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1240/5(1865)
QUESTION TO BE ASKED OF THE PRESIDENT OF THE FINANCE AND ECONOMICS COMMITTEE ON TUESDAY 13th MAY 2003, BY DEPUTY G.P. SOUTHERN OF ST. HELIER
Question
The process of Fundamental Spending Review, involving a complex combination of reductions in services and "user pays" charges, has resulted in the following proposed budget adjustments for 2004 -
£ ( m i llion)
Health and Social Services + 3 .4 Finance and Economics + 3 .1 Education Sport and Culture + 1 .1 Employment and Social Security + 0 .1 Home Affairs -0.2
Policy and Resources -0 . 2
Economic Development -0.9
Housing -1 . 8
Environment and Public Services - 2 .5
- Does the President accept that such figures, where additional or increased charges are involved, are effectively equivalent to an additional taxationburden?
- Can the President giveanestimateof the total additional income that will be raised through such additional or increased charges?
Answer
- It is difficult to generalise about whether everysingle proposal contained within the net figures quotedbythe Deputy regarding increased charges was effectively equivalent to an additional taxation burden. Nevertheless, taking the question in general terms, I accept that where additional or increased charges are concerned, the financial effect, onthoseincurring the charges,may appear to be similar to an additional taxation burden.There is howeveranimportant distinction to bemadeandit is this; any proposed user pays' charges mustbecommensurateinvaluewith the service provided,whereastaxationis a compulsory levy raised bygovernmentwhichbearsno relationship to any service provided.Thus, with a user pays' principle there is a higherlevelof relationship between the user,theservice, and the cost of that service.
- Until all Committees have agreedthepackageofmeasures they are preparedto take for thecoming year it is not possible to quantify the total additional income which might be raised through such additional or increased charges. At this stage I can simply indicate that the options agreed at the final fundamental spending review meeting included agreed savings generated on the userpays' principle of approximately £5 million. These will of course be subject to consideration bythe States at the time of the debateon the Resource Plan.