Cut "padding" and avoid health charge

Friday 23 September 2016

Just days before the Island's politicians will decide whether to impose new charges for health and waste disposal, ministers' plans have been described as lacking in rigour and detail.

The Corporate Services Scrutiny Panel also says the new health charge could be avoided if States departments didn't hold so many vacant posts, for which they still ask for funding. Currently, the number of vacancies is running at just under 13% of the States workforce, considerably higher than the equivalent in the the UK of 3%. In 2015, the public sector employed just under 8,000 people.

The Panel says those vacancies are worth £35m, and if that was removed from the States budget there would be no need for the proposed health charge. Speaking after a Panel hearing on the 2 September, it's Chairman Deputy Le Fondre described it as "padding."

Ministers' plans are known as the Medium Term Financial Plan Addition. (MTFP)

Deputy John Le Fondre, said: "The MTFP contains some important policies which will impact on all Islanders. Our review has highlighted a number of areas of concern, including overly optimistic income forecasts, a high vacancy rate across the States and a lack of detail on many key policies. Given that the Council of Ministers has had a year to work up the detail, this is disappointing.”  

The Panel’s report said there is a glaring lack of detail about potential savings. 

It reads: “There is insufficient detail own many of the public sector savings and efficiencies outlined in the MTFP, which many appearing to be aspirational. This is disappointing given that the departments have been afforded an extra year to work on the detail from when the MTFP was originally launched in 2015.

“There is a very high level of vacancies across the States. Departments are receiving funding but the posts are not being filled. The Panel has launched an amendment to the MTFP to bring the vacancy rate down to 3%….generating a saving of £35million a year, which means the introduction of a health charge can be avoided. 

“Income forecasts are overly optimistic.”

The MTFP will be discussed by the States on Tuesday.