107 tests of States ability to cut costs
Thursday 24th September 2009, 2:30PM BST.
‘THE States of Guernsey: Unbeatable services, efficiently delivered’ is the message stamped across the front of Tribal Consulting Ltd’s key report.
We live in hope.
Inside, the report forensically picks apart how badly the island’s government is failing to meet that very objective. Almost 300 specific faults have been identified and these have been grouped into 107 ways of saving the island money.
Whether that is enough remains to be seen. £70m. over five years sounds like a lot but these are very hard times.
Nevertheless, a 10% decrease in the base budget of an organisation the size of the States of Guernsey over four years is a worthwhile and challenging target. Prime minister Gordon Brown has sought to label David Cameron ‘Mr 10%’ for the supposedly savage nature of the Tory leader’s planned cuts in public spending.
And no one should be in any doubt that the level of cuts identified here is essential. Zero-10 and the credit crunch mean the island is predicted to be operating at a loss of £29m. by 2010, that’s £80,000 for every day of the year.
The Policy Council acknowledges as much when it calls the report ‘one of the most important to come before the States in a long time’.
In short, unless the island’s government knuckles down and makes serious cuts, its cash reserves will be exhausted within two years. That, says Tribal, amounts to a very real and immovable financial imperative.
The consultants are clear that a piecemeal approach to their recommendations will cost the island money. They are also keen to impress on deputies and islanders that savings of this scale will not be achieved without some tough political decisions.
It is at this stage that islanders should put away the celebratory bunting. While deputies may accept the 107 action points en bloc, major costs or policy decisions will still come back to the States for final approval.
That means members will get the chance to knock down the headline figure of £70m. piece by piece. It is only at that stage that the island will be able to judge their real resolve to save money.
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