Concept designs for the new hospital. Skyline view from the south

Assistant Treasury Minister Lindsay Ash faced questions about the scheme from the Future Hospital Review Panel yesterday morning.

He said independent surveys had shown that the estimated cost of the new facility was a fair one – and said that delaying it further would only increase the price and make it harder to complete.

He warned the panel: ‘We are not exactly overrun by people wanting to build a new hospital, when we’ve abandoned it twice.’

Deputy Ash added that unlike building on the current hospital site in Gloucester Street, which had previously been touted as a possible option, all services in a new facility at Overdale could be under one roof, including a mental-health unit and administration buildings. The offices would be designed so that they could be swiftly and easily converted into extra wards in the event of another pandemic.

He added: ‘There is no perfect site on the Island to build a new hospital. Wherever we had chosen was going to be unpopular. But we are not looking at whether this is the right place for the hospital. If we had an ideal site we would have built it there a long time ago.’

He also said that one of the primary duties of a government was to ensure the health of its citizens and argued: ‘We have been lacking in that in Jersey. You can’t put a price on people’s health.

‘It is not just for our generation. It is for youngsters coming up, perhaps having families of their own, and future generations. It will be a fantastic thing.’

With interest rates at all-time lows. borrowing money was cheaper than it had ever been and many governments were taking the opportunity to borrow for large-scale projects, he added, saying: ‘We are actually in quite a decent financial position. We are convinced it makes perfect sense.’

Simon Hayward, director of treasury and investment management for the government, assured the panel that the project would keep within the £804.5 million budget. ‘It will be on time and within the envelope,’ he said. ‘The team absolutely know that they cannot step over the line.’

Senator Kristina Moore, panel chairwoman, asked about the problems with staff retention at the Hospital, but Deputy Ash replied: ‘The reason we can’t retain staff is that they have to work in a crumbling building that is not fit for purpose.’

Deputy Inna Gardiner questioned the cost of the hospital and asked: ‘How can it be that a central London-based hospital costs half as much?’ Deputy Ash said the comparisons being made were with specialist services such as much smaller facilities or children’s hospitals and said: ‘You can’t compare apples with pears.’

Mr Hayward was asked how much of the cost could be covered by selling the old Gloucester Street site but said it depended on what it was to be used for.

‘If we sell it for housing it would have substantial value. If it was to become a park it would not have much value at all.’

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