reduce expenditure.