UK consultant is paid percentage of bus fare rise

The States of Guernsey has confirmed it is discussing payment with the UK consultancy firm which identified savings in government spending.

It follows concerns raised by Deputy Matt Fallaize who was unhappy that Tribal is being given 6.5% of the recent increase in bus fares.

Last year Tribal's review of States spending came up with tens of millions of pounds in efficiency savings.

The Treasury and Resources Department said it was a risk and reward deal.

A spokesperson said the discussions with Tribal included its compensation for "income-generating activities" introduced after the recommendations made in the company's report to the States.

The Financial Transformation Programme started by the department in October 2009 has the aim of cutting spending by at least £31m a year from 2015.

The programme covers 107 projects, more than 70% of which are due have their "internal inefficiencies" addressed rather than any grants or subsidies.