Shadow Boards and Ministerial Boards: approval by the States (P.170/2010) – amendment.

STATES OF JERSEY

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SHADOW BOARDS AND MINISTERIAL BOARDS: APPROVAL BY THE STATES (P.170/2010) – AMENDMENT

Lodged au Greffe on 19th January 2011 by the Minister for Economic Development

STATES GREFFE

2010   Price code: A  P.170 Amd.

SHADOW BOARDS AND MINISTERIAL BOARDS: APPROVAL BY THE STATES (P.170/2010) – AMENDMENT

PAGE 2, PARAGRAPH (a) –

For the words "for approval the proposal announced by the Minister on 3rd November 2010 for the formation of a Shadow Board to oversee all aspects of Harbours and Airport" substitute the words "for approval the Terms of Reference for the Shadow Board appointed by the Minister for Economic Development, as set out in points 1-7 in  the  report  of  the  Minister  dated  19th  January  2011,  to  oversee  all  aspects  of Harbours and Airport;".

MINISTER FOR ECONOMIC DEVELOPMENT

REPORT

Following  discussion  with   Deputy  Le  Claire,  the  proposer  of  P.170/2010,  this amendment to part (a) reflects the fact that the Shadow Board had been appointed before P.170/2010 was lodged. It therefore captures the proposer's concerns, but goes further by allowing the States to debate the terms of reference that the Shadow Board will operate under. It also confirms that the Minister for Economic Development will bring any future substantive changes to the governance of Jersey Harbours or Jersey Airport to the States.

As background, the following confirms the position surrounding the establishment of the Shadow Board.

For  the  avoidance  of  any  doubt,  the  Harbours  and  Airport  Shadow  Board  is  an advisory and not a supervisory body. It has no political or executive authority and all responsibilities, accountabilities and liabilities remain unchanged.

During the States Sitting on 6th July 2010, the Minister for Economic Development announced the intention to create a Shadow Board to oversee all aspects of Jersey Harbours and Jersey Airport activity.

The proposed Terms of Reference of the Shadow Board are –

1. To define  the  optimum  operational  and  governance  structure  and  make  a recommendation to the Minister for Economic Development to implement changes as necessary.
2. To strengthen  governance  and  good  practice  in all  areas  of  Harbour  and Airport operations.
3. To challenge and support the executive teams.
4. To develop strategy and business operations and ensure they are subject to rigorous  independent  commercial  challenge  in a  manner  which  enhances governance at a pivotal time.
5. To protect the interests of Jersey Airport and Jersey Harbours in moving towards the Aims and Objectives agreed by the States of Jersey.
6. To ensure the ability of the Trading Operations to meet the objective of being self-funding and sustainable.
7. To undertake any other appropriate roles as agreed with the Minister for Economic Development.

The Shadow Board was appointed following consultation and a recruitment process overseen by the Appointments Commission. The Board comprises –

Chair  Mr. Charles Clarke Non-Executive Director (Marine)  Mrs. Margaret Llewellyn OBE Non-Executive Director (Aviation)  Mr. Mike Collett

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P.170/2010 Amd.

Non-Executive Director  Mr. Frank Walker

Non-Executive Director  Mr. Alan Smith MBE Non-Executive Director  Mr. John Mills CBE

Representative of Minister for ED  Mr. Mike King, Chief Officer, EDD

The Harbours and Airport Shadow Board is an advisory and not a supervisory body. It has no political or executive authority and all responsibilities, accountabilities and liabilities remain unchanged.

The Minister for Economic Development retains all powers vested under the States of Jersey Law 2005. Under this Law, the Minister for Economic Development is legally and politically accountable for this area of government.

The Minister for Economic Development retains the responsibility for setting policy to ensure  that  all  aspects  of  the  Economic  Development  Department's  activities, including Jersey Harbours and Jersey Airport, fulfil their objectives.

The  accountabilities  and  responsibilities  of  the  Airport  Director  and  the  Harbour Master  are  defined  in  Law.  The  Airport  Director  and  Harbour  Master/CEO  are designated under the Public Finances (Jersey) Law 2005 as accounting officers for Jersey Airport and Jersey Harbours, and will retain all aspects of their accounting officer responsibility, and as such are accountable to the Minister and the States of Jersey.  The  operational  responsibilities  of  the  Airport  Director  and  the  Harbour Master/CEO are defined in the Law and will remain unchanged.

In practice, the Harbours and Airport executives will work with the Shadow Board to define a business plan for the following year within the timetable prescribed by the States. The Minister for Economic Development will consider the plan and make any necessary  amendments  before  approving  it  for  presentation  to  the  States.  Once approved by the States, the Minister will charge the Executive to work with the Shadow Board to deliver the business plan. Any decisions required within the plan period will be recommended by the executives (with the input and endorsement of the Shadow  Board)  for  the  approval  of  the  Minister  to  be  recorded  as  Ministerial Decisions.

From time to time, the Minister may request the Harbours and Airport Shadow Board to work with the executives and ED officers to advise on specific issues related to aspects of Harbours and Airport structure, governance and operations.

The Minister for Economic Development proposes that, if such advice leads to a change in policy that would represent a substantive change at either Jersey Harbours or Jersey Airport, such changes will be brought back to the States.

Financial and manpower implications

As this amendment seeks approval of the States for the Terms of Reference of the already  constituted  Harbours  and  Airport  Shadow  Board,  there  are  no  financial considerations for the States arising therefrom.

19th January 2011