New voice in the cuts debate

Monday 23rd August 2010, 3:00PM BST.

THE name might be slightly baffling, but the intent is clear. Small Society, the latest alliance of Island businessmen to emerge as a political pressure group, is quite rightly adamant that there must be much deeper public sector spending cuts before increased taxation is even considered.

Small Society’s essential message, which has been endorsed by the Jersey Chamber of Commerce, Jersey Hospitality, the Institute of Directors, the Jersey Association of Trust Companies, and the Jersey Bankers Association, will no doubt be widely welcomed.

Moreover, the idea that the States must cut and cut again before increasing the tax burden will be popular at many levels of Island society.

The new group might at the moment draw its membership from among the professional classes, but all sorts of Islanders are feeling the pinch.

However, just as the Island’s unions can be accused of losing sight of reality when they say that all services must be left intact, all public sector jobs must be preserved and only the well-off should bear the brunt of higher taxes, Small Society is – so far at least – long on general principles and short on real-world solutions.

If their case is to cut any ice with politicians, they will very quickly have to indicate which services can be sacrificed to make their entirely laudable goal of pegging taxes – not only for individuals but also for businesses – achievable.

As part of the new group’s launch programme, a flyer has been produced which sets out what are described as ten ‘facts’.

In reality, these are assertions, and although many of those who take the care to examine their content will agree wholeheartedly with what is being asserted, passing off opinion as incontrovertible truth is not the most promising start for any body eager to win hearts and minds.

That said, Small Society – which surely ought to be describing itself as Small Government – deserves encouragement if there is any prospect of its becoming a force capable of persuading the Council of Ministers that promises and fine words are no substance for resolute action.

It might ultimately be the case that a blend of higher taxes and cuts is the only realistic way of filling the infamous black hole and putting Island finances back on an even keel.

Nevertheless, movements which remind those in power that the easy options – such as successive hikes in GST – must be avoided while any vestige of public sector slack remains to be taken up merit in-principle support and the chance to prove that their ideas can work.

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