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Channel Islands Lottery: allocation of proceeds from 2018 [P.87/2019]

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STATES OF JERSEY

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CHANNEL ISLANDS LOTTERY: ALLOCATION OF PROCEEDS FROM 2018

Lodged au Greffe on 20th August 2019

by the Minister for Economic Development, Tourism, Sport and Culture

STATES GREFFE

2019  P.87

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to agree, in accordance with the provisions of Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975, that all monies standing to the credit of the Channel Islands Lottery (Jersey) Fund as at 31st December 2018 which have not already been set aside by the Minister (representing 100% of the total Jersey portion of the proceeds of the Channel Islands Lottery for 2018) should be paid as follows: £500,000 to the Association of Jersey Charities to enable the Association to continue a grant programme and the balance (£1,645,526) to GrantScape for the benefit of the local community and the charitable needs of the Island.

MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE

REPORT

  1. The Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 stipulate that the proceeds from sales of all Channel Islands Lottery tickets are to be applied "in such manner and for such purposes of public benefit as the States shall from time to time by Act direct".
  2. The net proceeds from sales of lottery tickets in 2018 were £2,145,526. It is the Minister's recommendation to the States that –
  1. £500,000 of these funds are granted, subject to the extension of the existing  Service  Level  Agreement,  to  the  Association  of  Jersey Charities ("AJC") to enable continuity of distribution to a range of community organisations on the basis of need, until the conclusion of the procurement process noted in paragraph (c) below to distribute lottery funds.
  2. Having  seen  proceeds  from  the  Channel  Islands  Lottery  grow significantly in recent years, the aim is to widen the distribution to increase benefits for the local community. It is proposed that future proceeds will be distributed as follows –
  1. 40% to registered charities and voluntary groups
  2. 20% to arts and culture
  3. 20% to heritage
  4. 20% to sport and active living.
  1. The balance of the 2018 proceeds (£1,645,526) is awarded, subject to contract, to GrantScape. A procurement process was launched earlier this year to identify a suitable organisation to distribute the proceeds of the Channel Islands Lottery in Jersey for a 3-year period, on the sectoral basis  outlined  in  paragraph (b)  above.  The  Association  of  Jersey Charities, who have been the distributor of lottery proceeds, agreed with the decision to undertake a procurement exercise. In accordance with  approved  procurement  strategy,  an  invitation  to  tender  was advertised on the electronic procurement service, the E-tender Portal', as an open tender following a separate Expression of Interest ("EOI") exercise. GrantScape are a registered UK charity running a number of grant schemes across the UK. The response to the procurement exercise outlined how GrantScape design, administer and manage community funding programmes using 4 key principles –
  • provide a simple, non-bureaucratic process, accessible to all
  • effective and inclusive promotion and support to groups seeking funding
  • effective decision-making Panels, through collaboration with key local stakeholders
  • monitoring, reporting and reviewing.

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P.87/2019

  1. The response offers numerous significant benefits not included in any of the other submissions, including a strong track-record and an effective online application system. The proposal was also unique in that it presented a proven structure that was already in place. The proposal also provided the greatest value for money of all the submissions, with annual running costs reflecting greater  economies  of  scale  which  would  limit  costs  taken  from  Lottery proceeds. Furthermore, there are no set-up costs to be borne by the Lottery. The proposal  recommends  the  establishment  of  local  decision-making  Panels involving  local  organisations  and  individuals,  meaning  that  all  funding decisions will be made in Jersey.

Financial and manpower implications

  1. Subject to the States' approval, and the extension of the existing Service Level Agreement, £500,000 of the Jersey proceeds from the Channel Islands Lottery in  2018  will  be  transferred,  as  soon  as  is  reasonably  practicable,  to  the Association of Jersey Charities. The balance of the 2018 Jersey proceeds (£1,645,526)  will,  subject  to  contract,  be  transferred  to  GrantScape  for distribution in accordance with paragraph 2(b) above.
  2. There are no additional financial or manpower implications for the States arising from the adoption of this proposition.