Guernsey school and hospital projects 'unaffordable' says Treasury lead

Capital projects at risk include a new post-16 campus at Les Ozouets

Guernsey's States Treasury lead has said plans to extend the hospital and build a new school campus are "simply unaffordable".

Deputy Mark Helyar believes the island will "run out of money by 2027" if both capital projects proceed.

He added he was unlikely to support either project in a debate on 18 July.

The Policy and Resources Committee has recommended the school project be prioritised ahead of a hospital extension.

In March it was announced all upcoming capital projects in Guernsey were being put on hold until the debate, which will decide on which project is prioritised.

The announcement followed the government's failure to agree on tax plans to deal with a budget deficit, estimated to reach £100m by 2040.

The cost of the planned capital project portfolio was about £460m but, with construction costs rising, this is now unclear.

Deputy Mark Helyar said there was not enough money to complete the planned capital projects

BBC Guernsey contacted all 40 members of the States of Guernsey to ask which of the projects they would be supporting in July's debate.

Of the 30 who responded, 14 said they would be voting to prioritise the hospital modernisation project.

Five said they would be backing the transforming education project, with seven undecided.

Two, meanwhile, said they would support neither, and two more wanted to see a policy letter first.

Mr Helyar said: "We simply don't have enough money to afford everything that is in the government work plan.

"If we spent everything that was in the plan, and we didn't raise any additional revenues between now and 2027, we would end up with zero in our reserves."

Delay 'a disaster'

The education project includes a new post-16 campus at Les Ozouets and improvements to digital infrastructure around the island's schools.

Phase two of the hospital modernisation project includes a new women's and children's ward, four new operating theatres, a bigger private ward and a new main entrance with shops.

Debate on the government work plan, which will include changes to the capital portfolio is currently scheduled for 18th July.

Deputy David De Lisle agreed the States should halt spending on both projects.

"There is already a sixth form centre; hospital phase one is enough. We need to trim our capital projects," he said.

Health and Social Care president Deputy Al Brouard said putting off work on the hospital would lead to "longer waiting times" and be a "disaster."

Analysis by BBC Guernsey political reporter John Fernandez

The portents are not good for Education, Sport and Culture (ESC) and its school plans.

Health and Social Care's (HSC) five members are united behind its hospital plans, and the support is coalescing.

Education look a far more disparate outfit, with Deputy Andy Cameron set to oppose his own committee's plans, and rumours that Alderney representative Steve Roberts may follow suit.

Since ESC's uncoupling with construction firm RG Falla last year over proposed changes to the contract, the committee is still yet to find a firm to complete its work at Les Ozouets. Meanwhile, HSC has its builders JW Rhys on site.

But there's no doubt that ESC's plans are well along the track and stopping them will not be without consequences. Are deputies happy with sixth form students being housed at La Mare De Carteret for the foreseeable future?

Deputy Mark Helyar's point, though, weighs heavy: does the States have the money to do both, just one, or would it be more prudent to delay or phase them until some new ways of raising money are found?

Or will the States throw out all concerns and decide to do both this term, despite a shortage of building firms, funding and staff?

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