Guernsey Press

Tax rises will end hunt for the holy grail

THE transformation of the public sector into a modern and cost-effective unit is a holy grail successive States have failed even to search for, let alone locate.

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Self-interest and the fragmented nature of government with no executive authority has always hampered efforts to tear down committee silos.

But in the past few years there has been a growing hope that, with the backing of a chief executive on a mission and a few visionary politicians, progress is being made.

While the 38 deputies look increasingly divided into political camps based as much on personality as policies the public sector is at last starting to operate as a unit.

Duplication of work across committees is being tackled and the vast property portfolio is being trimmed. On the horizon is performance-related pay.

There is much work to do, however. Which is why Policy & Resources was so quick this week to slap down talk of loosening the reins and bringing government spending closer to its limit of 28% of GDP.

For every pound extra in taxes taken the dream of transforming the States becomes more elusive. Once the pressure to change is released through new revenues all hope of achieving something meaningful is gone.

Which is why the head of P&R and his deputy were so clear this week: there can be no more money spent on services without either increased taxation or a more efficient public sector. And the former will destroy hope of the latter.

P&R knows that, while others press for more public spending, it is the senior committee which would end up carrying the can. They would be blamed for others’ profligacy.

That would suit the argument of those who like to portray the head of P&R as some sort of political bogeyman, responsible for all the island’s ills from education to nuisance bonfires.

However, the truth, as recognised by the Fiscal Policy report, is that P&R is doing a good job keeping the books balanced.

It is also determined to do so while taking as little as possible out of islanders’ pockets.

And that is something for which we can all be grateful.