Treasury 'extremely disappointed' over £8m costs of lost court battle

Guernsey's Treasury Department says it is 'extremely disappointed' with the States £8m spend on a court battle they lost.

The Treasury is 'strongly supporting' the Chief Executive's decision to investigate the spending.

Public Services is responsible for the spend but 'periodically' updated the Treasury on the financial consequences of their actions in the case.

The cost of the case will come from the Ports Holding Account, which was forecast to be exhausted this year, and it will now have £3.5m less than expected.

The States sued company 3M who produced a fire-fighting foam used at Guernsey and Alderney airports.

The court battle took place after traces of the chemical PFOS, found in the foam supplied by the company, were found in water in the islands.

However the matter was settled out of court and the States must pay both side's legal fees.