Friday 8 May 2009

Who's fault is it anyway?

 An excellent piece in Thursday's Times by Daniel Finkelstein sums up better my thoughts on our current public finances than I could ever say myself.  Its here out of interest.  What is particularly striking is that the latest drive on reducing public spending  suggests that vast sums can be saved simply by making central government more efficient. That is doubtful. Of course there is scope to do better and get more bangs out of the taxpayers  buck but there is a myth that public sector land  is some sort of haven for the idle, with huge salaries, two hour lunch breaks for all and only the occasional inconvenient interruption when mandarins have  to  spoil an otherwise agreeable afternoon supping tea and eating cucumber sandwiches to deal with affairs of state.  In truth the public sector is a place where people work hard and  where the myth of "jobs for life" is just that: a myth. The low hanging fruit of easy efficiency gains have long since been picked and what is left will be modest in scale and something of an uphill struggle for those left to deliver it. 
For my vast army of readers I'll offer two suggestions for getting public finance back under control. Under this government there has been a proliferation of independent or quasi-independent organisations set up to deliver some aspect of government policy. I believe many - each with their own boards, accountabilities, and internal mini-bureaucracies are a luxury we cannot afford. A very quick and wide-ranging cull is needed. That doesn't necessarily mean putting a stop to the function but just merging it into the work of another organisation. Secondly I believe that what makes good politics (short term, expedient, media friendly)  can be the enemy of sound stewardship of public money.  All too often hapless officials are expected to justify decisions which in all honesty were not really theirs but those of their political masters.   This is not about clobbering Ministers.  By contrast I think there is a wider issue about managing our own expectations of what governments of whatever political persuasion can really do and whether the only response to some media outcry is to throw money (our money) at it. It all goes back to the Daniel Finkelstein article: we are the ones who have created the mess but when are we going to accept some responsibility for the mess we're in? 

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