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.
• Picture: States Treasurer Ian Black faces Public Accounts Committee members Simon Crowcroft, John Refault and Senator Ben Shenton yesterday. Picture by David Ferguson (00673387)
