Existing taxes could be increased

The island's government faces going �19m into the red next year.

New taxes will not be introduced in Jersey but existing ones could rise.

States spending will also be cut in real terms in a series of measures proposed by the Finance and Economics Committee.

To remedy the situation Senator Terry Le Sueur and the Finance Committee are proposing four measures.

we are where we are and the alternative would be far more unpalatable Senator Terry Le Sueur

They include: reducing the amount of spending on things such as schools by �2m a year, setting aside �8m for unforeseen costs, reducing the kitty for public sector pay claims and cutting an increase in States spending by half.

Even then, the States could still be up to �7m in debt - so existing taxes could be increased.

The Finance Committee is also looking at ways to overcome the future problems of an aging population and financial competition.

Areas being examined to reduce such problems include extra income tax on higher earners, some form of sales tax, a property tax and maybe even increases in social security.

Senator Le Sueur is warning islanders to expect painful times ahead.

He said: "I don't imagine they will be happy as no one likes paying more taxes and no one likes having a reduction in services. But the fact is that we are where we are and the alternative would be far more unpalatable.

Hospital charges

"The alternative to that would have been to raise more taxes to pay for services. But the message I got quite clearly was that people did not want to see increasing taxes they wanted to see States spending kept under control."

Meanwhile, islanders could have to pay use services at the General Hospital, the president of the Health and Social Services Committee has said.

People could be charged to use the Accident and Emergency Department and pay �25 a night to stay in hospital, says Senator Stuart Syvret.