An attempt by the Commerce and Employment minister to have the States consider commercialising States Works has helped to highlight the deficiencies in a wider report on the topic by Public Services.

As an Assembly, the States of Guernsey has repeatedly acknowledged that while government has a duty to provide services, it need not run them. The thinking has gone further than that, and should ensure that departments are engaged in delivering only essential services that cannot or should not be provided by the private sector.

Yet when it comes down to it, Public Services’ report – although optimistically called States trading entities: a new business environment – is actually a lukewarm affair.

That has been compounded by asking the Office of Utility Regulation to carry out a review, but a review in such terms that nothing radical was assured. In addition, while the OUR might be a good regulator, it is not a leading edge business adviser and the PSD is open to accusations of seeking the information it requires to back a ‘do nothing’ policy.

Guernsey has considerable assets and a large sum could be unlocked by selling off some or all the equity in the trading entities and their efficiency considerably improved.

As consultants Tribal noted nearly two years ago, the culture of easy money here ‘has meant departments have, in many instances, been able to provide “gold plated” services or indeed services where there is no clear rationale at all for government intervention. There has also been no imperative to deliver services efficiently.’

An example of that has been disclosed at the States Dairy where employment costs are significantly higher than industry norms and the review there has recommended that six staff are shed – more than 15% of the workforce.

These are not savings that the traditional civil service/political model can deliver. Successive ministers have said how lean and efficient the system is when dispassionate third parties can demonstrate that it is not.

Additionally, what chief officer wants to propose the breaking up of his or her department?

PDS’s report demonstrates there is no appetite for the changes that are required.