That’s the verdict of an independent report into the much-delayed and controversial Jersey International Finance Centre, which has been released this morning.
The report calls into questions the commitments and promises made by ministers and the States of Jersey Development Company and effectively says that although work is under way on one building, the full “Masterplan” of six office blocks and, 350 flats and 1,420 parking spaces will never be built.
They have found that the first building would make a “profit” of £3 million – but that’s on the basis of the land not costing the developers anything, and before the costs of sorting out pollution under the site are included.
Consultants EY reviewed the plans for the office development as part of the review by the Corporate Services Scrutiny Panel, and reached very different conclusions to the States-owned development company carrying out the work.
The consultants say that the whole scheme should be reviewed – effectively telling ministers and the States of Jersey Development Company to go back to the drawing board instead of sticking with plans that were first drawn up in 2007, prior to the financial crash.
Although they say that the company should stick with the plans to build the first two office blocks – which SOJDC say should be completed by the end of 2017 – they say that the company should stop there and rethink their plans.
The findings of the panel state:
– The overall project is not viable, and ministers need to go back to the drawing board.
– The development won’t make enough profit to deliver the parking and open spaces promised.
– The project has been done on a speculative basis – not the “no risk” plan that was promised.
– There isn’t any need for the amount of office space that the company are planning to create.