AFTER a lengthy and complex debate, the States have given their approval to spending plans totalling £685 million for next year.

That figure is at the core of the Business Plan for 2009, the set of proposals advanced by Treasury Minister Terry Le Sueur and accepted after a sitting which lasted a full six days.

We are now well past the point at which public expenditure could be described as a half-billion-pound programme, and it will come as no surprise to many Islanders that despite constant calls for the States to cut back on spending taxpayers’ money, the rise in proposed absolute spending to almost £700 million will be accompanied by a rise in the rate of spending. The plan details a five per cent increase, which will again exceed the rate of inflation.

That said, the general economic situation and outlook are favourable, and the executive – who are in self congratulatory mood – are confident that the Island is in an excellent position to meet foreseeable challenges.
Ministers, it seems, are well satisfied with the legacy they will leave for the new States Assembly which will emerge after the present round of elections.

However, before the Island as a whole is swept up in the mood of euphoria, there are matters which emerged in the debate which can only be described as causes for concern. Even if a five per cent rise in spending is sustainable thanks to healthy revenues, by no means everyone is happy with that figure. The Public Accounts Committee, led by Senatorial hopeful Deputy Sarah Ferguson, has labelled the increase as ‘irresponsible’.

Meanwhile, Comptroller and Auditor General Chris Swinson has said that a meagre £5.8 million out of alleged States savings of £35 million can be attributed to genuine efficiencies. Unlike those who, for reasons of personal pride or because they wish to lay a smooth path for a future administration, might have an axe to grind, Mr Swinson is politically independent.

Finally, a particular figure emerged from the debate on the plan which is likely to lead to wailing and gnashing of teeth in an important sector of Island society – the public-sector workforce. With the current underlying rate of inflation hovering near four per cent, the target cap on public-
sector wage increases of two per cent, however sensible, is likely to be a red rag to a very irate bull.