TNAG-0597-FCO40-744-Future-of-Dependent-Territories-territorial-studies-1977 — Page 148

CONFIDENTIAL

Budgetary Aid

27. Mr Armstrong introduced a paper summarising the revised budgetary aid procedures and explained the thinking behind it. The London representation commended the system and said that great importance was attached to it in London; the view was that the territories must reconcile themselves to it and learn to operate it successfully. However, there was some feeling among the OAGS that it might have started off on the wrong foot. The introduction of the block grant system had coincided in practice with the first year of a tougher attitude to annual revenue estimates. Sir Bruce Greatbatch pointed out that 1977 was the first year in which a proper assessment had been made of territories' ability to raise new revenue. Even so, the Conference wondered whether we were being realistic. The BVI and fontserrat frameworks had not been accepted without a visit to London and the Montserrat figures were still to be argued. Anguilla's silence was perhaps more a sympton of their diffidence than their acceptance of the figures. It remained to be seen whether territories would raise the revenue that the surveys had decided was possible or would continue to cry out to London.

28. There were still territories who were disputing the modalities of the application of the inflation formula to draft estimates of revenue and expenditure. Although the will to raise new revenue was weak, financial control seemed to be everywhere adequate. WIAD would be willing to provide a 1CO to advise on systems of control if territories later found this necessary.

29. The Cayman Islands Government needed advice on how it would be expected to handle any unspent allocation at the end of their last year of development aid (1979/80). Meanwhile they would be wise to set themselves an annual expenditure target above their allocation.

THE STRUCTURE OF CIVIL SERVICES

30. The Conference had before it a paper prepared in BDDC suggesting that Ministers in dependencies should be much more closely involved in the structure and management of their civil services. Mr Wand Tetley argued that there would be better prospects for a system which grew naturally in local conditions. Civil Servants in the Associated States tended to support oppo- sition parties and had been known to sabotage government policies. In considering possible alternatives to the present arrangement a number of views were expressed.

31. In West Germany, for example, the distinction between politician and civil servant was blurred at the top. Was there scope for something on these lines in DTs with Ministers acting as their own Permanent Secretaries? It was pointed out that if heads of departments were elected the territory was stuck with them until the next election. And the corollary of this was the risk of a changeover every 4 years (as well as administrative complications over pensions etc). One alternative was to give each elected Councillor committee responsibility for the. management of one or two departments as in English local governments. This would require a State Council Committee system which had failed in the Solomons and the Turks and Caicos.

8 CONFIDENTIAL

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