Critical finance debate begins this week

Monday 26 September 2016

This week will see the biggest political debate of the year, with Ministers attempting to bring in new charges for health and commercial waste disposal, and to reduce the subsidy for nursery funding.

It's all part of the Ministers' finance plans for the next three years, known as the Medium Term Financial Plan (MTFP), which will see increased investment in essential services such as health and education, combined with £77m worth of savings, and new charges to raise more cash. Ministers say their plans will avoid a £113m black hole in the Island's finances which could arise by 2019, if action isn't taken now.

There are 13 proposed amendments to that plan, these include issues such as teachers’ terms and conditions, social security contributions, pubic sector pensions, and nursery education funding.  It's likely to be such a complex debate a special 10-page running order has been produced so members know what’s happening when.

Within the last few days, the ministerial plans have come under renewed fire. 

Deputy John Le Fondre and the Corporate Affairs Scrutiny Panel have described them as "disappointing," and "lacking in rigour," while putting in a series of amendments, one of which would reduce States' budgets by £35m which is currently earmarked for salaries for posts which are actually vacant - meaning there would be no need for a new health change. 

The Jersey Early Years Association has strongly criticised plans to reduce the subsidy given for nursery places.

And then over the weekend, the Economic Affairs Scrutiny Panel has also published a 25-page report giving its comments. In short it says it’s "disappointed" by the lack of detail explaining how the Council intends saving  £77m over the next three years.

It is also critical of how the Council has suddenly found money to fund sports travel grants when it had originally said there was no spare money. The panel says this ability to 'magic' money shows a lack of rigorous financial accounting and openness.