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Review to examine £800m new hospital's "burden on future generations"

Review to examine £800m new hospital's

Wednesday 28 July 2021

Review to examine £800m new hospital's "burden on future generations"


A review of the plan to borrow £800m to fund a new hospital - which will have cost the island £1.4bn by the time its paid back in 40 years - has launched to ensure it doesn't place “an inappropriate burden on future generations."

The review of the recently-published 'Outline Business Case' for building and funding new hospital at Overdale will be conducted by the Future Hospital Review Panel in two phases.

The first will focus on a “detailed expert analysis” of the OBC to ensure it meets the required professional standards and provides the information needed to support the proposed cost and objectives of the Our Hospital Project.

The second phase will analyse the proposals for funding the project’s £804.5m budget which are expected to be lodged in August.

As part of the review, the Panel will call on members of the public and key stakeholders to provide submissions.

“The presentation of the Outline Business Case (OBC) and, in August, the proposal for funding are the next major steps in the Our Hospital Project,” Senator Kristina Moore, who chairs the Future Hospital Review Panel, said.

“It is vital, given the public interest and the significant long-term impact the project and its proposed cost will have on community, that these elements receive comprehensive and robust scrutiny.

“We will also examine and seek advice on the level of borrowing that the OBC indicates will form the basis of the funding solution and whether, in all circumstances, the best way to fund this project and will not place an inappropriate burden on future generations.”

Published last week, the OBC doesn't propose exactly how the bonds would be paid back, noting that the "payment of the annual bond coupon is a new cost to Government and a funding source will need to be identified."

Before Ministers' preferred funding option for the new hospital at Overdale can be implemented, it will have to approved by the States Assembly in a debate scheduled for October, with the above figures used as "estimated bond charges and funding requirement."

If there is any delay, the Government says in the OBC that it may dip into its £500m covid loan.

READ MORE...

Government planning to borrow full £800m for new hospital

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Posted by Martin on
JUST the thought that ANYONE ( VERY likely without ANY finance related qualifications) could incur a loan of a total of £1.4 BILLION legally payable over 4 decades by persons mostly - OTHER than themselves - & without the permission of those repaying is quite incredulous - exacerbated by the fact that in a VERY VERY short time ( compared to 40 years) - SOME - or all of those involved in the MASSIVE debt may well be out of office & then paying their paltry .000000000001% of the loan!



LOOK at he amount borrowed & the final sum & there is a RAFT of interest on such a loan SO someone is going to make a massive profit & such a lucrative deal must have had a few tenders & forgive me BUT I cannot see above WHERE the money is coming from! What other deals were/are there!

As Jersey has been regarded as an Island of millionaires and inexorably wealthy WHY have we SO little fiduciary resilience necessitating such a loan! Has someone been wasting taxpayers money?

The only good news IS - at my age I will not be paying this for 40 years - unless the Gov buy a "Time Machine" to extend my longevity!
Posted by Jon Jon on
This hospital saga is just laughable,surely our states should look at other sites and price them up.A blank site will be cheaper option,yet they pick a site where property has to be bought,roads need to be widened,bends taken out,demolishing the buildings,levelling site etc..the list goes on!
We are still tackling covid,no sign of it going away,around world countries are heavily in debt because of it,this little island hasn’t escaped,paying out tens of millions dealing with covid.Generations will be paying this loan off ,our kids taxed to the hilt!
Complete madness building at Overdale,what sort of pills are our so called politicians taking!
Posted by Keith Marsh on
Of course future generations will be paying for the hospital, such a building has a long lifespan ~ IF maintained well. Expect 1p on the basic rate of Income Tax ~ at least that's honest, not cheating by increasing GST to 8%..
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