Deputy Raises Concerns Over Government’s New Headquarters Funding

A Jersey deputy has stated he is “very concerned” regarding the government’s utilization of pension reserve funds for the acquisition of its new main office. During the budget debate last month, the States Assembly sanctioned the use of £91m from the island’s buffer pension fund, known as the Social Security Reserve Fund, to purchase the new building on Union Street, which commenced operations on 9 December. Deputy Max Andrews commented that this decision serves as an indicator of a broader governmental issue concerning the allocation of savings funds to policy matters. Treasury Minister Deputy Elaine Millar has defended the decision, asserting that it “makes complete sense”. In the course of the budget debate, Andrews was one of seven politicians who opposed the resolution to employ the reserve fund for the purchase of the new government premises. He explained that the reserve fund was established 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 stated. He added that the government’s practice of using other reserve funds has been a source of apprehension for him since his election. He remarked: “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 suggested that the government could have acquired the building through alternative means, such as external borrowing with repayments spread over future years. He has also questioned the necessity of a new office facility given the evolving working patterns of individuals. “With remote working there probably is not the need for the capacity of 2,000 people in a building,” he observed. Millar described the acquisition as a “very good transaction”. She elaborated: “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 further noted that the reserve fund, estimated to be worth £2bn, would generate a “reliable income stream” from rent paid by the Government of Jersey, which is leasing the property. She confirmed that the purchase was consistent with the fund’s objectives and had been subjected to an independent review by a panel of experts. Retired States employees Louise Jackson and Jill Charlton expressed that the sum of money expended on the project was a matter of concern for islanders. Ms Jackson commented: “It was already a government building and then they moved, I think it’s cost a lot of money since.” She continued: “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, while en route to the government hub, spoke with the BBC. He characterized the building as “conveniently placed”. “Hopefully it will provide all the services we need in the timeliest manner,” he conveyed. He also deemed it “practical” to have all the island’s civil servants operating from a single location. Follow BBC Jersey on X and Facebook. Send your story ideas to channel.islands@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.