ONE of Guernsey’s most highly regarded figures in the financial services arena has entered the debate on how the island should finance its multi-million pound list of urgent capital projects.

And as the head of the Channel Islands Stock Exchange, she is well placed to suggest that innovative and creative ways be considered to get the necessary level of investment in the island’s essential infrastructure.

As she acknowledged, suggesting securitisation – the financing technique that led to the global credit crunch – is hardly flavour of the month but with the States’ mix of property, income-producing assets like the ports plus debt, it would be easy to come up with a package to raise the money the island needs.

Perhaps more appealing, this same innovative approach could be expanded to allow islanders to invest directly into government-owned businesses such as Guernsey Water and/or Electricity and thus raise additional capital.

Traditionally, the States has spent only money that it has. Members, probably like most islanders, feel more comfortable saving to spend.

After all, the consequences of excessive borrowing and unsustainable debt are now far too painfully obvious and there are undoubtedly some more casualties to come.

Yet when the States has its debate to prioritise the sequence in which projects like maintaining the runway in a serviceable condition and replacing Les Beaucamps are tackled, islanders will see just how much money is needed to carry out work that many will regard as urgent and essential.

Waiting until enough funds have been accumulated simply is not an option and the Assembly will have to consider borrowing, certainly where the work relates to an operation producing an income, as the ports do.

This new suggestion, however, is much more embracing and has the potential to release much of the funding required by the island. But it would require a particular boldness of spirit by a government that is naturally risk-averse.

In addition, these areas of financing are off the scale of understanding for ordinary folk, so ministers and their advisers are likely to feel uncomfortable recommending what they might not fully understand.

Nevertheless, a possible new deal on public financing has to be worth considering.