Guernsey Press

'Rainy day' cash could fund new capital projects

MILLIONS of pounds could be released for spending on States capital projects if a more sophisticated approach was taken towards the States contingency reserve, the Treasury minister has said.

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But in the meantime, Gavin St Pier, pictured, warned politicians to keep their hands off what has become known as the States 'rainy day fund' – a 'misnomer' he hopes to correct.

He said the department would this year investigate developing a more sophisticated and dynamic view of the fund's performance.

It will also investigate whether a proportion of investment returns on the fund could be used for capital projects, rather than being added to the balance of the reserve.

But he added current economic circumstances meant it would be unwise for deputies to take an ad hoc approach to dipping into the contingency fund.

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