Senator Alan Maclean said that the value of JT had sky-rocketed since it became a publicly owned company and that selling it to a private firm could raise as much as £300 million to £400 million for the States.
His comments come after he announced in January 2015 that a review was being carried out into the possible sale of JT, which at the time was estimated to be worth £280 million.
The minister said that he felt having a larger Strategic Reserve – the official name for the rainy-day fund – and being able to reinvest the money would serve the Island better than having a £300 million asset tied up in one company.
He added that any plans to sell JT would not be linked to funding proposals for the new £466 million hospital. The most recent proposals for funding the project involve borrowing up to £275 million, with the rest coming from the Strategic Reserve.
‘I would be open to selling all or part of JT on the basis that it is on our books at £212 million but the value is significantly higher,’ he said.
‘We have to ask ourselves, is that the right type of asset to be owning, particularly at a time when it would be useful to bolster the level of our Strategic Reserve?
‘The view was taken that a new telecoms policy needed to be developed, and that is just being completed. Once that is done then I would propose looking again at selling JT.
‘I would like to see the reserves grow and I believe this is the most sensible way to do it.’
Senator Maclean added that the new hospital would be fully funded, regardless of any decision to sell the telecoms company.
When discussing plans for funding the new hospital during Thursday’s Institute of Directors debate – which were described by ITV news presenter Alastair Stewart as a ‘cock-up’ – Senator Maclean said that some of the States-owned financial assets could be sold.
Panel member and former Health Minister Ben Shenton told the audience that before borrowing hundreds of millions to fund the building of a new hospital, he would ‘look to sell off some of your assets’ – a statement which Senator Maclean said he agreed with ‘on some level’.
Earlier this year, Senator Maclean proposed funding the £466 million Future Hospital project by borrowing up to £275 million and covering the rest of the cost through the Strategic Reserve.
However, those plans were withdrawn on the eve of the States debate into the funding strategy after Members raised concerns that they didn’t have enough information about how the funds would be used. Further detailed plans are due to come back next month as part of the 2018 Budget proposals.
Pressed by Mr Stewart as to why it had taken ‘three stabs’ to get funding and still nothing had been decided, the minister said: ‘It is important to take people with you when coming forward with a funding model. I had to have people supporting it.
‘That is what we are trying to achieve by bringing a detailed business plan. We have a strategy that we still believe is the right strategy.’
When asked whether the sale of the Jersey International Finance Centre, currently being constructed on the Waterfront by the States of Jersey Development Company, could be put towards the new hospital, Senator Maclean said that any money generated from the office blocks had already been earmarked for regenerating St Helier.
However, he said that JT’s value ‘on the books is £220 million’ but could be worth as much as £400 million to a buyer and selling it represented a viable option to help boost the rainy-day fund.
