Unincorporated trading assets "hamstrung" by States - STSB

Friday 28 May 2021

A major shake-up to the way that unincorporated States trading entities - such as Guernsey Waste, the Dairy and the Ports - are run could be on the cards.

The States' Trading Supervisory Board is reportedly of the "unanimous instinct" that some of the States-owned assets are being "hamstrung" by central control, which is preventing the operational heads of the States-owned companies from employing best business principles.

The Board is investigating the benefits of incorporating Guernsey Ports, Guernsey Dairy, Guernsey Water, Guernsey Waste and States Works, with a view to putting a policy letter before the Assembly later this year. 

Other States-owned assets Guernsey Electricity, Guernsey Water, Guernsey Post, Aurigny and James Co. are all incorporated businesses with their own commercial boards and less States intervention in their day-to-business. 

"There are frustrations about operating under all the States rules and regulations"

"We can certainly see advantages of flexibility and freedom for these unincorporated companies away from the centralisation of States control," STSB President Peter Roffey told Express. 

"I know sometimes there are frustrations from some of our operational heads about operating under all the States rules and regulations it imposes over things like staffing and budgets."

"What we will be doing is going to the States to find out whether they agree in principle and if they do we will draw up more detailed plans."

The incorporation of these entities could lead to a shake-up in the way they are structured, Deputy Roffey said, although it is still early days. 

"We are looking at first principles. We are having an awful lot of talk with our employers and we will need a lot of HR support as it is a really major project."

Pictured: Incorporated States-owned utility Guernsey Post - which is headed up by CEO Boley Smillie - has returned dividends to the public purse in recent years. 

He added: "I was really hopeful that the new set-up with the STSB would allow all of these businesses to operate in a manner very similar to a commercial company, to have the same agility and flexibility to follow business principles. 

"In reality, I have become convinced that as long as they are controlled by a States Committee, controlled by HR and other centralised services, that they will never have that flexibility."

Non-States STSB Member John Hollis also spoke out against the status quo at a recent presentation to business leaders. 

"Unless we have boards close to the business making decisions, then we have hamstrung those businesses," he told the Institute of Directors. 

Mr Hollis is leaving the Board in October and the STSB is currently looking for a second non-States member to stand alongside Deputies Peter Roffey, Charles Parkinson, Nick Moakes and Stuart Falla MBE. 

Pictured top: Deputy Peter Roffey. Guernsey Harbours and Guernsey Airport are two of the States' unincorporated entities.