Incinerator blunder

AT least £3m of public money has been lost over the failure to fix exchange rates on Jersey’s biggest-ever capital project.
An independent report has found that the pound’s fall against the euro has added millions of pounds to the cost of the new incinerator.
As soon as the report was published, Treasury Minister Philip Ozouf issued a statement saying that disciplinary action was being taken against some staff. It is understood that three or four Treasury employees, both senior and junior, are facing action over the mistakes.
When the States approved the proposition to build the incinerator last July they were told that the rate would be fixed when the contract was signed, eliminating any risk due to currency fluctuations.
But that did not happen, and the changes in exchange rates since the contract was signed in November have made the euro portion of the contract — which represents more than half the total cost — more expensive. (from JEP)

Well lets hope the disciplnary action is suitable for the major loss of public money...

Doesn't disciplinary action cost more money???? or am I being naive!

These sort of things make me laugh, if the rate had gone way the otherway would we be congratulating those who did not fix the rate, NO

If they had fixed the rate all hell would have broke loose if it went the other way.

I dont think its standard policy to fix a rate on capital projects its just bad luck and the people of Jersey should all get over it.

at least in jersey they talk about it, do it, and get it done ( and prob on time and budget ) not like over here.

talk, debate, talk, debate, consultant, talk, consultant, talk, debate, waste millions and then decide to talk about it in a few years time.

............and eventually put it in our back yard in St Sampsons......where every other unacceptably ugly/smoky thing is dumped.....

I'd put in my back yard here in town but the IDC says it would be incongruous

Well, one states member, who for the time being shall remain nameless, told me in no uncertain terms that if it was put in St Sampsons he would move his family as far away as possible......so I guess Australia is far enough for me to 'fling my hook'...

THE States’ spending watchdog is taking the unprecedented step of calling the Chief Minister to explain his part in the incinerator exchange-rate fiasco.
Senator Terry Le Sueur is to be called to give evidence before the Public Accounts Committee about his actions as Treasury Minister last year when the deal in euros for the new energy-from-waste plant was signed in November.
Just weeks before, the States had voted to proceed with the deal to build the plant on the understanding that the exchange rate would be fixed or ‘hedged’. However, no fixing or hedging was done and the plummeting value of the pound against the euro has meant that the taxpayer is having to pay millions more than they should.
States Treasurer Ian Black conceded that his department had no experience of the management of hedging and had taken advice from outside consultants. However, not only was the advice conflicting, but two Treasury advisers from Royal London Asset Management told the PAC that they did not believe that they had been asked to advise about hedging. (from thisisjersey)

It would appear the Treasurer, Mr Black is to carry the can for this error. In the old days the minister would have taken responsibility and done the honourable thing. But as we have seen from Westminster recently honour in politics is now an outmoded concpet.

Easy escape goat. I mean our politicians could never be to blame!