In a letter to the JEP published today, former Chief Minister Frank Walker said that the increased pay of chief executive Ian Gallichan and finance director John Hamon, whose salaries have risen by more than 40 per cent since 2014, were justified.
He also responded to criticism that Andium’s purchase of the Gas Works site had resulted in the site’s value decreasing by £10 million because the developer was now planning to build 110 units on it, rather than the 253 previously approved by Planning.
Mr Walker’s comments come in response to a JEP column written by former Environment Minister Rob Duhamel, which was published on 5 October.
Among several criticisms of Andium, Mr Duhamel claimed that Mr Gallichan and Mr Hamon did not face the pressures that most private-sector executives did, while still effectively being paid from the public purse.
Mr Walker has previously said that Andium’s executive salaries needed to compete with private-sector wages and, in
response to Mr Duhamel’s column, added that Andium made a net contribution to the States coffers.
‘Mr Duhamel made no mention of the five per cent interest Andium pays on loans from the Treasury – far above current rates attainable in the private sector – nor of the significant sum of money Andium returns to the Treasury each year – some £28 million,’ he said.
‘This far exceeds the £16 million paid to us in income support for those of our tenants who qualify for this benefit. Andium is therefore a significant net contributor to the States and certainly not a drain on Jersey taxpayers.’
Mr Walker added that that the revised plans for the Gas Works site would provide more open space in St Helier – a move that had been approved by the States.
‘Mr Duhamel seems to have forgotten that there was a States debate about the provision of homes on the site, and the reduction from 253 to 110,’ he said.
‘This proposal, which is fully financially-sustainable, will extend the Millennium Park by over 50 per cent, and was overwhelmingly supported by States Members.
‘The regeneration of St Helier is about creating communities with more open space, where possible, and enabling people to live better lives, and Andium is proud that the idea for this major improvement to our town emanated from our executive team.’
Mr Walker also said that Andium’s executive team was now responsible for a £500 million capital programme, which is ten times bigger than the scope of the programme before Andium’s creation and incorporation.
He added: ‘Andium has an income of £52 million and assets under management in excess of £800 million. It also houses over a tenth of Jersey’s population and thankfully provides outstanding support services to some of Jersey’s most vulnerable residents.
‘For example, when Andium was formed in 2014, the standard of our homes was in decline to such an extent that, without intervention, some 50 per cent of the stock would have failed the UK Decent Homes Standard. That decline has been completely reversed and now, 96 per cent of our homes reach or exceed the UK benchmark.’
