Calls for independent review of Jersey Development Company

Thursday 12 December 2024

Questions over the oversight and strategic direction of the public's developer have reignited after a backbench politician raised concerns about the need for an independent review of the organisation.

During question time in the States Assembly this week, Deputy Inna Gardiner raised concerns about the Jersey Development Company's governance, performance, and role in delivering the Government’s regeneration goals.

It comes after two separate reports – one from the Government’s spending watchdog, and one a political group examining the value of Government projects – previously recommended that an independent assessment of the JDC should be carried out. 

In these reports, published in 2020 and 2021 respectively, both the Controller and Auditor General and the Public Accounts Committee urged the Government to assess whether JDC remains the best vehicle for managing major property development projects on behalf of the public.

Pictured: Deputy Inna Gardiner raised concerns about the Jersey Development Company's governance and performance.

In the States, Deputy Gardiner questioned the company shareholder and Treasury Minister why no strategic review had taken place despite these recommendations being accepted by the Government. 

She also raised concerns that decisions regarding the management of Government-owned properties seemed ad hoc and uncoordinated. 

“It feels as though ad hoc decisions are being made to manage a complex estate portfolio and that accepted recommendations are not being implemented,” she said later in a statement. 

Defending the company’s performance, Treasury Minister Elaine Millar said that the company has delivered 187 homes at College Gardens and 280 homes at Horizon, many purchased by first-time buyers. 

She also pointed to the growth of JDC’s assets by 152% since its creation and described its projects as having delivered “significant public realm and infrastructure improvements.”

She did however acknowledge that the recommendation from the Comptroller and Auditor General for a strategic review of JDC was accepted by the Government in 2020. 

Pictured: Deputy Elaine Millar said that the Government’s focus is on delivering tangible benefits for islanders, rather than undertaking a strategic review of the company. 

However, Deputy Millar explained the responsibility for initiating such a review rested with the Regeneration Steering Group, a group that provides political guidance to inform the policy guidelines for all major public property developments – which has not acted on the matter since it was last considered in 2021.

The Treasury Minister also said that the Government’s focus is on delivering tangible benefits for islanders, such as plans for town regeneration, rather than undertaking a strategic review of the company.

She said: “It is the Government's intention to concentrate our term on output-focused delivery that brings more immediate and direct benefit to islanders, for example, creating a plan for town. 

“It seems therefore unlikely that a strategic review will be prioritised over other work streams during this time of Government.”

Despite this, she said that JDC undergoes regular oversight, reporting quarterly to its shareholder representative and holding quarterly board meetings to review its operations.

Deputy Gardiner also questioned whether the lack of an independent review leaves the company’s effectiveness untested. 

She pointed out that a 2021 Public Accounts Committee report, which looked into government property, urged the Government to prioritise an independent assessment rather than relying on reviews conducted by SoJDC itself.

It read: “It is frankly odd that a States-owned entity has undertaken its own review, which apparently looks at cementing its role.

"This approach disregards accepted recommendations, with significant potential for bias and self-interest.”