States must cut waste before raising taxes

Wednesday 7th July 2010, 3:00PM BST.

From John Dix.
AT last, having listened to the debate between Senator Ozouf and Deputy Southern on the radio, I am beginning to understand how politicians think that the money the States want to spend can be arranged.

Senator Ozouf talks up a good case for cuts, but can’t quite get to grips with the scale of the cuts required, and hopes that all of his fellow ministers will deliver. If not, with a weary shrug of the shoulders, because it won’t really be his fault, there will be no alternative to raising more tax revenue.

Deputy Southern has a much easier plan. Having rejected outright any reduction in the money paid to States Members because it wouldn’t be fair for people like him who work so hard – doing what, exactly? – he now places precise definitions on tax.

In his eyes, progressive taxes are a good thing as they will be paid by other well off people, ie, all those misguided souls who would not vote for him at the recent election.

On the other hand, all taxes such as GST, which might be paid by his supporters, are branded regressive and thus a bad thing.

If we as an Island are to work together to reduce the States structural spending deficit, everyone has a part to play. No special interest group such as States workers, those on income support and pensioners can reasonably expect to be isolated from the harsh reality of economics.

Why should those who work hard and actually pay tax be expected to shoulder the whole burden? We live in a lovely stable wealthy Island, and everyone can participate in the benefits of that prosperity, if they contribute whatever effort they can. But it is not a right; that prosperity has to be earned.

Likewise, when the cash runs out, we all have to share the pain, even if it means the slaughter of a few sacred cows such as doing without some of our gold plated public services.

If the States Members voted to reduce their own salary, it would send a powerful message to their employees that they are serious about getting States expenditure under control.

As a taxpayer, I don’t want to pay any more tax until the waste and inefficiency have been ruthlessly removed from the current ways of running the States.

I don’t claim to speak for anyone else, but I detect a growing groundswell of opinion in favour of reducing States expenditure across the board before any tax rises are suggested.