Scrutiny members criticise new fiscal policy
BBCA proposed new policy to govern Guernsey's public finances have been labelled "useless" by a member of the Scrutiny Management Committee.
Non-States member Mark Le Page said the policy risked "becoming wallpaper" if it did not include more robust metrics.
In a scrutiny hearing to examine the new fiscal policy framework, president Andy Sloan also criticised the policy saying it proposed "principles" instead of "rules".
But Policy and Resources' (P&R) vice-president Gavin St Pier defended the proposals saying they provided a framework against which budgets were prepared and "more effective scrutiny can be undertaken".
The current rules dictate that the States should not spend more than 15% more than it is bringing in each year.
Another principle of the present rules is that the island should not run a deficit for more than five consecutive years.
Proposals from P&R aim to replace those rules with four principles that the States should have:
- Balanced income and expenditure
- Sustainable infrastructure investment
- Healthy financial reserves
- Sustainable and well managed debt
States of Guernsey chief resources officer Bethan Haines said: "I think there are much better ways of monitoring public revenues than fiscal rules, like the funding and investment plans and the annual budget process."
She added the current fiscal policy panel was "pretty limited" when it came to resources available to do its work.
Sloan said the policy was moving towards "qualitative rules" rather than the firm rules agreed by the States in 2020.
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