Public Accounts could probe ‘£25m. terminal’
Tuesday 1st June 2004, 12:00AM BST.
THE Public Accounts Committee might have to investigate a possible overspend of millions of pounds on the airport terminal. Its chairman, Rhoderick Matthews, confirmed that such a probe would be within its remit after the issue was raised in the States.
‘It is certainly one of the contracts we may look at. We have a requirement to look at the process leading up to the awarding of the contract following Deputy Eric Walters’ requete,’ said Deputy Matthews.
‘There are a number of contracts where I think it’s up to the Public Accounts Committee to conduct a review of some kind. But at this early stage, I can’t say where we would focus our attention.’
He said the public already expected the committee to look into the Markets and the proposed incinerator. ‘The remit is so wide it covers everything and anything to do with public spending.’
Deputy Matthews said he was aware of other projects where there might be an overspend – the New Jetty in St Peter Port is one already in the public domain.
‘I think we would look at all aspects and consider the lessons that can be learnt.
‘We are not in the business of retribution.’
Public Services minister Bill Bell said that until final claims were submitted by the contractor, it was impossible to put a definitive cost on the project.
It is feared, however, that airlines might have to cover the extra cost and could pass these charges on to passengers.
Neither Flybe nor Aurigny were aware of an overspend, which Deputy John Gollop reckoned could be as high as £5.5m.
‘We have always stated that if Guernsey wishes to invest in a statement building, as the airport has been described, it’s a decision by the island that does affect many travellers,’ said Flybe Channel Islands manager Ian Taylor.
‘But the costs have always been an issue to us as we’re delivering low-cost airfares. If landing fees and passenger fees have to rise, which they’ve already done over RPI this year, I think it’s a major issue.’
Aurigny managing director Malcolm Hart said the suggestion of an overspend was purely speculative.
‘However, if the project did incur additional expenditure which was subsequently passed on to carriers, then Aurigny would not be in a position to absorb such extra costs,’ he said.
‘The airline would therefore, regrettably, be forced to pass the charge on to passengers in the form of fare increases.’
The Scrutiny Committee will not investigate the matter, according to its chairman Deputy Jean Pritchard.
Deputy Dave Jones questioned whether Hochtief should be given the incinerator contract before the exact situation with the airport became clear.
‘We spent £2m. on consultants and that appears to be money down the drain. Serious questions should be asked about the consultants’ advice,’ he said.
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