Future looks bleak for capital work
IT CAN be said that this States has brought this upon itself, but this summer’s debate on funding States capital projects for the next few years is now set to be a real ‘bun fight’ – and there won’t be that many buns to go around.
As evidenced at this week’s Scrutiny hearing, the costs of almost all of the highest priority major States capital projects are spiralling out of control – and Policy & Resources appears powerless to do anything about it.
A new sixth form and further education provision at Les Ozouets is up from an estimated £101m. to £128m. The cost of the next phase of the hospital has rocketed from some £90m. to more than £154m.
Runway extensions in either island could be thrown into doubt – Guernsey’s certainly looks like it no longer has any chance of getting off the ground.
Inflation has hit the construction sector, agreed, but these are still indicative pre-tender costs. The prospect of fixed price contracts, as agreed for phase one of the PEH project, seem to have long disappeared in this climate.
Unless some creativity (read as borrowing) comes into play, any ambitions for this States, and indeed, the next, to do any significant construction projects have been thrown into serious doubt.
And with politicians seemingly unable to do anything about it, as they indicated to Scrutiny, it looks highly likely that we’ll be left with essential maintenance only for a good while to come.
Scrutiny asks probing questions but its chairwoman, Deputy Yvonne Burford, was left saying that questions still need to be asked about project costs doubling in the course of a couple of years. The answers, and any potential solutions, will be illuminating.