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19-21 Broad Street | St Helier Jersey | JE2 4WE
Senator Kristina Moore
Chair
Corporate Services Scrutiny Panel Via e-mail
Date: 26 of April 2021 Dear Senator Moore ,
MD-TR-2021-0020 – Our Hospital Early Enabling Works: Funding
Thank you for your letter of the 20th of April 2021 I note your concerns following the approval of Ministerial Decision MD-TR-2021-0020 Our Hospital Enabling Works: Funding. However, in my view your concerns are not supported.
You will recall that the States Assembly have already agreed Overdale as the site for Our Hospital (in P.123/2020) and the preferred access route (in P.167/2020). So there is clear support for the project to progress.
The Ministerial Decision states: "The Outline Business Case (OBC) is expected to be presented to the States Assembly in Summer 2021 along with a financing proposal to provide funds for the balance of the project from July 2021. However early funding is required in advance of the funding raised through that proposition to progress the programme for enabling works on the Overdale site. This is a timing issue for the availability of funds rather than a budgetary issue, as the costs have been budgeted within the Strategic Outline Case (SOC)."
The Ministerial Decision also states: "Whilst a business case for this specific element of the funding has not been received and evaluated the Political Oversight Group has supported this request and approved a (SOC)." So, whilst there was no specific business case for the £11.167 million allocation, that amount was within the wider business case approved and was a necessary element to further the project in advance of States consideration of that business case and associated funding. These are not additional costs.
The reference to the General Reserve (Covid-19) in "Reason for decision" in the written report is factually correct but not relevant to this decision. The words "(Covid-19)" should not have appeared. The allocation was made from the non-Covid component of the General Reserve. You will have noted that I recently refreshed my Procedures for Allocations from the Reserve in R.60/2021.
Your sincerely
Deputy Susie Pinel
Minister for Treasury and Resources D +44 (0)1534 440215