Call for bar on rainy day fund withdrawals for 20 years

Last month, Treasury Minister Alan Maclean lodged a proposition setting out his plans on how to pay for the new £466 million hospital. Under his proposals, which are due to be debated later this month, £400 million would be borrowed with a 40-year payback period and the rest of the project would be covered by the Strategic Reserve – also known as the rainy day fund. In 2012 the States agreed that £23.6 million could be taken from the reserve for the project.

An amendment to Senator Maclean’s proposition has now been lodged by St John Constable Chris Taylor, who has called for the States to prevent the fund being used for any further purposes, ‘including capital spending, deficit management or fiscal stimulus, for a minimum period of 20 years’, if Senator Maclean’s plans are given the green light.

Mr Taylor has also proposed that if the building project requires any further funding from the reserve that States Members will be notified at least 15 days before a decision to incur the expenditure is taken and has also called for any unspent money from the project to be returned to the Strategic Reserve.

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