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Reviews suggest how to cut costs

12 October 2010

Independent reviews which have been looking at how costs can be cut across the States as part of the Comprehensive Spending Review have now been completed. The reviews have identified a number of possible ways for costs to be cut, and States members, staff and union representatives have been briefed on the findings.

The following areas / departments were reviewed as part of this process:

  • States staff terms and conditions
  • Health and Social Services department 
  • Education, Sport and Culture department
  • Home Affairs department

Ministers are now considering which of these options will form part of their departmental savings proposals for 2012 and 2013. Their proposals will not be finalised until July 2011, when the 2012 Business Plan is published.

The Chief Minister, Senator Terry Le Sueur, said “We have been discussing the savings of £65 million that we believe we can find by 2013, but that will not be the end of this process. Ensuring a sustainable economy and developing a more efficient public sector is a long term initiative.

“The decisions taken by States Members in the 2011 Budget, and in the Business Plan debates for 2011 and 2012, will determine how our community emerges from this difficult period. We need to safeguard Jersey’s future, and to do that we must secure the long term viability of the economy.”

Staff terms and conditions

The independent review of staff terms and conditions has highlighted savings options for the short, medium and long term which, taken together, could save £28 - £32 million. Ministers have agreed to target savings of £14 million by 2013.

Senator Le Sueur, who chairs the States Employment Board, added “Working towards these savings over 3 years gives staff and unions the opportunity to shape which savings options are adopted. This is a long term process and one in which we will involve all those affected by any changes that may eventually be proposed.”

Health and Social Services department

The independent review into the Health and Social Services found the department could not, at this stage, make savings of 10% while continuing to provide the necessary services.

The Health and Social Services Minister, Deputy Anne Pryke, said “The independent review has set out a number of savings options. Following discussion at a recent Council of Ministers we will not be making any of the service reductions proposed as we feel this would affect some of our most vulnerable clients.

“We are now assessing what we can achieve without jeopardising patient care. We are targeting savings of £3.2 million. At this stage will be concentrating on management restructuring and efficiencies while a full strategic review is undertaken.

“We will investigate service redesign, but that will take time and we must remember there are extra costs of running a health service on a small island.”

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