The Future Hospital Review Panel will carry out its investigation in two phases following the confirmation that the government plans to borrow at unprecedented levels to fund the project.
Last week, the government unveiled the Our Hospital Business Case, which confirms that ministers are considering taking out two bonds – repayable over decades – later this year to fund the planned new facility at Overdale. Under the plans, the borrowed money for the hospital would be placed in the strategic reserve. The business case was published to support a proposition due to be lodged for debate in September, requesting that the States approves the funding for the new facility.
The Scrutiny review will firstly examine the business case to ensure it meets required professional standards, before entering the second phase, in which the proposals for funding the project’s £804.5 million budget will be analysed.
Senator Kristina Moore, who chairs the Future Hospital Review Panel, said: ‘The presentation of the outline business case and, in August, the proposal for funding are the next major steps in the Our Hospital Project.
‘It is vital, given the public interest and the significant long-term impact the project and its proposed cost will have on community, that these elements receive comprehensive and robust scrutiny.
‘We will also examine and seek advice on the level of borrowing that the OBC indicates will form the basis of the funding solution and whether, in all circumstances, this is the best way to fund this project and will not place an inappropriate burden on future generations.’
The project had fallen three months behind schedule, according to a government report last month, with more than £14 million earmarked for 14 existing government projects deferred by a year and redistributed to the proposed new hospital.
