Borrowing For Affordable Housing Approved

Friday, 20 October 2023 08:23

The Guernsey Housing Association could get access to £150M to build new homes as an amendment to P&R's plan succeeds by a clear majority.

The amendment to the Funding and Investment Plan (FIP) was laid by deputy Peter Roffey:

"It is the States borrowing to lend on to other organisations which have an uber reliable income stream and which can offer proper security. In investment terms, this is a financing arrangement which is, to use a phrase, as safe as houses."

It will enable the senior committee to negotiate borrowing of up to £150M specifically for the construction of affordable housing by the GHA.

The provision of new homes, both for key workers and the wider community, is the key priority of the current Assembly.

But deputy Simon Vermeulen questioned why it seemed to be solely government's responsibility:

"Do the States of Guernsey have to build all the houses on this island? Is nobody else qualified? Are there no other builders or developers who could provide alternative units of accommodation?"

The amendment got the support of 27 deputies. 11 voted against.

It will now form part of the amended FIP and so will be voted on again at the end of the debate.

Elsewhere, an amendment by deputy Sasha Kazantseva-Miller was successful in requiring P&R to look again at government policy on spending on capital projects.

An independent report by the Fiscal Policy Panel recently suggested Guernsey spends to the OECD level of 3% of GDP.

But deputy Kazantseva-Miller questioned whether that was too high, given there's no defence spending element.

The spending target is currently 2% of GDP.