The Budget for 2012/13, which has now been approved by Tynwald, sets out not only Government’s current financial position but also the strategy for rebalancing Government’s finances over a four year period.
It is clear that financial rebalancing is fundamental to our future success and it will, inevitably, require difficult decisions to be made. Not only, as the Treasury Minister has said, will it be necessary to raise additional income but significant reductions will also have to be made in Government expenditure. While much has been achieved to date through the hard work of people across Government there is significantly more still to do.
Given that staff costs represent around a third of Government’s revenue costs, and the Chief Minister has indicated that a 10% reduction in the cost of staffing, in real terms over the next four years is planned, it is inevitable that Departments, Boards and Offices will have to look very closely at current staffing levels and will have to realise significant savings. This is the continuation of a process that has been ongoing for some time and, as far as possible, is being achieved through natural wastage, redeployment and early retirement. To date, while redundancies have occurred they have been implemented only where no practical alternative exists.
The continuation of pay restraint is an equally important contributor to the achievement of financial stability and it must be recognised that no additional monies can be made available to fund pay awards. It is, therefore, inevitable that any increases in staff costs will impact on staffing numbers.
It is only by working together that the changes necessary to make Government more efficient and cost effective can be achieved. A significant programme of transformation is already underway and it is vital that Ministers, Boards and their senior officers are fully supported in implementing the changes necessary, in what are difficult circumstances.
Equally, it is vital that we continue to engage with staff and their representatives to explain the need for change and to work with them to implement new ways of working, with employment terms and conditions that reflect current circumstances.
I am confident that, while we face very challenging times, successful outcomes can be achieved if we embrace new and different ways of thinking and, as Chairman of the Civil Service Commission, and Chairman of the Employers’ Side of the Whitley Council, I am committed to working jointly with Civil Service and Whitley Council staff representatives to deliver the workforce reforms necessary to support Departments, Boards and Offices in the delivery of services to our community.
Alfred Cannan, MHK
Chairman, Civil Service Commission
Chairman, Employers side of Whitley Council
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