THE multi-million pound Waterfront finance centre development almost collapsed yesterday after a States Member revealed that developers Harcourt were fighting a number of overseas court cases.

Deputy Gerard Baudains (pictured) broke the news to politicians while they were debating the terms of the deal for a second day. He said that he believed the Irish-based firm to be involved in court battles in Las Vegas and Ireland.

That allegation was denied by Chief Minister Frank Walker — but after the end of the debate he made a statement to the House confirming that the lawsuit had been filed, and apologising to the St Clement Deputy.

On Wednesday States Members approved the planning part of the proposal to lower Route de la Libération and to build a grid-style development of office blocks, shops, a car park and a winter garden over the road and the Esplanade car park.

Yesterday Senator Walker urged Members to approve the terms of the deal — agreeing to transfer land owned by the public to the Waterfront Enterprise Board so that they can lease it to Harcourt for the next 150 years so that the ‘dream’ could be realised.

But Deputy Baudains called for a reference back so that the allegations surrounding the company could be investigated before the States signed on the dotted line for a project which will take seven to ten years to complete.

Deputy Geoff Southern also asked the proposition be referred back to his Scrutiny panel so that they could examine the economic consequences of the proposal.

Both of these requests were rejected, and the Assembly went on to approve the transaction, proposed by Environment Minister Freddie Cohen, by 37 votes to five.

Other politicians commended Senator Cohen on his dedication to the project and praised the board of WEB for sealing such a good deal for Jersey. However, not all politicians were convinced of the legitimacy of Harcourt or WEB.

During the debate Deputy Baudains said: ‘Last month the firm was actioned in Las Vegas in a billion-dollar lawsuit.’
Harcourt are alleged to have breached their contract by failing to perform, defaulting on their standing obligations last September, he said.

Senator Walker defended Harcourt and said that ministers had done thorough checks on the company and their directors and that the Scrutiny panel examining the financial deal were satisfied with everything.

‘There is no legal dispute in Las Vegas,’ he said, adding that the company had issues with a former partner who had not invested any money in the project. ‘To suggest that there is a legal dispute is very misleading. No legal motion has been filed to Harcourt in Las Vegas.’

Senator Walker said that PricewaterhouseCoopers had done a financial capacity audit which had confirmed their reputation as a company.

Deputy Rob Duhamel added that in the Las Vegas Business Times it was alleged that there were court actions in America and Dublin and he said that he did not know whether to be worried or not.

Senator Freddie Cohen suggested that the debate should move behind closed doors but his request was not seconded.

Deputy Deidre Mezbourian said that ministers should have anticipated questions regarding the allegations.
She said that if factual checks were being carried out it was naive of them to bring a proposition of this substance without telling the Members about that. ‘This House wants the information and should have it before it,’ she said.

Later on in the debate Senator Walker revealed that Harcourt was involved in a court case in Dublin. ‘I am in a dilemma,’ he said. ‘There are additional pieces of information which I think the House is entitled to hear.

‘There is a court case involving Harcourt in Dublin at this time, but it has been vigorously defended by Harcourt in the court. No decision has been made yet.’

Deputy Carolyn Labey raised her fears about the accountability of WEB.

She said: ‘My concerns are with WEB. We are about to lease public-owned land to WEB for 150 years and I want to put my concerns on the record. Some of the board Members have no knowledge of some of the decisions being made by WEB.

‘I don’t believe that there is enough control or communication where WEB is concerned.’

She said that she had been ‘alarmed’ to be told yesterday that the Auditor General had no jurisdiction over a company wholly owned by the States that owns billions of pounds worth of public money.

Deputy Sarah Ferguson replied, saying that the Auditor General did have certain powers to investigate the accounts, but the allowance of other powers were being taken up with the Public Accounts Committee.

Deputy Labey said: ‘WEB is a public wholly owned company and they are looking after public land, and I think that the board and the officers would do well to remember that.’

Senator Walker and Senator Cohen defended WEB and said that they had worked very hard in securing such a good deal for Islanders. ‘We would not be here if it wasn’t for WEB’s expertise and energy,’ said Senator Walker. ‘They have done a superb job.’

The result of the vote was as follows: