More States companies could become independent

Guernsey Water, Guernsey Ports and States Works could be commercialised to give them more operational independence, if proposals are agreed by deputies.

Under plans from the States Trading Supervisory Board, they would remain wholly States-owned but with less political involvement in their day-to-day operations.

Vice-president of the committee, Deputy Charles Parkinson said: "We noticed that the incorporated businesses function much better.

"Guernsey Post and Guernsey Electricity are very successful for example and Guernsey Water, which is at the moment unincorporated, is well-run but we think it would be even better run if it was incorporated."

The three businesses already operate commercially, but to all intents and purposes are still States-run operations.

It means that a number of functions are provided centrally by the civil service, including recruitment, HR, and IT.

The new proposed arrangement has been in place for Guernsey Electricity and Guernsey Post for the past 20 years.

According to the States of Guernsey's latest budget report, unincorporated trading entities should raise sufficient revenues to fund all their expenditure.

However, they note that the only trading asset to be consistently recording a surplus is States Works.

If States members give approval, Guernsey Water would be the next business to be incorporated, with the target being the start of 2028.

Guernsey Ports, which operates the harbours and airport, and States Works would follow at a later date.

The proposals are expected to be debated in March.

If passed, STSB would be directed to report back to the States by the end of next year with more detailed proposals.

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