Another warning shot has been fired at the next States, with Deputy Bob Murray saying the current system of government can’t work with the challenges it faces.
Speaking during yesterday’s debate on Policy and Resources Major Projects Portfolio Review, he echoed what others said in that the island simply doesn’t have enough money to pay for all of the capital projects the States have approved, as well as the island’s ongoing public services.
The States agreed to proceed with the capital projects – with phase two of the Hospital modernisation split 80/20 with phase 2a to focus on the building work and phase 2b, which will need to be funded at a later date, to focus on fitting out the new facilities.
Work on Alderney’s airport and runway will also need to be considered separately.
However, the list of approved capital projects has a combined cost of more than £1billion, which Deputy Murray said the island just does not have.
He warned the next States that they will need to change the island’s machinery of government before they can start to deliver the ongoing wish list of developments and services.
“The committee system we have here can’t work going forward,” he said.
“What confronts this island and its limitations, is huge, and we can’t do that with 40 people pulling in different directions. We can’t even do it with the Policy and Resources of five people who are supposed to try to marshal all of the ideas that spring up from every committee. This is where these capital projects come from. They come from individual committees, and we can’t prioritise. And so we bring them to the floor of the House independently, and we make decisions about them independently, and then the guy down the road has got to bring one as well, and we get ourselves into this position whereby we’ve got a shopping list of over a billion pounds, and frankly, I think that’s about half, because when you bring in the trading boards as well, with the amount of infrastructure that they have to put in, I think you could easily double that.
“So, we have a real challenge. This assembly isn’t going to solve it. The wake up call is for the people coming in to recognise they’re coming into a system where they probably have both hands tied behind their back, and they will not be able to achieve success if we don’t change the consensus system.”
The capital projects list relies on States income increasing, with GST due to come in during 2027.
But Deputy Murray said whoever sits in the Chamber come July, also has to get ready to change the system of government as well as brining in the new method of taxation.
“I would remind people that if we don’t get GST in, or something that raises as much money, by 2032 those reserves have gone, and then we’re into permanent deficit.
“It’s painful. It’s very, very painful what we’ve actually got to do here, and it takes courage to make decisions that are painful, and I’m afraid there are too many people unwilling to take those sorts of decisions, and there are competing priorities that we have no forum but this room to make those priorities, and you cannot possibly get 40 people to make priorities. It’s not going to work.
“I’m afraid this might be a very disappointing paper for some people, but it’s presenting and warning the next people coming in to occupy these seats that we require major change in the way government functions, and we can achieve growth. We could achieve growth. We have to achieve growth.”
The Major Projects Portfolio Review was approved, but not without a final warning from the Chief Minister.
Deputy Lyndon Trott said if the next States does not introduce GST and the other changes approved by the current States, then “the situation will be materially worse than we are showing them”.
“We spend less per capita on our public services than any other comparable jurisdiction,” said Deputy Trott at the start and end of his speech to the States, reinforcing his opinion that the island needs to both tax more and spend more.
