From Kevin Keen.
ALTHOUGH I do not agree with Peter Body on the subject of public sector spending control he has at least started an important debate about the choice between less government spending or more tax.

Before Islanders are persuaded to support a big increase in GST (on the grounds there is no alternative) they might consider the following facts:

• States net revenue expenditure has increased by 88% or £244m per year in the last decade. That is pretty much double the rate of inflation.

• That expenditure has far exceeded the level projected in the Council of Minister’s own Strategic Plan for 2006-11. In 2008 it was £30 million higher and in 2010 the overspend will be £65 million!

• In spite of a pay freeze, a lot of ‘shroud waving’ and a projected drop in States income of £94 million. Net revenue expenditure will actually grow by £26 million or 4.6% next year.

• Perhaps even more surprisingly net revenue expenditure in Guernsey for 2008 was ‘only’ £297 million, in Jersey £522 million. Expressed on a per person basis Jersey is almost £900 per head more expensive to run. That may not sound much but it adds up to an extra cost for Jersey taxpayers of £80 million per year.

Although Mr Body does his normal eloquent job of defending the public sector it is he that is talking ‘twaddle’ on this occasion.

There must be scope to save lots of money in the public sector, of course it will require difficult choices and strong leadership, but the alternative is that Islanders will have less money to spend or save at a crucial time for the economy.