Bond critic deputy ‘nigh-on incensed’
A LONG-TIME critic of the States’ use of money from its bond has said he is ‘nigh-on incensed’ at the idea of making some of it available to third parties and he is considering placing an amendment to the Budget.
Laurie Queripel has previously expressed concern over the bond issue, asking a series of questions of the then Treasury and Resources Department and continuing to probe its use.
This year’s Budget report revealed that since it was issued in late 2014, just £140m. of the £330m. has been used, while the States has agreed to spend a total of £190m.
When the bond was issued, strict rules governed how it was to be used, with only States bodies able to access it for projects that had an income stream to pay the money back.
But Policy & Resources would like the States to consider relaxing the rules.
‘The Policy & Resources Committee is investigating the possibility of introducing a scheme for providing loans to organisations which are not part of, or wholly owned by, the States for projects which support delivery of the priorities set out in the Policy & Resource Plan,’ it said in the Budget.
After this investigation, it would report back to the Assembly ‘if appropriate’ to see approval for the changing of the rules.
Deputy Queripel, writing on the Guernsey Press website, said he was not happy. ‘I’m nigh-on incensed by this “investigation” that has been taking place without States approval, even though the rules around the bond expressly forbid even the idea of lending any proceeds to private entities,’ he wrote.
‘It’s bad enough that we lend to Aurigny knowing that they run at a loss and have to be re-capitalised.
‘As I see it it is only the good returns on investments on the unallocated amount that make the bond reserve look good.
‘We have been lucky, but the writing is on the wall, markets going down could change that picture, hence the “investigation”.
‘Discussing a possible amendment with colleagues.’
