Page last updated at 18:16 GMT, Friday, 28 May 2010 19:16 UK

States of Guernsey spending controls investigated

Charles Parkinson
Deputy Parkinson said rules on spending needed to be changed

Spending controls in the States of Guernsey will be investigated by the Public Accounts Committee.

Expenditure was up 10% last year, despite deputies agreeing to a real term spending freeze, although States' rules do not see it as an overspend.

Committee chairman Leon Gallienne said they were concerned the tax payer may not be receiving value for money.

"We will dig deeper into the accounts and find out why spending needs to be brought back under control," he said.

The whole of government, is going to have to face up to radical and fundamental financial surgery
Andrew Le Lievre

When deputies were asked to note the report containing the 2009 States Accounts it sparked some debate.

Treasury Minister Charles Parkinson said there was a pressing need to change the States rules on spending and urged all departments to control their spending.

Social Security Minister Mark Dorey said the problem stemmed from the way the budgets were drawn up: "If we're going to tell the public that our policy is a real term freeze on States expenditure then we must set budgets that are fully consistent with the policy and not allow departments to spend over that limit.

"Then this assembly will see the real effect on departments and judge if that is the right policy for Guernsey."

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