The debate on how to pay for the new hospital building, which could cost up to £466 million, has been delayed twice while politicians weigh up two contrasting budgeting proposals.
Earlier this month the Corporate Services Scrutiny Panel put forward proposals to fund the project using money from the Island’s Strategic Reserve – known as the rainy day fund – with a system to replenish the fund over the next 40 years.
The panel’s proposal came after Treasury Minister Alan Maclean lodged plans which would see the States secure a loan of up to £400 million, with the remaining cost of the project being paid for from the Strategic Reserve.
However, Senator Maclean has said that while he would like the option of borrowing £400 million if lending markets were positive, he believed that the figure was likely to be around the £300 million mark. He has now lodged a fresh amendment to his funding proposals which, if approved, would remove a cap agreed earlier this year on how much should be left in the Strategic Reserve. The amendment from St John Constable Chris Taylor meant that funds in the Strategic Reserve could not dip below its 2015 levels in line with annual inflation.
The minister said that removing the cap would create ‘as much flexibility as possible’ within the plans when it comes to securing a bond.
