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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 9th MARCH 2010
Question
Can the Minister confirm whether the Comprehensive Spending Review (CSR) has a target to deliver savings in States expenditure across departments through gross expenditure savings targets of 2% by 2011, 5% by 2012 and 10% by 2013, and, if so, will he state how such large targets can be met without cuts in services and job losses?
Could these targets, if met, endanger any recovery from the economic recession?
How does the Minister propose to achieve such targets at a time when many services in the public sector such as medical and social work services are struggling with recruitment and retention rates?
Answer
I can confirm that departments have been asked to put forward proposals that will reduce expenditure by £50m by 2013, which equates to a 10% budget cut. In addition, departments are being asked to consider any services which might be charged on a user pays' basis. These are substantial targets and I am asking departments to consider how they might deliver services in a different way but for less money. It is likely that budget reductions of this scale will mean cuts in some services and that some jobs will be lost. The decision as to which proposals will be approved will be a political one taken with all relevant information relating to every option and with the knowledge that if the States do not achieve these savings targets, then taxes will have to increase.
I do not consider that these targets will endanger recovery from the recession. The States must live within its income and this challenge presents an opportunity to look at how we deliver our services and consider whether there are better and cheaper ways to do so.
While Jersey is in a stronger financial position than many governments, forecasts show that the economic downturn will result in an ongoing deficit and this is not a sustainable way to manage Jersey's future.
I acknowledge and appreciate that some services are currently under pressure for a variety of different reasons but this does not negate the need for a comprehensive review of States spending. There will be some areas that for very good reasons cannot contribute to the savings targets but there are others that can and will.