No sacred cows in hunt for value

Tuesday 29th December 2009, 2:30PM GMT.

IF THE States is truly to embrace the change in its culture demanded by tougher financial times it must become relentless and thorough in a quest for value for money.

Relentless in that its reviews are an ongoing process where no one rests on decaying laurels and thorough in that all areas are scrutinised.

That includes those areas where the States supports otherwise independent bodies by way of grants and benefits such as schools, charities, the ambulance service, libraries, promotion agencies and housing projects.

As Deputy Brehaut puts it, there must be no sacred cows, even among organisations largely operated out of the goodness of people’s hearts.

Many of those bodies would have it no other way. They are proud of the service that they provide, at a cost that the States has in most instances acknowledged it cannot match.

In the case of the ambulance service, that has even been endorsed by the value-for-money experts at Tribal. Having first identified the service as a cost-cutting potential on its very long list of targets its final conclusion was that little could be gained from pursuing the matter.

After an initial assessment that the £2m. grant to the service ‘appeared high’, Tribal found on analysis that the ‘Road ambulance grant is appropriate – service could not be delivered more cheaply in-house’. Further action would be tweaks rather than radical reform.

A good endorsement for the SJA.

But that is just one area among the millions budgeted in 2010 for non-core operations. The States budget next year sets aside almost £30m. in ‘grants and subsidies’.

Several budgeted grants have already made the news this year: £450,000 to the Guernsey Training Agency Trust, £800,000 to Guernsey Finance LBG and £4.8m. to the three private colleges.

Others have been less high profile, including £1.15m. to the Guille-Alles Library and £410,000 to the Schools Library Service.

Each is worthy of regular review but, like the ambulance service, it is not certain that the States could do the job either better or cheaper.

Indeed, on past and current performance, it is more likely to be the opposite.

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