PUBLIC SERVICES’ spending on legal consultants is in the best interests of the public, according to its minister. Latest figures revealed by the Public Accounts Committee show that in 2005 legal fees cost the department £203,000, which rose to £371,000 in 2006.
Minister Bill Bell doubted whether anyone would be surprised by the figures.
‘We are trying to deal with various claims with contractors, in particular the New Jetty. They are making claims that are very substantial indeed and we are not going to give in to them.
‘We need the best legal advice to make sure we pay as little as necessary.
‘We are paying these fees to protect the community. A lot of the money being expended could be recoverable if we win the battle of arbitration and mediation.’
At the end of last year, Deputy Bell told the States that Public Services had paid out £4.5m. on three overspend claims since 2004.
That was made up of £3.6m. on the airport, £100,000 on St Sampson’s Marina and £800,000 on the jetty.
The jetty contractors are reportedly claiming £27m. for their work, while the department values it at just over £4.25m.
Deputy Bell added that it was not clear when the matters would be resolved.
‘I wish I knew, but these things take time. We have approached the whole situation on the premise that the money is better in our bank than someone else’s.
‘We have a duty to protect the interests of the States and the community at large.’
The States spent £595,000 on legal consultants in 2006.
That was the second-largest outlay on a specific type of consultant behind the £3,089,000 spent on those expert in property and construction.
Treasury and Resources was responsible for £157,000 of the legal figure, with Commerce and Employment paying out £54,000.
Health and Social Services and Housing paid out £12,000 and £1,000 respectively.
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