03 August 2009
The Minister for Treasury and Resources, Senator Philip Ozouf, has issued the following statement about the
plan:
"When I stood for the position of Minister for Treasury and Resources, I said I would make the control of spending my top priority. The experience of the last few months has highlighted, even more strongly, the need for tighter central control over departmental spending.
Despite having successfully introduced a significant reform of Jersey’s tax system and managing a wide range of responsibilities, in recent months there has been criticism of the Treasury’s management, effectiveness and delivery.
I accept that changes need to be made.
I am publishing today (3 August 2009) a
draft plan to radically restructure the Treasury and Resources Department. It is intended to put in place the right level of expertise and resources and significantly strengthen financial management across the States. I am determined to put in place a structure that is capable of delivering better value for money throughout the organisation.
The 2010 Business Plan identifies an extra £660,000 to deliver change and £220,000 for Income Tax which will enable the Comptroller to strengthen his investigations team. These resources will deliver more effective financial management across the States to achieve my objectives.
I am also reviewing the Treasury management structure and all the senior positions within the department. The plan proposes that the powers and resources of the position of the Treasurer of States are enhanced. Among other changes, this
plan proposes a new Head of Financial Management for the States .
There are also proposals to change the finance function across the States. At the moment departmental Finance Directors report to their Chief Officers. I am proposing they should also report directly into the Treasury. This will improve the support to Ministers. It will allow more rigorous questioning and scrutiny of every department’s finances.
In addition to the planned restructuring and the corporate savings targets set out in the Business Plan, I intend to begin a six month forensic review of the spending of the three major spending departments. This will be completed by June 2010 .
Running in parallel, I will launch a review of the Fiscal Strategy which will be completed by October 2010.
The investment required to deliver these two major reviews will be found from within existing cash-limits, through the use of funds carried forward from 2008.
This
draft Plan also proposes that the Treasury Department should take full responsibility for the Resources department. The Clothier Review recommended this, but it has not yet been implemented in full. Now that we have a Chief Officer for Resources (the Deputy Chief Executive) this can be progressed. The Chief Minister and I propose that this recommendation now be implemented.
Whilst in all well run and effective organisations, financial management is a matter for all, I accept that the Treasury has to lead. This plan is designed to achieve that leadership.
I am publishing these draft proposals widely and welcome written and oral feedback.
I particularly welcome comment and advice from the Corporate Affairs Scrutiny Panel, the Public Accounts Committee and the Comptroller and Auditor General - each of whom have made recent comments about the need to strengthen the Treasury.
Subject to the States approving the additional resources in the Business Plan debate on 22 September 2009, I will begin implementing the new plan in October 2009.
I recognise that change is difficult in all organisations. I am committed to a stronger Treasury function and believe it is necessary if taxpayers are to get best value and for Jersey to remain competitive."
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