Guernsey Dairy relocation cost rising

The current dairy is expected to cost £8.7m on maintenance over the next four years

The relocation of Guernsey's dairy must proceed even though the cost could rise, it has been claimed.

A proposal to move forward with plans to relocate was approved in 2020 but has been left out of the two annual government work plans since.

The chairman of the committee that manages States assets said the project could now cost more than the £20m plus outlined, but it would be worthwhile.

The Policy & Resources Committee said it was reviewing the cost options.

Relocation plans were approved due to challenges at the current dairy site, near the island's hospital.

The States' Trading Supervisory Board (STSB) advised that it was no longer fit-for-purpose and the cost of maintenance was likely to be up to £8.7m over four years.

The preferred site for the new dairy at Brickfield House in St Andrew, would mean it can have a more efficient building.

The current dairy faces large maintenance costs and has been restricted from expanding

Deputy Peter Roffey, STSB President, said: "So far the funding mechanism hasn't been identified by the government working plan.

"We can't 'shilly shally' forever because the cost of running this dairy is considerable and if we carry on many more years major capital investment will then be lost.

"We'll have to go into this building when really we should be focussing our spending on a new far more efficient building which can scrape probably about £1m a year off the operating costs," he said.

He added that it would cost "possibly more" than the amount previously outlined because "inflation in things like equipment had been fairly significant recently".

In the proposed changes to the Government Work Plan, the Policy & Resources Committee said: "It is important that the financial and policy matters are now considered together and so the committee is working with the States' Trading Supervisory Board to review the detailed breakdown of the costs of the project and the forecast cost of maintenance for the next four years."

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