The Treasury Minister has sought to reassure islanders that her department “remains committed” to financing new hospital facilities and the regeneration of Fort Regent – after US instability cast doubt over the current funding plans.
Deputy Elaine Millar said Jersey was “well placed” to face the challenges stemming from global economic volatility, which was discussed by Ministers after Donald Trump’s tariff regime caused turmoil throughout financial markets.
Public finances have proved to be remarkably resilient in the face of the events of recent years
Treasury Minister Elaine Millar
Deputy Millar’s comments come just a few days after she told the Corporate Services Panel that the Government may now be unable to finance major regeneration projects – including the £110m plans for Fort Regent – unless more money can be borrowed.
External Relations Minister Ian Gorst also told the panel that proceeds from a new global tax framework – known as the Pillar 2 international tax agreement – could be temporary, as the US is pushing for changes to the system.
This could impact the island’s ability to finance the new hospital plans, as some of the anticipated Pillar 2 revenue had been earmarked to help fund the project.
In a statement, Deputy Millar said: “Whilst recent days have seen significant economic volatility across the globe, Jersey is well placed to face these challenges.”
She continued: “We have a successful economy and long-term reserves of a scale that very few jurisdictions can match.
“Underpinned by these reserves, the public finances have proved to be remarkably resilient in the face of the events of recent years.”
Deputy Millar added: “Faced with current global uncertainties, Jersey is best served by prioritising investment in infrastructure that benefits and stimulates the local economy, enhances the wellbeing of Islanders, and contributes to Jersey being a vibrant place to live and work.
“I can assure islanders that Treasury remains committed to improving investment in the island’s infrastructure and, in particular, to financing the new hospital facilities at Overdale and Fort Regent.”