The report compared the quality and cost of services like housing and health with places like Guernsey, the Cayman Islands and the Isle of Man.

It found that average public sector pay in Jersey is a third higher than in the UK.

Jersey's 6,500 civil servants cost the States about �240m in wages each year.

But the report says that Jersey gets "Rolls-Royce services at Rolls-Royce prices".

Policy and Resources president Senator Frank Walker said: "The survey scotches the perception the States is fat, inefficient and wasteful."

But States members are already discussing massive savings and further redundancies, following recent job losses at the Agriculture Department, are not being ruled out.