States isn't seen to turn every stone
AS POLICY & Resources claims that it is turning every stone for savings, and its vice-president indeed then starts to question the boards of States trading companies for further economies, one of those boards is actually taking direct action to address its financial problems.
Largely through the actions of others, Guernsey Post has seen a £3m. turnaround from a £1.5m. profit to a near-£2m. loss in the space of 12 months. Its response? To immediately enact a plan to return to profit through investment to drive efficiencies and to cut costs. As a result 30 jobs are going to go at the utility – which also happens to be one of the biggest union strongholds in the island.
Engagement with staff has been key in getting Guernsey Post to the point of announcing its plan and there appears to have been a positive contribution from them to accepting the need for efficiencies.
The challenge of incorporating States trading companies and freeing them from States ‘control’ has not always been an easy one but here is a demonstration of a board making clear, commercial decisions, free of government bureaucracy.
The announcement that P&R is now seeking to tackle over-generous redundancy packages and finally address the public sector pension scheme is welcome, but the prolonged lack of action just reinforces belief that serious cuts to public spending can’t, or won’t, be tackled by government.