THE politician in charge of the latest hospital project has confirmed that the ten-year programme is ‘very likely’ to be more expensive than the £804 million cost of the previous plan.
However, Infrastructure Minister Tom Binet said that the single-site Our Hospital project was already out of date and would have cost more than that figure, which was approved by the Assembly in 2021.
Although reiterating that the first part of the government’s multi-site ‘New Healthcare Facilities’ programme – an acute inpatients hospital at Overdale – would come in under £804m, Deputy Binet said it would be difficult to give an overall figure upfront for the ten-year programme.
Beginning with Overdale, the phased approach includes a new outpatients centre in Kensington Place and Gloucester Street, and a ‘health village’ opposite St Saviour’s Hospital, with the programme due to be complete by the end of 2031.
Giving a statement on progress to the States Assembly this week, Deputy Binet said when it comes to revealing costs, he had to balance informing the public with not undermining the government’s ability to negotiate competitive commercial contracts.
Responding to a subsequent question from Deputy Rob Ward, Deputy Binet said he would consider holding an in-camera debate, which is held in private, to inform Members of costs.
He said: ‘On a personal level, I have nothing to hide and nothing to gain by being secretive. So, I hope to find the appropriate balance, with the blessing of this Assembly, over the coming weeks.
‘What I can say is that the cost of the Overdale Acute Hospital will be a good deal less than the ‘like for like’ cost of the single-site ‘Our Hospital’ project.
‘That said, with the additional 30,000 m2 involved in this scheme, and double-digit inflation, it is very likely that, over a ten-year period, the total cost of the new facilities will very likely exceed the total cost of the previous project. These are simply facts that we have to face.
‘The funding needed to deliver the wider estate programme as it develops, will be phased into the annual budgetary programme, in much the same way as we would include any substantial improvements to the education estate. At least that’s the current thinking.’
He added that he did envisage being able to arrive at an overall cost estimate, but it would need to be updated with every passing stage of the programme, which could number 20 phases in total.
Funding for the 45,000 m3 Overdale acute hospital will be included in the next Government Plan, which covers spending between 2024 and 2027, inclusive, and will be debated in December.
