'Dead' Herm lease talks lead to stalled projects
NEGOTIATIONS to extend the Herm lease are 'dead', its director of hospitality has said.
After Herm chairman John Singer requested a 21-year extension on his lease – which currently runs out in 2048 – talks with Treasury and Resources broke down in late 2013 over the value of this extension.
Two independent evaluations put it at roughly £440,000, but T and R rejected this as being far too low and politically unacceptable and instead asked for £6m.
This was later reduced to £2.44m. but came with the proviso that all infrastructure work be completed within five years.
And Herm director Jonathan Watson has said that was as far as talks had progressed.
'If there was an approach from the States of Guernsey, I am hopeful Herm would enter into negotiations,' he said.
'We will continue to spend any extra income over expenditure but we will not be doing infrastructure repairs. '
