GUERNSEY will lose its competitive edge unless the States follows the business example and becomes leaner, according to Giba.
Guernsey International Business Association chairman Paul Meader spoke out after the Guernsey Press questioned the States’ reluctance to make cuts.
That followed a UK Local Government Association announcement that local councils were expected to continue cutting jobs into next year, despite nearly 7,000 being culled in the last six months.
‘The whole of government needs to be leaner and apply the same measures that business has already implemented,’ said Mr Meader.
‘Otherwise, Guernsey’s competitive position will be jeopardised.’
He said there was no room for complacency, despite signs of economic recovery.
‘It is far too early for us as a community to drop our guard.
‘It will be a very long time before we see a return to the heady days of 2006 and 2007 and we would urge the States to properly control government spending.’
In the UK, LGA chairman Sir Jeremy Beecham said government was being forced to look at every aspect of its finances.
‘Almost 7,000 jobs have gone in the past six months alone and, as the effects of the recession continue to be felt, we fully expect councils to keep on cutting jobs over the course of the next 12 months.’
Treasury minister Charles Parkinson could not be contacted for comment.

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