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Jersey's politicians have spent much of the first day of a landmark debate on building a new hospital deciding whether the discussion itself should go ahead - and what they are actually voting for.
At the start of the day, the Environment Minister’s announcement that a key inspector’s report on the island’s biggest capital project to date won’t be released until after the debate, almost caused it to be derailed.
Following that news, St Helier Deputy Russell Labey called for a delay to the debate until members had a chance to read the inspector’s recommendations.
Deputy Labey said, “…I think it’s extremely important that we wait to see what’s in that report before we make a decision on spending almost half a billion pounds. We don’t have a design, we have a set and a schedule of parameters and those parameters have been changing up until November. We have to find out from the inspector if due process has been followed.”
“I think the time for having the debate is when we know if this scheme has planning permission or not. I would ask for the debate to be deferred until 30th January.”
Pictured: Jersey's future hospital will be built on the current site, with compulsory purchases on Kensington Place if approved.
His motion sparked a lengthy debate which saw the Health Minister say it’s the time to be getting on with the project and urged members not to accept the deferral. Senator Andrew Green said, “…this is the right place, the right hospital, at the right time. If the (Environment) minister makes changes from the inspector’s recommendations, we will have to alter the drawings, the outline of the building within the budget – the four hundred and sixty six million to be agreed.”
The assembly voted to go ahead with the debate by 25 - 18.
The Treasury Minister’s original plan was due to be agreed in January this year, but it was withdrawn after it was questioned if the island was able to legally borrow another £400million in addition to money already borrowed to pay for social housing.
Senator Alan Maclean came back in November with a revised plan which included borrowing up to £275million, and using the island's reserves to make up the rest.
He said, “…all credible solutions for a new hospital require a once in a lifetime investment. Those closest to the situation - senior clinicians - are urging us to make this decision quickly. They say commencing the build of our new hospital is becoming time critical.”
“The budget for the new hospital is capped at £466 million and covers professional fee’s, buying the land, the new build, relocating services and the refurbishment of the granite block.”
When explaining the financing plan, the Treasury Minister said “…this option has been subject to detailed analysis and remains the preferred options based on professional advice.”
But his plan faced opposition from backbenchers.
Constable Chris Taylor put forward an amendment limiting the budget to up to £392million with a £74million contingency. He accepted the Treasury Minister’s suggestion to increase the budget limit to £396 million, with a £70million contingency, and this was backed by the States.
But Deputy Jeremy Maçon’s call to tie in the vote on the hospital funding to the current business plan – which would become void if it didn’t receive planning permission – caused confusion among politicians. After a lot of discussions and questions to the Attorney General, it was eventually defeated.
The Assembly has adjourned, having approved @philipozouf's 3rd amendment - main debate tomorrow
— States Assembly (@StatesAssembly) December 12, 2017
The States ended the day on Senator Philip Ozouf's calls for technical amendments, one of which would enable a review of allowing the capital amount borrowed to be repaid in stages and not a lump sum.
Senator Ozouf said, "...if he’s got to go and borrow, borrow and repay it. Because what members don’t seem to understand is that the interest rate that you get on 40 year money is the most expensive you can get, because you don’t know the future, it’s the most risky.”
The States backed his amendment.
The main hospital finance debate continues today.
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