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Chief Minister Outlines GBP35M In Spending Cuts
by Jason Gorringe, Tax-News.com, London

12 November 2007

Jersey's Chief Minister, Senator Frank Walker has published details of cuts that States departments are making to reduce spending. From 2008 these will total over GBP35M each and every year, and by 2009 will have reached a cumulative total of GBP125M.

The extent of the cuts and indeed whether they have been made at all, has been questioned, and the Chief Minister has decided to publish a full list, showing where and how they have affected every department.

“It seems to be the view that the cuts have either been easily achieved without any great effort or effect on services, or are ‘smoke and mirrors’” observed Senator Walker. He continued: “This list shows very clearly that the cuts are genuine, they are significant, have affected every department and it has been very hard to make these cuts without reducing the level and quality of public services which the public would find totally unacceptable.”

Senator Walker added that: “States departments have worked hard to make these efficiency cuts. The public demand an efficient public service and we’re proud to have been able to deliver these quite substantial savings and maintain, and in some cases further improve, the quality of our core social services."

"The report shows that out of the GBP35M we have already made, GBP15M come from efficiencies and we plan to make GBP5M more by 2009. This has not been an easy task and cuts have been felt in every department of the public service.”

“It is these cuts that have enabled us to invest further in services for those who need our support. For example, Income Support, and the necessary transitional relief (as we move from the present benefits to the new structure) new services and treatments in Health, improvements to our social housing stock, investment in the Prison, in Education and in a number of other key areas.”

He concluded: “However we are not content to leave it here and the Council of Ministers is fully supportive of the initiative by the Public Accounts Committee to undertake a thorough and independent review of all States spending. Our hope is that they will be able to identify further areas of potential savings which, together with the essential revenues from GST, will help achieve the long-term balanced budgets that we need to maintain our secure and healthy financial position.”

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