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Pressure group 'Friends of Our New Hospital' is demanding answers as to why the new health facility's budget is being set at £804m - £320m more than they argue is necessary.
Ahead of next week's crucial vote on how to finance what's set to be Jersey's largest ever capital project, here's what Interim Chair Peter Funk had to say...
"The Friends of Our New Hospital have always supported the Island’s need for a new hospital. A new hospital built in the right location, with the right facilities and at the right cost.
Senator Farnham, head of the Political Oversight Group, has held responsibility for the Our Hospital project since 2019. He has convinced the States Assembly that Overdale is the right location. He tells us the hospital medical community is in favour of the facilities announced last week. Now the Senator is asking the States Assembly to agree the cost.
The cost for the new hospital at Overdale is set out in proposition P.80 'Our Hospital – Budget, Financing, Land Assembly', which will be debated by the States Assembly next Tuesday 5 October.
Senator Farnham has said the Our Hospital project will cost £804.5 million and the States must borrow £756 million to pay for it. We have noted that in evidence given to the Future Hospital Review Panel, Senator Farnham confirmed that the build cost of the new hospital will be £301.3 million. The Senator also cites further expenditure required of £179.5 million for hospital equipment, land acquisition, Westmount Road improvements and expenditure to date.
Added together, the total cost is £480.8 million.
Put simply, the issue is what is the justification for the extra £320 million making up the total of £804.5 million requested by P.80?
If we proceed with Senator Farnham’s £804.5 million budget, the Our Hospital project will cost twice as much as a similar hospital built in the centre of London.
The Future Hospital Review Panel has lodged an amendment to P.80. If approved, the amendment will limit the Our Hospital project budget to £550 million and borrowing to £400 million.
In response, Senator Farnham has stated that any reduction will bring the project to a complete halt. We argue that the delivery of the Our Hospital project should not be delayed if the assembly approves the Panel’s amendment. Plans for the new hospital at Overdale and the application for Planning Consent can proceed and the project advanced. Senator Farnham can reduce the financial risks in the project by arranging an agreed price contract with a contractor.
Approving the Future Hospital Review Panel’s amendment is the last chance for the States to bring the Our Hospital project under sensible control.
We encourage the public to contact States members and urge them to support the Panel’s amendment. The Friends are holding two public rallies to show support. The first, on 2 October in People’s Park at 12:00 and the second in the Royal Square on 5 October at 12:30.
We all agree the island urgently needs a new hospital. We have selected the site. We have nearly agreed the facilities. We now need to ensure our new hospital is built at the right cost without overburdening future generations to pay for it."
Peter C Funk
Interim Chair, Friends of Our New Hospital
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