We’ll spend it all

all of a £140 million reserve fund to get Jersey through the recession after experts warned that the economy could shrink by up to 6% this year.
Ministers revealed that they were now prepared to drain the Stabilisation Fund after the Economics Unit revised its forecast for the economy during the next two years. It has scrapped a previous estimate of 2% growth this year and is now preparing for shrinkage of between 2% and 6%.
It has also warned that the Island will experience anything between zero growth and a decrease of 4% in the economy next year. Income tax revenues are likely to fall as company profits, earnings and investments drop, and the States’ own income will suffer from historically low interest rates. The Stabilisation Fund, as well as a range of savings measures, will be used to balance the books.
The gloomy outlook was revealed yesterday as Chief Minister Terry Le Sueur outlined a blueprint for the Strategic Plan, which sets out social, environmental and economic priorities until 2012 as well as a range of longer-term measures. He said that although Jersey was well placed to get through the problems, the States were now preparing to use the available funds and were also looking at a range of measures to reduce expenditure and improve efficiency.(from thisisjersey)

Jersey broke by the end of the year?

with Guernsey vieing for second position methinks!!!!!

I felt that the title of "we will spend it all", very apt for the way the majority ( but not all, we do have some good elected members ) of politicians are carrying on in Jersey.

Treasury Minister Phillip Ozouf and his COM and supporters and Deputy Shona Pitman and the JDA alliance have one thing very much in common.

They are both in denial.

Phillip Ozouf made it clear after the pay freeze debate on a CTV live interview, that we either freeze wages otherwise cut services or tax more.

What is incredible is that the number employed by the public sector has in real terms risen by nineteen new staff this year, over last year, four new posts in the chief ministers department alone.

They just don't get it do they ?

I have some sympathy with front line workers, but the level upon level of management needs time and motion experts to confirm or deny that managers overstaff many departments or work duplication is in existence.

Furthermore is a person being employed to do work that is not relevant to Governments responsibilities? The TTS installing weird mile stones that mean nothing unless your interested in history and the distance to a statue in the royal square as an example.Then and only after review of departments should an increase in taxes or a cut in services be debated.

Minister for the Treasury Ozouf is In denial, by not facing the overstaffing issues, in fact adding to the problem.

Shona Pitman is in complete denial saying that the hard working; states workers desperately need a wage increase as the pound in the pocket buys less. It’s the same for the private sector workers who fund the States workers and in many cases earn a lot less, and no increased pension or overtime, and in some cases no job.

However she or her party should look at efficiencies, staffing levels or savings which would serve her number one priority ( or should be ) the general population that elected her. Had Deputy Pitman's proposition been carried, (2% increase ) with a Jersey wage bill now standing at over £301 million we now have to find another £6 million a year so up goes GST or stealth taxes to keep States workers happy but paid for by the majority.

In denial is deputy Pitman.

While I am here, can I also ask why CM Terry Le Suer ( Mr Tax and Spend ) gave Mr Izatt chief executive of WEB a £30,000 non productivity bonus a few months back ? I would have thought remuneration of almost a quarter of a million pounds for a job in a non competitive Government position more than enough.

What has to be the best example of shooting your legs off, rather than just shooting yourself in the foot is giving yourself a £1,000 pound increase in wages? This has the effect of putting politicians in the category of those who insist that you do what I say not what I do. Not a good way to earn respect. In fact pretty poor Government.

Boatyboy.

Senator Ben Shenton is on the Warpath. Guernseys' Treasury minister Charles Parkinson is not particularly happy either, but under his leadership Guernsey has saved a considerable amount. Does Jerseys treasury minister Senator Phillip Ozouf have any comment ? Another media story going begging.

All quotes are selective please read articles.

JEP

TOP civil servants face tough questions about progress on a report identifying almost £8m worth of States savings published 18 months ago.

In May 2008 the States independent spending watchdog, Comptroller and Auditor General Chris Swinson, recommended a series of measures that could save £7.88m per year – but the savings have not been made.

http://www.thisisjersey.com/2010/01/14/called-to-account/

For readers information Guernseys departments have saved an actual £1.7 Million and a possible £11 million ( when year end budgets are finalised ) by the start of 2010.


Guernsey EP

ONLY two States departments have returned their unspent balances to general revenue.

Treasury and Resources asked all departments and committees to consider handing funds back that were leftover after 2009 expenditure had been taken into account.

So far, of those with excess cash, just Environment and Commerce and Employment have given money back – £500,000 and £1.2m. respectively.

It is anticipated that the remaining departments and committees will have about £11m. in money saved from previous budgets by the start of 2010.

http://www.thisisguernsey.com/2009/11/25/just-two-departments-return-excess-cash/

Boatyboy