Channel Islands Lottery: allocation of proceeds from 2018 (P.105/2019) – comments [P.105/2019 Com.]

STATES OF JERSEY

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CHANNEL ISLANDS LOTTERY: ALLOCATION OF PROCEEDS FROM 2018 (P.105/2019) – COMMENTS

Presented to the States on 6th November 2019

by the Economic and International Affairs Scrutiny Panel

STATES GREFFE

2019  P.105 Com.

COMMENTS

Background

P.105/2019 "Channel Islands Lottery: allocation of proceeds from 2018" was lodged on 24th September 2019 by the Minister for Economic Development, Tourism, Sport and Culture. The lodging of P.105/2019 follows the withdrawal of P.87/2019 (the projet of the same title which was lodged on 20th August 2019).

P.87/2019

P.87/2019 had originally proposed that funds raised by the Channel Islands Lottery be distributed by "Grantscape" (a UK-registered charity), but this raised a number of concerns from the charity sector. The concerns were mainly centred around the fact that a UK organisation had been chosen to distribute the lottery proceeds when there were local bodies that could undertake the role.

The  Panel shared  these concerns,  and  requested a  meeting with the  Minister for Economic Development, Sport and Culture to discuss the proposition further. As the Minister was unavailable, the Panel met both the Assistant Ministers and the Director of Economic Development on 23rd August 2019.

During  the  meeting,  the  Panel  was  advised  that,  in  2017,  the  then  Economic Development Department had undertaken feasibility work to develop a mechanism to ensure that lottery proceeds were accessible to a range of community organisations who were not registered charities (following the implementation of the Charities (Jersey) Law 2014). The Director of Economic Development explained that over the years there had been significant growth in the lottery proceeds, and that there was a desire to utilise the proceeds to benefit the Jersey community more widely.

Following a tendering process in early 2019, Grantscape was identified as the preferred bidder, which resulted in the publication of P.87/2019. After receiving a number of concerns about the proposal, the Minister accepted that a local body could distribute the lottery proceeds, and the proposition was withdrawn on 6th September.

P.105/2019

It is noted that P.105/2019 is an interim measure until new arrangements are in place for future distribution of the lottery proceeds. In 2018, the net proceeds from sales of lottery tickets were £2,145,526. In P.105/2019, the Minister recommends that £1 million of these funds should be given to the Association of Jersey Charities to distribute to community organisations until the new arrangements are in place. If approved by the States Assembly, the existing Service Level Agreement with the Association of Jersey Charities will be extended.

Future arrangements

It is understood that the Department is currently seeking a local body to distribute future lottery proceeds. The Association of Jersey Charities, pending approval of P.105/2019, will retain responsibility until this work has been undertaken. As per the original proposition, it is intended that the lottery proceeds will be distributed as follows –

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• 40% registered charities and voluntary groups

• 20% arts and culture

• 20% heritage

• 20% sport and active living.

Having noted the various concerns as to possible changes in responsibility for future distribution of lottery proceeds, the Panel intends to undertake a full review once the new arrangements have  been proposed. This review will cover, in particular, the proposed distribution of funds between the various sectors.

Conclusion

The Panel wishes to inform Members that it would have undertaken a full review of P.87/2019 had it not been withdrawn by the Minister. The Panel is supportive of P.105/2019, given its purpose to allow continuity of charitable funding, but it will conduct a full review of any proposition detailing the new arrangements for the future distribution of proceeds.

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