ONE of the key expressions used by Treasury Minister Philip Ozouf in connection with the new drive to address public sector deficits is ‘user pays’.

But even before Senator Ozouf announced his strategies for making savings and raising new revenue to the tune of £50 million, a relatively minor development had indicated that Islanders should, from now on, prepare to dig ever deeper into their pockets.

It was revealed at the end of last week that car parking charges are being increased by eight pence a unit, a rise far in excess of the rate of inflation. It also emerged that this is in spite of £12 million being held in the car park trading account – a reserve which, in the meantime, is being plundered, sometimes for purposes totally unconnected with transport.

There has been appropriate criticism of the principle of dipping into the car park account for miscellaneous purposes, a practice which Transport and Technical Services Minister Mike Jackson would like to halt.

Mr Jackson says that he will raise the issue with Senator Ozouf, but whether he succeeds in ensuring that the account can be ring-fenced remains to be seen. Unfortunately, in the present economic circumstances, any source of funds which can, within the rules, be plundered to meet the cost of essential expenditure is likely to be targeted.

One effect in this case is, transparently, the rise in parking charges. These, however, will be to the detriment not only of those using car parks as commuters or shoppers but also of St Helier businesses. It is inevitable that, in view of the elevated cost of parking, people will ask themselves if their trip into town is really necessary.

Thus, although increased charges will mean more cash – either for the car park account or general States revenues, depending on the outcome of discussions between Mr Jackson and Senator Ozouf – they will surely make an adverse, if marginal, impact on trade, which is
already suffering in the present recessionary conditions.

As well as being a sign that the phrase ‘user pays’ is likely to become more familiar – if no more welcome – as this decade unfolds, the parking charge controversy demonstrates that none of the tax, savings or public service decisions taken by the States can be seen in isolation.

Unintended consequences – some of which can be foreseen and some of which crop up as unpleasant surprises – will always be a feature of public administration.