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IoD Comments of Public Sector Finances

IoD Comments of Public Sector Finances

Wendy Dorman, Chair, IoD Jersey, commented:
 
“The IOD is disappointed if not surprised by the size of the funding gap identified in yesterday's announcement.  The problem would be smaller if tough decisions had been made earlier, but the fact is that the cost of healthcare in particular is rising here as elsewhere due to medical advances and an ageing population.  We broadly welcome the measures outlined by Senator Maclean to address the gap and balance the books, and we believe the timeframe for delivery of these measures by 2019 is reasonable, but must be stuck to.

“It is time to modernise our public sector and deliver transformational changes that facilitate efficient delivery of streamlined services.  Investment in this objective is necessary to make long-term savings.  Delivery of this change will not be easy, but it is necessary. There is detail currently lacking in the measures announced so far, including how revenues will be raised.  The IOD would be delighted to engage with government to look at how we can encourage growth and higher productivity to help close the funding gap, as well as consulting on revenue raising measures such as user pay charges. Jersey needs to address the shortfall, but we also need to maintain an internationally competitive tax regime.”