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Sark conseillers concerned over proposed £1.5m. loan

Two Sark conseillers have raised further concerns over a proposed £1.5m. loan from Guernsey to help the island purchase its private power company and revitalise the electricity grid.

The States is preparing to loan Sark £1.5m. to buy the island’s electricity infrastructure and secure the island’s supply.
The States is preparing to loan Sark £1.5m. to buy the island’s electricity infrastructure and secure the island’s supply. / Guernsey Press

Conseillers Frank Makepeace and Chris Kennedy-Barnard contacted the Guernsey Press independently, worried about how the deal may affect the island’s sovereignty.

Conseiller Makepeace said that the intention of select members of the Sark government to join a newly proposed Bailiwick Commission was not as a strategic, democratically endorsed decision, but a condition tied to a loan.

‘The reality is that only the leadership of the Policy & Finance Committee and senior civil servants were aware that such a loan was even being pursued,’ he said.

He said that that alone should concern any islander who values transparent government.

‘But beyond the democratic deficit, there’s a much broader issue at stake – Sark’s credibility and self-governance,’ he said.

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Conseiller Kennedy-Barnard, himself a member of P&F, said that contrary to what was reported, the plans did not have the general support of islanders.

‘I have not been kept fully appraised or updated on this loan, nor have other conseillers,’ he said.

‘A lack of transparency, openness, democratic values and good governance has caused divides.

'The last I knew is that the conditions of this £1.5m. loan were that Guernsey would secure it against impot [tax] revenues, which was slightly more palatable. However, to our shock, the Guernsey government is suddenly requesting conditions such as a taxation and constitutional review.

'Why would Guernsey like to change Sark’s constitution or tax system?’

Conseiller Kennedy-Barnard had originally been on the island’s Future Energy committee but had resigned as he believed plans had become ‘uninvestable’.

He added that up to a quarter of Sark’s capital reserves had so far been spent on the project.

‘We still can’t get accurate figures, despite colleagues requesting an itemised breakdown some time ago from P&F. The original proposal, which would cost £8m., quickly rose to perhaps £12m., with no incentive for private corporations to come in on budget, they would have had a blank cheque.'

Conseiller Kennedy-Barnard said that the renewables plan now seemed to have been shelved, with the focus switching to buying SEL and carrying out upgrades and maintenance with the requested loan.

He asked where the funding from Guernsey would stop.

The matter is due to be debated by the States of Guernsey next week.

If approved, it will then come to Chief Pleas for a final decision.

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