GOVERNMENT has developed a “hoarding mentality” and should look to sell some of its disused property portfolio to help stimulate the struggling construction sector, the Economic Development Minister has said.
Deputy Kirsten Morel has said that doing so would simultaneously boost States coffers and argued under-utilised sites would be put back to good use.
However, Infrastructure Minister Andy Jehan said that the notion that there is a long list of sites ready to be sold is “a myth”. He said his department had put a renewed focus on ensuring public land is “working harder for us” and that there are plans in place for a number of key sites.
Earlier this month, the Style Group – one of the largest building firms in the Island – folded, sending shockwaves through the industry.
It followed a string of high-profile collapses within the sector, most notably Camerons in 2023.
The Council of Ministers recently unveiled its Investing in Jersey strategy, which outlines several key projects to maintain the Island’s infrastructure and public assets.
Deputy Morel admitted that the loss of another large construction firm “does worry me” in delivering large-scale government contracts.
“There is an issue, specifically at the top end of the construction sector. We have lost companies and we have not got many left that have the capability to do large-scale contracts.
“There will also be a knock-on effect on some of the smaller contractors who may struggle as a result and it will also create a skills deficit.”
Discussing ways government can help construction, Deputy Morel said: “From my perspective we have to find a way to work more closely with the private sector where we can to hand over projects for them to get on with. A successful example of that is the Union Street government headquarters – that was a project handed over to private sector entity. We have that built now.”
He added that Jersey Property Holdings has a large property portfolio that it is “unable to maintain” and that government has become a “hoarder of property”.
“My thought is sell some of that property – get it off our books, get it into the private sector so it can be developed and put back to good use,” he added. “That might mean these properties having a different usage than envisioned but that is fine.
“The bonus of providing more cash for government coffers and reducing government liabilities.”
However, Mr Jehan said that a number of departments had made requests for more space and cited the Island’s lack of children’s homes as an example where properties will be needed for future use.
The Infrastructure Minister said: “I think it is a little bit of a myth that we have dozens of sites that lie idle. Admittedly, we do have some sites that could work harder for us.
“We do struggle in terms of having sufficient revenue to maintain some of our properties – that is undoubtedly a challenge.
“I am much more relaxed about the empty properties that I was 18 months ago. It is the focus of discussion for me and my officers every two weeks.”
He pointed to proposals to several sites which are either in the process of being sold to government-owned bodies, earmarked for future use or unleasable.
“We tried to dispose of Aviemore – that has been subject to a delay. SoJDC is waiting for the planning guidance before they proceed which was part of the proposal from Deputy Curtis,” he said. “We have a piece of land at Rue due Prés that we are about to release. Kensington Place and around Westmount area – there is a proposal for that to be used for keyworker for the hospital project.
“There is the Denes at Greve d’Azette which part of the Le Seeleur Trust. We are encouraging health to find a solution with us there.
“There is lots of work going on in the background.”
Mr Jehan admitted that the ongoing uncertainty around the future use of St Saviour’s Hospital is a “travesty” and that the former Revenue Jersey headquarters on La Motte Street “should have been turned around quicker” but that selling properties into the private sector was not a feasible option.
Meanwhile, Deputy Montfort Tadier, who chairs the Economic and International Affairs Scrutiny Panel, said that Deputy Morel had more pressing matters that he ought to be focusing on.
“As an economic panel, we are obviously concerned to see the closure of big and established companies. However, it is not as simple as saying we should get rid of some buildings.
“Ultimately, Kirsten Morel is a minister – if he is critical of government then he is criticising his own government. I think there are some immediate issues within his remit that he should be concentrating on.”
