Continuation of Rural and Marine support (P.54/2026): amendment (P.54/2026 Amd.) - amendment

CONTINUATION OF RURAL AND MARINE SUPPORT (P.54/2026):

AMENDMENT (P.54/2026 AMD.) – AMENDMENT

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Substitute the word "excluding" with the words "subject to the Council of Ministers identifying, and States Assembly agreeing, a recurring funding source for".

Delete the words "and the availability of funds".

MINISTER FOR TREASURY AND RESOURCES

Note:  After this amendment, the amendment would read as follows – 1  PAGE 2 –

Substitute the words "including both the Agricultural Loans Scheme and Better Business Support funding" with "subject to the Council of Ministers identifying, and States Assembly agreeing, a recurring funding source for the Better Business Support funding".

After the words "rescinded by the States Assembly." insert the words "; and that the Agricultural Loans Scheme should continue, with the determination of further capitalisation based on the demand for loans and the availability of funds.".

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

to refer to their Act dated 7th November 2023, in which they approved the proposition entitled Increase in revenue expenditure for agriculture and fisheries' (P.74/2023), as amended, and to agree that the Council of Ministers should ensure the current level of financial support for Rural and Marine sectors in 2026, subject to the Council of Ministers identifying, and States Assembly agreeing, a recurring funding source for the Better Business Support funding allocated directly to Rural and Marine, continues in perpetuity and increases in line with Retail Price s Index (RPI) (X) each year until this proposition is rescinded by the States  Assembly;  and  that  the  Agricultural  Loans  Scheme  should continue, with the determination of further capitalisation based on the demand for loans and the availability of funds.

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P.54/2026 Amd. Amd.

REPORT

The Minister for Treasury and Resources recognises the strategic value of the Jersey's rural and marine sectors to the Island's resilience, economy, culture, and food security. As the proposition itself highlights, both agriculture and fisheries face sustained structural pressures, including a long-term decline in sector participation, rising input costs, and the additional pressures created by the transition toward a living wage.

The Government remains committed to supporting these sectors, and this commitment is reflected in Budget 2026 – 2029, which continues an inflationary uplift to the rural and marine support scheme through to 2029, provides a further £5 million transfer to the Agriculture Loans Fund (capitalised with £10 million in total), continues the temporary support for the transition to a living wage into 2026, and excludes agricultural tractors from the higher rates of Vehicle Emissions Duty.

The proposition seeks to require the Council of Ministers to ensure that elements of the current level of financial support for the Rural and Marine sectors continues in perpetuity and increases annually in line with RPI(X), until the States Assembly explicitly rescinds the measure.

The Minister for Treasury and Resources remains committed to supporting these sectors however the proposition notes no alternative source of funding, leaving a financial pressure for future Governments to resolve.

Should the States Assembly agree to the continuation of Better Business Support and Agricultural Loans Scheme funding, the next Council of Ministers will need to identify and propose a funding source in the next Budget for the States Assembly to agree.

Financial and staffing implications

Recurring funding will be required for an additional £1.1m on an annual basis uplifted with RPI(X) , the next Council of Ministers will be required to identify and propose how this will be funded in the Budget 2027–2030, this could include such measures as a permanent reduction to the States grant paid into the Social Security Fund or an increase in savings targets.

The  Agricultural  Loans  Fund  is  currently  capitalised  with  £10m,  any  additional capitalisation will be for the next Council of Ministers to agree and propose in a future Budget.

Children's Rights Impact Assessment

The amendment has no direct or indirect impact on children. Accordingly, a Children's Rights Impact Assessment is not required under the Children (Conventions Rights) (Jersey) Law 2022.

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P.54/2026 Amd. Amd.