Government Plan 2021–2024 (P.130/2020): fifteenth amendment [P.130-2020 Amd.(15)]

STATES OF JERSEY

GOVERNMENT PLAN 2021–2024 (P.130/2020) FIFTEENTH AMENDMENT

Lodged au Greffe on 30th November 2020 by Senator K.L. Moore

STATES GREFFE

2020  P.130 Amd.(15)

GOVERNMENT PLAN 2021–2024 (P.130/2020): FIFTEENTH AMENDMENT ____________

1  PAGE 2, PARAGRAPH (i) –

After the words "Appendix 2 – Summary Table 9 to the Report" insert the words –

", with the remaining balance from the Fund to be made available to allow for the introduction of a scheme whereby the GST paid on the following items may be refunded, with the Minister for Treasury and Resources requested to introduce such a scheme with effect from 1st January 2021 –

1. photovoltaics and solar panels,
2. ground & air source heat pumps,
3. electric boilers,
4. electric cars, motorbikes, scooters and vans,
5. electric bikes and cargo bikes,
6. loft and cavity wall insulation, and
7. double glazing".

SENATOR K.L. MOORE

Note:  After 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;
3. 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;

4. 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;

5. 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);
6. 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;
7. 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;
8. 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;
9. 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, with the remaining balance from the Fund to bemade available to allow for the introduction of a scheme whereby theGST paid on the following items may be refunded, with the Ministerfor Treasury and Resources requested to introduce such a scheme witheffect from 1st January 2021 –

1. photovoltaics and solar panels,
2. ground & air source heat pumps,
3. electric boilers,
4. electric cars, motorbikes, scooters and vans,
5. electric bikes and cargo bikes,
6. loft and cavity wall insulation, and
7. double glazing".;

10. 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.

REPORT

This Assembly has agreed to work towards meeting the ambitious target of achieving carbon neutrality by 2030.

Although the practical difficulties of responding to the Covid-19 pandemic have set the island back, we must not lose sight of our key objectives, in can be argued that developing a low carbon economy can help the island to recover and it can reduce the cost of living for many islanders.

The  aim  of  this  amendment  is  to  provide  financial  incentives  to  businesses  and householders  to  move  onto  cleaner  energy  alternatives.  Some  of  the  property adaptations, such as installing more insulation, can be achieved simply and after a small amount of training, which can help to boost employment for some who have lost their jobs.

By improving the thermal efficiency of homes and switching them onto more cost- efficient forms of heating households will see a reduction in their heating bills.

Fossil fuel heating is therefore contributing to residential carbon emissions, totalling 21% of the Island's emissions1

44% of carbon emissions in the island are attributed to transport:

Figure 2: Emissions by sector 2

Encouraging  islanders  to  switch  to  electric  vehicles,  particularly  e-bicycles  is  an effective way to improve air quality and reduce carbon emissions. Cost incentives such as the subsidy for e-bikes, have been popular and a catalyst for change.

1https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/R%20P athway%202050%20An%20Energy%20Plan%20reduced%20(size%201.3mb)%20DM%2020 140325.pdf

2 https://www.aether-uk.com/Resources/Jersey-Infographic

Financial and manpower implications

Information in relation  to  the  financial implications  of  this  amendment  has  been requested from Revenue Jersey; it is not, however, possible at this time to estimate the financial  implications  of this  amendment.   Revenue  Jersey  continues  its  work  to establish the volumes and values of certain environmentally friendly products listed in P.71/2019 (Amendment 10), as amended, which was proposed by Deputy RJ Ward of St Helier. This work was deferred – with the agreement of Deputy Ward – during the Covid-19 lockdown.