FOR anyone with a keen interest in the performance of the States of Guernsey, it is difficult to avoid the feeling that a crisis point has – finally – been reached.

In the past, such incidents have been external and the island has rallied to deal with them.

In this case, however, the difficulties are internal, were readily predictable and have effectively been allowed to happen.

The clearest indication of the severity of the situation has been given by the Treasury minister saying there can be no more tax increases until States expenditure is under control.

Islanders need to be aware of the significance of the context of that. Previously, the States claimed that they ran a tight ship and provided value for money. When Treasurer, the current chief minister even highlighted some benchmarking results alleging how much more efficient Guernsey was than Jersey, the Isle of Man and Gibraltar.

Since then, more analytical studies have been done which prove government is wasteful, so badly run it cannot demonstrate taxpayer value and is actually profligate, or recklessly extravagant.

The current Treasury minister was a slow convert to that view and this newspaper criticised him for easing the fiscal pressure on departments when he was appointed in 2008.

Now, however, the true state of the States finances is laid bare: departments, their ministers and their senior staff are not in control of what they spend and the Treasury minister is to be commended for his principled stand in protecting islanders from the rip-off taxing attitude of departments that will not follow a formal resolution that cost increases are to be at or below RPI.

The true crisis, however, is how to restrain a public sector that won’t do what it promised.

Government is currently on track for another ‘at or below RPI’ overrun this year and it is clear that strong action has to be taken to change that.

There are clear similarities between Guernsey and the UK in their respective structural deficits save that we do not – as yet – have a national debt.

But while there is a government in the UK committed to leading Britain out of its crisis, here there is no mechanism for driving change. Every significant decision in the Assembly is a hit-or-miss affair that can hinge on who hasn’t turned up.

The system is clearly inadequate and islanders deserve better than they are currently getting from their deputies.