Move to give Guernsey trading boards commercial freedom

Tuesday, 18 February 2025 13:25

Guernsey Water, Guernsey Ports and States Works could be allowed to operate more like stand alone companies, rather then States entities.

Guernsey Electricity and Guernsey Post were commercialised more than 20 years ago.

Now, the States Trading Supervisory Board wants Guernsey Water, Guernsey Ports and States Works to operate in the same way.

Deputy Charles Parkinson, for STSB, says it would remove States' influence from a number of areas:

“It is no criticism of the personnel who provide these various support functions, but under the current arrangements their wider focus and priorities do not always match the specific needs of each individual trading business.

"A good example is being able to agree staff terms and conditions that reflect their operational requirements and priorities, rather than being determined for the public sector as a whole. In the commercial world, companies simply do not operate that way.”

Deputy Parkinson says that if deputies approve the changes, the States would still entirely own the companies, but political involvement in their day to day running would reduce:

“The businesses within the STSB look after a lot of the island’s key infrastructure, which is very capital intensive and requires long-term planning, both financially and operationally.

There is a danger when you have too much political involvement in decision-making that it leads to more short-term focus, and that is not in the best interests of these businesses nor in the best interest of islanders.”

Currently, Guernsey Water and the Ports run at a loss, while States Works makes money.

It is hoped to get a policy letter before the States by the end of March, but even if agreed, the process could take several years, with Guernsey Water being ready to run commercially by 2028.