A politician who launched a future innovation project has criticised plans to close the government-backed hub.
The States of Guernsey announced that the Digital Greenhouse, which opened in 2016, would close in its current form unless a private company or charity came forward to run it.
The move followed a review by the Committee for Economic Development, which said the private and voluntary sectors were better placed to lead future innovation projects.
Former Commerce and Employment Minister Kevin Stewart, who helped create the centre, said the decision was "absolutely crazy".
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Stewart argued that the States had identified digital transformation as one of its key economic priorities while at the same time proposing to close "the one physical building where digital entrepreneurship actually has happened over the years".
He suggested the facility might need a new direction but said it should not be shut without a replacement strategy in place.
He said 250 entrepreneurs had used the hub over the past year and more than 1,000 people had attended its events.
Stewart also questioned whether the centre's annual cost of about £450,000 justified closure.
However, Economic Development vice-president Marc Lainé defended the move and said the facility had evolved into "predominantly a co-working space" and that the private sector could deliver more.
He said: "We strongly believe that it can be done better in the private sector."
Lainé said commercial incubators could provide specialist services, funding opportunities and investor networks that were beyond the reach of a government-run scheme.
He said the committee hoped to attract "some really dynamic private sector or voluntary sector alternatives" and added: "What we're hoping is that we get something that's way more exciting and providing better results."
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