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Laying off 600 States workers could create more problems
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From Brian Hotton.
THE States are soon to debate the proposed cuts and raising taxes.
Senator Ozouf in proposing to ‘lay off’ 600 States workers may in the end cause more problems for Jersey’s economy, than it will solve.
People losing their jobs will be a cause for concern for many. Remember these people have families, rents, mortgages and other outgoings. Not being able to meet these commitments could well lead to mental stress. Result? More sickness benefit and more income support.
At this present time the OECD are advising against severe cuts, because of the damage it could cause.
No doubt there are some senior civil service posts which are very highly paid which he could cut back on, where the incumbents have failed.
His recent announcement that 15 per cent of senior civil servant posts are to be axed (JEP, 9 Sept) on the face of it seems to be a ‘good start’. However, at which point in their careers do civil servants become ‘senior civil servants’?
As far as I can see there are two that fit this description, the Chief Executive Officer and his deputy. Seeing that these two posts together carry with them salaries and benefits circa half a million pounds per annum, this indeed would be a good starting point.
The half-million pound savings or part thereof could be used for the Health budget, instead of closing the hydro-therapy pool and cutting down on physiotherapy posts, which would only be to the detriment of Social Security; people off work longer because of lack of physiotherapists and no access to a hydro-therapy pool. There are of course private hydro-therapy pools, but they will surely be more expensive than the one at the hospital.
A new chief executive officer – no, let’s start again, a new chief officer, removing the ‘executive’ – should save a hundred thousand pounds a year. This new post could be advertised in Jersey or the UK and be open to any senior civil servant who may be in line to lose their job.
There needs to be a ‘provision’ for this new post, that is not to include the words ‘Must have previous civil service experience’, because this does a disservice to many people who have reached the top of their chosen careers in private industry, where there is ‘no hiding place’.
As for the majority of the 600 posts that are to go to make savings would it not be better to reduce the highly inflated salaries over a period of say three to five years? Research has shown that the civil service sector in Jersey are paid 30 per cent more than their UK counterparts, I just cannot see that the civil service is 10 per cent over staffed, if it really is then those at the top must go! Governments the world over are ‘slashing’ public workers’ salaries by as much as 25 to 50 per cent, Jersey has to get a grip, 70 per cent of a salary is better than none.
Senator Ozouf in wanting to look at increasing GST and tripling the Island Wide rate should be extremely careful. Tripling the Island Wide rate could be counter productive, how many more people would it bring into the Income Support net? Young people at the moment are having to pay extortionate mortgage repayments and rents (caused through the inability of previous States members and especially Housing), elderly pensioners on either low or fixed income must be one of the largest group of home owners. The States if they are not careful could be paying out more than they receive.
Think hard and careful Senator Ozouf, be sure you are receiving the correct advice, because some of the States advisors have got it very, very wrong in the past.
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