Former Guernsey chief minister backs borrowing

Policy and Resources has warned the project to build a new sixth form centre at Les Ozouets could be delayed

A former Guernsey chief minister has urged the Policy and Resources Committee (P&R) to borrow money to fund big spending projects.

Deputy Peter Ferbrache said the States "could issue a public bond" to raise the money needed to pay for projects such as the new sixth form centre and hospital extension.

P&R is set to publish an updated "funding and investment plan" in January which it has warned will include cuts to infrastructure projects.

A number of senior politicians - including deputies Peter Roffey and Andrea Dudley-Owen - have warned P&R against cutting spending on infrastructure.

Education, Sport and Culture (ESC) President Andrea Dudley Owen has also encouraged P&R to return next year with plans to raise more revenue,after the committee's plans to increase income tax were defeated last month.

On 12 November, following that decision, P&R President Lyndon Trott said the government "cannot continue spending money we don’t have, this is not what P&R wanted, we must ensure our island is fiscally responsible".

Deputy Andrea Dudley-Owen has asked for Policy and Resources to bring forward revenue raising plans

Dudley-Owen's argued the senior committee should bring back some of the proposals which were approved in principle as part of the "fairer alternative" set of proposals which made their way through the States in 2023.

Those included motoring taxes and new charges for the registration of businesses.

She said: "They should have come in with the budget earlier this year.

"It's a view shared by many States members and conversations are happening at the moment supporting that approach."

Ferbrache is one of those who also wants to see proposals for motoring taxes in the new year, which he said he believed could help as a guarantee for borrowing.

Employment and Social Security (ESS) President Peter Roffey has also urged P&R to look at some motoring taxes for next year.

Paid parking has been suggested by Deputy Roffey as a way of bringing in money in the short-term to ensure infrastructure projects continue.