In a speech to members of the Chamber of Commerce, Senator John Le Fondré said that some of the savings would be made ‘through a permanent reduction in the size of the States’ workforce’.
He said: ‘As the Treasury Minister announced on Monday in the draft Budget, the forecasts point to a structural deficit in our public finances of up to £30-40 million by 2020-23 unless we take action. So we are taking action.
‘In 2019, to bridge this forecast gap between our expenditure and our revenues, the public service will make sustainable savings totalling £30 million.
‘These are not one-off efficiencies, but a permanent reduction to the costs of the public service. These savings have been identified through the due diligence work that has been going on during the year, and are the first tranche of efficiencies that will be delivered by the One Government modernisation programme that the chief executive of the States is leading.
‘Some of those savings will be achieved through a permanent reduction in the size of the States’ workforce – and I should point out that the States is currently carrying around 600 vacancies, and has a staff turnover rate of 12%, so responsible headcount management is a realistic and pragmatic approach.
‘The remainder of the savings will be achieved as a result of modernising the States – by improving processes, better commercial contract management, consolidating assets, stopping the duplication of effort, and through the digitisation and automation of routine tasks and services.’
