when the States meets at the end of the month, members face a marathon session to decide what capital projects to pursue and how best to fund them – and that would have been an involved process at the best of times.
Treasury and Resources’ endorsement of every contentious project put forward combined with a proposal to borrow £175m. commercially to pay for them was always going to be controversial since it is such a marked change from States policy on debt.
The emergence of an alternative funding strategy, proposed by five deputies, adds a new dimension to the debate.
The reluctance of islanders and some States members to acquire a debt burden plus soundings taken by the group of five dissident deputies suggested that their rebel plan might well win the day. However, that was before the gap in Treasury’s figures, about what was actually available in the States so-called cash pool for ‘internal’ borrowing, was disclosed.
Since then, the G5 have reworked their figures around what Treasury now says is available and have come up with two options. Since members now have three possible ways of funding a multi-million pound spending spree (or much-needed investment in local infrastructure, whichever islanders prefer), the outcome is harder to judge.
Those behind the alternatives, however, are adamant that this time Treasury has its sums right and has confirmed that either of their proposals are viable. If so, this raises some interesting questions.
The first is why T&R is so wedded to its own expensive borrowing plans. What is clear is that the repayments will help to make the island’s financial deficit bigger and have a greater impact on the taxpayer than would otherwise be the case under the alternative proposals.
If the other options really are viable, why should islanders be penalised just because Treasury is temperamentally more in favour of commercial borrowing?
Its report initially looked less than convincing that all funding options had been explored and looks less so now, which makes this debate all the more crucial.
Whatever the outcome, five deputies have done an excellent job of holding central government to account.