Top government committee must rewrite fiscal rules

Guernsey's senior political committee has until the middle of July to rewrite its rules for how government finances should be managed.

The Policy and Resources Committee's (P&R) previous fiscal policy framework was labelled"useless" by the Scrutiny Management Committee, which said it would act as a "licence for borrowing".

The Scrutiny Management Committee proposed a sursis motivé - or reasoned delay - which asked P&R to re-draft its fiscal framework policy and return to the States with it before 15 July, which P&R accepted after a brief debate.

Deputies voted by 27 to 3 to ensure P&R publishes and debates its new fiscal policy framework by the July date.

The Scrutiny Management Committee's motion also requires the senior committee's redrafted plans to include, "the articulation of a clear and consistently applied core fiscal principle".

It also has to include "clearer and more transparent constraints governing deficits and borrowing, a coherent and justified approach to the treatment of financial reserves and strengthened governance and independent oversight arrangements".

Currently, the States of Guernsey has a fiscal policy panel, which produces a report each year on the state of government finances.

Deputy Haley Camp, who seconded the sursis motivé, or delaying motion, called P&R's plans: "A permission slip for more borrowing, without knowing how it is going to be paid back yet."

Arguments against the delaying motion came from Deputy Jennifer Strachan who said it would take valuable officer time away from work that needed to be done within the States.

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