Hospital funding plans in disarray

Tuesday 23 May 2017

Ministerial plans to fund the Island's new £466 million hospital were left in total disarray this morning, after the latest proposals were withdrawn on the cusp of the States debate on them, amid suggestions a completely different plan had been put forward at the last minute.

States sources suggested an alternative had been proposed by the former Treasury Minister, Senator Philip Ozouf, something he denies. It then emerged in the States this morning that the current Treasury Minister, Senator Alan Maclean, had withdrawn the plans despite still believing they were the best way forward - and despite repeated questioning, he refused to reveal who had first suggested they should be withdrawn.

The political drama began last night when Senator Alan Maclean sent an email warning politicians - who were readying themselves for a scheduled debate today - that the proposition would be withdrawn, following discussion with the Chief Minister and other Ministers. He said the decision wouldn't affect the delivery of the project. 

The Treasury Minister now says that plans for the £466million build will not be ready for discussion until the autumn, as part of an updated business plan and budget.

Despite the setback, he also assured his colleagues that the hospital project would continue moving forward in the interim.

Pictured: Treasury Minister Alan Maclean pulled the funding proposals at 19:11 last night, despite telling the States that he stands by his plans.

In an email leaked to Express and sent to all deputies, senators and constables less than 24 hours before the debate, Senator Maclean wrote:

“Dear All,

“I apologise for the late notice but following discussions with the Chief Minister and Ministers I have agreed to withdraw P130, the Hospital Funding Strategy.

Members will now be invited to debate the business case, updated budget and funding strategy together in the autumn. This will not delay the progress of the hospital project and we believe is a sensible and coordinated approach.

I will make a statement with more detail tomorrow.

Kind regards,

Alan”

Senior States sources have since suggested that the abrupt U-turn, which left States members in shock, sparked considerable dissent within the Council of Ministers, and that the decision to withdraw the proposal itself, rather than to simply delay the debate, is significant.

They pointed to the alleged influence of Senator Philip Ozouf, former Treasury Minister, who “stepped aside” following the Innovation Fund scandal, who was said to have put forward an alternative funding proposal.

Pictured: Former Treasury Minister Senator Philip Ozouf strongly denied claims that he had brought an alternative funding proposal, sparking Senator Maclean's withdrawal.

But he told Express that this was untrue. He responded:

“Absolutely not. I’m not the Treasury Minister. I did a funding proposal four years ago, that’s probably where it’s [the rumour] come from actually… I haven’t even seen the Treasury Minister’s statement… I think it may be the confusion is I brought a funding proposal four years ago, which was for 300 million from the Strategic Reserve, maybe that’s the thing.” 

When asked whether yesterday was the first time he had heard about the withdrawal, he responded:  “I mean I’d heard about from, like all people, I mean, you know this has been going on for months, hasn’t it? It was proposed in June… I’m a bit on the side lines these days. I’m a bit, I’m not really in at the sort of cut and thrust of things.”

Politicians reacted to the plans being scrapped last night on Twitter, with Reform Jersey stating:

Tonight's news that the hospital funding proposition is to be withdrawn is another sign of how dysfunctional the Ian Gorst-led government is

— Reform Jersey (@ReformJersey) May 22, 2017

St John Deputy Tracey Vallois described the decision as a “shambles”, adding: “I think the REAL questions need to be asked of  [Chief Minister] @IanGorst.”

It was then held up after it was revealed that the former proposed funding structure might actually break the law. More delays then came following strong criticism and amendments from Scrutiny, who reviewed the plans, with Senator Alan Maclean putting off the debate for a fortnight until today.

In a statement in this morning's Assembly, Senator Maclean said that the Council of Ministers remains, "...fully committed to the delivery of a modern, new hospital to meet the needs of our community for the future."

He added: "However, we have to get the timing and level of borrowing right for this important project, so following discussion with the Chief Minister and other members of the Council of Ministers, I have agreed to withdraw this proposition on the Future Hospital Funding Strategy, until the autumn when there should be greater certainty about key aspects of the project."

No further detail has been offered at this point as to exactly when the new debate will take place.