From Kevin Keen.
I DO not always agree with Senator Ozouf but he is completely right to insist on less spending before more tax in tackling the potential structural deficit of £60 million per year.

Few could put it better when he says, ‘Jersey’s foundation has been built on fiscal prudence and low taxation’ (JEP, 7 May).

One has only to look at the current forecasts for 2010 revenue spending, some £563 million and compare that with the projections of £508 million for the same year in the 2006-2011 Strategic Plan, to see that we have come close to forgetting that prudence. A comparison with the £319 million spent in 2000 is more striking; will public services really be £244 million better (per year) than 2000 by 2010?

Senator Ozouf has made a good start on saving money by undertaking to work with his Guernsey counterpart to reduce costs for both islands. The public sector would also be more economic if it stopped trying to do so many things. Now must be the time to consider privatisation of businesses like the Airport, Harbour, car parks etc. Retaining ownership of strategic assets (and enjoying an income from that ownership) but leaving the private sector to run them.

Politicians are very proud of the limited amount of debt reported in the States accounts but as most know, borrowing can have benefits. The obvious one is that worthwhile investments can be acquired earlier, but a more subtle advantage and one crucial to the States is the financial discipline debt brings. Paying the mortgage always comes before luxuries after all.

The vagaries of public sector accounting mean that liabilities that would have to go on the balance sheet of a company do not appear in the States accounts. For example (and in common with other countries) Jersey’s Social Security pension is largely based on ‘pay as you go’ principles.

In other words the contributions we pay towards our pensions mostly go to pay current pensioners. If this liability was properly recognised I am guessing that a couple of billion of debt would have to go on the States balance sheet; combine that with the liabilities for public sector employee pensions and we would really see what we owe as a community.

My point is that although the States accounts don’t show it, really we have plenty of debt and now with a worsening economic situation as well, we must plan our spending accordingly.
Finally, there are things we can all do. One is to back Senator Ozouf in his efforts to save money, another is to stop expecting politicians to try and fix life’s every problem with our taxes.

Of course those less fortunate may need help to help themselves but the rest of us will have to save more for our future and accept greater personal responsibility and the cost of choices we make. Whether it is on old age, health, education, environment or anything else for that matter.
Vue des Champs,
Clos de la Porte,
St John.