The States is planning to hold a debate on the dispute

Sir Philip Bailhache says decisions made by the Policy and Resources Committee over the Les Pas deal will be legal.

Sir Philip said that was the case, even if the decisions were taken by members of the States who should have been disqualified from voting for them, because they had declared an interest.

The committee recently brought forward plans to give a �10m piece of land to Les Pas - to bring an end to a long-running dispute over who owns the waterfront - on the advice of law officers.

Sir Philip was responding to calls for the committee's proposals to be taken off the States agenda.

Debate issue

Senator Ted Vibert had argued three members of the Policy and Resources Committee had declared financial interests in Les Pas.

He said they should have been barred from discussing or voting on any proposals to do with the company.

But the Bailiff said that, even if the members had broken States rules by getting involved, any decisions made by the committee were still legal.

He said he did not believe he could stop the States debating the issue as planned.

Public inquiry

He will rule on whether the three did break standing orders at the States' sitting next week.

Meanwhile, a public inquiry into the dispute between the States and Le Pas could take place after the legal proceedings have been concluded.

Senator Frank Walker and his Policy and Resources Committee are proposing the inquiry to examine the actions of all those involved in the controversy surrounding the historic rights to the waterfront.

Mr Walker said he had great sympathy with islanders who wanted to know why States members were to consider an out-of-court settlement with Les Pas Holdings over the disputed land.