There are areas of overlap and potential duplication in some of the work of arm’s-length organisations in Jersey, a new report has found.
The Public Accounts Committee today published its report on arm’s-length bodies and grant-funded organisations in Jersey to examine whether the current system delivers transparency, coordination and value for money.
An arm’s-length organisation or body is an entity that performs specific public functions, often in service delivery or regulation, with operational independence from direct government control while still being accountable to it.
In Jersey, the Public Finances Manual defines an arm’s-length organisation as “an organisation which fulfils a role or function the States of Jersey would otherwise perform”.
Bodies included in the report’s scope include Andium Homes, the Jersey Development Company, Digital Jersey and utility companies such as Jersey Electricity and JT Group.
Bodies or offices established by the States such as the competition authority, children’s commissioner, gambling commission and financial services commission were also part of the review.
The report notes that while many of the organisations in question had been established for sound policy reasons and continued to play significant roles in the delivery of public policy and services, there were concerns about some elements of the system.
“Their cumulative growth has occurred without a consistent, system-wide assessment of necessity, duplication, outcomes or long-term affordability,” the report states. “In the context of rising public expenditure, demographic pressures and constrained public finances, this raises material questions about value for money and the sustainability of current delivery models.”
While acknowledging that a broad governance framework is in place, largely underpinned by the Public Finances Manual, the committee highlights variability in how effectively information is used to evidence outcomes and value for money, as well as a resistance to following periodic strategic reviews – in line with previous recommendations.
Committee chair Deputy Inna Gardiner said: “Jersey is facing increasing pressure on public finances, rising demand for public services, and significant long-term economic and demographic challenges.
“This review was not a critique of individuals or of the organisations themselves, and many of the of the arm’s-length bodies were established for sound policy reasons and continue to play significant roles in the delivery of public policy and services.
“Ultimately, responsibility for how the system functions as a whole rests with the government. The framework encourages good practice but does not ensure that it is applied consistently or transparently across the system.
“The recommendations in this report focus on practical improvements to strengthen clarity of purpose, reduce overlap, improve accountability, and ensure that public money delivers real benefits for islanders.”
The Public Accounts Committee made a total of 12 recommendations.