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Land Transaction under Standing Order 168 (3) – Andium Homes Ltd Site, Kensington Place – sale to the public: deferral of approval.

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STATES OF JERSEY

LAND TRANSACTION UNDER STANDING ORDER 168 (3) - ANDIUM HOMES LTD SITE, KENSINGTON PLACE – SALE TO THE PUBLIC: DEFERRAL OF APPROVAL

Lodged au Greffe on 17th March 2023

by Deputy L.J. Farnham of St. Mary , St. Ouen and St. Peter Earliest date for debate: 18th April 2023

STATES GREFFE

2023  P.11

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to request the Minister for Infrastructure to defer approval of the land transaction agreement, as proposed in R.33/2023 presented to the States on 1st March 2023, pending consideration by the Assembly of the details of the clinical outcomes and cost of the proposals for multi-site health care provision.

DEPUTY L.J. FARNHAM OF ST. MARY, ST. OUEN AND ST. PETER

Page - 2

REPORT

Notwithstanding the democratic decisions taken by the Assembly relating to the Our Hospital project approval for Overdale, the Government Plan 2023 – 2026 stated that it was a priority of the government to acquire a site at Kensington Place from Andium to ensure further options relating to the Our Hospital Project (recently renamed New Health Facilities Programme) remain open while the review of the project is concluded.

The review of the Our Hospital project (R.154/202256) was presented to the Assembly on 1st November 2022. The review itself, at its own admission, was subjective and provided options to the Assembly about whether changes can be made to deliver a more affordable and appropriate alternative.

As an interim step, the Government Plan included a new head of expenditure of £51,500,000.00 for healthcare facilities to replace the previous head of expenditure for Our Hospital. This was to enable work on revised plans for new healthcare facilities to continue during 2023, in advance of a detailed budget and financing strategy being brought to the States Assembly in due course. To date, little progress appears to have been made.

The £51,500,000.00 is broken down as follows;

 

Workstream

£' million

Healthcare Facilities – Les Quennevais

£7,000,000

Healthcare Facilities – Strategic purchase of Kensington Place

£16,000,000

Healthcare Facilities – Development of a Revised Scheme

£28,500,000

Total

£51,500,000

Members will note that £16,000,000.00 has been set aside for the strategic purchase of Kensington Place. Members will also be interested to know that this site was acquired, less  than  eighteen  months  ago,  in  December  2021  by  Andium,  for  a  total  of £7,800,000.00.

The Minister's Report R.33/2023 contains little detail and provides no explanation as to the large premium of £8,200,000.00 that is proposed to acquire the land on behalf of the public.

His decision has not been subject to scrutiny or ratified by a decision of the Assembly which would be proper given the size and nature of the transaction and ahead of the details of the clinical outcomes and costs of the proposals for multi-site health care provision promised by the government.

Given the Government's anticipated milestones for 2023 - set out below from a report provided to States Members on 27th February 2023 – delaying the purchase of this piece of land until such time as clinical and financial details of the New Health Facilities Programme have been provided to the Assembly and the decision has been appropriately scrutinised would not cause any delay to the anticipated New Health Facilities timetable.

Page - 3

P.12/2023

Financial and manpower implications

Deferral of £16,000,000.00 of government expenditure.

Page - 4

Appendix – R.33/2023

STATES OF JERSEY

LAND TRANSACTIONS UNDER STANDING ORDER 168(3) – THE GENERAL HOSPITAL – ANDIUM HOMES LTD'S SITE, KENSINGTON PLACE – SALE TO THE PUBLIC

Presented to the States on 1st March 2023 by the Minister for Infrastructure

STATES GREFFE

2023  R.33

2

REPORT

Decision(s):  Under  Standing  Order  168(3),  the  Minister  for  Infrastructure  hereby notifies the States that he has accepted the recommendation of Jersey Property Holdings to agree to the following –

(a) Land transaction –

To agree to the sale of Andium Homes Ltd.'s site at Kensington Place, St Helier to the public of the Island as a strategic acquisition to safeguard land for health and care facilities.

The Minister hereby authorises, as applicable, the Attorney General and the Greffier of the States to pass any contract which is required to be passed on behalf of the Public; and the Director of Property Holdings to conclude any contract which is required to be concluded on behalf of the Public.

After the expiry of 15 days following presentation to the States the transaction may be concluded.

Further information on this decision may be viewed in due course at: https://www.gov.je/government/planningperformance/pages/ministerialdecisions.aspx

under Ministerial Decision reference MD-INF-2023-105

3

Appendix 1

R.33/2023