Comment: big money, big change needed

Monday 30 October 2017

It's recently been announced that the erstwhile head of the public sector in Jersey, John Richardson, is to leave his job six months early, to let the new man, Charlie Parker get started. Mr Parker brings with him a team of four senior UK consultants, all being paid at Chief Officer level, to help him drive through the changes he believes are necessary.

Here, well known local businessman, and former States' 'change advisor,' Kevin Keen, writes an open letter to Mr Parker, in which he describes his time trying to reform the the public sector as the most "depressing" of his working life.

"Dear Charlie,

 Welcome to the best place in the world, and good luck with your new job.

Yours is no easy task, and with the need to complete your review as quickly as possible, I can quite understand why you need some expert help.

As you probably know, some islanders think £1,300 per day (plus expenses) is a bit rich for members of your team and not a great example to start off with; but I for one am happy to suspend judgment on these costs until we see the results of your work. I really hope others will do too.

I have been interested in our public finances for a long time, have experience of change in high profile Jersey organisations, and even a short period working in the public sector, so I do think I am qualified to comment.

Ten years ago, I spent my summer working voluntarily on recommendations for saving public money, which I submitted to the Chief Minister: they were not well received.

In 2015, I spent a brief period in Cyril Le Marquand House being paid to advise on public sector reform - I have to say that was probably the most depressing period of my working life, and I admit, an abject failure.

As the new leader of the public sector, you have the best opportunity for decades to show a new way for delivering public services. One that combines great customer service, value for money, agility, and makes working for the public of Jersey, the great job it should be.

As well as saving money, this would mean politicians would be able to concentrate on their jobs: developing great policy, making important laws, taking the really big decisions, and of course keeping a close eye on how you and your team were performing.

Here are a couple of big things you might want to put on your list to look at:

1. the first is how we might learn from Guernsey, and even better how could we cooperate with them more.  The last time I looked at public expenditure in Guernsey, it was just over £6,000 per head of population. In 2016 in Jersey it was over £9,000 per person. That adds up to £300 million per year of extra spending in Jersey according to my calculator - a very big number.
2. Then there is the state of the public sector pension schemes. Back in 2007 when I wrote my letter, the deficits calculated under FRS17 were £265 million; in 2015, and under IAS19, they had ballooned to over £1 billion. The disclosure disappeared completely from the States accounts in 2016. I have been told numerous times not to worry, that the reason these deficits are not on the States balance sheet was because they were scheme member’s problem, not the tax payer’s - but I have to say I am still worried.

I am very hopeful that with your appointment we will finally see positive change in the public sector. It won’t be easy, but in the long-term, it will be to the benefit of everyone who lives on this precious rock."

The views expressed in this article are those of Mr Keen personally, and are not necessarily shared by any organisation he is associated with.