Some stimulus projects won't meet end-of-year deadline

Tuesday 06 July 2021

Some projects aimed at boosting Jersey's pandemic-hit economy will not meet their end-of-year deadline for completion.

Last November, States Members supported the Government’s plan for a £50m Fiscal Stimulus Fund, which was to be used to support small building schemes and initiatives intended to help get money flowing around the island again.

In doing so, they agreed that “all projects will be required to have realistic and credible plans to complete by 31 December 2021”. 

But it was revealed yesterday that some projects will fail to meet that deadline - but they are still going ahead.

Deputy Hugh Raymond, who is Assistant Infrastructure Minister and also has responsibility for sport, appeared before Scrutiny, where he was questioned about sport-related fiscal stimulus projects.

Pictured: One of the projects unlikely to be completed this year is a £1.96m upgrade of Springfield Stadium, in support of what's officially called the ‘decant’ of sport from Fort Regent.

16 of the successful 37 projects across the two £25m tranches are either being carried out directly by Infrastructure, Housing and Environment or are being ‘sponsored‘ by the department on behalf of charities or clubs and associations. 

But at least two of these 16 will run into next year, possibly not being completed until next summer, which led backbencher Senator Steve Pallet to question why the will of the Assembly in November was being ignored.

Deputy Raymond said: “I would have to take that because I don’t think we looked at the complications of some of the applications [for fiscal stimulus funding] that came in initially. That has caused the bigger problem.”

Asked who was responsible for the failing to meet the 31 December, he replied: “You could blame the politicians across the board because they set up the document [the proposition that officially established the fund] initially, or the Government set up the document initially.

“I don’t think we looked at it overall, which means, yes, it comes back to the politicians who set this up not foreseeing the problems. 

“If you look at what was going on in different parishes, with regards to different stimulus bidders, there was no doubt there was competition from other departments, from Health, for example, and that is what has caused the problem.”

The senior civil servant at IHE, Andy Scaite, said: “The conversations we’re having with the Treasury now is around the timeliness of delivery. Some will meet the 31 December deadline, but some won’t. 

“The ones we think won’t, we are in conversations back to the Fiscal Stimulus Oversight Group to flag those projects as to when they will be delivered.

“For instance, one of those projects is likely to be in March of next year, so we are keeping the Oversight Group aware of what those delays are.

“I think the honest answer, in terms of the process, is it has taken a little longer than anticipated to get the applications approved. It has taken even longer to get money out of the departments. 

“We have had to put in funding agreements around some of these bids. So, in terms of the actual ability to start spending money is really only starting now.”

First announced last summer, the Fiscal Stimulus Fund was designed to provide a “timely, targeted and temporary” boost to the economy. 

The successful projects have been announced in two tranches this year - the first in April, the second last month - giving projects six to eight months to be completed.

Scrutiny raised concerns after the first tranche was announced that the successful projects were too construction-focused, arguing that it would put too much strain on that sector of the economy. 

Last month, Treasury Minister Susie Pinel said that her department may not have the time or resources to decide who should be given the remainder of the Fiscal Stimulus Fund, particularly as the publication of the next Government Plan draws nearer.

The Government has been asked how many projects in total are expected to miss the 31 December deadline.