How Jersey's States will save £145 million

Jersey’s government have voted though major plans to fill the island’s financial black hole.

They include a package of cutting public sector jobs, freezing pay and scrapping bonuses to find £145m each year until 2019.

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Unions warn of 'dark days' ahead of £145m cuts

Unions in Jersey say dark days are ahead after plans to slash £145 million from government spending were passed.

£70 million will be wiped from the public sector wage bill, meaning job cuts, outsourcing and pay freezes.

Last week, hundreds of public service users protested against the cuts.

The union Unite, who represent many of the workers, say the public sector will be decimated.

The public sector will be decimated. Workers being made redundant and being made to look for work elsewhere on vastly reduced terms and conditions. Service level provisions being affected. The quality of services going down. This is the reality now. These are dark days for the island and it's very worrying.

– Nick Corbel, Unite

Chief Minister admits approved plan will be 'a challenge'

Jersey's Chief Minister has admitted delivering cost saving plans of £145 million will be a challenge.

Politicians voted through a package of cuts and new charges last night.

Senator Ian Gorst said although civil servants have resisted change in the past, they must now live within their means.

The fact that the States have now approved the plan that means we've got to deliver those changes. That money will not go into departmental budgets, so they will not be able to spend more than we allocate in their budgets.

– Senator Ian Gorst, Chief Minister

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Deputy apologises for using 'F-word' in States

A Jersey deputy has apologised after he was heard using the F-word during today’s States debate.

Once the chamber had voted in favour of plans to save £145 million, politicians were asked to stay to continue more States business.

But Deputy Geoff Southern thought it was unnecessary, and was heard using the F-word to announce his departure.

Not only those in the States, but islanders listening on the radio heard the remark.

He later apologised for the profanity, saying it had been a long and tiring day.

If you picked up some swearing I do apologise - I apologise as deeply as I can. It was not intentional.

It's been a very long and tiring day.

– Deputy Geoff Southern, St Helier No.2

Deputy loses bid for university funding

Deputy Jeremy Macon lost his bid to get more funding for university grants.

He was calling for an extra £1.4m to help students from low to middle income families afford higher education.

The States voted against the proposal; Deputy Macon accused the assembly of not making the issue a 'priority'.

Annual tuition fees of £9,000 upwards are a barrier for families who are just above the threshold for the States' grant scheme.

The Chief Minister did promise to set up a separate funding mechanism for future university students by next September.

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Day two of cost cutting

Jersey's government will continue debating how to make £145 million worth of cutbacks today. The price-tag is needed each year until 2019 to fill a black hole.

Politicians are expected to discuss a freeze on benefits today, and also how education will be funded over the next three years.

A raft of cash-cutting ideas have been proposed and will be discussed this week.

Backbenchers say their amendments and questioning of Medium Term Financial Plan is helping move the debate forward, and that they are optimistic they can make a real change.

Regardless of the outcomes of our amendments, what we have done is sparked a debate and we've got concessions from several States members that our tax structure seriously needs to be looked at.

That is huge progress. A few years ago, politicians has their fingers in their ears and wouldn't even discuss the subject, but because of what we are doing, it now will be a discussion and that's something very positive to hold on to.

– Deputy Sam Mezec, St Helier No. 2

Businessman charged with saving States money quits

The man charged with helping Jersey’s States find £145 million worth of savings parted company with the government today.

Businessman Kevin Keen says he has no faith they are committed to making the savings they need to.

Today, the States began debating how they propose to save £145 million each year until 2019 to fill the current black hole.

Among the proposals, are making £70 million of cuts by freezing pay and slashing jobs.

It is going to be really painful. I guess the reality is that the economy is picking up now and it's probably the best time for the private sector to be taking on some very talented people.

– Kevin Keen, Businessman

Christmas bonus and TV licences for pensioners will be scrapped

The Christmas bonus for pensioners and free TV licences for over 75s will be scrapped as part of the States plan to save £145m.

States members voted to get rid of the benefits this afternoon.

They opposed backbenchers who wanted to keep the pay outs.

Amendments to the Medium Term Financial Plan are being debated this week, including £70m of cuts to the public sector wage bill.

The States need to fill a financial black hole in order to invest in education, health and infrastructure among other things.

Jersey backbenchers calling to scrap plans to cut pensioner benefits

Credit: John Stillwell / PA Wire/Press Association Images

Jersey politicians have been debating controversial plans to scrap the Christmas Bonus and free TV licences for pensioners.

backbenchers are calling for the proposals to be reversed.

Deputy Geoff Southern says the Council of Ministers are targeting the island's most vulnerable.

He's calling for higher taxes for Jersey's richest.

The cuts to pensioner benefits have been put forward by Social Security Minister, Deputy Susie Pinel, as part of her department's move to save money.

£1.6m
The cost of the Christmas bonus, equivalent to 30 nurses salaries.

Deput Pinel says that cost is likely to rise to £2.6 million by 2035, as more islanders reach pension age, an amount that would pay fifty nurses salaries.

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