Another Delay To Capital Spending Decisions

Friday, 11 August 2023 at 09:28

A States debate to decide which capital projects in Guernsey should get priority funding has been delayed by a month.

Policy and Resources says the complexity of the work means the policy letter won't be ready until next month.

The Funding & Investment Plan and Capital Portfolio document was due out next week for debate in September. It will now go before the October sitting.

Deputies will be asked what major building work should be scrapped, delayed or scaled back, to help plug the gap in public finances.

Projects in the pipeline include the ongoing modernisation of the hospital, and a new post-16 campus.

A statement from P&R said:

"Over the past few months, a very significant amount of work has taken place in reviewing both of these, particularly in light of the outcome of the Tax Review debate which saw no single plan supported for addressing a forecast deficit in public finances and returning them to a sustainable footing.

It is a complex piece of work, and the Committee is taking more time to finalise some of the details mindful of the importance of this debate in ensuring there is sufficient funding available for essential investment in the Bailiwick’s public infrastructure."

Initially, it had been planned that the debate would be held in July, but the senior committee decided it would be better to debate the government's priorities - the Government Work Plan - then instead.

P&R said it would then return to States with a revised Capital Portfolio, and set out how the island will afford it in the Funding & Investment Plan.