Plans to allow Guernsey Water, Guernsey Ports, and States Works to operate as ‘standalone companies’ would mean each can run their own IT and HR systems rather than being bound by the civil service.
The States Trading Supervisory Board wants to give the three businesses greater operational independence, under proposals expected to be debated in March.
Deputy Charles Parkinson says each would remain wholly States-owned but with less political involvement in their day to day operations, in the same way that Guernsey Electricity and Guernsey Post already operate.
“It is no criticism of the personnel who provide these various support functions, but under the current arrangements their wider focus and priorities do not always match the specific needs of each individual trading business,” explained the STSB Vice-President.
“A good example is being able to agree staff terms and conditions that reflect their operational requirements and priorities, rather than being determined for the public sector as a whole. In the commercial world, companies simply do not operate that way.”
If States members back the plans, Guernsey Water would be the next business to be incorporated, possibly as soon as 2028.
Guernsey Ports, which operates the harbours and airport, and States Works would follow at a later date.
STSB said it has no plans to give Guernsey Dairy, Guernsey Waste, and CI Lottery the same operational independence.
Under the new arrangements, Guernsey Water, Guernsey Ports, and States Works would continue to meet their own long-term investment requirements, with profits expected to be reinvested into operations.
“The businesses within the STSB look after a lot of the island’s key infrastructure, which is very capital intensive and requires long term planning, both financially and operationally,” said Deputy Parkinson.
“There is a danger when you have too much political involvement in decision-making that it leads to more short-term focus, and that is not in the best interests of these businesses nor in the best interest of islanders.”
The STSB Vice-President said Guernsey Electricity and Guernsey Post provide a good example of the benefits of this arrangement already.
“As incorporated businesses, Guernsey Post and Guernsey Electricity have been able to plan much more long term, while also having the flexibility and agility to respond quickly and effectively to challenges that impact them specifically, and adapt accordingly. That is the model which we believe Guernsey Water, Guernsey Ports and States Works would perform better under, which will be to the island’s benefit.”
