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Annual Business Plan 2007 (P.92-2006) - fourth amendment (P.92-2006Amd.(4)) – amendment

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STATES OF JERSEY

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ANNUAL BUSINESS PLAN 2007 (P.92/2006): FOURTH AMENDMENT (P.92/2006  AMD.(4)) AMENDMENT

Lodged au Greffe on 11th September 2006 by the Chief Minister

STATES GREFFE

ANNUAL BUSINESS PLAN 2007 (P.92/2006): FOURTH AMENDMENT (P.92/2006  AMD.(4))AMENDMENT

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For the words "by April 2007" substitute the words "by November 2007".

CHIEF MINISTER

REPORT

It is not practically possible to introduce a Winter Fuel Payment Scheme by April 2007 as proposed in Senator Shenton's amendment. Such a timescale quite simply does not allow sufficient time for the consideration and assessment  of  costed  options,  the  scrutiny  of  proposals,  debate  by  the  States,  law  drafting  and  approval, information systems development, staff training and the whole host of other steps necessary to successfully implement a benefit scheme.

If the Senator's amendment is approved, the Council of Ministers will have no option other than to increase payments to those eligible for the Christmas Bonus Scheme, a scheme which is paid regardless of income not only to all pensioners resident in the Island but also pensioners living in the U.K. and to certain "passport" benefit recipients who are not pensioners. Of course even if approved in April 2007, as a Christmas Bonus scheme, no payments would be made until the following Christmas.

In 2005, 18,122 people received a Christmas Bonus, on this basis if an extra £50 Christmas Bonus were to be paid to each claimant it would cost in excess of an additional £900,000. If £200 were paid, which is the entry level allowance paid in the U.K., this would cost in excess of £3.6 million.

The Council of Ministers strongly believes that rather than simply throwing money at an issue to achieve an arbitrary deadline, sufficient time should be given to allow research, the full and careful consideration and assessment of options and the scrutiny and debate of proposals by States Members in possession of all the facts and with the complete understanding of the consequences of introducing a particular scheme.

This becomes all the more important when such large amounts of taxpayers' money are at stake, money which will have to be found from cuts to essential services.

However the Council of Ministers remains committed to introducing a Winter Fuel Payment scheme in time for winter 2007/8 and to demonstrate this commitment, rather than simply opposing Senator Shenton's unachievable aim, the Council is proposing to amend his deadline and the Business Plan by stating that it will introduce the scheme for November 2007.

The timetable below shows the key-milestones to achieving implementation by November 2007 as well as demonstrating why April 2007 is not achievable.

October 2006 Costed options proposed to the Council of Ministers November 2006 Preferred option lodged with the States

January 2007 Proposition debated by the States

January 2007 Law Drafting Brief commences

March 2007 Law drafting commences

May 2007 Draft Law lodged with the States

July 2007 Draft Law debated by the States

October 2007 Law receives Royal Assent

November 2007 Regulations debated by the States

November 2007 Scheme introduced

Members will see that even achieving a deadline of November is ambitious and the project will need careful management if we are to succeed including resources being available at the right time.

The project will require dedicated resources, funding and experienced manpower, including the time of Law Draftsman  and  Law  Officers,  diverted  from  other  services  and  tasks  at  a  time  when  the  Social  Security Department will have to be completely focussed on the very significant task of introducing the crucially important Income Support Scheme.

The Council of Ministers is committed to proposing to the States a Winter Fuel Payment Scheme in time for payments to be made for winter 2007/8. Insisting that introducing such a scheme for April 2007 is simply not realistic and the Council requests that Members recognise this and support its amendment to introduce a scheme

for November 2007.