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Brakes will be applied to borrowing and pressed firmer on projects like the post-16 campus under amendments being proposed to the Budget.
Deputies Gavin St Pier and Carl Meerveld are behind the moves to get tighter control in the wake of the recent decisions on which major projects should go ahead and how they will be paid for.
The Assembly favoured the next stage of the hospital project when they approved a cutback list of capital projects that they want to pursue this term.
Deputy Gavin St Pier will lead an amendment to next week’s Budget to try and provide even more clarity on what can and cannot now happen.
“This is a belt-and-braces amendment to put beyond doubt that it is only those capital projects approved as a result of the resolutions following the Financing & Investment Plan debate that may proceed,” the amendment says.
“Other than essential minor capital expenditure in respect of de-funded projects, if the [Policy & Resources] Committee wishes to proceed with any other essential projects, for example, delivery of the Transforming Education Project, it will be necessary to return to the States for further authority to demonstrate that such projects are affordable and within the States’ means including, for example, either by reducing other capital projects or increasing revenue to pay for any debt required to deliver the proposed project.”
Pictured: The amendment is seconded by Deputy Carl Meerveld.
The pair are also backing another amendment aimed at borrowing.
If successful it will mean going forward that borrowing will only be allowed for projects which have a clear funding source to repay the debt - a position that had been adopted by previous States.
The Budget debate begins on 7 November.
Pictured top: Deputy Gavin St Pier.
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