Government Plan 2021-2024 (P.130/2020): eleventh amendment (P.130/2020 Amd.(11)) - amendment

STATES OF JERSEY

GOVERNMENT PLAN 2021–2024 (P.130/2020): ELEVENTH AMENDMENT (P.130/2020 AMD.(11)) – AMENDMENT

Lodged au Greffe on 8th December 2020 by the Council of Ministers

STATES GREFFE

2020  P.130 Amd.(11)Amd.

GOVERNMENT PLAN 2021–2024 (P.130/2020): ELEVENTH AMENDMENT (P.130/2020 AMD.(11)) – AMENDMENT

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For the sub-paragraph following the words "insert the words –" substitute the following sub-paragraph –

" ,  except  that  in  Summary  Table  5(i)  the  Total  Revenue  Head  of Expenditure  for  Customer  and  Local  Services  shall  be  increased  by £150,000 to provide support as required during 2021 for Beresford Street Kitchen, and that the Council of Ministers shall request officers to work with  the  organisation  to  support  the  development  of  a  financially sustainable business model for future years".

COUNCIL OF MINISTERS

Note:  After this amendment, the amendment of Deputy R.J. Ward of St. Helier would

read as follows –

"1  PAGE 2, PARAGRAPH (f) –

After the words "Appendix 2 – Summary Tables 5(i) and (ii) of the Report" insert the words –

" , except that in Summary Table 5(i) the Total Revenue Head of  Expenditure  for  Customer  and  Local  Services  shall  be increased by £150,000 to provide support as required during 2021 for Beresford Street Kitchen, and that the Council of Ministers shall request officers to work with the organisation to  support  the  development  of  a  financially  sustainable business model for future years".

 After the amendment of Deputy Ward , as amended by this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to receive the Government Plan 2021 – 2024 specified in Article 9(1) of the Public Finances (Jersey) Law 2019 ("the Law") and specifically –

1. to approve the estimate of total States income to be paid into the Consolidated Fund in 2021 as set out in Appendix 2 – Summary Table 1 to the Report, which is inclusive of the proposed taxation and impôts duties changes outlined in the Government Plan, in line with Article 9(2)(a) of the Law;
2. to approve the amounts to be transferred from one States fund to another for 2021, in line with Article 9(2)(b) as set out in Appendix 2 – Summary Table 2 to the Report;

(c) to approve the proposed borrowing to be obtained for 2021, in line with Article 9 (2)(c), up to and including the amount set out in Appendix 2

– Summary Table 3 to the Report;

(d) to approve each major project that is to be started or continued in 2021 and the total cost of each such project and any amendments to the proposed total cost of a major project under a previously approved government plan, in line with Article 9(2)(d), (e) and (f) of the Law and as set out in Appendix 2 - Summary Table 4 to the Report;

(e) to endorse the efficiencies and other re-balancing measures for 2021 contained in the Government Plan as set out in Appendix 2 Summary Table  6  and  reflected  within  each  gross  head  of  expenditure  in Appendix 2 – Summary Table 5(i);

(f) to  approve  the  proposed  amount  to  be  appropriated  from  the Consolidated Fund for 2021, for each head of expenditure, being gross expenditure less estimated income (if any), in line with Articles 9(2)(g), 10(1) and 10(2) of the Law and set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report, except that in Summary Table 5(i) the Total Revenue Head of Expenditure for Customer and Local Services shall be increased by £150,000 to provide support as required during 2021 for Beresford Street Kitchen, and that the Council of Ministers shall request officers to work with the organisation to support the development of a financially sustainable business model for future years;

(g) to approve the estimated income, being estimated gross income less expenditure, that each States trading operation will pay into its trading fund in 2021 in line with Article 9(2)(h) of the Law and set out in Appendix 2 – Summary Table 7 to the Report;

(h) to approve the proposed amount to be appropriated from each States trading operation's trading fund for 2021 for each head of expenditure in line with Article 9(2)(i) of the Law and set out in Appendix 2 – Summary Table 8 to the Report; (i) to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2021as set out in Appendix 2 – Summary Table 9 to the Report;

(i) to approve the estimated income and expenditure proposals for the Climate Emergency Fund for 2021as set out in Appendix 2 – Summary Table 9 to the Report;

(j) to approve, in accordance with Article 9(1) of the Law, the Government Plan 2021-2024, as set out at Appendix 3 to the Report.

Page - 3

P.130/2020 Amd.(11)Amd.

REPORT

The Council of Ministers has considered the Deputy 's amendment and whilst it fully recognises and supports the good work that Beresford Street Kitchen undertakes, it is important  that  Government  has  an  opportunity  to work  with the  directors  of  the company to understand their situation better before committing tax payers' money for any length of time. Including the £150,000 in heads of expenditure for 2021 will ensure that Beresford Street Kitchen can continue to operate during 2021 while they work with Government officials to develop a fully sustainable business model.

It is important that officers have the opportunity to work with the company directors in the first half of next year to fully understand their programme which will allow them to advise the company as to what existing Government initiatives, if any, their outcomes best fit and also other wider support that may be available to them. Work may also be undertaken to identify other sources of income and funding and appropriate business models. - It is important that any financial support provided from taxpayers' money is appraised  appropriately  and  there  has  not  been  time  to  do  that  work  since  this amendment has been received.

Financial and manpower implications

The financial implications of this amendment would be that the Children, Young People, Education and Skills head of expenditure as set out in Appendix 2 – Summary Tables 5(i) and (ii) of the Report is increased by £150,000 in 2021.

If this amendment is adopted by the Assembly then the reduction in the forecast Consolidated Fund balance for 2021 will be managed in the first instance by adjusting the Consolidated Fund working balance in that year, without proposing to increase the maximum borrowing requirement proposed in part (c) of P.130/2020.

Depending upon which amendments are adopted by the Assembly, the Chief Minister or Minister for Treasury and Resources may request an adjournment of the debate for a specified period to consider the consequences of the amendment under Standing Order 70A. Under Standing Order 80A the Chief Minister or Minister for Treasury and Resources may propose, without notice an amendment to the Government Plan at any time during the debate.

Providing this funding will increase the level of borrowing required by an equivalent amount each year over and above the amount of borrowing otherwise required.

The Council of Ministers will be bringing a proposition to the Assembly during 2021 seeking approval for long-term financing relating to Our Hospital. In the event that the maximum Covid-related borrowing requirement as approved in part (c) of P.130/2020 needs to be adjusted as a result of the value of amendments approved by the Assembly and updated forecasts, as well as the 2019 outturn, then approval will be sought for an amendment to the approved Government Plan at that time in accordance with Article 16 of the Public Finances (Jersey) Law 2019.

There are no manpower implications.