Guernsey hospital extension could be delayed

P&R took on the review and proposed changes to capital projects due to a strain on its public finances

Plans to extend Guernsey's hospital could be put on hold until 2025.

The island's top politicians have decided the project to build new wards and operating theatres cannot be delivered this political term, alongside other schemes.

States members will vote on whether to approve the Policy & Resources (P&R) Committee's new capital plan later in 2023.

The Health & Social Care Committee said it was "very disappointed".

The plans are part of P&R's proposed priorities for its building projects.

Spending reduction

In February, the States rejected proposals for a goods and services tax (GST), and asked the committee to find 3% savings instead for its 2024 budget.

Following that decision, P&R was asked to review capital spending due to the strain on public finances.

It wrote to principal committees to explain its preliminary proposals for the reprioritisation of the government's capital portfolio.

In its priorities, the committee said it had reviewed all planned projects and considered what should continue as planned, and what should continue but "be further reviewed to see if the scope can be amended".

Projects were put into four categories:

• In flight - substantive funding has been committed

• Do as planned - substantive funding committed for 2023/2024

• Do but review scope and/or solution

• Pipeline - projects that should be put on hold and continued at a later date

The committee estimates the changes proposed would see a spending reduction of between £150m and £200m this term.

'Clear and evidenced need'

Phase 2 of Our Hospital Modernisation and the Transforming Education Programme are the "two largest capital projects" which the committee does not believe is possible "or sensible" to deliver at the same time.

It has confirmed plans to extend the Princess Elizabeth Hospital, which included the building of a new children's ward, four new operating theatres and a refurbished fracture clinic, would be moved into the pipeline category.

The Health & Social Care Committee said there was a "clear and evidenced need" for the second phase of the project to "continue seamlessly" with existing contractors already on site completing the first phase.

The committee said: "We will do our best to persuade the States Assembly to prioritise this much needed programme of work and, if needed, will lay the necessary amendments in due course to enable that debate in the States Assembly in July."

A multitude of projects were put into the categories, including scaling some back to make them more "affordable and deliverable"

Under the plans, Health and Social Care's Community Hub Programme will accelerate to recognise "the need to invest in facilities for children and families as a priority".

P&R said the Transforming Education Programme was "already well on the road" and would be put in the 'do as planned' category.

A multitude of States capital projects were put into the categories, including scaling some back to make them more "affordable and deliverable".

'Ongoing deficit'

P&R President Deputy Peter Ferbrache said the committee prioritised the review due to the number of schemes that needed funding.

He said: "We have sought to take a sensible approach, recognising that the way the capital portfolio is currently constructed creates significant spikes in expenditure with large projects being scheduled to be carried out at the same time.

"We need to reduce the cost of the current portfolio in recognition of our ongoing deficit and the need to make the limited reserves last longer."

P&R said changes would not impact plans for new school buildings.

Analysis by BBC Guernsey Political Reporter John Fernandez

Policy and Resources had a choice to make - schools or hospital, after the defeat of its GST plans in February.

The five members of P&R chose schools, with the potential price continuing to climb.

They made a calculation that the current plans for phase two of the Princess Elizabeth Hospital project were not deliverable before 2025.

The priority for P&R is the Transforming Education Project, with a question mark remaining over who exactly is going to build a new sixth form centre at Les Ozouets.

Whether that project will get anywhere near completion before the end of this political term though, will now be the big question, if P&R want to show it is a group committed to 'action this day' on infrastructure.

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