A Clear Case of Black (Ian) and White (Wash)

It's not often that Clameur de Haro finds himself agreeing with Geoff Southern about anything, but CdeH stands four-square with Mr Southern in his condemnation of the glossing-over by a clearly embarrassed and defensive Establishment of the incompetence and dereliction of fiduciary duty to the taxpayer exhibited by States' Treasurer Ian Black (who, CdeH notes, reportedly attempted to deflect the blame on to the former TTS CEO) in failing to ensure that the incinerator contract was hedged against an adverse exchange rate movement.

This is such a basic requirement - in CdeH's private sector worlds, both past and present, even comparatively junior mid-level finance executives are aware of the need to hedge a substantial currency risk exposure - that its omission virtually defies belief.

Are we to assume that no-one at all, in either the Treasury or TTS, realised the need? Because if that really is the case, then the implications for the management of Jersey's public finances, politely describable as sub-optimal at the best of times, are truly frightening. And the proposal to place Treasury accountants in all departments suddenly looks like not a very good idea at all.

Catching up on the last couple of weeks' Jersey Evening [sic] Post's back numbers since returning to the fold, Clameur de Haro spied Christine Herbert's Business Focus of 28 July, revealing that the Treasury is to deploy more public funds into the markets: presumably this will involve Mr Black's professional oversight of the investment strategy and the investment advisers.

Time for Under The Mattress as a safer option, maybe?

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A New Direction of Travel

Welcome to this the opening post from Clameur de Haro?

CdeH? is angry: in fact positively seething with exasperation and frustration at the poor quality of both the political philosophies currently on offer to the people of Jersey – and echoing the cry of Mercutio in Shakespeare’s Romeo and Juliet.. “a plague a’ both your houses!”.

CdeH? is most definitely NOT an enthusiastic standard-bearer for Jersey’s current Council of Ministers and the present States’ Establishment, and believes that the wider electorate’s manifest disillusionment with both is amply justified. Yet, like so many of the Island’s silent majority, CdeH? shudders at the prospect of the potential damage should what may be called the Stuart Svvret Tendency and the JDA/Green Coalition gain political ascendancy.

CdeH? is convinced that there really does exist a radical alternative direction for the Island – one between, at the one extreme, the complacently inefficient, overly bureaucratic, excessively mercantilist, and fiscally irresponsible current government: and at the other extreme, the assorted collective of tax-and-spend egalitarian socialists, muddled-thinking talk-gooders, and mendacious eco-authoritarians, masquerading under a disparate variety of labels of the left, but all essentially wanting the same thing - a much more interventionist, enterprise-averse, anti-freedom and aggressively redistributive regime.

CdeH? contends that a significant number of Jersey’s current domestic problems stem from one thing – the sheer size, scale, and therefore cost of government and administration: that Jersey’s public sector is too large for the size of the population, and generally does too much: and that it compounds that error by doing so expensively and inefficiently – much, much more expensively and inefficiently than would private enterprise, because of government’s ability, and natural inclination, to increase the tax burden to cover expenditure, rather than control its activity and therefore its cost, so as to keep expenditure below the tax revenue achievable consistent with a flourishing, dynamic but also equitable society.

So – for CdeH? the direction of travel has to be to reducing the size and impact of the state, curtailing its remit, controlling its cost, and lowering its burden on the economy – by applying free-market and libertarian economic and social policy prescriptions, and eschewing the deceptively and superficially attractive solutions dangled by both persuasions.

From CdeH?'s position, poised in the Royal Square on the steps of the States' Assembly, this will be the approach put forward in the coming days, weeks and months.

Watch this space.

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