Government funding of new hub concern for deputy

A Jersey deputy said he was "very concerned" about the government's use of pension reserve funds to buy its new headquarters.

In last month's budget debate, the States Assembly approved using £91m of the island's buffer pension fund, known as the Social Security Reserve Fund, to buy the new building on Union Street that opened on 9 December.

Deputy Max Andrews said this decision was a symptom of a wider government problem with spending saving funds on policy issues.

Treasury Minister Deputy Elaine Millar has defended the decision and said it "makes complete sense".

During the budget debate, Andrews was one of seven politicians who opposed the decision to use the reserve fund to buy the new government building.

He said the reserve fund was set up to "ensure that islanders can have a pension in years to come".

"We are dealing with an ageing population and so it is even more concerning to see the fund be used for purposes of acquiring a government building," he said.

He said the government's use of other reserve funds has been a concern of his ever since he was elected.

He said: "They are being used for political policy objectives, however, we are not thinking about the longevity of islanders and their futures and it's a real concern for me because the future generation, potentially, could be bearing the cost."

He said there were other ways the government could have purchased the building, such as borrowing externally and paying off the borrowing in years to come.

He has also questioned the need for a new office when people's working habits were changing.

"With remote working there probably is not the need for the capacity of 2,000 people in a building," he said.

Millar said the purchase was a "very good transaction".

She said: "I don't think it's fair to categorise it as taking money out, the fund will use some of its money to buy an asset which is worth at least as much as the money as it spends."

Millar also said the reserve fund, estimated to be worth £2bn, would have a "reliable income stream" in rent from the Government of Jersey which is leasing the building.

She said the purchase was in line with the fund objectives and had been independently reviewed by a panel of experts.

Retired States employees Louise Jackson and Jill Charlton said the amount of money spent on the project was a concern for islanders.

Ms Jackson said: "It was already a government building and then they moved, I think it's cost a lot of money since.

"They moved all the departments out, they all split and now they're bringing them all back together again - is that really a waste of money? I think it might be."

Njabulo Sibanda was walking to the government hub when he spoke to the BBC.

He said the building was "conveniently placed".

"Hopefully it will provide all the services we need in the timeliest manner," he said.

He also said it was "practical" to have all the island's civil servants working in one place.

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