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Policy Council confirms that Capita will not take fee for FTP Saving

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Tuesday 07 October 2014

Deputy Jonathan Le Tocq, the Chief Minister, and Deputy Gavin St Pier, the FTP Champion, recognise and thank Capita for the key role it is playing in helping to deliver real and sustainable savings to the States of Guernsey.

They also welcome Capita's confirmation that they will not be taking a contracted reward fee for one element of the FTP, the saving secured from the transfer of £650,000 from general revenue expenditure.

The FTP saving was made after a transfer of £650,000 from the Health and Social Services Department to the Health Service Fund, which resulted in a recurring year on year reduction in general revenue expenditure, and in that respect met the criteria for being classed as an FTP saving.

The Chief Minister commented:

"The States and Capita are working in a partnership. Capita's decision is welcome as it shows that they understand that this is more than a commercial relationship, and it reflects the unusual nature of this particular saving. I think a solution has been found which is in everyone's interests, and which does not detract from the significant achievements of the FTP as it enters its final stage."

Deputy St Pier said:

"The Financial Transformation Programme has so far delivered almost £30million of year on year savings that will give taxpayers better value for money, and it has put in place foundations for the next phase of transformation.  The FTP has cumulatively so far saved the island £54m, in the absence of which we would have had to fund from taxpayers' savings in the Contingency Reserve.

"Without question the FTP has transformed a spending States into a more cost-conscious States, particularly over the past two years. Capita's partnership with the States, and with Guernsey, has driven that forward. I hope that the decision not to match this specific FTP saving with a contracted reward fee will enable people to see the fuller picture of what has been achieved by the States and Capita since 2010 - that it's not about chasing numbers, but about transforming the States."

Lee Cotsford Capita Consulting's Managing Director said:

"We have a very constructive partnership with the States of Guernsey, and our commitment to Guernsey goes beyond the terms of our contract. We are very proud of the work that we have done with the States of Guernsey, and the value that we have helped secure for Guernsey's taxpayers."

Deputy Matt Fallaize commented:

"I have no doubt that transferring the £650,000 costs of the Visiting Consultant service from the Health and Social Services Department to the Health Service Fund was the right thing to do, a view shared by the Chair of the Public Accounts Committee.

"What I disagreed with was the States paying a reward fee for the transfer of costs. I think the Policy Council and Capita have listened to those of us who were critical about that and they have made a decision that shows respect to the views of many States' members and to taxpayers.

"The FTP has been essential, and overall a success, so it is important that we do not let this particular transaction detract from the FTP's significant achievements."

Deputy Heidi Soulsby, Chair of the Public Accounts Committee, said:

"The issue is not with the transaction itself, but with the way the contract rewarded the transaction. I am glad that the Policy Council and Capita have found a sensible way forward, and one that does not undermine the progress made by the FTP as it comes to a close."

ENDS

 

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