Act now on cash cuts, says Senator
Thursday 29th April 2010, 2:59PM BST.
Senator Ben Shenton, chairman of the Public Accounts Committee
A STATES spending watchdog has challenged ministers to explain why they have failed to find the first of a series of spending cuts demanded by the Treasury Minister.
Earlier this year States departments were asked to submit proposals on how they could make 2% savings to help to plug huge budget deficits.
The plans should have been submitted earlier this month and would have come into effect next year. But several departments have failed to hit the deadline and have now been given extra time to submit their plans.
Senator Ben Shenton, chairman of the Public Accounts Committee, said that departments were showing a ‘lack of will’ to make any savings. ‘Spending cuts are never going to be popular, but the impending structural deficit of £50m is very real, and difficult decisions have to be made to address the issue,’ he said.
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lack of will = poor management
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Because departments know, despite all the talk, they’ll never be held to account – or forced to make these savings.
If pushed, they’ll pick some badly-needed service (patient transport) and threaten that instead of making balanced, thought out savings.
Private businesses have to economise, States’ depts are used to a bottomless pit of money. Don’t let them off the hook yet again. I’ll happily go in and find savings…for a Consultant Fee, of course.
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Perhaps the heads of departments genuinely feel there is nothing they can cut back on? Perhaps the wizard needs to be looking at ways of increasing the amount coming in as well as the cut backs?
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The Comptroller & Auditor General, Chris Swinson, OBE examines how public bodies spend money, and looks at how best they can achieve value for money, by managing their finances to the highest standards.
The Office was established by the States of Jersey, under the Public Finances (Jersey) Law 2005 but the Office remains independent of Government.
As well as focussing on value for money, organisational accountability and importance of service performance, through the work of the Office Chris Swinson aims to promote greater understanding between both the general public and public bodies themselves, of what is expected in terms of ‘services’ to the public.
A letter by Senator Sarah Ferguson published in the JEP letters page yesterday says,
The Comptroller and Auditor General’s report last year on the structure at the Hospital said that it was not possible to evaluate the cost of management because these costs were not known. While I understand improvements have been made the cost of management is not yet known. My understanding is that it should be about 6%.
Surely the question must be asked, how can the Hospital be given a budget if the costs of management are an unknown quantity? What other costs are unknown ? What is most worrying, if Mr Swinson who does generally an excellent job and is highly qualified, is also fully authorised to delve deep and hard into accounts in States departments cannot ” evaluate the cost of management ” who else can ?
Finally Senator Ozouf Treasury Minister has said several times that there will be no tax increases, as islanders pay enough. Until this spending shambles by States departments is addressed, he is completely right not to ask the people of Jersey to pay a penny more.
Davey.
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Don’t forget in all this, that more and more staff (certainly around me) are giving more and more goodwill and working essential extra hours daily without paid overtime because they care!… This can only go on for so long, especially as it is seldom acknowledged with any praise or thanks…..
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Well young Senator Shenton failed to keep to deadlines when he was Minister of H&SS so why does he expect it to be different now when he has changed horses.!!!!
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#4 When Ms Ferguson made her comment re management costs at in the health service was she aware that in edition to the new chief exec appointed from the UK to replace Mike Pollard a new post has been created for a hospital manager, this man has already been appointed…from the UK, albeit it’s being said it’s a 6mth trial, what’s the bettin it will become permanent. Plus there is to be another new post for a community and adult services manager. None of the existing managers have been replaced from their grade 15 and above jobs. So we now have an extra layer of management, presumably paid at a grade in excess of the grade 15 people he’ll be managing. Whatever your view of the issues raised in the Veritas report no-one has been formally rebuked/reprimanded. Anne Pryke and the as yet to arrive Chief Exec however seem to have no faith in any of the current managers, nor anyone else in Jersey, and yet again are importing ‘expertise’ from the UK. I’ve tried my best to recall one senior managerial appointment from the uk who has added value to the health or any other service, can’t think of one successful appointment in recent, or even not so recent years.
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The lack of financial accountability and transparency of States Departments together with personal accountability for negligent performance all points to a form of systemmic anarchy. It’s time for the Chief Executive Officer to get a grip on his senior and middle managers or get out.
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Work smarter not harder – streamlining, automating & cutting waste out of all manual processes is the way to cut costs and deliver a better service.
Private companies have no option, as there’s no bottomless cash pit for them.
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The overspend let us not forget is £64 MILLION a year – or over £1 MILLION PER WEEK.
Our inept government will have to have a look at the UK after next week’s election to see what spending cuts look like – it ain’t going to be pretty.
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