P&R plans to cut back capital priorities to save millions

Policy & Resources today has published its recommendations, which it is discussing with senior committees, and will need to be agreed formally by the States this summer.

It has chosen to prioritise the continued development of secondary education, including a significant construction project at Les Ozouets, ahead of continuing the ongoing modernisation of the Princess Elizabeth Hospital.

'Difficult decisions are needed, however, as it is simply not possible to deliver all projects in the timescales originally planned,' said P&R president Deputy Peter Ferbrache.

‘During the Tax Review debate, our committee was directed by the assembly to carry out this review, which we have prioritised due to the number of schemes that will be seeking funding in the immediate future and the need to provide for clarity for all programmes as soon as possible.

‘We have sought to take a sensible approach, recognising that the way the capital portfolio is currently constructed creates significant spikes in expenditure with large projects being scheduled to be carried out at the same time.

'We need to reduce the cost of the current portfolio in recognition of our ongoing deficit and the need to make the limited reserves last longer. We also want to flatten that curve to make sure the island as a whole has the capacity to deliver all the capital projects the assembly has identified as essential.

‘It is important to recognise that these are our committee’s initial proposals, which we have shared with principal committees in advance of further discussions with each of them.

'We wish to be as transparent as possible but need to stress that they are subject to potential changes following those discussions and it will ultimately be for the States Assembly to decide.'

The committee has reviewed all planned projects and considered what should continue as planned, what should continue but be further reviewed to see if the scope can be amended, and what should become a pipeline project to be delivered as currently scoped but at a later date.

It said that the its Transforming Education Programme was well on the way, and that construction work could start 'relatively soon'.

The further modernisation of the hospital was considered not to be of equal priority, but the first phase of that work will continue to completion as already planned.

The committee said it had also identified a number of projects where it believes there was potential to look at the scale of the scheme and its core requirements, to possibly scale them back and make them more affordable and deliverable.

Overall the committee estimates the changes put forward in these preliminary proposals could see a spending reduction of between £150m. and £200m. this term.

The changes to the capital portfolio would not impact the day-to-day maintenance of essential public infrastructure, as the maintenance of things like schools, roads, coastal defences, or health facilities is treated as ‘minor capital’ funding, whereas the portfolio deals with ‘major capital’ projects.