Vital lessons to be learnt from Innovation Fund
11 April 2018
The Public Accounts Committee (PAC) has published a report on the Jersey Innovation Fund saying that the States need to learn vital lessons when it comes to managing funds.
The “Review of Innovation Fund” report (P.A.C.3/2018) notes that there has been some progress as one loan made by the Fund has been fully repaid and another borrower continues to meet repayments, but the Committee is concerned that proper cost estimates for the establishment and maintenance of the Fund were not put in place at the outset.
PAC Chairman, Connétable Christopher Taylor, said: "Importantly, the PAC cannot concur with comments made in the States Assembly as recently as March 2018, that the Jersey innovation Fund was considered a "success" just because one loan recipient, who paid back their loan in full, has gone on to garner awards for their company&'s invention.
“The States failed to capitalise fully on that success because no equity was taken in that investment, nor a Royalty agreement established, so the States cannot enjoy any ongoing profit or maximise its investment. The PAC was told that the relevant skill set to do this "does not exist sufficiently within [the States], and with no critical mass of investment options to consider, remains an impractical outcome.";
The PAC has urged the Chief Executive Officer to implement the recommendations of its report.
