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STATES OF JERSEY
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MEDIUM TERM FINANCIAL PLAN 2016 – 2019 (P.72/2015):
THIRD AMENDMENT
Lodged au Greffe on 18th September 2015 by the Council of Ministers
STATES GREFFE
2015 Price code: B P.72 Amd.(3)
MEDIUM TERM FINANCIAL PLAN 2016 – 2019 (P.72/2015): THIRD AMENDMENT
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1 PAGE 3, PARAGRAPH (d) –
For the words "Summary Table G" substitute the words "Revised Summary Table G as set out on page 5 of the amendment of the Council of Ministers dated 18th September 2015".
2 PAGE 3, PARAGRAPH (e) –
For the words "Summary Table H" substitute the words "Revised Summary Table H as set out on page 5 of the amendment of the Council of Ministers dated 18th September 2015".
COUNCIL OF MINISTERS
REPORT
Background
In October 2012, the States approved "in principle" the incorporation of Jersey Airport and Jersey Harbours into a single limited liability company, subject to appropriate legislation being brought to the States to achieve this (P.70/2012).
On 2nd June 2015 the States adopted the Air and Sea Ports (Incorporation) (Jersey) Law 201- (see P.5/2015), as amended (see P.5/2015 Amd.). This puts in place the framework for the creation of a wholly States-owned self-funding company to be called the "Ports of Jersey Limited" (POJL), to control and operate the air and sea ports.
The Law provides for the effective regulation and control of the new company, while permitting it to operate commercially in its regulated environment. This commercial operation will allow it to generate the income necessary to resolve a potentially very significant liability in the form of a demanding and essential programme of capital investment, in what is a capital intensive business. The aim is to enable the ports to become self-sustainable.
The draft Law was the first step in the legislative process which will allow incorporation. It will be followed by subordinate legislation in the form of draft Regulations, which will make provision for the transfer of property, staff and assets to the new company.
The draft Law was approved by H.M. Privy Council on 15th July 2015 and registered in the Royal Court on 24th July 2015 (see L.9/2015). The draft Regulations (P.80/2015) were approved by the States on 8th September 2015 (see R&O.106/2015), along with the Appointed Day Act (P.81/2015), which brings the Law into force (see R&O.105/2015). The incorporation date is 1st October 2015.
Amendment required to Draft MTFP 2016 – 2019 (P.72/2015)
The Draft MTFP 2016 – 2019 (P.72/2015) was lodged in advance of Privy Council approval, and at that time it was inappropriate to assume the draft Law would be approved. The Draft MTFP 2016 – 2019 included provision for Jersey Airport and Jersey Harbours to continue as States Trading Operations for the period 2016 – 2019, in the event that either Privy Council or final States approval was not forthcoming.
The Privy Council approval, and now the States approval, of the remaining propositions to establish POJL and transfer the agreed manpower, assets and liabilities, confirms the position for 2016 and beyond, and indeed POJL will operate from 1st October 2015.
This Amendment provides for the removal of the financial and manpower implications of Jersey Airport and Jersey Harbours from the Draft MTFP 2016 – 2019, in accordance with the Incorporation of Ports from 1st October 2015 and the establishment of POJL.
Following the debate of the Draft MTFP 2016 – 2019, an amended MTFP Report and Department Annex will be produced to reflect all the outcomes of the debate, and will
include the removal of the Jersey Airport and Jersey Harbours proposals – but retaining the future forecasts of income from the new POJL organisation.
Revised Summary Tables for States Trading Operations, and a revised manpower forecast, are attached for the States debate and for States members' information.
Financial and manpower implications
The Amendment provides for the removal of the proposed net revenue and capital expenditure of Jersey Airport and Jersey Harbours from the Draft MTFP 2016 – 2019 and an adjustment to the manpower forecasts.
APPENDIX
Revised Summary Table G – Proposed Income and Expenditure of each States' Trading Operation for 2016
Revised Summary Table H – Proposed Total Capital Programme for each States' Trading Operation and Indicative Capital Projects for 2016 – 2019
Revised Figure 46 – Indicative Forecast of Budgeted FTE by Department for 2016