Reducing the scope of government activity will be unpopular and painful.

But the lead author of a new report into the scope of government says it's exactly what must be done in the current financial difficulties.

Robert Quayle led the team which produced the Scope and Structure of Government report six years ago.

Although government structure was overhauled, the range of activities provided directly by government has not been cut.

Since the original report the Island has lost almost a third of its yearly income, through VAT changes.

Mr Quayle says their recommendation that many government services should be privatised, corporatised or contracted out, is now more relevant than ever.

He says the report from six years ago was 'the writing on the wall':