Senator Kristina Moore also questioned the impact that significant borrowing to fund the project would have on the Island’s economy. She said her panel had received ‘numerous submissions’ regarding the controversial project and that none were supportive of the plans as they currently stand.
Last month, the Outline Business Case for the new hospital – earmarked to be built at Overdale – was released. This detailed an unprecedented level of public borrowing of £800m being proposed.
Senator Moore, who chairs the Future Hospital Review Panel, has written to Deputy Chief Minister Lyndon Farnham, who chairs the political oversight group for the project, calling for clarity on the cost calculations for the hospital.
In the four-page letter, Senator Moore sets out 22 questions that the panel feel remain unanswered.
These include:
– Whether the design of the hospital, specifically elements such as atriums, have driven up the price and will mean a greater impact on the Island’s skyline.
– The impact borrowing to such a level will have on the Island’s financial situation.
– The cost of decommissioning the current facilities.
– Why such a large contingency budget of approximately 18% of the overall borrowing requirements is needed?
The letter also calls on Senator Farnham to explain the need for the new development – referencing a 2019 States debate when Members decided to overturn a previous decision to build at the existing Gloucester Street site.
Senator Moore said: ‘The panel has already received numerous submissions to this review. None have supported the plans as they currently stand. Minister what do you say to Islanders who indicate that a “world-class” hospital at an “eye-watering” cost is not needed?
‘During the debate of 2019 members of the government argued that the rescindment of the Gloucester Street site would deliver “a new site, with a build cost that is less”. What have been the factors that have led to ministers being able to justify this reversal of outcome to themselves and to the public?’
Last week, the panel held a hearing with several senior project leaders, including medical director of the Our Hospital project, Professor Ashok Handa, which revealed that the current hospital would be unusable by 2026.
Senator Moore said: ‘The rationale given for not including a baseline Business as Usual option on the was that this option was not viable as the hospital would need to close in 2026 – this issue could have been addressed as a costed risk in the economic appraisal.’
She then questioned why this was not included to ensure that the business case was compliant with UK Green Book principles, which act as a control system for public spending.
Under the outline business case, the borrowed money for the hospital would be placed in the strategic reserve, known as Jersey’s ‘rainy day fund’, from where it would cover the project costs until the planned completion date in 2026.
The document states: ‘£800 million could be funded via at least two separate public-rated Sterling bonds: Bond A is likely to have a tenor of 40 years with a value of £400 million. Bond B is likely to have a tenor of 30 years with a value of £400 million.’
A response to the letter from Senator Farnham has been requested by Friday.
