Letters: Effective management key to budget cuts

AN OBSESSION with "ring-fencing" is really the Achilles' Heel of public expenditure control (your report, 31 July).

Simply to maintain an existing level of expenditure on a service, or even to increase it in line with inflation, does not in itself meet need or improve quality. In the National Health Service, for example, does it do anything to reduce levels of absenteeism, waiting times, make the availability of consultants and surgeons more flexible, reduce the ratio of managerial to front-line staff, or improve the standard of preventative care? It is effective management of resources, rather than a concern with the size of the budget or empire that should matter.

The real message of the independent budget review chaired by Crawford Beveridge is the need for flexibility of approach, and a radical review of how health and local government, in particular, are run. Means-testing should not be ruled out in principle, but neither should it become the all-purpose panacea. It might be appropriate to reduce the rate of growth of the budget for free personal care; it would be hopelessly impractical in reducing the budget for concessionary travel (where an increase in the qualification age would make an impact).

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The public ownership of Scottish Water should not be seen as part of the Holy Grail, particularly if effective regulation goes hand in hand with a transfer to the private or non-profit sector.

The reduction of the numbers employed in the public sector would only be fruitful if it stimulates private sector jobs and does not place an unbearable burden on the benefits budget. What is important now is that politicians rely not on soundbites and buck-passing, but that they produce credible plans which are fair and workable.

BOB TAYLOR

Shiel Court

Glenrothes, Fife

One option the Beveridge Report on government spending failed to explore was a public sector wage cut. It jumps straight to the conclusion that service cuts and job losses are inevitable. Yet a wage cut of between 5 and 10 per cent, such as has been introduced in Ireland, would save 1 billion a year, according to Professor David Bell of Stirling University. And this is roughly the amount we need to save from the Scottish budget.

Beveridge mentions a pay freeze as one option. That is, in effect, a pay cut of 3 per cent when you take inflation into account. But the report says that would not be enough to avoid the loss of 12,500 jobs. And if two years of pay freeze were not followed by two years of pay restraint, then up to 50,000 jobs could go.

The report makes no calculation of how much the loss of jobs would cost the government in lost taxes, redundancy payments and unemployment benefit. Nor does it measure how much damage it would do to the economy, especially the struggling private sector.

It may be right to ask questions about what the state should do for its citizens or how to deliver public services more efficiently, but now is not the time. Reforms should be kept for times of plenty.

JOHN KNOX

Dinmont Drive

Edinburgh

A MATURE, responsible administration will tackle the inevitable budget cutbacks head on and not resort to immature blame games. I would suggest the SNP's sacred cows of the NHS, universal free personal care for the elderly, concessionary travel, prescriptions, "free" bridge crossings and so on be looked at again.

Of course those in need and without resources should be helped with dignity and their pride be paramount, but thehanding out freebies to in some cases millionaire recipients by taxing others less well off is simply insane.

These next few months and the decisions taken will make or break devolution.

ALEXANDER McKAY

New Cut Rigg

Edinburgh