Deputy fears overspend on terminal contract
Thursday 27th May 2004, 12:00AM BST.
THE new airport terminal could exceed its £19.5m. budget. Public Services minister Bill Bell told the States yesterday that the redevelopment contract had several more months to run, specifically for the completion of the east walkway and resurfacing of areas for aircraft parking.
‘Until final claims are made by the contractor, it is too early to put a definitive cost on the project. Contractually, it would be most unwise for me to comment on the possibility or otherwise of an overspend, other than to say that some additional works have been authorised, the costs of which will have to be part of the final account,’ he said.
But John Gollop is certain that the project will be over budget.
‘There are rumours circulating in the island that it will cost £25m. rather than £18m.,’ he said.
He believed the next move would be for the Scrutiny and Public Accounts Committees to look at the project.
‘I suspect that the taxpayer won’t be out of pocket but the consumer, tourist and business traveller will have to pay the price which may lead to a downturn in usage,’ said Deputy Gollop.
‘The whole project could be good news for the contractors but bad news for the travelling public, prudent government and careful capital spending.’
There have also been concerns that local contractors should have been offered the job of demolishing the former terminal after being left out of pocket by the collapse of sub-contractor Concept.
Deputy Bell said that the demolition work was part of the main contract and so the responsibility of Hochtief, which had a right to appoint sub-contractors as it deemed appropriate.
He said that Hochtief sought prices and proposals from locally-based companies as well as from UK contractors. Eventually experienced contractor Gilpin Demolition was selected.
But Deputy Gollop said: ‘Yet again it’s an example of the States giving a contract to a company and them bringing in their own sub-contractors. These contractors have to bring people into Guernsey and the local contractors don’t get the job and the local economy does not benefit so it’s a triple whammy.’
Deputy Bell said that there appeared to be general satisfaction with the standard and level of facilities in the new terminal and problems that have arisen appeared to be associated with its success.
He informed the House that there would be monitoring and market research of the catering franchises.
Deputy Gollop said there had been many complaints about the price of food and lack of choice.
‘People are now nostalgic about the old canteen, which was not the best restaurant. The two catering areas look nice but Guernsey is renowned for very high quality catering and this facility does not quite live up to its best standards so far,’ he said.
He said perhaps more involvement from the island’s caterers might help.
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