Nearly £8m injected into Guernsey and Alderney economy

Nearly £8m will be injected into Guernsey's and Alderney's economies in a bid to encourage growth.

A £7m fund will be used to support economic development initiatives in Guernsey, with a further £900,000 budgeted over three years in Alderney.

Treasury Minister Gavin St Pier described the move as a new approach for the States.

He said: "Our expectation is that the fund will become self sustaining, but it will be dependant on results."

Deputy St Pier said funds would only be released after business cases detailing the objectives and benefits of spending had been accepted by his department.

'Arcane accounting'

He said it was likely to be used to "encourage digital industries" and "to grow the number of high-value jobs and therefore the tax base".

Robert MacDowall, chairman of Alderney's Finance Committee and deputy chairman of Alderney's Policy and Finance Committee, welcomed the move.

He said he was glad the "arcane accounting structure" was changing to allow the funds, which are currently ring fenced for capital projects, to be used in this way.

Mr MacDowall said the impact of the money would be measured over a period of three to five years.