Senator Terry Le Sueur announced that he was pleased that the CAG’s independent spending review found no evidence of widespread inefficiency, and that it did find evidence that the continuing re-organisation of the public sector has already accomplished many of its objectives.

Senator Le Sueur agreed, however, that there are improvements to be made:

“We can always do more to improve efficiency and cost-effectiveness. As the Comptroller and Auditor General says in his report, the States’ organisation is substantial and is unlikely to reach a point where there is no possibility of improving efficiency. Large organisations must always be looking for areas where savings can be made and where efficiency can be improved, and that is what we are doing on a regular basis."

“This report identifies possible savings within departments and across the corporate structure. While it is possible to implement the savings highlighted, some would be difficult. For example, stopping grants to local organisations would mean the end for many of them, as they depend on the regular funding they currently receive from the States.”

The Comptroller and Auditor General explained in his review that the spending cuts he has identified are “opportunities for reductions in expenditure” and he is not specifically recommending them, Senator Le Sueur explained.

The CAG further made it clear that he is not suggesting the opportunities listed would be straightforward to implement or acceptable to the island’s population.

He has also commissioned a number of independent reviews which build on work set in train by Chief Officers. His report acknowledges that moves towards a more corporate structure have already made the organisation more efficient, specifically in Financial and Human Resource Management.

The report identifies changes in pay and pensions as one of the opportunities to reduce spending. This is an issue which has been in the public domain for some time, according to Le Sueur and pay comparisons are published each year.

For some lower-paid positions, the States pays more generously than the private sector, while for senior specialist positions the opposite is generally the case.

A more flexible remuneration strategy could help tackle this, but moving towards a more market-led approach would require radical changes to job and salary evaluation, and to both the employment relationship and pay bargaining.