Review panel calls for delay of hospital funding debate

Following a series of setbacks, the debate on the funding proposals for Jersey’s largest ever capital project, which has a £466 million price tag, was due to take place next week, but could again be derailed at the last minute.

The debate was initially planned for January and has already been postponed several times this year, including in May after concerns were raised by ministers and States Members at the eleventh hour.

Now, a report produced by the Future Hospital Review Panel has called on Treasury Minister Alan Maclean to once again call off the debate as a public planning inquiry into the project is still ongoing and final planning permission is still outstanding.

Panel chairman Deputy Simon Brée said: ‘It is clear that a significant amount of work has been undertaken in providing the detail for the new hospital and its funding mechanism. However, the panel is unconvinced that a debate should take place in the absence of planning approval and asks the Treasury Minister to defer the debate until the final planning decision is known.’

In his foreword to the report he adds: ‘With regards to the independent planning inquiry, it should be borne in mind that we are still awaiting the outcome of this inquiry, and for the Environment Minister to make a decision as to whether or not to grant planning permission.

‘It seems somewhat bizarre that the States Assembly are being asked to vote on an outline business case and to approve a funding solution of £466 million without even knowing if planning permission will be granted for a future hospital of the size, nature, and location as outlined in the business case.’

If approved, the new hospital will be built on part of the existing General Hospital site and on land currently occupied by a number of businesses and residential properties in Kensington Place, which will be acquired using compulsory purchase if necessary.

The decision to launch a public inquiry into the development of the new hospital was made after three of the six landowners with property on the proposed site declined permission for the planning application to be accepted.

Planning department director Peter Le Gresley said that it was likely that a decision would be

made on planning permission for the project next month.

‘The planning inspector has indicated that we will have his recommendations following the public inquiry before Christmas,’ he said.

‘After that I would think it would take the Environment Minister a few weeks to make a decision, so we should have it in January.’

Under current proposals, the hospital would be funded by a £275 million loan, with the remainder to be drawn from the Strategic Reserve, which is nicknamed the ‘Rainy Day Fund’. The other members of the Future Hospital Review Panel are Deputies Richard Renouf, John Le Fondré, Terry McDonald and Kevin Lewis, and Senator Sarah Ferguson.

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