Hospital cost row will be probed

AN investigation will be held into why R. G. Falla withdrew its cheapest bid to build a new clinical care block at the PEH - but that will not delay the project. The States approved the plans yesterday, at a cost of £2m. more than the withdrawn tender.

The Public Accounts Committee, which brought the withdrawal to light, decided not to push ahead with a sursis motion, which would have delayed the start of the £34m. project.

Instead, the States voted for it to carry out an inquiry and report back.

There had been concerns that its sursis plan would have been ruled out of order under States rules because it was introduced too late in the day.

HM Procureur Nik van Leuven also made it clear that the States could not legally return to Falla's £25m. tender.

Health minister Peter Roffey said delaying the process and starting again would have badly damaged the States' reputation as a construction client.

Public Accounts chairman Leon Gallienne refuted allegations that his committee had been slow to react to the situation caused by the Policy Council's concerns over R. G. Falla's dominance of big States building projects.

'When the review comes out you will find we did everything by the text book. But at the end of the day we acted in a corporate manner and did what's best for Guernsey - to take it from the chamber and then bring a report back to the States.'

He said that an uninformed debate could have reflected badly on the States.

Deputy Gallienne said that the review would start very soon, but could not confirm if any of it would be held in public.

The States adjourned for 15 minutes yesterday afternoon while the PAC called an impromptu meeting, when it decided to pull the sursis.

Deputy Stuart Falla no longer has any operational role in his late father's company, but still owns, with his wife, a 40% shareholding. He withdrew from the debate.

He said he wanted an inquiry to go ahead. 'I look forward to it all coming out. And I hope they do the clinical block. Le Quesne's 'the preferred contractor' are entirely innocent in this matter and competent to do it.'

Deputy Roffey was delighted at the result. 'The effect on morale inside the health service will be enormous. People had started to believe that this was never going to happen. This is a historic day as far as Guernsey health services are concerned.'