THE States financial watchdog has called for improvements in the way that the government oversees arms-length organisations in order to achieve greater consistency and value for money.
The Public Accounts Committee has published a report on ALOs and grant-funded organisations, considering whether the current system delivers transparency, coordination and value for the investment of public money.
Bodies included in the report’s scope include Andium Homes, the Jersey Development Company, Digital Jersey and utility companies such as Jersey Electricity and JT Group. Bodies or offices established by the States such as the competition authority, children’s commissioner, gambling commission and financial services commission were also part of the review.
The report notes that while many of the organisations in question had been established for sound policy reasons and continued to play significant roles in the delivery of public policy and services, there were concerns about some elements of the system.
“Their cumulative growth has occurred without a consistent, system-wide assessment of necessity, duplication, outcomes or long-term affordability,” the report states. “In the context of rising public expenditure, demographic pressures and constrained public finances, this raises material questions about value for money and the sustainability of current delivery models.”
While acknowledging that a broad governance framework is in place, largely underpinned by the Public Finances Manual, the committee highlights variability in how effectively information is used to evidence outcomes and value for money, as well as a resistance to following periodic strategic reviews – in line with previous recommendations.
In her foreword, committee chair Deputy Inna Gardiner said: “The central issue identified by this review was not a lack of effort or capability, but a lack of clear direction, coordination and strategic oversight at the centre of government.
“Continuing to fund organisations simply because they already exist does not represent good value for public money.
“At a time of economic uncertainty and increasing pressure on public services, Jersey cannot afford a system that is complex but poorly connected. Clear leadership, joined-up working, and a willingness to stop doing what no longer adds value are essential if public trust is to be maintained and better outcomes delivered.”
The PAC made a total of 12 recommendations, the majority has suggested deadlines of the final quarter of 2026 and will therefore form part of the new government’s “in-tray” following the election on 7 June.
