Watchdog's £2m. PEH challenge criticised

MINISTERS were seething yesterday at the Public Accounts Committee's last-minute intervention in the hospital contract tender process. In August, builder R. G. Falla withdrew an offer to construct a clinical block for £2m. less than the contractor now being put forward by Health and Social Services, after at least four deputies on the Policy Council expressed concerns that it already had too much States work.

The PAC announced late on Monday afternoon that it wanted to delay the States debate on the contract while an investigation took place. At the time, the council was meeting just feet away from the committee's office but it was not told about the possible sursis.

'It's unreasonable to go down the route of a sursis at the 11th hour. The PAC could have dealt with this sooner by going to Treasury and Resources or the Policy Council, but we were told only once it had been released to the media and other members,' said Social Security minister and council member Mary Lowe. 'They didn't knock on our door - their office is across the hall. It's not good government to behave like that.'

She added that the way the announcement had been handled was 'more than unfortunate' and reflected badly on the States.

The council had had a lengthy discussion about the tenders, she said. 'Before anything more could take place or a decision could be achieved, the contractor withdrew,' said Deputy Lowe.

She had no problem with the minutes of the meeting being released, with a request for that expected in the States today from Deputy Barry Brehaut.

'The ministers around that table were asking very relevant and pertinent questions and, like all decisions, when one question is raised, it leads to another. We've got to look at things holistically - that's good government.'

Deputy Lowe said it was right that questions were asked about R. G. Falla having so much States work. 'I'm not uncomfortable with what's taken place, but disappointed the contractor decided to withdraw and deny the States the opportunity to make that decision.'

Chief Minister Laurie Morgan refused to comment ahead of the debate.

Housing minister Dave Jones said the way the PAC had acted was unbelievable.

'It has known about this contract for several months, but decided at the last minute to launch an investigation into value for money,' he said.

'Treasury has already done that. There were two tenders - one then decided to pull out and it left only one interested in doing the job. The States had the choice of shelving the project or going for the second tender.' He added that the remaining one offered value for money.

'We were meeting on Monday afternoon with the Policy Council. There was a heavy agenda and while the PAC was meeting not far away, it didn't have the courtesy to ask to talk to the council about its concerns and the possibility of placing a sursis.'

Deputy Jones denied that the Policy Council put pressure on R. G. Falla to withdraw.

He will ask Bailiff Geoffrey Rowland to consider whether the sursis should be allowed because it has financial implications. Under the rules of procedure, if that is the case, it needs to be placed five days before the debate and was still being drafted yesterday.

Treasury minister Lyndon Trott was expected to back Deputy Jones.