Tuesday 23 January 2024
The Policy & Resources Committee is proposing a new plan to move forward with the transformation of Post-16 education facilities in phases and, at the same time, release more land for the future supply of housing.
It will be presented to the States at this week's Government Work Plan debate, as an amendment.
If approved, the amendment will see the project developed in phases, with the States being asked to agree around £88m to fund the first phase which includes completing The Guernsey Institute at Les Ozouets. The States will also be given the option to proceed with the construction of foundations for the new Sixth Form Centre at Les Ozouets.
The Committee believes it is right to act as quickly as possible to begin the work on transforming post-16 education, and building much-needed facilities for The Guernsey Institute. While the States has endorsed the model for Secondary and Post-16 education on more than one occasion, the most recent debate left the programme in doubt as no funding mechanism could be agreed. The Committee recognises this is not a situation that can be allowed to continue, and there is a need to invest in our educational facilities to support our young people to gain the skills, knowledge and qualifications they need to achieve their ambitions, and continue to contribute to a strong and growing economy.
In addition, proceeding now with the first phase of this programme allows the current Coutanchez site, where the majority of the College of Further Education is based, to be freed for other uses, namely housing, which is another top priority for this States. The Committee is therefore hopeful that the States will recognise the strategic benefits of supporting this funding plan, which will allow progress on both the educational and housing fronts.
The funding for this first phase would be sourced through a combination of borrowing and using reserves, as well as the capital receipts from any future sale of the released the Coutanchez Campus site. Earlier this term the States agreed to authorise new borrowing of up to £200m to fund capital projects and the proposed £55m would mean the borrowing required to fund the States overall capital portfolio is still within this amount. Up to £33m would come from the General Revenue Reserve.
The Committee has received updated estimates of the income likely to be received from the OECD Pillar 2 initiative, which seeks to set a global minimum effective tax rate for large multinational enterprises, which has made this approach to funding the Post-16 education programme possible. Work on the 'Pillar 2' framework internationally has led to more certainty on the approach to setting the rules for such a tax which has enabled more detailed analysis based on the recent performance of the locally based companies which will be impacted. As a result, the amount of revenue that Guernsey expects to raise when these reforms are introduced has increased from the £10m assumed at the time of the Funding & Investment Plan to circa £30m per annum. While these revenues would not be realised until 2026, they would more than cover any borrowing costs.
Deputy Lyndon Trott, President of the Policy & Resources Committee, said:
"We can't continue with the uncertainty around Post-16 education, and from the outset of our short time on the Policy & Resources Committee, we felt finding a compromise is an urgent priority. That means giving our community - students, parents and teachers - confidence in the future for Post-16 education, and a clear plan for how the new facilities they have been promised will be delivered.
This is all possible, in our view, because we've had some welcome developments in terms of the forecasting for our public finances. This comes against a backdrop of better-than-expected economic growth in Guernsey over the past two years, putting the Island in a stronger position both to fund borrowing, and to replenish its reserves.
It doesn't change the fact that long-term we still need solutions to make public finances sustainable, but it does allow us to be a bit bolder in investing in our community now, and we should do that. Investing in our island reflects the confidence we should rightly have in our growing economy."
Deputy Heidi Soulsby, Vice-President of the Policy & Resources Committee said:
"With the proposals in this amendment we believe there is a real opportunity for the States to show the community it's committed to education, and to providing students of all ages with high quality facilities to help them develop their skills and achieve their potential.
But it also demonstrates the States' commitment to addressing some of the challenges in the housing market. Moving forward with this plan can free up a key site with the potential for new homes which we know are badly needed."
Deputy Andrea Dudley-Owen, President of the Committee for Education, Sport & Culture said:
"I welcome the Policy & Resources Committee's engagement to find a way to deliver the new Les Ozouets Campus. I also welcome the strategic view being taken, as we look at the wider benefits for Guernsey in proceeding with this programme.
The most recent debate on funding was a huge frustration, leaving significant parts of our education provision in limbo. Although I am disappointed that a way to deliver the entire site has not been found at this time, I am grateful to the Policy & Resources Committee for their option to lay the foundations for the Sixth Form block. This sends a clear message of intent and support to staff in both the Secondary and Post 16 phases of education. This is an opportunity that the island cannot afford to miss and we are ready to begin constructing the purpose-built facility that our staff, students, adult learners and employers have been promised for so long and which is essential to delivering the skilled workforce our community and economy needs."
