Government Plan 2021–2024 (P.130/2020): second amendment (P.130/2020 Amd.(2)) – amendment [P.130/2020 Amd.(2) Amd.]

STATES OF JERSEY

GOVERNMENT PLAN 2021–2024 (P.130/2020): SECOND AMENDMENT (P.130/2020 AMD.(2)) – AMENDMENT

Lodged au Greffe on 7th December 2020 by the Council of Ministers

STATES GREFFE

2020  P.130 Amd.(2)Amd.

GOVERNMENT PLAN 2021–2024 (P.130/2020): SECOND AMENDMENT (P.130/2020 AMD.(2)) – AMENDMENT

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For the words "Department of Children, Young People, Education and Skills shall be increased by £159,000 to allow for increased funding for the Jersey Premium, with other affected lines in Summary Table 5(i) to be updated accordingly" substitute the words "General Reserve shall be increased by £159,000 with this amount ring-fenced for the Jersey Premium".

COUNCIL OF MINISTERS

Note:  After this amendment, the amendment of the Children, Education and Home

Affairs Scrutiny Panel would read as follows –

"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 head of expenditure for the General Reserve shall be increased by £159,000 with this amount ring- fenced for the Jersey Premium"."

After the amendment, 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;
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, except that, in Summary Table 5(i),the head of expenditure for the General Reserve shall be increased by£159,000 with this amount ring-fenced for the Jersey Premium;
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;
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.

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P.130/2020 Amd.(2)Amd.

REPORT

The Council of Ministers is informed by the Minister for Education that the head of expenditure for Children, Young People, Education and Skills (CYPES) is unlikely to need the additional amount proposed by this amendment as the number of eligible pupils means the service can be delivered within resources in the Government Plan. However, to enable the amendment to be debated on its merits the Council has proposed an amendment to the amendment so that the amount will be added instead to the General Reserve head of expenditure.

The Minister for Treasury and Resources commits to allocating up to £159,000 to the CYPES head of expenditure during 2021 if it is needed. If it is not needed then the amount will be returned to the  consolidated fund (which in turn may reduce the maximum borrowing requirement approved in part (c) of P.130/2020).

If that funding is seen to be required in 2021, appropriate sums will need to be added to the CYPES head of expenditure as part of Government Plan 2022-2025.

Financial and Manpower Implications

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.

If the funding is required, it 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.