A FORMER States Treasurer believes a number of senior politicians should be considering resigning from office in the wake of the Waterfront finance controversy.

John Clennett, who held the post as senior financial adviser to the States from 1971 to 1983, has written to the JEP to say that an apology in the circumstances was inadequate.

‘Have there been any suggestions of resignations? Surely a simple apology on the basis of “nobody told me” (about the Harcourt Las Vegas lawsuit) is not adequate?’ he asks in the letter.

And Mr Clennett has expressed fears that to proceed with the £330 million development on the basis of performance guarantees being in place is ‘just nonsense’.

He said that such guarantees rarely covered the full costs of replacing a developer which went bust.

‘This is terribly important. If a developer went bust during the construction of the tunnel one cannot imagine the consequent mayhem,’ he said. Mr Clennett said the total costs of a contractor failing to complete a major scheme can be astronomical.

He said that another contractor willing to complete the work would have to be found. He said that there would be bargaining over prices, delays, legal costs and continuing disruption to contend with.

The former States Treasurer said that in his apology to the States Chief Minister Frank Walker claimed that there was no need to worry because performance guarantees would be in place.

‘The sum of £95 million was mentioned. It is generally well recognised that while performance guarantees are useful they are by no means a total protection against a contractor failing to complete.

‘What happens if a guarantor fails to pay up? To say we are OK because of guarantees being in place is just nonsense,’ he said.

Mr Clennett, who is retired and lives in St Ouen, said he was completely ‘gobsmacked’ after reading the account of the States debate on the financial aspects of the Waterfront proposal.

In the light of subsequent events he asks in the letter why Chief Minister Frank Walker and WEB member Senator Jim Perchard did not know the full circumstances of the developer.

He also asks why WEB chief executive Stephen Izatt did not know what was happening.

‘If he knew why was the Chief Minister not informed? If he did not know why not?’ says the letter.