Business leaders back ministerial cuts plans

Thursday 23 April 2015

The Institute of Directors has “broadly welcomed” plans by ministers to reduce a £130 million funding gap through cuts and a new health charge – but they say that the timeframe must be stuck.

IoD chairman Wendy Dorman says that the business lobby group is disappointed by the size of the black hole in public finances, but has backed proposals for modernising the public sector.

She said: “The IOD is disappointed if not surprised by the size of the funding gap identified in yesterday's announcement.

“The problem would be smaller if tough decisions had been made earlier, but the fact is that the cost of healthcare in particular is rising here as elsewhere due to medical advances and an ageing population.

“We broadly welcome the measures outlined by Senator Maclean to address the gap and balance the books, and we believe the timeframe for delivery of these measures by 2019 is reasonable, but must be stuck to.

“It is time to modernise our public sector and deliver transformational changes that facilitate efficient delivery of streamlined services. Investment in this objective is necessary to make long-term savings. Delivery of this change will not be easy, but it is necessary.

“There is detail currently lacking in the measures announced so far, including how revenues will be raised. The IOD would be delighted to engage with government to look at how we can encourage growth and higher productivity to help close the funding gap, as well as consulting on revenue raising measures such as user pay charges. Jersey needs to address the shortfall, but we also need to maintain an internationally competitive tax regime.”