The States - Jack of all trades, master of none?

The question needs to be asked, should the States be involved in so many businesses?  The corporate world learned long ago that very diverse organisations are usually inefficient, unless you have Warren Buffett as your CEO that is.  It seems that Government is engaged in a whole range of trading activities which are not central to its main role in providing public services to Islanders.  Activities such as health and social security, education, policing, administration of justice, immigration, customs and public infrastructure are core functions that need to be carried out by Government.  These are the type of activities that we, as the public, pay our taxes for.

The question as to whether the Government should be managing these activities that take place at the harbours and airport needs to be examined.  Whilst these are strategic assets and should continue to be owned by the Island, are they best managed by civil servants or should they be run as commercial enterprises by private business under a Government “franchise”?  Similarly, do the States need to maintain parks and gardens, or could this activity, (whilst keeping public ownership) be run by private contractors?

The States own Jersey Post and Jersey Telecom and have stakes in Jersey Electricity and Jersey Water.  The boards of these companies operate on a commercial basis but their shareholder is the Treasury who, like any shareholder, rightly insists on a greater return.  Government also sets out the overall policy and the regulatory parameters (through the JCRA) of these businesses and this does create a conflict of interests.  The recent public concern concerning Jersey Post and Ship2me is an illustration of the problem; it is difficult to reconcile the two under the States’ policy of “think twice buy local”.

There could be many advantages of a change for example freed of political interference these businesses could become more efficient and less of a strain on the public purse and of course politicians would have more time to get on with what they should be doing.

Is it time for a public debate on this issue?  In times of recession government needs to direct efforts to its core functions.  There should be encouragement by the States to actively support the concept of locally owned businesses employing local people who pay taxes and social security and thus keep money circulating within the Island.    

Ray Shead