States Assembly | R-167-2014

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ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2015

1. ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2015

STATES OF JERSEY

ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2015 (For Information Only)

Council of Ministers

I.J. Gorst Senator Chief Minister

B.I. LAe MNarquNandUAL UPDSAenaTtorEH oTmeOAff aTirs aHnd DEep uMty ChTief MFinPiste r

P.F.C.DOzoEuf PARTMESenNatorT TrAeasNury aNnd REesX ourceFs OR 2015

(for information only)

A.J.H. Maclean Senator Economic Development

P.J.D. Ryan Deputy Education, Sport and Culture

A.E. Pryke Deputy Health and Social Services

Council of Ministers

A.K.F. Green M.B.E. Deputy Housing

R.CI.. JD. uGhoarmstel DeSpeuntya t o r PlanninCgh aienfd M Einnvisirtoenrment

B.I. Le Marquand Senator Home Affairs and Deputy Chief Minister

F. dPu. FH.C. . OLe zGoruef sley M.B.E SenSaetnoar t o r Social STerecausruitryy and Resources

A.J.H. Maclean Senator Economic Development

K.CP. .LJe.Dw. Ris yan

A.E. Pryke

Sir PA..MK.. FB. Gailrheaecn Mhe .B.E.

R.C. Duhamel

F. du H. Le Gresley M.B.E K.C. Lewis Sir P.M. Bailhache

DeDpuetpyu t y ETdruacnastpioonrt, Sanpdo rTt aecnhd Cnicaull tSuerervices

Deputy Health and Social Services

SeDneaptourt y EHxtoeurnsianlg Relations

Deputy Planning and Environment Senator Social Security

Deputy Transport and Technical Services Senator External Relations

J.DJ. .RDic. Rhaicrdhasordns on Chief ExecuCthivieef Executive

R. Bell Interim Treasurer of the States

ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2015 (FOR INFORMATION ONLY) PPAAGGEE 13

PAGE 4

Contents

PAGE

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary of States Revenue Expenditure Allocations 2015 . . . . . . . . . . . . . . . . . . . . . . . . . 7 Consolidated Statement of Comprehensive Net Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . 8

Estimates of States Funded Bodies 2015

Chief Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Jersey Overseas Aid Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Education, Sport and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Department of the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Health and Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Home Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Social Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Transport and Technical Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Treasury and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Non-Ministerial States Funded Bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 States Assembly and its services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Central Contingency Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Central Growth Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Capital Programme 2015

Capital Programme Funding Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Capital Programme for 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Capital Programme narratives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

States Trading Operations 2015

Summary of States Trading Operations 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Capital Allocations to States Trading Operations for 2015 . . . . . . . . . . . . . . . . . . . . . . 192 Ports of Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Economic Development

Jersey Airport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Jersey Harbours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Transport and Technical Services

Jersey Car Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Jersey Fleet Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227

Introduction

INTRODUCTION PAGE 1

Annual Update to the MTFP Department Annex for 2015

Introduction

The States approved the first Medium Term Financial Plan for Jersey in November 2012. This represented a move to a 3-year planning framework, or Medium Term Financial Planning. For the first time the States of Jersey agreed total expenditure limits and minimum budgets for all departments

3 years in advance and moved away from short-term decision making. This change was intended to provide flexibility, deliver efficiencies and move to longer-term thinking within a more certain financial framework that will ultimately benefit the Island.

The Medium Term Financial Plan 2013 2015 was split into two parts:

The formal lodged report providing the background to the financial and economic position, the

revenue and capital expenditure proposals and details of the measures that are proposed to balance budgets and actively manage the balance sheet over the next three years.

The first department annex to the Medium Term Financial Plan provided information to support the

main report including a summary of each department s key objectives towards delivering the seven strategic priorities and the detail of how the proposed department expenditure limits would be allocated to services.

This Annual Update to the Medium Term Financial Plan Department Annex for 2015 follows a similar document produced for 2015 and provides an essential update of the department revenue and capital expenditure allocations for any permanent approved changes since the MTFP was agreed in November 2012.

The annual updates to the MTFP expenditure allocations are important as they provide a revised position for departments and an updated point of reference for the Financial Report and Accounts. Importantly, ALL the changes in expenditure allocations reported in the annual updates remain within the total States expenditure limits agreed in the MTFP by the States.

The first Update was provided last year, giving a revised starting position for 2014. All of the changes in expenditure allocations were recurring and therefore appear again in the 2015 Update, accompanied by any further permanent changes which have been approved during 2014.

The Annual Update to the Medium Term Financial Plan Department Annex for 2015 includes permanent and approved changes in expenditure allocations for:

allocations of Central Growth for 2015 as agreed in the 2014 Budget,

capital expenditure allocations to individual projects for 2015 as agreed in the 2015 Budget, service transfers between departments,

allocations from the Central Contingency (Pay Provision) to departments, and

the allocation of Corporate Procurement Savings to departments.

The Annual Update to the Medium Term Financial Plan Department Annex for 2015 also includes:

an introduction from each Minister including any changes to the main priorities, key objectives and

success criteria for the department in 2015,

INTRODUCTION PAGE 3

a detailed service analysis for each department for 2015, including staffing levels and a split of

gross expenditure and income across cash and near cash (which includes depreciation and other non-cash items),

a statement of comprehensive net expenditure for each department for 2015,

a reconciliation of the changes in expenditure allocations since the MTFP for 2015, a summary of the States net revenue expenditure for 2015, and

a summary of the States proposed capital programme for 2015.

The Minister for Treasury and Resources is indebted to all departments for their co-operation in providing this information.

2015 Budget Measures

As part of the 2015 Budget it was identified that additional savings would be required from all Departments as part of a range of measures necessary to manage the consolidated fund balance in 2015. Each Department (excluding Overseas Aid and States Trading Departments) has been required to make savings equivalent to 2% of gross revenue expenditure. This quantum has been deducted from Departments cash limits for 2015 although identification of the specific recurring savings may not be finalised until June 2015.

In addition to Departmental savings, the Council of Ministers agreed that the 2015 Central Pay Provision should be reduced by 1% as part of the 2015 Budget Measures.

These savings have been transferred to a specific area of the Central Contingency Allocations and will be used along with other contributions to manage the consolidated fund balance in 2015.

Medium Term Financial Plan 2016–2019

This Annual Update will be the final document of the current MTFP 2013 2015.

Work has already begun on the next Medium Term Financial Plan which will cover the period 2016 2019. This is due to be lodged in late June 2015, for debate at the end of September 2015. A full MTFP Department Annex 2016 2019 will be produced at this time.

Summary Tables

SUMMARY TABLES PAGE 5

Annual Update to the MTFP Department Annex for 2015

Summary of States Revenue Expenditure Allocations 2015

	2015		2015		2015		2015		2015
	Revised Gross Expenditure Allocation		Revised Income Allocation		2% Savings		Reduction of Central Pay Provision by 1%		Revised Net Expenditure Allocation
	£ 000		£ 000		£ 000		£ 000		£ 000

States Funded Bodies
Ministerial Departments
Chief Minister		23,919.7		(1,894.6)		(486.0)				21,539.1
Grant to the Overseas Aid Commission		10,283.7								10,283.7
Economic Development		20,573.4		(1,723.9)		(420.0)				18,429.5
Education, Sport and Culture		130,398.8		(19,158.7)		(2,649.0)				108,591.1
Department of the Environment		10,397.2		(4,449.2)		(204.8)				5,743.2
Health and Social Services		230,288.8		(25,332.3)		(4,702.0)				200,254.5
Home Affairs		51,717.8		(2,127.3)		(1,033.2)				48,557.3
Social Security		194,731.4		(3,937.5)		(330.9)				190,463.0
Transport and Technical Services		45,284.8		(17,816.4)		(817.5)				26,650.9
Treasury and Resources		38,039.0		(7,543.1)		(1,773.2)				28,722.7
Non Ministerial States Funded Bodies
Bailiff s Chambers		1,860.4		(196.9)		(36.6)				1,626.9
Law Officers Department		9,820.9		(1,832.6)		(203.9)				7,784.4
Judicial Greffe		8,337.2		(1,390.3)		(161.2)				6,785.7
Viscount s Department		2,027.0		(601.2)		(39.3)				1,386.5
Official Analyst		702.1		(63.0)		(13.1)				626.0
Office of the Lieutenant Governor		829.0		(98.0)		(16.6)				714.4
Office of the Dean of Jersey		26.3				(0.5)				25.8
Data Protection Commission		391.2		(156.6)		(7.7)				226.9
Probation Department		2,659.0		(445.0)		(53.1)				2,160.9
Comptroller and Auditor General		777.2				(16.2)				761.0
States Assembly and its services		5,330.7		(94.7)		(98.0)				5,138.0
Allocations for Contingencies
Central Contingencies		7,000.0								7,000.0
Central Pay Provision		7,244.4						(3,480.0)		3,764.4
Provision for Restructuring Costs		7,170.0								7,170.0
Corporate Procurement Savings Target
2015 Budget Measures						12,068.5		3,480.0		15,548.5

Allocation for Growth
Allocation for Growth for 2015

		809,810.0		(88,861.3)		(994.3)				719,954.4

Outstanding Service Transfers to/from ex-Housing

Department to be balanced by adjustment to Andium 675.2 675.2 Homes Return in 2015

Net Revenue Expenditure Allocation 810,485.2 (88,861.3) (994.3) 720,629.6 Depreciation 44,684.7 44,684.7

Impairment of Fixed Assets

Net Revenue Expenditure Allocation 855,169.9 (88,861.3) (994.3) 765,314.3 Note: The 2% figure for Treasury and Resources also contains a sum for Corporate Procurement Savings which are yet to be allocated.

SUMMARY TABLES PAGE 7

Consolidated Statement of Comprehensive Net Expenditure

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(7,365,300) Duties, Fees, Fines & Penalties (7,556,800) (109,144,300) Sales of Goods and Services (68,225,200) (2,000) Investment Income (2,000) (13,006,600) Other Income (13,077,300) (129,518,200) Total Income (88,861,300)

Expenditure

181,071,700 Social Benefit Payments 186,263,500 368,863,100 Staff Costs 367,999,800 129,339,600 Supplies and Services 133,353,200 5,907,100 Administrative Expenses 6,039,800 55,073,300 Premises and Maintenance 41,355,900 1,428,000 Other Operating Expenses 1,583,000 42,391,300 Grants and Subsidies Payments 43,249,100 116,100 Impairment of Receivables 118,900 6,261,100 Finance Costs 7,370,900

Foreign Exchange (Gain)/Loss

8,666,300 Contingency Expenses 21,481,600

Central Growth Allocation

799,117,600 Total Expenditure 808,815,700

669,599,400

Revised Net Revenue Near Cash Expenditure

719,954,400

Outstanding Service Transfers to/from ex-Housing Department to be balanced by adjustment

675,200 to Andium Homes Return in 2015

720,629,600 59,858,600 Depreciation 44,684,700

5,498,100 Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

734,956,100 Revised Net Revenue Non Cash Expenditure 765,314,300

PAGE 8 SUMMARY TABLES

Chief Minister

CHIEF MINISTER PAGE 9

Chief Minister

Minister's Introduction

The Chief Minister s Department is structured into two main service areas, with separate Accounting Officers:

Chief Executive

Policy Unit (policy support and research for the Council of Ministers and Chief Executive;

economic advice, communications; statistics; the Population Office; Emergency Planning; Law Draftsman s Office

Information Services

Human Resources

Financial Services

Public Sector Reform Programme Office

Director of External Relations and Constitutional Affairs

UK, European and International relations support for the Chief Minister, Minister for External

Relations and other Ministers;

Policy advice and implementation to support the Chief Minister s responsibility within the

executive branch of government for policy and resources in relation to the overall justice system, safeguarding human rights, external data protection issues, legal services, constitutional reform and strengthening democracy.

The prime focus of the department during the three years from 2013 to 2015 is to support and co- ordinate the Council of Ministers to deliver the priorities approved by the States in the Strategic Plan, to develop policy and prepare for further Public Sector Reform over the longer term.

The appointment of a Minister with responsibility for External Relations has fostered increased recognition of Jersey s international identity and development of the Island s beneficial relations with other countries. The clarification by the States Assembly that the office of Chief Minister is responsible for justice policy and resources, constitutional reform and strengthening democracy, has brought a new focus to reforming the workings of all branches of government to meet current standards of best practice whilst maintaining the best traditions of the Island.

The department will continue to deliver and develop its services to the public and other States departments in line with its twin objectives of improving quality and efficiency.

2015 Budget Measures

As part of the 2015 Budget it was identified that additional savings would be required from all Departments as part of a range of measures necessary to manage the consolidated fund balance

in 2015. The quantum of savings allocated to the Chief Ministers Department amounts to £486k and although the Department is fully committed to meeting this target, it is not yet known precisely how the Department will make these savings.

The core projects and issues for each area of the Department over the MTFP period are:

Chief Executive

Policy

The Strategic Plan approved in 2012 has driven the department s policy programme. In support of this, the way policy is developed and monitored has been reviewed and enhanced to ensure appropriate co-ordination and sound performance management. The results of the 2011 census are being used to inform policy development.

Migration policy and the level of net migration, once approved by the States, will be monitored with the appropriate review mechanisms. The Control of Housing and Work Law and the draft Register of Names and Addresses Law is providing the mechanism for regulating inward migration therefore systems have been developed for their implementation.

A significant priority is to continue to progress policy initiatives designed to address the effects of the ageing population. This will require cross-department planning and working.

An important part of our work is to improve the transparency of government decisions and continue to increase public engagement in the development of policy. This includes co-ordinating the development of an implementation plan for the Freedom of Information legislation approved by the States in 2011. Funding for the project has been agreed and will be drawn down from Central Contingencies as required.

The provision of quality economic advice continues to support effective management of the economy, as will the production of relevant statistics and statistical bulletins.

The Emergencies Council will continue to lead a programme of improvements to the emergency planning and management structures and processes supported by the Emergency Planning Board.

Law Drafting

The Law Draftsman s department is a vital service providing the legislative framework within which the States operates and services are provided. In 2013, the Law Draftsman s department underwent a recruitment process for additional resource to address urgent legislation required to deliver the CSR and support initiatives to grow the economy and protect jobs. Two additional draftsmen have been made permanent from 2014 to be able to meet the underlying demand for law drafting.

Information Services

The Information Services Department (ISD) manages corporate IT services such as the network infrastructure, PC management, data centres, and provides the framework for managing IS projects and business projects with an IS element. Core business applications are managed by ISD at a Departmental level through embedded Business Support Groups (BSGs).

The priority for the MTFP period is to support the delivery of CSR savings and the new Strategic Plan objectives across the States where these are dependent on technology solutions, and in some cases improve the level of service provided.

Key activities in the MTFP period are:

upgrade of PC office information systems

consolidating existing data centres

streamlining the support model for corporate systems and services

supporting projects to improve finance and HR systems and processes

continuing the development of web services and more citizen services online.

Human Resources

Human Resources (HR) core purpose is to provide strategic and transactional people management support to States Departments to deliver their departmental and CSR objectives.

In order to fulfil this accountability, the function is delivering a number of key activities during the

MTFP period:

» completion and implementation of the Terms and Conditions Review

» harmonisation of policies and contracts of employment

» job evaluation of all roles to inform the creation of a new reward framework

» provide Organisational Development and Performance Management improvements

» upgrade or replace the Human Resources Information Systems (HRIS)

» reshape HR to support the future structure of the States organisation

» provide a Workforce Plan and Succession and Talent management process focussing on supplying the right successful local candidates for key roles.

Public Sector Reform

In this period, the Department is providing a Programme Management Office to plan, co-ordinate, manage and monitor a programme of Public Sector Reform by developing wide-ranging policy and plans to modernise and prepare the organisation to meet the challenges of the future.

External Relations and Constitutional Affairs

During 2013, the importance of UK, European and international affairs was recognised by the establishment and appointment of a Minister for External Relations. Under these new arrangements

the Department seeks to continue to protect Jersey s unique constitution and autonomy; to promote Jersey s international identity and good reputation as a responsible country committed to the rule of law, international standards and respect for internationally recognised human and labour rights; to develop Jersey s competitive position in the global economy; and to promote Jersey s cultural identity abroad.

Also during 2013, the States Assembly confirmed that the office of Chief Minister is responsible within the executive branch of government for policy and resources in relation to the overall justice system, safeguarding human rights, data protection, legal services, constitutional reform, and strengthening democracy. The focus of policy development includes the completion of the Machinery of Government Review in partnership with the Privileges & Procedures Committee and the Chairmen s Committee, initiating a review of Access to Justice in Jersey and issuing a green paper regarding the establishment of a Judicial and Legal Services Commission for Jersey.

Financial Services

During 2013, following the jurisdictional review undertaken, the importance of the finance industry was recognised by the transfer of the financial services department from Economic Development Department to the Chief Ministers Department.

Central Growth Allocations

External Relations: International meetings, Monitoring, and visiting Dignitaries £160,000 from 2014

External Relations was established using non-recurring funding sources. During 2010 and 2011

this cost was met from Fiscal Stimulus. This budget has been reduced from £260,000 in 2011 after agreeing joint monitoring contracts with Guernsey from 2012 onwards, closing the London office space used previously by the Director of International Finance and cancelling the Paris monitoring contract. Whilst there is now a recurring budget for the 6 core staff and office expenses, the international operations programme is not funded. The international operations programme requires a recurring budget of £160,000 from 2014.

External Relations: External specialist advice £100,000 from 2014

Since its establishment with non-recurring funding, External Relations has needed to commission specialist technical advice. Currently, technical expert advice from the London School of Economics Trade Policy Unit is required, for example, on the extension of the UK membership of the World Trade Organisation to include Jersey. £100,000 will buy on average 2 to 3 specialist reports per annum and recurring funding is required from 2014.

CSR: Fund permanent members of the CSR delivery team £150,000 from 2014

This team previously undertook the role of CSR Delivery Team but has now become the PSR Programme Office. The budget for the two members of staff was funded from the Restructuring Provision during the CSR process (2011 13) but now requires permanent funding of £150,000 from 2014 to support the Public Sector Reform programme. It is anticipated that this may need to be supplemented with additional temporary resource as required.

Service Transfers

Transfer of Rent and Service Charges £21,100 to Housing Department

As part of the Housing Transformation Programme it was agreed that rental and service charges budgets would be transferred from CMD to Housing.

Safeguarding Partnership Board £274,700 from Health and Social Services

The Council of Ministers agreed the allocation of sufficient budget to establish a Vulnerable Adults Policy Group and Jersey Vulnerable Adults Protection Committee. In addition, and by association, it was proposed that responsibilities for leading the Children s Policy Group and the Children s Protection Committee also transfer to the Chief Minister s Department from H&SS.

Transfer of grant for Bureau de Jersey £75,000 from Economic Development

In order to rationalise the management of overseas outposts and to better reflect the Chief Minister s legal responsibility, as well as the role played by the External Relations team in regional relations, EDD and CMD decided to transfer responsibility for the management of Bureau de Jersey.

Disbanding of the Customer Services Centre £224,400 to Treasury and Resources, Housing and Transport and Technical Services

Following a review of accommodation in the States and the effectiveness of the Cyril Le Marquand Customer Services Centre, it was identified that efficiencies could be achieved by closing the Customer Services Centre and budgets and resources were transferred back to the relevant departments.

Transfer of Financial Services £1,016,500 from Economic Development

Following the recommendations from the McKinsey Report and discussions with the Economic Development Minister and Treasury & Resources Minister, it was agreed that overall accountability and responsibility for financial services should reside with the Chief Minister.

Corporate Health and Safety Manager £63,000 to Transport and Technical Services

It was agreed that CMD would provide support to TTS in creating a Corporate Health and Safety function across the States and that the Chief Officer of TTS would be responsible for Corporate Health and Safety.

Strategic Housing Unit £186,800 from Housing Department

The Affordable Housing Gateway was set up using resources within the Housing Department, and following the approval by the States, the responsibility of the Gateway moved to the Chief Minster s Department, along with the team of officers.

Geospatial Information System net income of £16,500 to Department of the Environment

In 2014 and 2015 the Geospatial Information System (GIS) will be transferred from the Department of the Environment (DoE) to the Chief Minister s Department (CMD) and a net revenue recurring budget of £16,500 will transfer from CMD to the DoE. The use of geospatial information (GI) is increasing rapidly. There is a growing recognition amongst both governments and the private sector that an understanding of location and place is a vital component of effective decision-making.

The States GIS Service is a pre-requisite to improving States services provided to the citizens of Jersey. There is an investment cost to the organisation, both setting up the service, and on-going developments of the infrastructure and new applications. Since geospatial information is becoming embedded in any government information, the costs of running the GIS service should be seen as a necessary overhead, upon which further, more value-added services can be built.

Transfer of Additional Resource £93,400 from Treasury & Resources

Freedom of Information (FOI) comes into effect from January 2015, under the Freedom of Information (Jersey) Law 2011 adopted by the States of Jersey. In order to further strengthen the FOI team it was agreed that T&R would provide an additional resource to CMD.

Senator Ian Gorst

Chief Minister

AIM:

Support and advise the Chief Minister and Council of Ministers in establishing, co-ordinating,

communicating and implementing States approved policies and objectives.

Provide direction and leadership to the public service to ensure that policies and programmes are

delivered in accordance with agreed priorities.

Conduct external relations to further develop Jersey s international standing and strengthen business

and cultural links which benefit Islanders.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Chief Executive

Key Objective 1: The co-ordinated development and implementation of States policies.

Success criteria:

A robust framework in place with clear processes defined for developing, co-ordinating and communicating policy to deliver the Strategic Plan and to achieve a balance of economic, social and environmental objectives;
Housing Strategy developed and agreed;
Co-ordinated long term (15+ years) socio/economic/environmental policy plan produced as a blueprint for the future.

Strategic Plan References:

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment; A highly skilled workforce

Priorities: Get people into work; Manage population growth and migration; House our community; Promote family and community values; Reform Health & Social Services; Reform government & the public sector; Sustainable long-term planning

Key Objective 2: An efficient and effective public sector fit for the purpose of delivering the Council of Ministers' strategic vision and priorities.

Success criteria:

Continued focus on delivering essential services through the prioritisation of budgets and manpower in accordance with strategic priorities;

Agreed model for reformed public sector based on service redesign, workforce modernisation and cultural change;
Public services matched to affordability and public expectation.

Strategic Plan References:

Vision: Preparing for the future; A highly skilled workforce

Priorities: Reform government & the public sector; Develop sustainable long-term planning

Key Objective 3: Decision-making improved and debate better informed through the provision of accurate and timely professional advice and information.

Success criteria:

States assisted to meet its objectives through the provision of sound advice;
Ministerial decisions supported by robust evidence;
AllStatistics Unit releases produced independently to pre-announced release dates and statistical information made available on an impartial basis;
Structures in place to ensure proper governance processes and information management;
Successful implementation of Freedom of Information arrangements.

Strategic Plan Reference(s):

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future

Priorities: Get people into work; Manage population growth and migration; Promote family and community values; Develop sustainable long-term planning

Key Objective 4: Population levels that achieve a balance between economic growth and the additional demand migration places on accommodation, infrastructure and resources.

Success criteria:

Revised migration/population policy agreed by the States;
Improved mechanisms in place to control population.

Strategic Plan Reference(s):

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment; A highly skilled workforce

Priorities: Get people into work; Manage population growth and migration; House our community; Develop sustainable long-term planning

Key Objective 5: Deliver £65 million Comprehensive Spending Review (CSR) savings target by the end of 2013.

Success criteria:

Agreed overall savings package delivered by the end of 2013;
Agreed Chief Minister s DepartmentCSR savings delivered by the end of 2013.

Strategic Plan Reference(s):

Vision: A strong and sustainable economy; Preparing for the future

Priorities: Reform government and the public sector; Develop sustainable long-term planning

External Relations and Constitutional Affairs

Key Objective 6: Jersey's international responsibilities fulfilled and beneficial relations advanced with the United Kingdom, other countries and international organisations.

Success criteria:

International obligations met;
Relevant international conventions and bi-lateral agreements are ratified/extended, recognising Jersey s autonomy and commitment to international standards;
Close relationship withtheUK maintained and our unique constitution and autonomy protected;
Strengthened international relations and partnerships,supporting new and existing business and cultural links which benefit Islanders.

Strategic Plan Reference(s):

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future

Priorities: Get people into work; Manage population growth and migration; Develop sustainable long- term planning

Objective 7: Jersey's constitutional arrangements are developed to reflect current best practice whilst maintaining the best traditions of the Island

Performance/success criteria:

Machinery of Government reviewed and improvements proposedwherenecessary;
Review of access to justice in Jersey is initiated and interim report completed;
Green paper developed regarding a Judicial and Legal Services Commission.

Strategic Plan Reference:

Vision: A safe and caring community;

Priorities: Reform Government & the Public Sector

Financial Services

Objective 8: Maintain and support the growth of financial services sector capacity.

Success criteria:

Development of both existing (UK/EU) and new markets in line withthe strategy agreed following the jurisdictional review;
Alignment of Jersey Finance Ltd, the Jersey Financial Services Commission and Government operating within a set of common objectives;
Contribute to increasing thespeed of legislative development alongside the Law OfficersDepartment;
Maintain Jersey s international profile as a transparent and co-operative jurisdiction;
Legislation set by territories outside of Jersey does not have an adverse impact on the finance industry.

Strategic Plan Reference(s):

Vision: A strong and sustainable economy Priority: Get People Into Work

Chief Minister

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash			Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income		2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure		2015 FTE
£	£		£ £ £		£

Policy Unit								47.6
1,374,700 Chief Executive s Office				1,465,900 1,465,900		1,465,900
229,800 Communications Office		(35,500)		264,600 229,100		229,100
234,300 Population Office		(931,700)		1,161,000 229,300		229,300
432,000 Statistics				440,900 440,900		440,900
408,500 Economics		(60,000)		471,300 411,300		411,300
9,900 Legislation Advisory Panel				10,100 10,100		10,100

2,053,600 External Relations				2,063,300 2,063,300		2,063,300		8.0

1,029,700 Financial Services				1,029,700 1,029,700		1,029,700		8.0

1,011,200 Law Drafting Department				1,014,700 1,014,700		1,014,700		10.0

10,175,000 Information Services		(733,400) 10,286,700 9,553,300 455,400 10,008,700						87.9

5,361,100 Human Resources		(134,000) 5,478,600 5,344,600 5,344,600						74.0

Pensions

232,900 CSR		232,900 232,900 232,900						2.0

22,552,700 Revised Net Revenue Expenditure		(1,894,600) 23,919,700 22,025,100 455,400 22,480,500						237.5

Reduction in funding for 2% savings (486,000) (486,000) 21,539,100 21,994,500

Chief Minister

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(301,800) Duties, Fees, Fines & Penalties (311,700) (1,436,400) Sales of Goods and Services (1,451,900) Investment Income

(131,000) Other Income (131,000) (1,869,200) Total Income (1,894,600)

Expenditure

Social Benefit Payments

15,044,000 Staff Costs 14,927,000 6,474,500 Supplies and Services 6,571,700 521,100 Administrative Expenses 519,500 529,200 Premises and Maintenance 533,700 800 Other Operating Expenses 800 1,367,000 Grants and Subsidies Payments 1,367,000

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

23,936,600 Total Expenditure 23,919,700

22,067,400

Revised Net Revenue Near Cash Expenditure

22,025,100

Reduction in funding for 2% savings (486,000) 21,539,100

485,300 Depreciation 455,400

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

22,552,700 Revised Net Revenue Non Cash Expenditure 21,994,500

Chief Minister

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 £

Base Department Budget 19,756,600

Price Inflation Dept Income (32,400) Price Inflation Dept Expenditure 154,400 Price Inflation Provision for Pay Award

Commitments from Existing Policies

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth (30,000) Proposed Procurement Savings

Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

19,848,600

2015 £

Approved Variations to Expenditure Limits since MTFP

Service Transfers

Transfer of Rental and Service Charges

(21,100) budget for Jubilee Wharf to Housing Department

Transfer of Safeguarding Partnership Board

274,700 from Health and Social Services Department

Transfer of Bureau de Jersey from Economic

75,000 Development

Transfers upon the Disbanding of the

Customer Services Centre to Housing

(224,400) Department, Treasury and Resources and

Transport and Technical Services

Transfer of Financial Services from Economic

1,016,500 Development

Transfer of Corporate Health and Safety

(63,000) Manager to Transport and Technical Services

Transfer of Strategic Housing Unit from

186,800 Housing Department

Transfer of Geospatial Information System from

(16,500) Department of the Environment

Transfer of additional resource for Freedom of

93,400 Information from Treasury & Resources

Allocations of Central Growth 2015

External Relations: International meetings,

160,000 monitoring and visiting dignitaries

External Relations: External specialist advice 100,000 CSR: Fund permanent members of the CSR

150,000 delivery team

Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

130,400 Award

Recurring effect of 2014 4% Consolidated Pay

539,900 Award

Procurement Savings (225,200) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (486,000)

Revised Net Revenue Near Cash Expenditure

21,539,100

Depreciation per MTFP 455,400 2015 Depreciation Adjustment

Revised 2015 Depreciation 455,400 Revised Net Revenue Non Cash Expenditure 21,994,500

Jersey Overseas Aid Commission

JERSEY OVERSEAS AID COMMISSION PAGE 25

Jersey Overseas Aid Commission

The Jersey Overseas Aid Commission s grant from the States of Jersey was reviewed in 2010 when it was proposed that an increase of approximately 5% be awarded on the existing grant per annum.

The largest part of the Commission s budget is allocated to grant aid with approximately 80% allocated to the Commission s approved aid agencies submitting proposals for projects covering clean water, health, sanitation, education, agriculture, livestock and revolving credit schemes for small businesses. £1,500,000 of its grant is available for disaster and emergency relief due to ever increasing demands for both natural disasters and the emergencies arising through human conflict. The Commission will give preference to projects located in countries in Africa, Latin America or South-East Asia which are within the bottom 50 countries on the Human Development Index.

AIM:

To manage and administer the monies voted by the States of Jersey for overseas aid, so as to enable humanitarian aid to be provided to developing countries for the purpose of:

assisting in the reduction of poverty;

providing medical and healthcare;

providing effective education and training;

assisting in emergency and disaster needs, including the subsequent restoration of facilities; and

other purposes, relating to the provision of humanitarian aid overseas, that the Commission may from

time to time consider appropriate.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: To implement fully the Jersey Overseas Aid Commission (Jersey) Law 2005

Success criteria

The Commission will pursue this by:

working closely withthe private and voluntary sectors;
ensuring the consistency of policies affectingpoorer countries;
using resources efficiently and effectively;
the provision of funding to large and medium sized relief projects, including that of emergency and disaster relief, implemented through internal recognised specialist aid agencies or through local charities working overseas;
the provision of funding for community work projects, where teams of local volunteers undertakespecific aid projects.

Jersey Overseas Aid Commission

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £		£

10,283,700 10,283,700 10,283,700			1.0

10,283,700 10,283,700 10,283,700			1.0

Reduction in funding for 2% savings

10,283,700 10,283,700

Jersey Overseas Aid Commission

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties Sales of Goods and Services

Investment Income

Other Income

Total Income

Expenditure

Social Benefit Payments

78,600 Staff Costs 78,600 13,000 Supplies and Services 13,000 2,300 Administrative Expenses 2,300

Premises and Maintenance

Other Operating Expenses

9,700,300 Grants and Subsidies Payments 10,189,800

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

9,794,200 Total Expenditure 10,283,700

9,794,200

Net Revenue Near Cash Expenditure

10,283,700

Depreciation

Impairment of Fixed Assets Asset Disposal (Gain)/Loss

9,794,200 Net Revenue Non Cash Expenditure 10,283,700

Jersey Overseas Aid Commission

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 £

Base Department Budget 9,790,300 Commitments from Existing Policies

5% p.a. increase in Overseas Aid Funding 489,500

Departmental Transfers

Capital to Revenue Transfers Proposed MTFP Growth Proposed Procurement Savings Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

10,279,800

2015 £

Approved Variations to Expenditure Limits since MTFP

Service Transfers

Allocations of Central Growth 2015 Pay

Recurring effect of 2013 1% Consolidated Pay

800 Award

Recurring effect of 2014 4% Consolidated Pay

3,100 Award

Procurement Savings Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings

Revised Net Revenue Near Cash Expenditure

10,283,700

Depreciation per MTFP

2015 Depreciation Adjustment

Revised 2015 Depreciation

Revised Net Revenue Non Cash Expenditure 10,283,700

Economic Development

ECONOMIC DEVELOPMENT PAGE 31

Economic Development

Minister's Introduction

The Medium Term Financial Plan (MTFP) came at a critical point in the development and evolution of our economy.

The effects of the worldwide economic crisis have lasted longer than most predicted and Jersey, as an international finance centre, has not been immune to its effects. Strenuous efforts have been made to tackle unemployment which having reached record levels are now falling to levels last recorded over three years ago. As getting people back into work was one of the key priorities identified in the States Strategic Plan, the combined efforts of many Government Departments can be seen to be having a positive effect for those Islanders affected.

We must however not be complacent. At a time when significant challenges still remain, we must continue to facilitate the creation of more jobs in our economy and take a strategic view as to what kind of jobs we wish those to be. In taking this view, it is clear that if we are to seek to generate new employment, we must do so with the aim that these jobs will contribute to the delivery of economic growth growth specifically designed to deliver the tax receipts necessary to avoid having to raise taxes, whilst still being able to fund quality public services to the standard that we expect.

The Economic Growth and Diversification Strategy (EGDS) (P55/2012), set out how we intend

to achieve this. With four priorities: to encourage innovation and improve Jersey s international competitiveness; to grow and diversify the financial services sector, capacity and profitability; to create new businesses and employment in high value sectors; and to raise the productivity of the whole economy and reduce the reliance on inward migration.

Without access to the growth bids put forward in the MTFP, this Strategy simply could not be delivered. A thorough assessment of our current and future work programme illustrated that to deliver growth we would have to reduce support for tourism and agriculture to unsustainable levels in order to invest in new higher-value sectors. This would have a highly damaging impact to these traditional sectors which are the source of great pride in the island and help shape its identity as well as supporting significant numbers of people who work within them.

This is not acceptable and therefore the growth in the Department s budget to continue to invest in economic growth is absolutely vital. Whilst recognising the financial constraints we must operate under, now more than ever we need to continue investing in developing the economy.

Summary of Outline Business Cases for Growth

The following table sets out our MTFP bids, all of which are directly aligned to the priorities in the EGDS, which are in turn aimed at achieving sustainable economic growth and getting people into work.

2013 2014 2015 £000 £000 £000

Potential Growth

JFL increase grant to JFL 800 800 800 JFL additional 135 500 730 JFL Saudi/GCC Financial Services 0 350 350 Inward Investment Digital Jersey 500 500 500 Inward Investment non-Financial Services 800 800 800 Jersey Business Limited increase in grant 200 200 200 Skills & Workforce Development 290 500 500 Tourism Development Fund 500 500 500 TOTAL 3,225 4,150 4,380

Support for Jersey Finance Limited (JFL) and increased investment in developing finance legislation is vital if we are to enter new markets and develop new products so that we can grow and diversify our finance sector, which is and will remain absolutely critical to delivering future growth. As the industry which contributes 40% of our GVA, we cannot afford to neglect the sector which in turn funds such a substantial proportion of our public services.

Digital Jersey is one of the key components of our strategy to create new businesses in high value sectors. The e-commerce sector is set to have increasing significance on our economy and it is vital we can invest in and encourage its growth. Alongside this, strengthening our inward investment activities across all high value sectors is an essential driver in delivering diversification and creating jobs for local people.

We must accept however, that in seeking diversification into new and growing high value sectors, Jersey cannot operate in a vacuum. We need the external talent and investment as the catalyst for the creation of new jobs. As demonstrated by the successes over recent years, inward investment does create significant employment for local people but to do this there needs to be a limited element of inward migration. This is good for our economy and good for Jersey.

Therefore, running in parallel to investment in growth, given the well-founded concerns of managing population growth on an island of limited resources, we must reduce our reliance on inward migration in other sectors. We should use the interim migration policy to encourage job creation and economic growth rather than to fill jobs which could be filled with local people. That is why we are aligning our future support for traditional sectors such as tourism, construction and agriculture with reduced reliance on inward migration. Investment in skills is critical to fill that gap, as well as develop a workforce that can capitalise on the new and exciting opportunities inward investors provide.

Across the whole range of new and established businesses, Jersey Business will be available to help organisations achieve their full potential. As an independent, grant-funded organisation, there is an opportunity to continue its step-change in business support provision, which additional funding will enable them to deliver to an increased number of companies as the Jersey economy continues

to recover.

2015 will see significant changes to how destination marketing services will be delivered for the Island, with plans in place for the transfer to Visit Jersey , an independent, grant funded organisation sitting outside Government. In order to give confidence to the sector during this period of change, additional support, through a secure funding mechanism the Tourism Development Fund will help Jersey to compete in the global marketplace.

Each initiative is being progressed as far as possible in order to impact on job creation without delay once recurring funding is agreed. I would like to take this opportunity to thank all the staff at Economic Development for the work they have done to date as well as the significant continued work that this plan for growth and jobs requires over the MTFP period.

2015 Budget Measures

A 2% reduction to the EDD staff and non-staff budget will be mainly met in 2015 by a reduction in the non-staff budgets for Intellectual Property together with a reduction of grant funding for Jersey Finance Limited, Skills and Single Area Payments.

Service Transfers

Transfer of Rent and Service Charges £35,700 to Housing Department

As part of the Housing Transformation Programme it was agreed that rental and service charges budgets would be transferred from EDD to Housing.

Transfer of grant for Bureau de Jersey £75,000 to Chief Minister s Department

EDD and CMD decided to transfer responsibility for the management of the Bureau de Jersey in order to rationalise the management of overseas outposts and to better reflect the Chief Minister s legal responsibility, as well as the role played by the External Relations team in regional relations,

Transfer of Financial Services £1,016,500 to Chief Minister s Department

Following the recommendations of the McKinsey Report and discussions between the Economic Development Minister and Treasury & Resources Minister, it was agreed that overall accountability and responsibility for financial services should reside with the Chief Minister.

Senator Alan Maclean

Minister for Economic Development

Economic Development

AIM:

Deliver growth, improve competitiveness, diversify the local economy and create employment. SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Encourage innovation and improve Jersey's international competitiveness.

Success criteria:

(i) Work with the Treasury and Resources Department to establish a new Innovation Fund as

a Separately Constituted Fund under the Public Finances (Jersey) Law 2005 managed by EDD with an independent Board including EDD, Treasury and Resources and Chief Minister s Department representatives and Non-Executive Directors drawn from the private sector.

Note: Success for this objective will be to have established a fund and assessment framework that could be used for strategic investments into innovation and new technologies, in order to deliver a competitive advantage for Jersey, attract additional private sector investment and create new high value businesses resulting in signification new job opportunities in a more diversified economy.

Strategic Plan References:

Vision: A strong and sustainable economy Priority: Get people into work

Key Objective 2: Working across Government to grow the financial services sector capacity and profitability.

Success criteria:

Develop both existing (UK/EU) and new markets (BRIC);
Contribute to increasing thespeed of legislative development alongside the Law OfficersDepartment and Chief Minister s Department;
Raise Jersey s international profile as a transparent and co-operative jurisdiction;
Work withthe Treasury and Resources Department to improve Jersey s competitiveness in international market place through continued development of tax policy.

Note: Success for this objective will be to improve productivity within the financial services sector and maintain employment numbers at, or above, current levels whilst diversifying into new products, services and markets.

Strategic Plan References:

Vision: A strong and sustainable economy Priority: Get people into work

Key Objective 3: Create new businesses and employment in high-value sectors.

Success criteria:

Enhance efforts to secure high-value inward investment, exceeding previous levels of inward investment;
Task Jersey Business to increase the rate of high-value business start-ups and thegrowth of existing high-value businesses;
Develop a Whole of Government approach to ensure that the education system, Social Security and benefits policies, Planning approvals process and Housing and Work Laws recognise, where appropriate, the creation of employment as a priority;
Maximise the potential of Gigabit Jersey and further develop an internationally competitive telecoms offering.

Note: Success for this objective will be that by 2015, in addition to exceeding previous levels of business development and inward investment success, a minimum of 10 flagship projects will have been delivered, leveraging significant economic and growth opportunities for Jersey or Jersey businesses.

Strategic Plan References:

Vision: A strong and sustainable economy Priority: Get people into work

Key Objective 4: Raising the productivity of the whole economy and reducing the reliance on inward migration.

Success criteria:

Align the education and training of the current and future workforcewiththeneeds of employers;
Remove thebarriers to enterprise, encourage innovation and use of new technologies;
Link continued support for the Tourism and Rural sectors to increased local employment and reduced reliance on inward migration.

Note: Success for this objective would be improvement in the productivity of existing business, increased number high-value start-up enterprises, reduced numbers of hard to fill vacancies and skills gaps reported by employers, and increases in the percentage of locally qualified staff working in the traditional sectors.

Strategic Plan References:

Vision: A strong and sustainable economy; a highly skilled workforce

Priority: Get people into work; Manage population growth and migration

Key Objective 5: Continue to improve efficiency and effectiveness across the Department.

Success criteria:

Reform the mechanisms of delivery for areas of theDepartmentwhereservice can be improved and efficiencies delivered through a change in organisational structure;
Continue to develop and improve regulatory and policy frameworks which support business whilst protecting the public s interests;
Continue to drive efficiencies through the use of arms-lengthdelivery organisations.

Note: Success for this objective would be private sector led organisations delivering more of EDD s services with the Department focused on developing and improving policy and regulation.

Strategic Plan References:

Priority: Reform government and the public sector

Economic Development

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash		Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

Economic Growth & Diversification				7.2
600,000 Enterprise Support		600,000 600,000	600,000
2,075,100 Investment and Diversification		1,977,500 1,977,500	1,977,500

Tourism, Destination & Marketing				24.3
1,098,200 Joint Marketing	(298,500)	1,406,800 1,108,300	1,108,300
Destination Marketing and Communication 3,794,100	(261,000)	4,121,000 3,860,000	3,860,000
650,300 Events		663,200 663,200	663,200
124,000 Research and Statistics		124,000 124,000	124,000
367,600 Visitor Services	(208,000)	609,800 401,800	401,800
500,000 Tourism Development		500,000 500,000	500,000

Policy and Regulation				21.3
300,000 Competition Law		300,000 300,000	300,000
678,200 Consumer Affairs/Trading Standards	(106,100)	817,800 711,700 3,200	714,900
353,500 Rural Sector		361,300 361,300	361,300
608,900 Policy Development	(850,300)	1,626,600 776,300	776,300

4,859,000 Financial Services		4,970,000 4,970,000	4,970,000

Rural Support				4.0
887,800 Single Area Payment		892,800 892,800	892,800
460,000 Dairy Service Support Payment		420,000 420,000	420,000
317,400 Rural Initiative		320,000 320,000	320,000
60,700 General Support		43,300 43,300	43,300

Skills				1.5
781,600 Training and Workforce Development		819,300 819,300	819,300

18,516,400 Revised Net Revenue Expenditure	(1,723,900) 20,573,400 18,849,500 3,200 18,852,700			58.3

Reduction in funding for 2% savings (420,000) (420,000) 18,429,500 18,432,700

Economic Development

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(667,800) Duties, Fees, Fines & Penalties (667,800) (981,100) Sales of Goods and Services (981,100)

Investment Income

(75,000) Other Income (75,000) (1,723,900) Total Income (1,723,900)

Expenditure

Social Benefit Payments

3,493,300 Staff Costs 3,493,300 6,265,500 Supplies and Services 6,153,400 251,500 Administrative Expenses 251,500 356,100 Premises and Maintenance 354,000 390,000 Other Operating Expenses 700,500 9,480,700 Grants and Subsidies Payments 9,620,700

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

20,237,100 Total Expenditure 20,573,400

18,513,200

Revised Net Revenue Near Cash Expenditure

18,849,500

Reduction in funding for 2% savings (420,000) 18,429,500

3,200 Depreciation 3,200

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

18,516,400 Revised Net Revenue Non Cash Expenditure 18,432,700

Economic Development

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 19,459,300 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (49,100) Price Inflation Dept Expenditure 334,600 Price Inflation Provision for Pay Award

Commitments from Existing Policies

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth 230,000 Proposed Procurement Savings

Proposed Other Budget Measures

Service Transfers

Transfer of Rental and Service Charges

budget for Jubilee Wharf to Housing (35,700) Department

Transfer of Bureau de Jersey to Chief

(75,000) Minister s Department

Transfer of Financial Services to Chief

(1,016,500) Minister s Department

Allocations of Central Growth 2015 Pay

Recurring effect of 2013 1% Consolidated Pay

38,100 Award

Recurring effect of 2014 4% Consolidated Pay

140,900 Award

Procurement Savings (177,100) Capital to Revenue Transfers

Net Revenue Near Cash Expenditure per MTFP

19,974,800

Other Variations

Reduction in funding for 2% savings (420,000)

Revised Net Revenue Near Cash Expenditure

18,429,500

Depreciation per MTFP 3,200 2015 Depreciation Adjustment

Revised 2015 Depreciation 3,200 Revised Net Revenue Non Cash Expenditure 18,432,700

Education, Sport and Culture

EDUCATION, SPORT AND CULTURE PAGE 43

Education, Sport and Culture

Minister's Introduction

Positive progress has been made across all sections of the department since the start of this MTFP but particularly in education and sport, where teams have been working towards two major events; a new curriculum and the 2015 NatWest Island Games.

In our schools the focus remains on improving standards. Our shared aspiration is for the highest quality of educational and wider opportunities for all of Jersey s children and young people. To achieve this, teachers and education advisers have been responding to rapid changes in the UK and planning for the introduction of a new curriculum and new GCSE and A-level exams.

As it has done previously, Jersey will take an adopt and adapt approach to the changes. This means our schools will follow the new curriculum from September 2014, taking the essential elements but adapting certain aspects to reflect the Island s unique culture and history. This ensures our students are not disadvantaged compared to their UK counterparts when they take the first of the new exams in 2017 and then look towards university or employment.

Alongside this, the next steps have been taken to meet the demographic changes in our schools. Capital expenditure of £8.8 million was previously approved for a building programme and this will provide the additional primary school places the community will need from 2016. The projects are under way and contractors have started on some of the sites.

Overall, the education sector is in a period of change and a great deal of this is due to factors outside our control.

As a result of recent high unemployment, a new Skills Strategy has been created that works towards a medium to long-term plan for preparing our future workforce. Education initiatives are a major part of this. Some are already in place. ESC s IT strategy Thinking Differently has put creative computing skills high on the agenda and has been prepared and delivered with input from the business community. The Trackers apprentice programme, launched at the end of 2012, continues to perform beyond expectations and is receiving positive feedback from employees and employers who take part. Further expansion is now taking place to meet demand. Also, the Prince s Trust is providing targeted support specifically to vulnerable young people to help them find work.

This is delivered in partnership with the Jersey Youth Service whose team have played a vital part in supporting our teenage community through difficult times recently. This was over and above their usual work and is ongoing. Their service is highly valued across the community and has a strong future. The completion of the St James Centre project, redevelopment of the Crabbe outdoor activity base and

the opening of the Move On CafØ in town, will all improve still further their ability to meet their strategic aims.

The Fit for the Future strategy has stimulated a surge of interest in sport and enabled us to encourage participation at an early age. It has launched a range of initiatives that include a focus on primary age swimming, childhood obesity and support for local sports clubs. The strategy also unlocked funding

to support the countdown to the 2015 NatWest Island Games. As a result there is a drive to prepare and improve a range of facilities in time for the event and to engage a wide range of Islanders in what should be a memorable national event for us. It will be an important showcase for the Island with the potential to highlight the best of Jersey, not just to visitors but to the Island community as well.

2015 Budget Measures

The proposed measures to balance the consolidated fund in 2015 2% cuts would put significant pressure on our budget and is likely to have a direct impact on our ability to maintain frontline services. This is a particular concern in relation to standards, demographic pressures and the plans for Trackers, however we will continue to work on the effective delivery of these services within the constraints of the budget cut.

Deputy Patrick Ryan

Minister for Education, Sport and Culture

Education, Sport and Culture

AIM:

Strengthen our community by providing a first class education service, supporting the development

of skills and promoting sporting, leisure and cultural activities that enrich our lives.

Ensure that our children enjoy the best start possible.

Prepare our young people for the challenges of the future and encourage them to make a positive

contribution to society.

Encourage lifelong learning and active participation in sport and culture. Promote social inclusion and equal opportunity.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Provide opportunities for all learners to succeed.

Success criteria:

The current vocational pilots offered across schools and Highlands College are extended and co-ordinated to provide a broader range of choice for up to 25% of 14 16 year olds in the non fee-paying schools;
New skills strategy developed by the Skills Board and accepted by Skills Executive and Council of Ministers;
Review the school curriculum for Information Technology to take account of changes to the UK curriculum and theneeds of individuals and industry;
Increase in the number of Higher Education programmes on offer locally through increased activity in theUniversity Centre and greater partnershipwith private sector providers;
Development of the 4th ICT Strategy (2013 2015) to supportproposed new curriculum, E-learning, E-safety, and administrative objectives;
Governance arrangements in schools further improved to ensure adherence to agreed standards, e.g. health and safety, data security;
Training, development and succession planning in place to ensure the sustainability of the Professional Partnering Scheme;

(viii) A comprehensive programme for leadership and management development at all levels

complements school self-evaluation, increases effectiveness and allows for succession planning;

Early Years and Day Care Registration amalgamated to promote comprehensive support to Early Years providers;
The recommendations arising fromthe reviews of the curriculum, structure and funding of primary and secondary education assessed and implemented where appropriate;
A new apprenticeship scheme for young people between 16 and 19 years old is introduced in partnershipwith employers.

Strategic Plan References:

Priority: Get people into work; Develop sustainable long-term planning

Key Objective 2: Promote social inclusion and equal opportunity for all.

Success criteria:

Educational support arrangements for vulnerable children and young families are delivered within the framework of the Children and Young People s Plan;
School-basedsupport for parents further developed in partnershipwiththe Parenting Service;
Central database enables early identification, assessment and monitoring of children who require intervention and additional support;
Language support in place for individuals who do not speak English as a first language;
New Prince s Trust programmes delivered according to plan;
Research and assessneeds for libraryservices for housebound people contributing to improved quality of life and independent living for frail/elderly.

Strategic Plan References:

Priority: Reform Health & Social Services; Develop sustainable long-term planning; Promote family and community values;

Key Objective 3: Work in partnership with local and national organisations, promote healthy lifestyles and to increase opportunities for the local community to participate in sport, leisure and cultural activities.

Success criteria:

A new strategy for sport is developed;
Increased collaboration between cultural organisations leads to sustained levels of participation and activity;
Youth Service reorganisation completed and partnershipswith Parishes sustained;
Communitysport programmes increased in targeted areas;
2015 Organising Committee develops plans withSport Governing Bodies to host NatWest Island Games in 2015;
Individuals and teams continue to compete in Regional, National and International competitions;
Allsport centres continue to achieve Quest accreditation ensuring the operation of high quality facilities and good customer care;

(viii) Schools supported to review their Travel Plans as part of the Safer Routes to School initiative;

Exercise referral continues to develop programmes with Health and Social Services targeted at those in need;
Smoking reduction program targeted at Year 8 pupils developed and delivered with Health Promotion.

Strategic Plan References:

Priority: Promote family and community values

Key Objective 4: Plan effectively for the future.

Success criteria:

Results of public consultation on the future of education in Jersey published and way forward determined;
Data and performancereporting functions further developed to meet the requirements of the ESC service;
Action plans arising from a review of the ESC propertyportfolio implemented;
Governance arrangements reviewed to supportthe introduction of the new Control of Housing and Work (Jersey) Law and Register of Names and Addresses (Jersey) Law;
Comprehensive Spending Review and other savings delivered in accordance with agreed timescales and as approved by the States;
Demographic changes monitored, analysed and assessed, and appropriate solutions identified to respond to present and future demands on the service;
Records management systems further developed and improved to supportthework of the ESC service and prepare for the introduction of the new Freedom of Information Law;

(viii) ESC Communications Strategy implemented to improve communication with internal and external

stakeholders;

(ix) Support provided to bring forward proposals for the Future of Fort Regent. Strategic Plan References:

Priority: Develop sustainable long-term planning

Education, Sport and Culture

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash		Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

Schools and Colleges
Non Fee Paying Provided Schools
3,813,000 Pre-School Education	(528,300)	4,360,600 3,832,300 3,832,300		47.7
26,299,900 Primary Education	(151,600)	26,517,100 26,365,500 42,700 26,408,200		450.1
25,169,800 Secondary Education	(344,800) 25,194,700 24,849,900 46,900 24,896,800			392.9
Special Educational Needs and Special Schools 8,304,000	(76,700) 8,352,500 8,275,800 49,500 8,325,300			145.3
585,200 Instrumental Music Service	(339,300) 918,500 579,200 579,200			13.4
5,802,400 Fee Paying Provided Schools	(9,545,200) 15,031,400 5,486,200 44,700 5,530,900			209.5
4,877,300 Non Provided Schools	4,799,300 4,799,300 4,799,300

Culture and Lifelong Learning
11,590,900 Further and Higher Education	(2,694,200) 14,268,000 11,573,800 10,500 11,584,300			215.6
10,642,400 Higher Education		11,613,800 11,613,800	11,613,800	4.8
1,510,300 Youth Service	(821,600)	2,289,600 1,468,000 26,700	1,494,700	35.2
904,100 Careers Jersey		906,400 906,400	906,400	28.3
Child Care Support
199,900 Child Care Registration		200,500 200,500	200,500	3.7
185,300 Jersey Child Care Trust		188,900 188,900	188,900
1,736,100 Public Libraries	(61,300)	1,801,900 1,740,600 1,800	1,742,400	30.2
2,727,800 Heritage (Grant to the JHT)		2,778,200 2,778,200	2,778,200
1,868,700 Culture (including the Grant to the JAT)		1,902,100 1,902,100	1,902,100	1.4

Sports Division
1,781,600 Sports Centres	(3,579,100)	5,206,500 1,627,400 64,200	1,691,600	70.7
1,369,800 Playing Fields and Schools Sports	(779,100)	2,134,300 1,355,200 6,200	1,361,400	8.9
517,600 Sport Development	(179,600)	694,200 514,600	514,600	15.6
896,000 Grants and Advisory Council		912,800 912,800	912,800
166,300 Playschemes and Outdoor Education	(57,900)	223,600 165,700	165,700	2.2
102,000 Minor Capital Expenditure		103,900 103,900	103,900

111,050,400 Revised Net Revenue Expenditure	(19,158,700) 130,398,800 111,240,100 293,200 111,533,300			1,675.5

Reduction in funding for 2% savings (2,649,000) (2,649,000) 108,591,100 108,884,300

Education, Sport and Culture

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(21,100) Duties, Fees, Fines & Penalties (21,600) (18,307,500) Sales of Goods and Services (18,795,300) Investment Income

(333,500) Other Income (341,800) (18,662,100) Total Income (19,158,700)

Expenditure

10,194,600 Social Benefit Payments 11,168,500 88,218,600 Staff Costs 88,009,500 10,238,300 Supplies and Services 10,292,700 901,400 Administrative Expenses 919,400 6,882,600 Premises and Maintenance 6,920,300 25,500 Other Operating Expenses 26,000 12,952,100 Grants and Subsidies Payments 13,038,100

Impairment of Receivables

23,900 Finance Costs 24,300

Foreign Exchange (Gain)/Loss

Contingency Expenses

129,437,000 Total Expenditure 130,398,800

110,774,900

Revised Net Revenue Near Cash Expenditure

111,240,100

Reduction in funding for 2% savings (2,649,000) 108,591,100

275,500 Depreciation 293,200

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

111,050,400 Revised Net Revenue Non Cash Expenditure 108,884,300

Education, Sport and Culture

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 106,177,900 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (480,000) Service Transfers

Price Inflation Dept Expenditure 859,200 Price Inflation Provision for Pay Award H eTaraltnhsafenrdoSf oCchiaildl Saenrdvi cFeamsily Centre from 60,000

Commitments from Existing Policies

CSR Growth and Other Growth

Ongoing Savings Shortfall 158,000 CSR Savings shortfall Agreed May 2012 (597,000)

Department Savings (158,000) Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth 801,000 Proposed Procurement Savings

Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

106,761,100

Allocations of Central Growth 2015 Pay

Recurring effect of 2013 1% Consolidated Pay

912,100 Award

Recurring effect of 2014 4% Consolidated Pay

3,684,900 Award

Procurement Savings (178,000) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (2,649,000)

Revised Net Revenue Near Cash Expenditure

108,591,100

Depreciation per MTFP 293,200 2015 Depreciation Adjustment

Revised 2015 Depreciation	293,200

Revised Net Revenue Non Cash Expenditure	108,884,300

Department of the Environment

DEPARTMENT OF THE ENVIRONMENT PAGE 53

Department of the Environment

Minister's Introduction

A high quality environment is at the heart of all of our lives. A good environment is one of the key ingredients to Jersey and why we all love to live, work and play here. A healthy environment underpins a strong economy, a happier and healthier lifestyle and a more diverse and robust ecosystem.

As the Minister for Planning and the Environment, I will ensure that the environment is not forgotten. Jersey has already signalled its commitment to a number of International Environmental commitments. These, and the environment they seek to enhance, must not be taken for granted and must be at the forefront of our decision-making along with social and economic issues.

On a small Island, the issues of good spatial planning and meeting development needs whilst protecting eco-system services and the natural and historic environment will always be a challenge.

To maintain economic diversity, there is a desire to sustainably expand economic growth in sectors dependent on the environment such as fisheries and farming, so that natural resources are protected for future generations as well as maintaining a vibrant town centre and Parish communities.

It is likely that energy prices will continue to rise in the future. The need to develop more secure and sustainable energy supplies is a challenge which might be partially met by natural, renewable energy resources in the medium to long term when technology and economic feasibility is proven. The role of government to develop these resources or to facilitate private development needs to be considered.

The regulation of clean air and water, waste management, natural habitats and special places and buildings is a challenge against a requirement for increased housing and economic growth. Overall economic, social and environmental decision-making needs to be co-ordinated to mitigate the impacts of climate change.

The provision of housing is a key challenge for the Island in the face of increased demand. Housing in Jersey is an expensive commodity and there is a need to ensure that a greater proportion of new homes in the Island are more affordable.

Our key challenge is managing the requirements of an increasing population against their resource requirements, whilst maintaining key ecosystem services and the need to recognize and manage the social, economic and environmental interactions. All of this has to be achieved with limited resources during a time when the island is experiencing significant social and economic challenges.

Summary of Outline Business Cases for Growth

The following summary presents the five priority Outline Business Cases (OBCs), along with their associated cost projections:

» Succession planning

» Strengthening the protection of the Island s environment

» Masterplanning

» Countryside infrastructure

» Island Plan

SUMMARY OF MTFP GROWTH REQUESTS 2013–2015

2013 2014 2015 Note

£000 £000 £000

MTFP Growth Requests

Succession planning 1 36 75 100 Strengthening the protection of the Island s environment 2 200

Countryside infrastructure 2 50

Masterplanning 3 & 4 100

Island Plan 4 150 TOTAL 286 175 350

Funding position:

Funded fromMTFPGrowthAllocation
Funded in 2013 fromCentralContingencies
Funding earmarked in CentralContingencies
To befundedfromCentral Planning Vote in 2015

Alternative Funding Measures

During the MTFP debate the Council of Ministers agreed to a number of compromises to amendments to the MTFP proposals brought forward by States members.

In response to a proposal to increase States total expenditure limits to provide three schemes for the Environment department that had not been prioritised for growth funding (Countryside infrastructure, Masterplanning and Strengthening the protection and regulation of the Island s environment), the Council of Ministers proposed alternative funding measures including use of the Central Planning Vote, allocations for back to work and employment initiatives and the opportunity to carry forward 2012 underspends. (More information on these and other MTFP compromises is contained in R114/2013).

Get People into Work

Succession planning £36,000 to £100,000

The age profile of DoE staff is such that succession planning needs to be addressed. It would also support job opportunities for the younger generation and the strategy to provide more on-the-job

training for school leavers. The proposal would be to recruit two trainees (school leavers / graduates) in each of Planning and Countryside Rural. This could be funded through the Back to Work funding carry forward within Social Security.

Sustainable Long Term Planning

Strengthening the protection of the Island s environment £200,000

The existing financial and manpower resource of Environmental Protection is increasingly stretched to effectively meet the demands of regulating and enforcing compliance with the Island s environmental legislation which is under Environmental Protection s remit. These laws provide fundamental tools

to protect the Island s environment against increasing environmental, developmental and social pressures. The Environment Scrutiny Panel recognised the resource constraints within Environmental Protection during their recent Review of Marine Waters. The Panel further endorsed Environmental Protection s strategy and the importance to the Island of securing environmental goals through the implementation of widely recognised and proven EU Directives (Water Framework Directive, Marine Strategy Directive, Bathing Water Directive). These provide a vital and holistic (cross-departmental) framework and approach that will deliver recognised environmental protection goals in line with EU best practise and will safeguard the future of the Island s environment. Environmental Protection have initially assessed the resource implications and require two additional staff to ensure compliance.

Masterplanning £100,000

There is an increasing political pressure to undertake masterplanning. This could cost upwards of £100,000 per year and require additional staff.

Countryside infrastructure £50,000

Current resources are insufficient to adequately maintain the national park and environmental car parks. There is a need for an additional staff member and maintenance budget to further improve the environment in which we live. There is also a need to invest in additional infrastructure, e.g. footpaths. This would enable an improvement network for walking encouraging people to live a healthier lifestyle.

Service Transfers

Geospatial Information System (GIS) £16,500 from Chief Minister s Department

2015 Budget Measures

As part of the debate around the 2015 Budget, it was identified that additional savings totaling £12.1 million would be required to be made by all Departments in 2015. The DoE share of this is £204,800 and work has started to identify where these savings can be made. Until this work is substantially complete it is unknown how this will impact on the delivery of our existing services, or whether any additional user pays charges might need to be considered.

Deputy R.C. Duhamel

Minister for Planning and Environment

Department of the Environment

AIM:

Look after the environment. This includes our sea, water, air, land and buildings. It also means working to ensure that Jersey has a thriving, sustainable community and economy that does not unnecessarily harm the environment.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Manage and regulate the natural and built up environment.

Success criteria:

(i) Continue to regulate the environment, including water, waste, animal health, plant health, planning and building, biodiversity and 800 square miles of territorial sea.

Strategic Plan References:

Vision: A safe and caring community, A strong and sustainable economy, Preparing for the future, Protecting the environment

Priorities: Manage population growth and migration, House our community, Promote family and community values, Develop sustainable long-term planning

Key Objective 2: Develop existing and new legislation, strategies and policies to protect the environment.

Success criteria:

Deliver the new Island Plan and a range of new and revised supplementary planning guidance to support and complement the new Plan;
Develop the approved Island Plan Policy H3: Affordable Housing;
Develop an energy policy in order to achieve a secure, affordable and sustainable energy supply;
Develop an AirQuality Action Plan (with theDepartment of Health and Social Services);
Develop a Contaminated Land Strategy;
Develop a Climate Change Adaptation Plan (to follow Energy Policy);
Develop furtherthe potential of sustainable energy resources such as tidal power and off-shore wind power;

(viii) Deliver a new historic environment protection regime;

Review the Wildlife Law;
Update Animal Health legislation;

Develop a Landscape Strategy and Environmental Action Plan and Coastal National Park Management plan;
Deliver the Rural Economy Strategy (2011 2015);

(xiii) Carry out a review of the Countryside and Rural Economy;

Deliver regulation under the Convention on International Trade in Endangered Species (CITES) Law;
Deliver and implement the Fisheries and Marine Resources Strategy;
Develop and implement an Integrated Coastal Management Strategy and Ramsar management plan;

(xvii) Review and amend the Planning and Building Law and subordinate legislation.

Strategic Plan References:

Vision: A safe and caring community, Preparing for the future, Protecting the environment

Priorities: Manage population growth and migration, House our community, Promote family and community values, Develop sustainable long-term planning

Key Objective 3: Deliver department efficiencies and contribute towards States activities and Comprehensive Spending Review savings.

Success criteria:

Explore the possible benefits of consolidating environmentally based policies across the States, such as land, air, waste and transport;
Develop and deliver a strategy for a Low Carbon Economy (in partnershipwith EDD);
Deliver department savings towards the States Comprehensive Spending Review;
Continue to lead and co-ordinatetheEco-Active States programme.

Strategic Plan References:

Vision: A strong and sustainable economy, Preparing for the future, Protecting the environment

Priorities: Get people into work, Promote family and community values, Reform government & the public sector, Develop sustainable long-term planning

Key Objective 4: Improve the customer and stakeholder experience of Department of the Environment services.

Success criteria:

Develop furthertheperformance culture within the department;
Continue to provide and enhance the provision of weather services (forecasting, observing and climate monitoring across the Channel Islands;
Develop and implement a new Planning appeals system;
Introduce more permitted development;
Deliver a new 3D model of St Helier;
Develop furtherthe online planning service.

Strategic Plan References:

Vision: Preparing for the future, Protecting the environment

Priorities: Reform government & the public sector, Develop sustainable long-term planning

Key Objective 5: Promote environmentally conscious decision-making in all sectors.

Success criteria:

Develop theEco-Active Energy EfficiencyService;
Continue to lead and co-ordinatetheEco-Active programme;
Contribute to thedelivery of initiatives that reduce waste, energy use, pollution and theeffects of climate change.

Strategic Plan References:

Vision: A safe and caring community, A strong and sustainable economy, Preparing for the future, Protecting the environment

Priorities: Promote family and community values, Reform government & the public sector, Develop sustainable long-term planning

Department of the Environment

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash		Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

Planning and Building				53.9
(68,600) Development Control	(1,881,100)	1,780,800 (100,300)	(100,300)
(45,900) Building Control	(1,401,700)	1,325,800 (75,900)	(75,900)
1,011,100 Policy and Projects	(24,100)	994,000 969,900 45,100	1,015,000

Environment				63.6
Environmental Management and Rural Economy 1,807,700	(28,000)	1,661,900 1,633,900 200,000	1,833,900
1,235,200 Environmental Policy and Awareness	(5,300)	1,260,300 1,255,000	1,255,000
956,500 Environmental Protection	(288,800)	1,244,800 956,000	956,000
497,800 Fisheries and Marine Resources	(25,000)	488,100 463,100 36,200	499,300
280,100 States Veterinary Officer	(4,000)	283,900 279,900 1,000	280,900
680,900 Meteorology	(791,200)	1,357,600 566,400 101,500	667,900

6,354,800 Revised Net Revenue Expenditure	(4,449,200) 10,397,200 5,948,000 383,800		6,331,800	117.5

Reduction in funding for 2% savings (204,800) (204,800) 5,743,200 6,127,000

Department of the Environment

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(3,442,100) Duties, Fees, Fines & Penalties (3,558,800) (824,900) Sales of Goods and Services (850,100)

Investment Income

(39,900) Other Income (40,300) (4,306,900) Total Income (4,449,200)

Expenditure

Social Benefit Payments

7,424,200 Staff Costs 7,477,500 1,395,800 Supplies and Services 1,426,800 104,400 Administrative Expenses 105,600 357,100 Premises and Maintenance 365,900

Other Operating Expenses

996,400 Grants and Subsidies Payments 1,021,400

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

10,277,900 Total Expenditure 10,397,200

5,971,000

Revised Net Revenue Near Cash Expenditure

5,948,000

Reduction in funding for 2% savings (204,800) 5,743,200

383,800 Depreciation 383,800

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

6,354,800 Revised Revenue Non Cash Expenditure 6,127,000

Department of the Environment

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 5,605,700 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (106,700) Service Transfers

Price Inflation Dept Expenditure 70,600 Price Inflation Provision for Pay Award Ch Tireaf nMsifneirsotef rGse Doesppaatritaml eInnftormation System to 16,500

Commitments from Existing Policies

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth 25,000 Proposed Procurement Savings

Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

5,594,600

Allocations of Central Growth 2015 Pay

Recurring effect of 2013 1% Consolidated Pay

69,200 Award

Recurring effect of 2014 4% Consolidated Pay

279,600 Award

Procurement Savings (11,900) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (204,800)

Revised Net Revenue Near Cash Expenditure

5,743,200

Depreciation per MTFP	383,800

2015 Depreciation Adjustment

Revised 2015 Depreciation	383,800

Revised Net Revenue Non Cash Expenditure	6,127,000

Health and Social Services

HEALTH AND SOCIAL SERVICES PAGE 65

Health and Social Services Department

Minister's Introduction

2014 has been a year in which the Health and Social Services Department has continued to drive forward the change programme set out in P82/2012 Health and Social Services: A new way forward. In addition to introducing the new and enhanced services, progressing the Future Hospital planning, the sustainable Primary Care review and the Mental Health review the Department has continued to refine plans for inclusion in the next Medium Term Financial Plan. All this has been done while the Department has continued to deliver business as usual within the MTFP spending limits.

Developments and Achievements in 2014

2014 saw significant progress on the introduction of new and enhanced services, as outlined in P82/2012. The aim is to increase independence for Islanders, enabling them to remain at home for as long as possible, to offer choice and to identify needs and provide integrated services early. The key focus for 2015 is to move to a more integrated whole system approach through the development of the Out Of Hospital System which will aim to keep people out of hospital; both avoiding admission and facilitating discharge.

Progress has been made to develop an Acute Services Strategy. Work on the future hospital has moved to the feasibility stage with detailed work ongoing on options and plans for both the buildings and the services. The States of Jersey last year approved in principle the allocation of £297m allocated from the Strategic Reserve for this ambitious project, the largest ever embarked upon by the States of Jersey.

The Sustainable Primary Care project made good progress during 2014, with GPs, Pharmacists, Opticians and Dentists working with the department, and with Treasury and Social Security, to develop options for the Primary Care model of the future. This has been mirrored in the Mental Health System review work; these projects are due to report in 2015 and will be followed by public consultations.

Cross departmental working has been key in the introduction of the Long Term Care Benefit which commenced in July 2014. Joint working with organisations across health and social care, including the Community and Voluntary sector and Primary Care, has been further progressed, with partners working together, including Mind Jersey, Jersey Hospice Care, Family Nursing & Home Care and Citizen s Advice Bureau. This collaborative working across the entire health community is, and will continue to be, critical to the successful delivery of the vision set out in P82/2012.

Changes to original MTFP budget for 2015

Service transfers: in 2013 there was a transfer of budget from the previous Jersey Child Protection Committee to the Chief Minister s Department to fund the new Safeguarding Partnership Board for children and adults. In addition there were other smaller transfers between the department and other departments for other changes in scope of services.

£8,020,000 pay awards: the department s budget has increased by the pay awards agreed for nurses, doctors and other pay groups for 2013 and 2014. The pay awards for 2015 have not yet been agreed and therefore have not been included at this stage in the department s budget.

£750,000 Procurement savings: this represents the department s share of the remaining procurements savings identified in the MTFP.

£4,702,000 2% savings: as set out in the Budget 2015, all departments have agreed to identify savings of 2% of gross expenditure budgets as part of the measures to bring the Consolidated Fund into balance.

Health and Social Services is working hard to identify sustainable solutions for delivering this savings target. Detailed proposals have not yet been identified but it is likely that some of the following impacts will be felt:

Re-phasing of the planned implementation of P82/2012

Delays in other planned developments

Reduction in provision of existing services

Risk of HSS no longer being able to follow UK standards for technologies, treatments and drugs

Potential increase in waiting times / reduction in patient satisfaction

The Department is planning to set up a programme board to oversee a systematic review of services in order to identify opportunities for efficiencies and productivity gains across the service.

In all this I am confident that Health and Social Services will continue to prioritise resources in order to deliver our overriding objective of safe, sustainable and affordable care.

Departmental Objectives for 2015

Our high level business objectives remain unchanged; some of our success criteria have been updated to reflect the ongoing development of our work.

During 2015 the key areas of focus for P82 will be the development of the Out Of Hospital system , which will aim to keep people out of hospital; both avoiding admission and facilitating discharge. This will be delivered through integrated services across all care providers.

Both the Mental Health systems review and the Sustainable Primary Care project will report in 2015. The resulting strategies and proposals will then be consulted on before final decisions and plans are made.

The priority investments for 2016 2019 will be developed into outline plans, ready to commence implementation in early 2016, subject to budget allocations.

With agreed additional funding we have been able to continue our focus on continuous improvement using the Jersey Lean System. This is led by a specialist team, who support individuals and teams across health and social care.

Work is ongoing to develop the Outline Business Case for the Future Hospital. A proposition and report on the future hospital will be presented to the States in 2015.

I would like to thank all the staff for their continued hard work and commitment in what has been a very busy and demanding year. 2015 undoubtedly will be the same and I am confident the staff will rise to the challenges it will bring.

Deputy Anne Pryke

Minister for Health and Social Services

Health and Social Services

AIM:

Improve the health and well being of the population of Jersey with particular emphasis on children and older people.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Objective 1: Redesign of the health and social care system to deliver safe, sustainable and affordable health and social services.

Success criteria

Continued implementation of the 10 year transition plan based on the 2012 White Paper;
In conjunction withthe Social SecurityDepartment, implementation of mechanisms for the funding of long term care;
Have an approved plan for the future development of HSSD Estate requirements including hospital, mental health and community based children and adult facilities;
Informed by the acute service strategy and detailing delivery of new models of care, develop plans for future hospital provision including plans to deliver transitional capacity;
Working in partnershipwithPrimary care practitioners, the Social SecurityDepartment and Treasury and Resources develop a sustainable model for Primary Care;
Working in tandem with Social Security colleagues, advance Primary Care governance, local regulation and the quality agenda according to commitments in P36/2010;
Continue to build robust commissioning of services to meet theneeds of islanders, which supports a vibrant provider market, including theCommunity and Voluntary Sector and the Parishes;

(viii) Joint working with Education Sports and Culture and Home Affairs on implementing the

Children s and Young People s Strategic framework, and with Social Security and the Housing Department in relation to the older adults agenda;

Joint workingwiththe Treasury and Resources and Social SecurityDepartments to identify proposals for a sustainable funding mechanism for health and social care, according to commitments in P82/2012;
Implementation of a Workforce Plan and Workforce Development Plan that supportsthe redesign of the health and social care system and development of a future hospital provision;
Undertake a review of mental health services.

Strategic Plan References:

Vision: A safe and caring community; Preparing for the future

Priorities: Promote family and community values; Reform Health & Social Services; Develop long- term planning

Objective 2: Improved health outcomes by reducing the incidence of mortality, disease and injury in the population.

Success criteria

Monitor, understand, improve and protect the health and wellbeing of islanders through:

Health Intelligence: Publication of the 2nd Joint Channel Islands Health Profile
Health Improvement:

Development of a Food and Nutrition Strategy;

Complete and commence implementation of a Skin Cancer Strategy;

Create a working group to develop a new Tobacco Strategy from 2015 onwards;

Continue to support the health aspects of the States wide Alcohol and Licencing Strategy led by the Chief Minister s Department.

Health Care Programmes:

Introduction of an infant rotavirus immunisation programme, other new immunisation programmes as recommended and funded, explore the possibility of a new contract for immunisation delivery;

Development and introduction of a surveillance programme for women at high risk from breast cancer;

Public Health legislation:

Professional and Care Regulation:

Regulation of Care Law [see objective 4 (vi)];

Creation and implementation of a new system of medical practitioners registration and revalidation;

Environmental Health if adopted by the States:

Implementation of legislation associated with food supplements, nutritional health claims and food safety;

Implementation of the Public Health and Safety (dwellings) Law.

Develop services which promote early intervention across a variety of services, commencing with psychological therapies, support for thosesufferingfrom alcohol dependency and thoseservices aimed at promoting school readiness .

Strategic Plan References:

Vision: A safe and caring community; Preparing for the future

Priorities: Reform Health & Social Services; Reform government & the public sector

Objective 3: Improved consumer experience of Health and Social Services.

Success criteria:

Develop services which support personalised care in a variety of settings, giving choice to individuals and providing support for their carers;
Improve the consumer experience of health and social services by supporting our staff to implement the Jersey Lean System of service improvement;
Increase patient and public involvement withservices as described by the recommendations made in the Francis, Keogh, Berwick and Winterbourne Reports of 2013.

Strategic Plan References:

Vision: A safe and caring community; A highly skilled workforce

Priorities: Promote family and community values; Reform Health & Social Services

Objective 4: Promotion of an open culture based on good clinical and corporate governance with a clear emphasis on safety.

Success criteria

Continued development of an organisational culture which promotes a positive and open environment in which staff are empowered to make challenges to achieve improvements in services and patient care;
Availability of thenecessarystaffing levels with appropriate performance management in place to support safe and effective care whilst providing for the required succession planning;
Evidence of the Department s commitment to the importance of promoting children s and adults welfare through the development of a safeguarding plan updated in line with local and national developments;
Embed external inspection and internal self evaluation models across Health and Social Services, strengthening the assurance structure;
Develop performance information that provides accurate information to promote informed changes and develop reports to assure HSSD that safety is maximised;
Develop new legislation providing a framework for the regulation of all health and social care activities in Jersey.

Strategic Plan References:

Vision: Preparing for the future; A highly skilled workforce Priorities: Reform Health & Social Services

Objective 5: Manage the Health and Social Services budget to deliver services in accordance with the Medium Term Financial Plan

Success criteria:

Sustainable, efficient and cost effective services delivered within approved cash limits;
Effective resource and workforce planning, development, deployment and productivity in both hospital and community settings;
Agreed savings schemes achieved.

Strategic Plan References:

Vision: Preparing for the future; A highly skilled workforce

Priorities: Reform Health & Social Services; Develop sustainable long-term planning

Health and Social Services

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash		Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Expenditure Expenditure Net Revenue Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

3,942,300 Public Health Services	(583,000)	4,613,200 4,030,200 23,400	4,053,600	61.0

Hospital Services
28,397,300 Hospital Inpatient Services	(5,188,700)	33,952,300 28,763,600 286,800	29,050,400	502.0
16,402,300 Theatres	(1,599,300)	17,852,300 16,253,000 519,700	16,772,700	237.0
11,146,700 Women & Children	(1,415,000)	12,663,400 11,248,400 140,900	11,389,300	186.0
Unscheduled and Emergency Care 7,321,200	(401,300)	7,773,900 7,372,600 61,200	7,433,800	168.0
Day Stay and Outpatient Services 17,812,700	(1,024,100)	19,336,100 18,312,000 191,500	18,503,500	227.0
12,020,600 Tertiary Care	(43,600)	13,219,200 13,175,600	13,175,600	0.0
22,102,800 Clinical Support	(3,469,000)	23,903,100 20,434,100 1,605,700	22,039,800	277.0
Ambulance Emergency Services 5,031,500	(139,600)	5,049,600 4,910,000 187,300	5,097,300	57.0

Community & Social Services
25,511,200 Older Peoples Services	(9,510,200)	36,774,100 27,263,900 116,600	27,380,500	493.0
27,879,000 Adults Services	(1,292,600)	29,606,700 28,314,100 82,900	28,397,000	376.0
16,536,000 Children s Services	(401,500)	17,220,200 16,818,700 59,400	16,878,100	272.7
7,661,200 Therapy Services	(264,400)	8,324,700 8,060,300 31,100	8,091,400	106.0

Revised Net Revenue Expenditure 201,764,800	(25,332,300) 230,288,800 204,956,500 3,306,500 208,263,000			2,962.7

Reduction in funding for 2%

(4,702,000) (4,702,000) savings

200,254,500 203,561,000

Health and Social Services

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(4,000) Duties, Fees, Fines & Penalties (4,100) (16,052,400) Sales of Goods and Services (16,419,600) Investment Income

(8,843,600) Other Income (8,908,600) (24,900,000) Total Income (25,332,300)

Expenditure

1,007,300 Social Benefit Payments 1,028,100 143,812,900 Staff Costs 146,590,400 67,395,100 Supplies and Services 71,230,900 1,133,300 Administrative Expenses 1,167,500 7,773,800 Premises and Maintenance 8,008,600 12,300 Other Operating Expenses 12,700 2,188,500 Grants and Subsidies Payments 2,216,600

Impairment of Receivables

33,300 Finance Costs 34,000

Foreign Exchange (Gain)/Loss

Contingency Expenses

223,356,500 Total Expenditure 230,288,800

198,456,500

Revised Net Revenue Near Cash Expenditure

204,956,500

Reduction in funding for 2% savings (4,702,000) 200,254,500

3,308,300 Depreciation 3,306,500

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

201,764,800 Revised Net Revenue Non Cash Expenditure 203,561,000

Health and Social Services

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 190,621,400 Approved Variations to Expenditure Limits

since MTFP

Price Inflation - Dept Income (593,300) Price Inflation - Dept Expenditure 1,635,000 Price Inflation - Provision for Pay Award -

Commitments from Existing Policies

CSR Growth and Other Growth 300,000 2% Growth Allocation 3,627,200 Replacement of Original HIF funding 161,100 Replacement of HIF funding -

Service Transfers

- Transfer to Chief Minister s Department for

(274,700) Safeguarding Partnership Board

- Transfer of staff budget for Finance Resource

89,800 from Treasury and Resources

- Transfer to Home Affairs for Independent

(50,000) Domestic Violence Advisers

- Transfer of Child and Family Centre to

(60,000) Education, Sport and Culture

Allocations of Central Growth 2015 -

Department Savings -

Department User Pays - Pay

Departmental Transfers - Capital to Revenue Transfers - MTFP Growth 2,230,000 Proposed Procurement Savings - Proposed Other Budget Measures -

Net Revenue Near Cash Expenditure per MTFP

197,981,400

- Recurring effect of 2013 1% Consolidated Pay

1,199,000 Award

- Recurring effect of 2013 Doctors and

189,000 Consultants Pay Award

- Recurring effect of Additional Funding for 2012

550,000 Nurses Pay Award

- Recurring effect of Additional Funding for 2013

1,050,000 Nurses Pay Award

- Recurring effect of 2014 4% Consolidated Pay

5,032,000 Award (including Nurses Pay Awards)

Procurement Savings (750,000) Capital to Revenue Transfers -

Other Variations

- Reduction in funding for 2% savings (4,702,000)

Revised Net Revenue Near Cash Expenditure

200,254,500

Depreciation per MTFP 3,550,500 2015 Depreciation Adjustment (244,000) Revised 2015 Depreciation 3,306,500 Revised Net Revenue Non Cash Expenditure 203,561,000

Home Affairs

HOME AFFAIRS PAGE 77

Home Affairs Department

Minister's Introduction

My introduction included in the Annex to the 2013 2015 Medium Term Financial Plan set out the Department s key role in ensuring the overall safety of the Island community and core function of helping to ensure the safety of our community.

The key objectives and success criteria have been updated to reflect their alignment to the Strategic Plan and relevance to 2015. A new success criteria has been added to promote the Lean initiative to support public sector reform.

With regard to anticipated changes in 2015, there will be a new Ministerial Team for Home Affairs following the elections in October 2014. It will fall to that Ministerial Team to set the work flow priorities; however, the Department is aware already of important tasks that need addressing.

The States have approved legislation recently which will need to be implemented in 2015, most notably the new Young Offenders Law and the Explosives Law. The Fireworks Regulations and the Regulations and Orders under the States of Jersey Police Force Law 2012 will also need to be brought forward at an early stage.

In terms of policy, there is important multi-agency work required to develop a new community safety strategy to replace the Building a Safer Society Strategy. There are important challenges to address such as cyber-crime, new psychoactive substances and the rise in domestic violence offences. A new Criminal Justice Policy is required which will entail significant cross-agency liaison.

Approved Variations to Expenditure Limits since the MTFP

Variations approved in the 2014 Annex Service Transfers

Cadet and Military Support Officer £8,000 to Office of the Lieutenant Governor

The transfer of funds for the Cadet and Military Support Officer is the Department s contribution to the new post created within the Lieutenant Governor s Office to co-ordinate forces cadet work and ceremonial functions that have a military element.

Central Growth Allocations

Maritime Response Team (MRT) £25,000

The funding for a UK Maritime off-shore ship fire-fighting capability has not been re-instated by either the UK Department for Transport or the Department of Communities and Local Government. There remains no UK provision to assist with emergency fire-fighting, industrial accidents or chemical incidents at sea. Many UK Fire and Rescue Services and their Authorities with notable maritime risk have taken the decision to fund the shortfall in order to maintain such a capability in and around their coastal waters. Furthermore, Guernsey has withdrawn from the previous jointly provided Maritime Incident Response Group arrangements.

However, the States of Jersey Fire and Rescue Service (JFRS) has developed and implemented a new local Marine Response Strategy (MRS), supported by capability, tactics and operations at a reduced cost. These have been incorporated into the Jersey Coastguard and Condor Marine Services Emergency Response Plan.

Funding is required in order that the JFRS can fulfil the new MRS. This will also enable the JFRS to access mutual assistance from those Services that have a maritime response capability, if required.

Increased Running Costs of New Prison Facilities £25,000

The Prison was designed in the late 1960s and was opened in 1974. A programmed redevelopment (Masterplan) commenced in 2003 to address some of the Prison estate s shortcomings which were reinforced in previous inspections. The first five phases of the Masterplan have been delivered or are currently on site.

New facilities consisting of a visit room and staff facility (phase four), stores and engineers facility (phase five) and a new classroom, boiler house and greenhouse constructed in the horticultural area of the Prison have increased the running costs of the Prison which cannot be accommodated within the Home Affairs Department s net revenue expenditure.

Pay Awards

Recurring cost of the 2013 1% Consolidated Pay Award £345,000 Recurring cost of the 2013 Firefighters Pay Award £83,300 Recurring cost of the 2014 4% Consolidated Pay Award £1,397,100

2015 Variations

Service Transfers

Independent Domestic Violence Advisors £50,000 from the Health and Social Services Department

Transfer of funding to the States of Jersey Police following a commitment made by the Childrens Policy Group to establish a Multi-Agency Risk Assessment Conference (MARAC) in Jersey.

Procurement Savings

The Department s contribution of £120,400 to the balance of notional procurement savings required to meet the Corporate Procurement target of £6.5 million savings as part of the CSR process.

2015 Budget Measures

Following approval of the 2015 Budget there is a requirement for all Departments to deliver 2% savings in 2015 as part of the measures required to balance the Consolidated Fund. The impact on the Home Affairs Department is £1,033,200. Whilst I am supportive of this proposal it is important to note, however, that with staff costs accounting for over 84% of the net budget it will take time to identify and deliver savings.

As it is likely that Departments will be required to make savings from 2016 as part of the next MTFP process, officers are therefore reviewing statutory obligations and considering sustainable options for recurring savings of 2% to be delivered in 2015 and future years.

All increases to the expenditure limits agreed in the MTFP are not new projects or initiatives but are necessary if the Department is to continue to deliver its core functions. The challenge, as ever, will be seeking ways of reducing cost where 84% of the budget relates to staff costs.

Senator B I Le Marquand

Minister for Home Affairs

Home Affairs

AIM:

Provide for a safe, just and equitable society, thus improving people s quality of life.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Note: Since the publication of the Medium Term Financial Plan 2013 2015, the alignment of the Department s objectives to the Strategic Plan References (Vision and Priorities) have been refined.

Key Objective 1: To secure the capacity and capability required to deliver and sustain effective services for the purpose of protecting the public and providing a safe and caring community

Success criteria:

The maintenance of an adequate and efficient Police Force for the Island as prescribed by the Police Force (Jersey) Law, 1974, as amended, which is to be superseded in due course by the States of Jersey Police Force Law 2012, some Articles of which are already in force;
The maintenance of an adequate and efficient Fire and Rescue Service for the Island as prescribed by the Fire and Rescue Service (Jersey) Law, 2011;
The maintenance of an adequate and efficient Customs and Immigration Service for the Island as prescribed by the Customs and Excise (Jersey) Law, 1999 and the Immigration (Jersey) Order, 1993;
The maintenance of an adequate and efficientPrisonService for the Island as prescribed by thePrison (Jersey) Law, 1957.

Strategic Plan References:

Vision: A safe and caring community; Protecting our environment

Priorities: Manage population growth and migration; Promote family and community values; Reform government and the public sector

Key Objective 2: Underpin the vision of a safe and caring community by providing:

a Police Service which will work in partnership to: provide visible, responsive community policing, protect our community from harm,

bring offenders to justice,

build public trust and confidence.

a Fire and Rescue Service which will work in partnership to:

eliminate preventable fire casualties,

reduce the effect of fire,

respond effectively to emergency calls,

assist in safeguarding property and the environment.

a Customs and Immigration Service which will work in partnership to:

protect Jersey from the threat of illegal immigration and the import/export of prohibited or

restricted goods,

collect Customs and Excise duties, including import GST, while preventing loss of government

revenue from fraud or evasion,

honour the Island s external Customs, Immigration, Passport and Nationality obligations.

a PrisonService which will work in partnership to:

keep in custody those persons committed to the Prison by the Courts in a safe, decent and

healthy environment,

reduce re-offending by providing constructive regimes for prison inmates, which address

offending behaviour and improve educational and work skills,

contribute to Multi Agency Risk Assessment forums to help manage those persons that are

considered to be a risk to the general public.

Success criteria:

Delivery of theperformance targets set out in the States of Jersey Police Annual Policing Plan for 2015;
Delivery of performance targets set out in the current States of Jersey Fire and Rescue Service Integrated Risk Management Plan (IRMP);
Delivery of theperformance targets set out in the States of Jersey Customs and Immigration Service Annual Action Plan for 2015;
Delivery of theperformance targets set out in the States of Jersey PrisonService Annual Business Plan for 2015.

Strategic Plan References:

Vision: A safe and caring community; Protecting our environment

Priorities: Manage population growth and migration; Promote family and community values; Reform government and the public sector

Key Objective 3: To ensure effective development and delivery of partnership arrangements to:

ensure that the Island is as resilient as possible to threats to its security and way of life,

help people feel secure in their homes and local communities by driving down levels of crime, anti-

social behaviour and disorder, vulnerability and harm,

provide people with opportunities to develop their potential as lifelong learners and active and

responsible members of society,

support the efficient and effective delivery of justice.

Success criteria:

Reduced levels of recorded crime;
Improved perception of public safety (Jersey Annual Social Survey);
Reduced rates of re-offending behaviour;
Reduced rates of fire and associated injury and loss.

Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values; Reform Health and Social Services; Reform government and the public sector

Key Objective 4: To maintain Jersey's Defence contribution to the United Kingdom

Success criteria:

(i) A Royal Engineer Squadron prepared to deliver individual reinforcements or a formed group to support UK Operations.

Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values

Key Objective 5: To maintain and preserve a register of all births, marriages, civil partnerships, adoptions and deaths in Jersey

Success criteria:

(i) A register of all births, marriages, civil partnerships, adoptions and deaths in Jersey is maintained.

Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values

Key Objective 6: To ensure that staff and resources are managed so as to deliver high standards of performance and provide value for money

Success criteria:

Financial balance achieved and total budget and spend profile consistent with forecast;
Costs of each defined service area and relevant overheads identified, so that meaningful comparisons can be made year to year and with other jurisdictions;
Management costs minimised to ensure maximum resources are directed to front line services whilst ensuring that our public services are delivered in a way which is effective, fair and in keeping withthe States environmental and social objectives;
Adequate financial provision is made in the Medium and Long Term Financial Plans to meet HomeAffairs requirements in order to supportthe States of Jersey Strategic Plan;
Explicit link between budget prioritisationprocess and States of Jersey Strategic Plan Priorities demonstrated;
Staff developed to help them achieve their full potential;
Allidentified Comprehensive Spending Review savings are met and are sustainable;

(viii) Provide appropriate training to staff in order to promote and adopt Lean ways of working

throughout Home Affairs.

Strategic Plan References:

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment; A highly skilled and motivated workforce

Priorities: Promote family and community values; Reform government and the public sector; Develop sustainable long term planning

Home Affairs

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

Home Affairs
79,800 Explosives Officer / Explosives Licensing		81,600 81,600	81,600
17,500 Statutory and Legislative Provisions		17,800 17,800	17,800	1.2
Vetting and Barring Office				3.0
125,000 Communications Data (Police and Customs)		125,000 125,000	125,000
300,000 Criminal Injuries Compensation Scheme		300,000 300,000	300,000
100,000 Police Authority		100,000 100,000	100,000	1.0
67,500 Grants		67,500 67,500	67,500
190,400 Superintendent Registrar	(102,600)	292,100 189,500	189,500	3.5

Police
11,780,600 Response and Reassurance Policing	(25,300) 11,553,600 11,528,300 169,800 11,698,100			169.3
4,435,700 Specialist Crime Investigation	(21,000)	4,517,200 4,496,200 28,200	4,524,400	63.7
1,418,100 Manage Offenders through Custody	(19,600)	1,412,800 1,393,200 1,200	1,394,400	10.1
1,853,500 Supporting the Criminal Justice System	(43,900)	2,122,800 2,078,900 1,200	2,080,100	33.6
1,744,500 Manage Intelligence	(19,400)	1,754,000 1,734,600 1,200	1,735,800	30.9
2,082,200 Financial Crime Investigation	(19,600)	2,108,100 2,088,500 1,200	2,089,700	21.6
1,560,300 National Security Policing	(19,600)	1,566,600 1,547,000 1,200	1,548,200	20.5

Fire and Rescue
4,753,400 Emergency Response	(136,500)	4,808,400 4,671,900 168,700	4,840,600	67.5
383,700 Fire Protection		404,000 404,000	404,000	7.0
287,200 Community Safety		232,700 232,700	232,700	4.0

Customs and Immigration
1,135,800 Revenue Collection		1,114,300 1,114,300 53,600	1,167,900	13.8
4,654,200 Enforcement	(1,277,600)	5,797,000 4,519,400 53,500	4,572,900	54.2
189,900 External Obligations	(16,000)	213,400 197,400 53,500	250,900	14.5

HM Prison
8,333,300 Residential Accommodation		8,233,900 8,233,900 175,100	8,409,000	118.1
1,306,300 Prisoner Activity	(285,000)	1,591,300 1,306,300	1,306,300	22.5
1,525,200 Operations and Administration	(141,200)	1,718,000 1,576,800	1,576,800	25.5

Jersey Field Squadron
1,077,400 UK Defence		1,083,800 1,083,800 1,400	1,085,200	6.0
IMLO and Careers Office

496,800 Building a Safer Society		501,900 501,900	501,900	1.0

49,898,300 Revised Net Revenue Expenditure	(2,127,300) 51,717,800 49,590,500 709,800 50,300,300			692.5

Reduction in funding for 2% savings (1,033,200) (1,033,200) 48,557,300 49,267,100

Home Affairs

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(1,346,600) Duties, Fees, Fines & Penalties (1,376,800) (705,400) Sales of Goods and Services (723,500)

Investment Income

(27,000) Other Income (27,000) (2,079,000) Total Income (2,127,300)

Expenditure

Social Benefit Payments

41,567,900 Staff Costs 41,744,900 5,280,600 Supplies and Services 5,271,400 1,404,700 Administrative Expenses 1,512,400 2,643,400 Premises and Maintenance 2,704,300 308,800 Other Operating Expenses 308,800 168,000 Grants and Subsidies Payments 164,000

Impairment of Receivables

12,000 Finance Costs 12,000

Foreign Exchange (Gain)/Loss

Contingency Expenses

51,385,400 Total Expenditure 51,717,800

49,306,400

Revised Net Revenue Near Cash Expenditure

49,590,500

Reduction in funding for 2% savings (1,033,200) 48,557,300

591,900 Depreciation 709,800

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

49,898,300 Revised Net Revenue Non Cash Expenditure 49,267,100

Home Affairs

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 47,439,000 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (49,400) Service Transfers

Price Inflation Dept Expenditure 253,900 Price Inflation Provision for Pay Award a n Tdr aMnisliftearr yo fSbuupdpgoertt Ofofrf ipcaerrt -tofu Ondffiincge ooff Cthaed et (8,000)

Lieutenant Governor

Commitments from Existing Policies 50,000

Transfer for Independent Domestic Violence

Advisors from Health and Social Services

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth 150,000 Proposed Procurement Savings

Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

47,793,500

Allocations of Central Growth 2015

Maritime Incident Response Group 25,000 Increased running costs of new Prison

25,000 facilities

Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

345,000 Award

Recurring effect of 2013 Firefighters Pay

83,300 Award

Recurring effect of 2014 4% Consolidated Pay

1,397,100 Award (including Firefighters Pay Award)

Procurement Savings (120,400) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (1,033,200)

Revised Net Revenue Near Cash Expenditure

48,557,300

Depreciation per MTFP 556,100 2015 Depreciation Adjustment 153,700 Revised 2015 Depreciation 709,800 Revised Net Revenue Non Cash Expenditure 49,267,100

Social Security

SOCIAL SECURITY PAGE 89

Social Security

Minister's Introduction

The Department s overall aims over the period of the MTFP can be summarized as:

getting people back to work by assisting people in gaining employment in order to support

themselves and their families;

keeping people in work by maintaining legislation that supports a safe and fair working environment

and providing contributory benefits that support people during breaks from the workplace;

protecting Islanders from the impacts of low income by providing an Income Support Scheme and

other tax funded-benefits;

assisting older Islanders to maintain their standard of living by means that are financially sustainable

for future generations;

maintaining and building upon current service standards, improving ease of use, efficiency and

effectiveness; and

supporting the plans of other departments, including the reform of Health and Social Services, the

Housing Transformation Programme and the management of population growth and migration.

Summary of Outline Business Cases for Growth

This summary presents the Business Cases along with their associated cost projections: Back to Work Projects

Employment Schemes & Incentives

Discrimination Legislation

Private Sector Rental Support

Summary of Growth requests 2013–2015

Back to Work Projects £2.16m by 2015; and Employment Schemes and Incentives £4.66m by 2015

Current economic conditions are starting to show signs of improvement and unemployment figures have started to flatten out. However, these still remain at historically high levels and the Strategic Plan s most urgent priority remains to Get People into Work . Government has implemented a Back to Work programme which has already proved to be successful and unemployment did not reach the levels previously expected.

This has been achieved through investment in a broad range of support schemes to help locally qualified unemployed people improve their employability and find employment in order to support themselves and their families.

This activity has included further investment in existing schemes to support the increasing levels of those unemployed:

Workzone

Advance to Work Advance Plus

WorkWise

We have also created a central Back To Work Employer Engagement team to maximise opportunities with employers for the recruitment of locally qualified unemployed people. This team works across all support schemes and initiatives.

Additionally we have invested in schemes to improve the employability of those groups furthest away from unemployment (e.g. Long Term unemployed) and to encourage employers to take on those who are locally unemployed and reduce reliance on migrant labour (Job Substitution). Investment has been made in the following initiatives:

Employment Grant incentive for employers to recruit the long term unemployed; Youth Incentive grants for employers to recruit those under 25;

Long Term Unemployed Unit focused support to improve employability of the long term

unemployed;

Sector Specific Training Initiatives extensive programme of training developed with specific

industries to place higher numbers of unemployed locals into work (e.g. Hospitality and Construction);

Job Training Fund fund to source short term interventions to improve employability;

Work Readiness Fund fund to provide training in areas such as motivation, C.V. writing, confidence

building, numeracy and literacy;

Job Clubs supported group sessions to improve employment search;

Employment Projects activities to improve employability for those with significant barriers that limit

commercial work placements opportunities (e.g. Environment projects); and

Community Jobs Fund a subsidy scheme to place specific unemployed groups into positions with

employers aimed at those furthest from employment. Positions also create additional community benefit.

Discrimination Legislation £200k by 2015

In 2011, the States took the decision (P.118/2011) to transfer responsibility for the development of discrimination legislation to the Minister for Social Security and to provide funding for the implementation and operation of this new law.

Development of the law is on track. The Discrimination (Jersey) Law 2013 was registered by the Royal Court on 18 October 2013. Subordinate legislation has now all been approved and the law will be operational in relation to the first protected characteristic of Race from 1 September 2014. Consultation for the next phase (sex discrimination) is complete and regulations will be debated in 2015. The growth bid for 2014 provided for part year administration costs and the full cost of administration is provided for in 2015, including the cost of the Tribunal service and advice and conciliation services provided by the Jersey Advisory and Conciliation Service and the Citizens Advice Bureau.

Private Sector Rental Support £1m by 2015

From April 2014, the Housing Transformation Programme has started to increase rent levels in States- owned housing accommodation to 90% of the market value as new tenancies are created. Income support rates for these tenants are automatically adjusted in line with the new rental values.

In parallel with the public sector changes, private sector rental components were also adjusted in April 2014. The additional costs associated with these adjustments are estimated at £1 million in 2015, with the 2014 bid at the lower level of £750,000 to cover the new system from April to December.

The Corporate Services Scrutiny Panel proposed an amendment to the MTFP to create a central growth allocation for 2014 and 2015 by removing growth that had been allocated directly to departments in the original proposals from the Council of Ministers. The impact was to remove a sum of £750,000 in 2014 and £1,000,000 in 2015 from Social Security originally earmarked for Private Sector Rental Support and place it into a central growth allocation. Following States approval in the 2014 Budget, both sums have been re-allocated back to the Department in their respective years.

Summary of Business Cases for Base Estimate Changes

This summary presents the justification along with their associated cost projections: Employment Tribunal

Staff Costs Impact of FSR Implementation

Employment Tribunal £50k by 2015

This line item continues the provision of administrative support to the Employment Tribunals.

Staff Costs Impact of FSR Implementation £230k by 2015

This line item details an adjustment needed to previous base budgets following the staffing changes that were agreed as part of the Fiscal Strategy Review.

Summary of Business Cases for Other Growth/Base Budget Changes

This summary presents the justification along with their associated cost projections:

Income Support Staff Costs £460k by 2015

There is a forecasted annual increase in the Income Support weekly Benefit (AME) expenditure

for the duration of this MTFP from £74M in 2012 to £82M in 2013; £84M in 2014; and £86M in 2015. These increases to expenditure reflect the forecasted increase in the number and value of claims above current levels in addition to an annual allowance for inflation. However, the MTFP included a requirement for the Department to make £3M of savings in 2014; therefore the forecasted increases reduce to £81M in 2014 and £83M in 2015.

The current economic conditions have and will continue to increase the number of new claims and the volume of changes to claims. Additional staff have been required to maintain service levels against this increased level of activity.

SUMMARY OF GROWTH BIDS/BASE ESTIMATE CHANGES REQUESTS 2013–2015

2013 2014 2015 £000 £000 £000

Potential Growth

Back to Work Projects 2,345 2,270 2,161 Employment Schemes & Incentives 3,060 4,660 4,660 Discrimination Legislation 0 150 200 Private Sector Rental Support 0 750 1,000 Base Budget Changes

Employment Tribunal 45 50 50 Staff Costs Impact of FSR Implementation 207 230 230 Other Growth/Base Budget Changes

Income Support Staff Costs 414 460 460 TOTAL 6,071 8,570 8,761

Financial Implications to Social Security of Housing Incorporation

There are a number of financial impacts resulting from the Housing Transformation Programme. Income Support Costs

The financial impact of the return to near market rent levels in the Social Sector is now significantly reduced from that previously detailed in the MTFP as the implementation will be phased over many years as new tenancies are created.

The additional Income Support costs arising from the return to near market rent levels will be met as follows:

In the States sector, the additional cost estimated to be £300,000 in 2014, £700,000 in 2015 and

potentially increasing to £2m by 2043 will be met from the Social Security budget for Income Support. The increases in Income Support in 2014 and 2015 will be topped up from Central Contingencies, if the current MTFP funding levels prove to be inadequate.

In the Housing Trust sector, there is estimated to be a small additional cost of Income Support in 2014

and 2015, increasing to £1m by 2043. The increases in Income Support in 2014 and 2015 will be topped up from Central Contingencies, if the current MTFP funding levels prove to be inadequate.

In the Private sector the revised rates of Income Support have been implemented with effect from

April 2014. This additional cost has been provided as a growth bid in the current MTFP of £750,000 in 2014 and £1 million in 2015 which is proposed to be allocated to Social Security Income Support as part of the 2015 Budget allocation of Central Growth.

Proposals to agree the required changes to the MTFP 2013 2015

The changes required to the MTFP to reflect the financial impact as a result of the Housing Transformation Programme will be lodged by the Council of Ministers under Article 9(1) of the Public Finances (Jersey) Law 2005, as prescribed by Article 10 of the Social Housing (Transfer) Law 2013.

In summary the proposals will be:

to increase States total net revenue expenditure in 2014 and 2015 to reflect the transfer of the

contribution from Housing Department net revenue expenditure budget;

to increase States Income targets to reflect the new annual return from the new incorporated Housing

Association in 2014 and 2015;

to consider whether the States total net expenditure limit and the Social Security net revenue head of

expenditure need to be increased to reflect the increase in income support estimated in the States sector and Housing Trust sector in 2014 and 2015; and

the increases of £750,000 in 2014 and £1m in 2015 to Social Security from the Central Growth

Allocation were agreed in the 2014 Budget.

Long Term Care Scheme

Until the LTC contribution rate is set at 1% in 2016, the supplementary report for the LTC States contribution regulations P.140/2013 sets out the additional payments into the LTC Fund needed to ensure that the LTC scheme can operate.

It is estimated that a 1% rate starting in 2014 would yield £33.2 million up to the end of 2015. With LTC contributions starting at 0.5% in 2015, this equates to a loss of income into the LTC Fund over the first two years of £24.7 million.

Due to the level of provision for the costs of the recession within tax-funded benefit budgets and actual costs being lower than originally anticipated, the Medium Term Financial Plan includes funding for the Social Security Department in 2013, 2014 and 2015, which is unlikely to be spent fully.

There is currently a proposal for an element of the forecast underspends in Social Security budgets to be transferred to supplement the contributions to the Long Term Care Fund in 2014 and 2015. These proposals are intended to ensure there is sufficient funding for the Long Term Care scheme from July 2014, ahead of the introduction of the new Long Term Care contributions starting at 0.5% in 2015. Consideration will be given to deferring the transfer of this funding in 2014 providing sufficient funds exist in the Long Term Care Fund to manage expected commitments in 2014 and 2015.

Service Transfers

In 2015, the Department will be making Service Transfers totalling £672,300.

These include £622,300 to Housing as a result of lower than forecast increases proposed for Income Support and Housing rents from October 2013.

There will also be £50,000 transferred to the Judicial Greffe as continued support for the Employment Tribunal administrative costs.

Senator F. du H. Le Gresley

Minister for Social Security

Social Security

AIM:

Help people to achieve and maintain financial independence and provide social benefits to protect those unable to support themselves.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA Key Objective 1: Back to work, keep people in work.

Provide support for people to gain and retain employment in order to support themselves and their families.

Success criteria:

Policies, schemes and services developed and implemented to assist, in particularthe long term unemployed and the young, to accessthework place through the back to work initiative;
Services are further developed and introduced to improve the employment opportunities for thosewith long term health conditions;
The Skills Strategy is successful in providing local residents withthe skills required by employers to facilitate a reduced dependency on imported labour;
Income Support scheme continues to encourage and incentivise work, such that work always pays;
Modifications to the Trainee Minimum Wage are effective in encouraging a growth in the employment and training of young adults.

Strategic Plan References:

Priorities: Get people into work; Promote family and community values; Develop sustainable long- term planning

Key Objective 2: Protect Islanders from the impacts of low income

Success criteria:

Income Support scheme and other tax-fundedbenefits continue to provide targeted financial support to low income households, appropriate and flexible to their individual needs;
Income Support scheme continues to encourage and incentivise work, such that work always pays;
Income Support scheme successfully adapted to provide appropriate assistance to tenants in both social and private housing sectors;

Health Service reforms include support to low income groups and thosewith long term conditions to enable them to access health services, including Primary Care.

Strategic Plan References:

Priorities: Get people into work; House our community; Promote family and community values; Reform government and the public sector

Key Objective 3: Adequate income for old age, affordable for our children.

Assist older Islanders to maintain standards of living by means that are financially sustainable for future generations.

Success criteria:

Strategy developed ensuring the medium to long term sustainability of pension funding;
The Skills Strategy ensures that older residents have the current skills and opportunitiesnecessary to continue to be productive members of the Island s workforce;
Discrimination and Employment Law protects older workers from discrimination and exclusion from the workplace;
Long-term care funding scheme successfully introduced;
Increasing number of individuals benefiting from care packages provided in their own home;
Health Service reforms include support to low income groups and thosewith long term conditions to enable them to access health services, including Primary Care;
Income Support and other tax funded schemes provide targeted financial support to low income households.

Strategic Plan References:

Priorities: Get people into work; Reform Health and Social Services; Reform government & the public sector; Promote family and community values; Develop sustainable long-term planning

Key Objective 4: Improving our Customer Service.

Maintain and build upon current service standards, improving ease of use, efficiency and effectiveness.

Success criteria:

Improving the information accessible in respect of benefits available, to ensure customers are better informed;
Increased transparency of Social Welfare expenditure through the publication of a comprehensive annual report;
Reduced levels of fraud and error within thebenefit system;

Increased use of electronic payments;
New Long-term care contribution collected by Income Tax Department;
Services of other Departments accessible through the facilities at theDepartment,particularlywhere synergies exist.

Strategic Plan References:

Priorities: Reform government & the public sector; Develop sustainable long-term planning

Key Objective 5: Delivering the Strategic Plan.

Contribute fully to other initiatives of the Council of Ministers, where success requires our participation.

Success criteria:

Development of Primary Health Care Strategy, including effective governance;
Sustainable and appropriate funding of Primary Care Services;
Implementation and delivery of changes to Income Support to sustain the Housing Transformation;
Integrated service to deliver administration of Names and Addresses register on behalf of Population Office;
Delivery of integrated Social Policy Framework and joint workingwith Health and Social Services and the Housing Department in relation to the older adults agenda.

Strategic Plan References:

Priorities: Get people into work; House our community; Reform Health and Social Services; Reform government & the public sector; Promote family and community values; Manage population growth/ migration; Develop sustainable long-term planning

Social Security

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Expenditure Expenditure Revenue Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

63,700,000 States Contribution to Social Security Fund	65,300,000 65,300,000 65,300,000

Income Support
80,846,600 Weekly Benefit	82,676,400 82,676,400 82,676,400
1,447,600 Special Payments	1,504,800 1,504,800 1,504,800
19,413,700 Residential Care	20,093,100 20,093,100 20,093,100
697,000 Winter Fuel	724,600 724,600 724,600
682,700 Transitional Relief	532,700 532,700 532,700

556,400 Health and Safety at Work	564,500 564,500 564,500			5.0

11,165,700 Employment Services	11,155,900 11,155,900 11,155,900			95.0

Other Benefits
Invalid Care Allowance
1,468,900 Christmas Bonus		1,541,700 1,541,700	1,541,700
805,000 Food Costs Bonus		845,000 845,000	845,000
328,800 Jersey 65+ Health Plan		345,100 345,100	345,100
252,100 TV Licence		264,600 264,600	264,600
18,800 Non Contributory Death Grant		19,700 19,700	19,700
53,600 Social Fund		56,300 56,300	56,300
53,600 Child Care Support		56,300 56,300	56,300
101,500 Dental Benefit Scheme		106,600 106,600	106,600

8,037,700 Staff Costs and Administration		7,882,600 7,882,600	7,882,600	142.5

1,033,200 Contingency		1,061,500 1,061,500	1,061,500

(4,043,500) Social Security and Health Funds Payroll	(3,937,500)	(3,937,500) (3,937,500)		(81.9)

186,619,400 Revised Net Revenue Expenditure	(3,937,500) 194,731,400 190,793,900 190,793,900			160.6

Reduction in funding for 2% savings (330,900) (330,900) 190,463,000 190,463,000

Social Security

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties

(4,043,500) Sales of Goods and Services (3,937,500)

Investment Income

Other Income

(4,043,500) Total Income (3,937,500)

Expenditure

169,869,800 Social Benefit Payments 174,066,900 12,107,800 Staff Costs 11,846,800 1,684,800 Supplies and Services 1,684,300 187,200 Administrative Expenses 190,800 122,100 Premises and Maintenance 124,700 214,700 Other Operating Expenses 214,700 5,433,300 Grants and Subsidies Payments 5,531,500

Impairment of Receivables

10,000 Finance Costs 10,200

Foreign Exchange (Gain)/Loss

1,033,200 Contingency Expenses 1,061,500 190,662,900 Total Expenditure 194,731,400

186,619,400

Revised Net Revenue Near Cash Expenditure

190,793,900

Reduction in funding for 2% savings (330,900) 190,463,000

Depreciation

Impairment of Fixed Assets Asset Disposal (Gain)/Loss

186,619,400 Revised Net Revenue Non Cash Expenditure 190,463,000

Social Security

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 186,207,000 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (96,000) Service Transfers

Price Inflation Dept Expenditure 120,800 Price Inflation Provision for Pay Award b u Tdrganest fteorJoufdJiecriasleGy rEemffeployment Tribunal (50,000)

Net provision for Income Support, Benefits and

Supplementation 5,063,200 O cTtroabnesrf e2r0i1n3Rteol aHtoiouns tinogRDenetpaal rIntmcreenatse in (622,300)

Commitments from Existing Policies Allocations of Central Growth 2015 Private Sector Rental Support 1,000,000

Department Savings

Department User Pays Pay

Recurring effect of 2013 1% Consolidated Pay

62,000 Departmental Transfers Award

Recurring effect of 2014 4% Consolidated Pay

250,600 Award

Capital to Revenue Transfers

MTFP Growth

DEL 300,000 AME (359,000)

Proposed Procurement Savings

Proposed Other Budget Measures

Over Achievement of CSR Savings Targets

Procurement Savings (16,400) Capital to Revenue Transfers

Other Variations

Increase to cash limit as a result of Housing

134,000 Incorporation

Reduction in funding for 2% savings (330,900)

Savings to be Delivered by New Measures in Addition to CSR Targets

Revised Net Revenue Near Cash Expenditure

190,463,000

Extend Supplementation Certainty Calculation

(1,200,000) for Period of MTFP

Remove Supplementation Contingency

Net Revenue Near Cash Expenditure per MTFP

190,036,000

Depreciation per MTFP

2015 Depreciation Adjustment

Revised 2015 Depreciation

Revised Net Revenue Non Cash Expenditure 190,463,000

Transport and Technical Services

TRANSPORT AND TECHNICAL SERVICES PAGE 103

Transport and Technical Services

Minister's Introduction

The main areas of operation for Transport and Technical services are: Operational Services

Waste

Municipal

Engineering and Highways

Transport

The key projects and issues for the Department in 2015 are as follows:

Following the adoption by the States of P39/2014 Waste Water Strategy on 3 June 2014, the department has been preparing pre-qualification questionnaire and tender documents for the redevelopment of the Sewage Treatment Works at Bellozanne. During 2015 the department will work with the preferred contractor to finalise the design prior to award of the main contract in early 2016. Early contractor involvement seeks to ensure that the plans developed prior to award of contract are sufficiently progressed to minimise the risk of cost escalation during the course of the project.

In parallel with the design work being undertaken in 2015, enabling works on the Bellozanne site

to ensure that space is released to permit construction of phase I of the main works will progress. Replacement of the existing Clinical Waste Incinerator with a new plant co-located at the Energy from Waste facility at La Collette, together with a new purpose built household recycling centre near the organic waste recycling facility will enable phase I to commence.

The Capital Allocation of £25,494,000 in 2015 is the first major tranche of funding required for the replacement of the Sewage Treatment works which, together with a further £38,152,000 planned for 2016 allocation, will see the commencement of a major civil engineering project to be undertaken whilst minimising the impact on the existing works.

The Infrastructure Capital Allocation of £11 million in 2015 will enable the department to continue its programme of maintenance and upgrade of the highways, drainage network, sea defences and associated infrastructure.

The completion of the North of St Helier Flood Alleviation Scheme (Philips Street Shaft) will mean

that the risk of flooding in Minden Place, Bath Street, Beresford Street and surrounding areas will be minimised. Provision has been made to enable further surface water separation schemes in that area of town to be connected to the scheme as funding permits.

Commencement of the first Village Enhancement Scheme at St Aubin in 2014 heralded the start of the programme of schemes that will see other villages receiving traffic calming and street treatments to enhance the lives of people living, working and visiting the areas, whilst also providing valuable employment opportunities for locals.

Significant changes have occurred to the Island s bus service since LibertyBus took over at the beginning of 2013. The Department will continue to work with the new company to further improve the service and increase patronage.

Service Transfers

Disbanding of the Customer Services Centre £53,800 from Chief Minister s Department

Following the decision to disband the Customer Services Centre at Cyril Le Marquand House, the funds allocated by the TTS Department to the project in 2009 have been returned to TTS from the Chief Minister s Department.

Corporate Health and Safety Manager £63,000 from Chief Minister s Department

In the 2013 MTFP, additional growth was allocated to the Chief Minister s Department to fund the provision of a corporate Health and Safety service. The budget for the Health and Safety Manager has been transferred to the TTS Department following the decision to nominate the Chief Executive of TTS as Corporate Lead on Health and Safety.

Funding Pressures

Included within the cash limit allocation for 2015 is the sum of £1.5 million income in respect of receipt and treatment of municipal waste from Guernsey. This was included in the MTFP in early 2012 as a net reduction in the 2015 TTS departmental budget. Guernsey has indicated that they will be unable to commence any waste export operations until 2016 at the earliest and the States Assemblies of both Islands would need to support such a proposal. In addition, agreement of the Waste Regulators in both Islands and the UK would need to be sought. As such, the Treasury and Resources department has given assurance that resources will be found to offset this shortfall in TTS departmental income in 2015.

2015 Budget Measures

As part of the debate around the 2015 Budget, it was identified that additional savings totaling £12.1 million would be required to be made by all Departments in 2015. The TTS share of this is £817,500 and work has started to identify where these savings can be made. Until this work is substantially complete it is unknown how this will impact on the delivery of our existing services, or whether any additional user pays charges might need to be considered.

Deputy Kevin Lewis

Minister for Transport and Technical Services

Transport and Technical Services

AIM:

Ensure minimum impact of waste on the environment;

Develop on-Island travel networks which meet the needs of the community; Provide attractive and well maintained public amenities and infrastructure.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Improvement in solid waste management and recycling processes.

Success criteria:

Implementation of the Solid Waste Strategy according to the agreed timetable;
Implementation of theAsh Management Strategy according to agreed milestones;
Improvement of asset utilisation and reduction in operating costs;
Decommissioning of the Bellozanne Energy from Waste Plant according to programme;
Construction of the new Clinical Waste facility according to programme and within budget;
Identification of a suitable site for the Island s inert waste following completion of filling at La Collette;
Development of clear financial management plans indicating long-term view on sustainability and funding;

(viii) The most harmful elements of the waste stream (e.g. TVs, electrical goods, end of life vehicles,

plaster board) segregated for recycling;

Improvement of the recycling system to expand recycling and composting to levels defined in the Solid Waste Strategy Model, subject to funding and partnershipworkingwiththe parishes;
Measured increase in levels of community awareness of recycling through JASS, subject to funding;
Investigation of the options of closer workingwith Guernsey on theimportation of waste.

Strategic Plan Reference:

Vision: A safe and caring community; Preparing for the future; Protecting the environment Priorities: Develop sustainable long-term planning

Key Objective 2: Liquid waste treated and disposed of in a manner that minimises the impact on the environment.

Success criteria:

Implementation of the Liquid Waste Strategy according to the agreed timetable;
Improvement of asset utilisation and reduce operating costs, implementing energy saving projects;
Identification of a long term sustainable funding route for liquid waste to ensure proper support for the provision of theservice;
Construction of new Sludge Treatment Facilities maintained according to programme and within budget;
Reduction to therisk of flooding in St Helier by the construction of the Phillips Streetshaft drainage scheme;
Reduction in the amount of waste treatment required by undertaking as many surface water separation projects as budgets will allow;
Reduction in the risk of foul sewage spills by undertaking as many foul sewer and rising main upgrade projects as budgets will allow;

(viii) Effluent quality maintained or improved.

Strategic Plan Reference:

Vision: A safe and caring community; Preparing for the future; Protecting the environment Priorities: Reform government & the public sector; Develop sustainable long-term planning

Key Objective 3: The highway network maintained to maximise the lifespan of highways and associated infrastructure.

Success criteria:

Best use is made of the funds available through the allocation of budget prioritised against condition assessment;
Disruption to the travelling public affected by road works minimised through liaison withutility companies and careful management of traffic arrangements.

Strategic Plan Reference:

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment

Priorities: Develop sustainable long-term planning

Key Objective 4: Sustainable on-Island transport for Jersey.

Success criteria:

Implementation plan of the Sustainable Transport Policy (STP) prioritised, approved and resourced;
Proportion of travel by private car is reducing towards STP targets. Strategic Plan Reference:

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment

Priorities: Develop sustainable long-term planning

Key Objective 5: The integrity of the Island's sea defences is maintained.

Success criteria:

Sea defences not breached;
Scheduled implementation of theSea Defence Strategy;
Continual review of climate change predictions to inform theSea Defence Strategy.

Strategic Plan Reference:

Vision: Preparing for the future; Protecting the environment Priorities: Develop sustainable long-term planning

Key Objective 6: Provide leadership and expertise for States of Jersey Capital projects.

Success criteria:

Productive partnershipworkingwith other States departments;
Delivery of projects on time and within budget, minimising and sharing risks;
Delivery of projects through the consistent implementation of best practice project management and governance.

Strategic Plan Reference:

Vision: A safe and caring community; A strong and sustainable economy; Preparing for the future; Protecting the environment

Priorities: Develop sustainable long-term planning

Key Objective 7: Well maintained public places and amenities.

Success criteria:

Positive public feedback on cleanliness of municipal areas;
Investigate methods to improve income generation;
Customer satisfaction with facilities.

Strategic Plan Reference:

Vision: A safe and caring community; Protecting the environment

Key Objective 8: Road users are safe and comply with legislation.

Success criteria:

Proportion of vehicles in road checks being issued with defect notices is reducing;
Proportion of vehicles in road checks with invalid documentation is reducing;
Number of casualties resulting from road traffic incidents is reducing;
Road SafetyStrategy implemented according to plan.

Strategic Plan Reference:

Vision: A safe and caring community; A strong and sustainable economy Priorities: Develop sustainable long-term planning

Key Objective 9: Deliver allocated savings to contribute to achieving the £65 million Comprehensive Spending Review savings target by 2013.

Success criteria:

Sustainable, efficient and cost effective services;
Business Plans delivered within agreed Cash Limits.

Strategic Plan Reference:

Vision: A strong and sustainable economy

Key Objective 10: Staff and resources managed so as to improve performance and provide value for money.

Success criteria:

Financial balance achieved;
Explicit link between budget prioritisationprocess and Strategic Plan objectives demonstrated;
Staff developed to help them achieve their full potential;
Business improvement projects undertaken to ensure that processes are efficient, display value for money, are customer focussed and deliver tangible benefit;
Continued programme of commercialisation in TTS and improve the relationship withstaff to allow collaborative working at all levels.

Strategic Plan Reference:

Vision: A strong and sustainable economy; Preparing for the future; A highly skilled workforce Priorities: Develop sustainable long-term planning

Transport and Technical Services

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash		Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £	£

Operational Services: Waste				188.9
15,786,200 Liquid Waste	(632,300)	7,654,600 7,022,300 7,747,500 14,769,800
12,735,400 Solid Waste	(9,091,600) 15,516,500 6,424,900 5,744,800 12,169,700

Operational Services: Municipals				219.8
1,857,100 Cleaning	(2,186,200)	4,015,200 1,829,000	1,829,000
2,320,200 Parks and Gardens	(1,652,900)	3,928,800 2,275,900 30,800	2,306,700
(159,900) Jersey Harbours	(2,659,900)	2,451,200 (208,700)	(208,700)

10,008,300 Engineering and Highways	(384,400)	4,954,600 4,570,200 5,418,000	9,988,200	66.3

5,535,900 Transport	(1,209,100)	6,763,900 5,554,800 74,600	5,629,400	24.1

48,083,200 Revised Net Revenue Expenditure	(17,816,400) 45,284,800 27,468,400 19,015,700 46,484,100			499.1

Reduction in funding for 2% savings (817,500) (817,500) 26,650,900 45,666,600

Transport and Technical Services

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(881,800) Duties, Fees, Fines & Penalties (902,100) (15,021,400) Sales of Goods and Services (16,749,900) (1,000) Investment Income (1,000) (160,200) Other Income (163,400) (16,064,400) Total Income (17,816,400)

Expenditure

Social Benefit Payments

20,603,900 Staff Costs 20,610,500 14,653,400 Supplies and Services 15,875,500 262,800 Administrative Expenses 266,500 8,367,100 Premises and Maintenance 8,443,700 42,800 Other Operating Expenses 41,900

Grants and Subsidies Payments

1,100 Impairment of Receivables 1,100 44,900 Finance Costs 45,600 Foreign Exchange (Gain)/Loss

Contingency Expenses

43,976,000 Total Expenditure 45,284,800

27,911,600

Revised Net Revenue Near Cash Expenditure

27,468,400

Reduction in funding for 2% savings (817,500) 26,650,900

20,171,600 Depreciation 19,015,700

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

48,083,200 Revised Net Revenue Non Cash Expenditure 45,666,600

Transport and Technical Services

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 25,792,300 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (498,000) Price Inflation Dept Expenditure 636,500 Price Inflation Provision for Pay Award

Commitments from Existing Policies

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers

MTFP Growth 2,000,000 Proposed Procurement Savings

Proposed Other Budget Measures

Removal of Imp ts Fuel Duty Rebate from Bus

8,600 Contract

Net Income from Guernsey Waste Disposal (1,500,000)

Net Revenue Near Cash Expenditure per MTFP

26,439,400

Service Transfers

Transfer upon the Disbanding of the Customer

53,800 Services Centre from Chief Minister s Office

Transfer of Corporate Health and Safety

63,000 Manager from Chief Minister s Department

Allocations of Central Growth 2015 Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

199,200 Award

Recurring effect of 2014 4% Consolidated Pay

804,600 Award

Procurement Savings (91,600) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (817,500)

Revised Net Revenue Near Cash Expenditure

26,650,900

Depreciation per MTFP 18,991,700

2015 Depreciation Adjustment	24,000

Revised 2015 Depreciation	19,015,700

Revised Net Revenue Non Cash Expenditure	45,666,600

Treasury and Resources

TREASURY AND RESOURCES PAGE 115

Treasury and Resources

Minister's Introduction

The Treasury and Resources Department consists of the following sections: Treasury functions;

Taxes Office;

Jersey Property Holdings;

Corporate Procurement;

Insurance; and

Pensions.

The Minister also has responsibility for all contingencies in addition to his Departmental accountabilities.

The Treasury and Resources Department manages the Island s finances and assets, ensuring the protection and good use of public funds. It is responsible for all taxation, States budgets and financial policies. It also manages States property and represents the States shareholder interests in publicly owned companies.

The Department s financial plan over the three years of the MTFP is to deliver its objectives largely within its existing resources except for an additional £700,000 necessary to maintain community health and social care facilities to an acceptable standard.

This additional sum will support the States Strategic Priority Reform Health and Social Services by boosting the maintenance budget required to keep community buildings fit to deliver modern models of care, as described in the HSS White Paper Caring for each other, Caring for ourselves .

In addition to business as usual during the MTFP period, the Department will:

effectively manage insurance risks and make use of the improved contract terms to exceed its CSR

savings target;

provide professional procurement advice to departments to help them to secure savings and achieve

better value for money;

manage the balance sheet as well as the budget through continued improvements in the

management of its property portfolio and returns on investments and strategic shareholdings;

support departments in achieving their strategic aims and delivering their infrastructure projects

through funding advice;

continue to improve financial performance reporting;

support departments in the move to longer term financial planning and the delivery of the MTFP;

implement the Tax Transformation Programme which includes must do projects of Long Term Care

(LTC) contributions and Foreign Account Tax Compliance Act (FATCA) and original components aimed at improving the efficiency of tax administration and maximising tax receipts;

deliver a fair and affordable public sector pension scheme; and

keep tax policy under review in order to protect and grow the Island s economy.

The sections below expand on a selection of the more substantial projects which are being undertaken by the Department during the MTFP period in support of the States strategic priorities.

2015 Budget Measures

As part of the 2015 Budget it was identified that additional savings would be required from all Departments as part of a range of measures necessary to manage the consolidated fund balance in 2015. The total value of savings allocated to the Treasury and Resources Department (including Jersey Property Holdings and the Taxes Office) amounts to £778.8k and the Department is fully committed to achieving this target.

Specifically within the Taxes Office provisional proposals are currently under consideration and work will continue over the coming months in order to implement the required measures. Emphasis is being placed on minimising the impact on revenue-generating areas.

Investments

In 2014 the States of Jersey announced a new 40-year Sterling £250 million transaction. The announcement followed the completion of an investor roadshow the previous Friday, during which the States of Jersey team met with Sterling investors in Jersey, London and Edinburgh

Investors were very impressed with the strength and stability of the Jersey credit and the prudent fiscal management by the States of Jersey. Demand for the transaction was strong and the orderbook reached just over £600 million, there was enough support through the process that allowed the transaction to be launched at Gilts +52 basis points, resulting in a coupon of 3.750%.

Treasury & Resources will be responsible for maintaining the relationship between the States of Jersey and its investors through regular updates.

Taxes

The MTFP assumes that there will be no substantial tax increases and no new taxes introduced during this period.

The Tax Policy team will focus on reviewing measures to safeguard revenues and simplify the tax regime, in line with the principles of low, broad and simple . This will include:

continuing to monitor and enhance the robustness of the income tax system with regard to corporate

structures;

a broad review of the taxation of property in the Island (a green paper regarding the principles

underpinning property taxation in Jersey was published in July 2014);

reviewing how the Island could move to independent taxation for all income taxpayers; and

working closely with External Relations to monitor and respond to emerging international tax

standards.

Details of specific measures are included in the annual Budget Statements.

The Tax Transformation Programme is the action plan arising from the independent review of revenue functions within the States undertaken by Deloitte in 2010. The review focused mainly on the structure and activities of the Taxes Office but also considered its interaction with Customs & Immigration and the Social Security Department.

Early in 2012 it was agreed that the Taxes Office would take on responsibility, acting as agents of the Social Security Department, for the collection of contributions to be paid into a ring fenced fund and used for new Long Term Care (LTC) scheme. Working with Social Security on the implementation of LTC contributions has been added as a component of TTP and as the number one priority. It was announced in 2013 that the LTC contributions will not start until January 2015 which is a delay of one year from the original plan.

During February 2014 the implementation of FATCA was also allocated to TTP as another must do project.

The Taxes Office will continue to implement its TTP during the period of this MTFP but the main focus will continue to be on LTC and FATCA. LTC contributions commence form 1st January 2015 and will become an operational responsibility during the year. FATCA involves a phased delivery over the three year period 2015 to 2017.

Property

During 2013 to 2015, Jersey Property Holdings (JPH) will focus on continuation of the rolling programme of works to address the poor state of repair of the States of Jersey estate. Additional funds of £11.25m have been allocated to JPH for backlog maintenance for this period.

The two key capital projects to be progressed in this period are the relocation of the Police into new facilities and the development of a full feasibility study for a replacement General Hospital, following the initial pre-feasibility work undertaken in 2012.

The office rationalisation programme, of which the Police relocation is the first phase, will continue through the period of the MTFP. This will free up sites for residential development and reduce the running costs of States office accommodation in the future.

JPH will be managing all other building projects which house public services on behalf of the sponsoring departments as described in the capital programme.

Procurement

Corporate Procurement will complete the roll out of its transformation programme which began in 2011 and comprised of 3 main activities:

a programme of cross departmental procurement projects which together are targeted to deliver the

£6.5m CSR savings;

the organisation and development of a professional procurement function that is based on category

management. This model requires that procurement professionals/category managers are embedded in the key areas of the business;

the procurement and implementation of a modern procure-to-pay computer system which will

complement the e-tendering system currently used within the States.

Pensions

People are living longer which is increasing the cost of providing pensions. Employee and employer contributions into the public sector pension schemes have remained static for many years over which time the cost of providing the pension benefits has increased as people have been living longer.

It is necessary to ensure that pensions are affordable and sustainable for employees, employers and the taxpayer. Changes to public sector pensions are required to ensure the pension schemes are sustainable for the long term and provide benefits that are appropriate for the way people live and work today. The public sector pension scheme landscape has changed both in Jersey and the UK and changes are

being proposed that will provide sustainable public sector pension schemes for at least the next 25 years.

Public sector pension schemes in the UK have been reviewed following the publication of a report

by the Independent Public Service Pensions Commission chaired by Lord Hutton. In mid-2011, a Technical Working Group comprising of representatives from the PECRS Committee of Management and Treasury was established to develop a report on possible options for changes to PECRS to ensure its viability and sustainability for the future. In March 2013, the Technical Working Group brought forward options that aim to ensure PECRS is affordable and sustainable for the long term, have regard to the Hutton recommendations, facilitates continued membership of the Transfer Club and provides clarity over future arrangements for the sharing of risks and benefits between employer and employee.

During 2014, negotiations with the Joint Negotiating Group have progressed with a view to bringing in changes to PECRS in 2016. The final offer was sent to the Joint Negotiating Group in April 2014. The three major unions have balloted their members who have voted to accept the proposals. The enabling Law received Royal Assent in July 2014 and work has progressed on the drafting of regulations for a States debate in 2015.

Service Transfers

Transfer of Rent and Service Charges £50,000 to Housing Department

As part of the Housing Transformation Programme it was agreed that rental and service charges budgets for Jubilee Wharf would be transferred from JPH to Housing.

Disbanding of the Customer Services Centre £75,400 from Chief Minister s Department

Corporate Procurement Savings Recharge £31,700 to Housing Department

Following the successful conclusion to the main insurance programme re-tendering process during the 4th quarter 2011, recurring saving were achieved and departmental budgets realigned to ensure budgets matched expenditure. A small recharge was required between Treasury and Resources and the Housing Department for the three years of the MTFP (99 Year Leases).

Finance Resource Staff Budget £89,800 to Health and Social Services Transfer of resources in order to further strengthen the senior finance team.

Transfer of Additional Resource £93,400 to Chief Minister s Department

Senator Philip Ozouf

Treasury and Resources Minister

Treasury and Resources

AIM:

Support the delivery of the States strategic objectives by maintaining sustainable public finances, providing effective financial advice and managing States assets.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Effective long term strategic and financial planning and sustainable public finances.

Success criteria:

Develop, implement and maintain a financial planning framework to ensure accurate forecasting and the setting of an overall financial envelope within which budgets are set to include:

Medium Term Financial Plan

Long Term Capital Programme

In conjunction withthe Chief Minister s Department, continue to develop a robust strategic and business planning and performanceframework ensuring firm linkages between financial and non-financial information;
Develop and gain approval of a Fiscal Strategy delivering:

Balanced budgets over the economic cycle

A fiscal stimuli programme as necessary

Measures to maintain low levels of inflation

Necessary justifiable and sustainable taxes and charges

Implementation of International Financial Reporting Standards (IFRS);
Effective monitoring, management and reporting on States investments;
Maintenance and development of the Public Finances Law and associated governance arrangements;
The affordability, sustainability and fairness of PECRS and JTSF pension schemes reviewed and proposals for change brought forward and implemented.

Strategic Plan Reference:

Vision: A strong and sustainable economy; Preparing for the future Priorities: Develop sustainable long-term planning

Key Objective 2: Improved monitoring and reporting of financial performance.

Success criteria:

Improved internal in-year financial performancereporting, forecasting, budgeting and analysis of both net revenue expenditure and capital expenditure;
Financial assessment of major policy developments;
Provision of information and advice to enable informed decision-making, thereby ensuring demonstrable value for money;
Development of clear KPIs and other financial performancereports by which departmentalperformance can be monitored, reviewed and improved;
Development of an active shareholder role in respect of States owned companies, delivering improved accountability and financial performancefrom companies, subject to funding;
Production of Annual Accounts in accordance with International Financial Reporting Standards (IFRS).

Strategic Plan Reference:

Vision: A strong and sustainable economy

Key Objective 3: Effective governance of funding designed to aid the economy.

Success criteria:

(i) Management of funds provided for Social Housing Schemes. Strategic Plan Reference:

Vision: A strong and sustainable economy; Preparing for the future Priorities: House our community

Key Objective 4: Efficient and effective Treasury services.

Success criteria:

Maintain and operate effective treasury management policies and investment strategies;
Maximise financial returns on cash and investments whilst managing security and liquidity requirements;
Effective management of the Island s currency;
Maintain and develop governance arrangements to facilitate improvement in value for money and performance in respect of States trading departments, States companies, States funds and funds held in trust;

Effective management of States insurance;
Maintain an effective control and compliance framework for Treasury Operations.

Strategic Plan Reference:

Vision: A strong and sustainable economy; Preparing for the future Priorities: Develop sustainable long-term planning

Key Objective 5: Efficient and effective financial management and financial processing services.

Success criteria:

Improved external financial reporting;
Maintain and develop a robust financial control and assurance framework across the States;
Maintain and develop financial systems and processes;
Pay States suppliers in accordance with agreed terms, conditions and policies;
Pay States employees in accordance with agreed terms and conditions;
An effective cashiering and accounts receivable service for the collection of States income charged for the provision of goods and services;
Provision of services to supportthe administration of PECRS and JTSF pension schemes; (viii) Effective and efficient provision of a range of processing and back-officesupportservices.

Strategic Plan Reference:

Vision: A strong and sustainable economy

Key Objective 6: Long term Tax Policy and efficient and effective tax administration and collection.

Success criteria:

Development and implementation of new Tax Policy and changes to current Tax Policy;
Assessment, collection and enforcement of income tax and goods and servicestax;
Administration and enforcement of both sets of Jersey s international tax agreements.

Strategic Plan Reference:

Vision: A strong and sustainable economy; Preparing for the future Priorities: Develop sustainable long-term planning

Key Objective 7: Effective audit and risk management.

Success criteria:

Agreed audit plan delivered in accordance with IIA Standards;
Regular reports provided to the Audit Committee and C&AG;
Risk management promoted and reviewed throughout the organisation to achieve managed status;
Contribution to development and implementation of an effective Assurance Framework;
Review and appraise the soundness, adequacy, and application of accounting, financial and other operating controls, and promoting effective control at reasonable cost;
Ascertainthe extent of compliance with established policies, plans, procedures, laws, and regulations;
Determine the extent of which the States assets are accounted for and safeguarded fromlosses of all kinds.

Strategic Plan Reference:

Vision: A strong and sustainable economy

Key Objective 8: Deliver allocated savings to contribute to achieving the £65 million Comprehensive Spending Review savings target by 2013 and deliver outline budget reduction programme for 2014 and 2015.

Success criteria:

Sustainable, effective low cost services;
Medium Term Financial Plan delivered within agreed Cash Limits.

Strategic Plan Reference:

The Vision: A strong and sustainable economy; Preparing for the future

The Priorities: Reform government & the public sector; Develop sustainable long-term planning

Jersey Property Holdings

Key Objective 9: A disposal programme which reduces the States' Property Portfolio to a size which is affordable and efficient, and releases capital proceeds for investment in addition to sites suitable for Housing development.

Success criteria:

Improved asset utilisation and reduced property operating costs;
The concentration of States administration into fewer geographic locations and the development of new working environments which support more collaborative and efficient ways of working;
The release of surplus or high alternative use value properties to provide funds to support capital investment, with a strong focus on progressing sites which may be developed for social rented or private sector housing.

Strategic Plan Reference:

Priorities: House our community; Reform government & the public sector; Develop sustainable long- term planning

Key Objective 10: Addressing building stock condition resulting from a legacy of under funding of maintenance and capital works.

Success criteria:

A significant reduction in backlog maintenance which has resulted from structural under-funding of property maintenance over a number of years, through the progression of remedial works in a phased and prioritised programme plan;
The delivery of capital projects to replace assets which have deteriorated beyond reasonable repair, funded fromproceeds generated by the disposal of property over and above that required to meet agreed capital proceeds targets;
Capital projects commenced and completed on time and within budget. Strategic Plan Reference:

Priorities: Develop sustainable long-term planning

Key Objective 11: Development and maintenance of a five year rolling Portfolio Plan.

Success criteria:

The continued consolidation of all property information, asset valuations and legal commitments in a single database;

The identification of all future investment and asset management activity through the single comprehensive Integrated Property System.

Strategic Plan Reference:

Vision: Preparing for the future; Protecting the environment; A highly skilled workforce Priorities: Develop sustainable long-term planning

Key Objective 12: Continued development of the Jersey Property Holdings organisation.

Success criteria:

The introduction of new financial directions, policies and procedures to clarify all internal and external operating procedures for property transactions and utilisation;
The completion of Health and Safety and supplier management training for all appropriate personnel;
The development of service level agreements for all propertyusers in conjunction with lease agreements, including customer satisfaction indices;
Co-location of all Jersey Property Holdings staff.

Strategic Plan Reference:

Priorities: Reform government & the public sector

Procurement

Key Objective 13: A single corporate procurement function across the States.

Success criteria:

The implementation of a procurement strategy;
A procurement plan to deliver cash and efficiency savings across the States focussing on large corporate initiatives that will deliver maximum benefit to the States;
Educate to improve procurement skills at departmental and operational level;
Support the implementation of an e-sourcing system and supplier portal across all departments;
Implement effective strategies, polices and procedures to support a corporate approach to the procurement of goods, services and works;
Implement planning and performance management criteria in respect of the States procurement activities;
Promulgate best practice with regard to supplier management and workwith Economic Development to develop capacity of local suppliers.

Strategic Plan Reference:

The Priorities: Reform government & the public sector

Treasury and Resources

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income		2015 Revised Net Revenue Expenditure Expenditure Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£		£ £ £	£

6,407,100 States Treasury		(1,426,700) 7,327,600 5,900,900 5,900,900				109.2

7,671,100 Taxes Office		(184,600) 6,595,600 6,411,000 836,400 7,247,400				99.1

28,919,900 Jersey Property Holdings		(5,888,300) 13,343,300 7,455,000 19,468,600 26,923,600				48.0

487,200 Corporate Procurement		(43,500) 530,700 487,200 487,200				12.0

2,396,400 Insurance		2,310,100 2,310,100 2,310,100

6,747,800 Pensions		7,931,700 7,931,700 7,931,700

52,629,500 Revised Net Revenue Expenditure		(7,543,100) 38,039,000 30,495,900 20,305,000 50,800,900				268.3

Reduction in funding for 2% savings (778,900) (778,900) Unallocated Corporate Procurement

(994,300) (994,300) Savings

28,722,700 49,027,700

Treasury and Resources

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties

(7,036,500) Sales of Goods and Services (7,317,400)

Investment Income

(219,000) Other Income (225,700) (7,255,500) Total Income (7,543,100)

Expenditure

Social Benefit Payments

15,327,100 Staff Costs 15,436,500 3,469,300 Supplies and Services 3,097,200 450,300 Administrative Expenses 456,000 13,592,900 Premises and Maintenance 11,510,100 182,300 Other Operating Expenses 184,900

Grants and Subsidies Payments

115,000 Impairment of Receivables 117,800 6,127,400 Finance Costs 7,236,500 Foreign Exchange (Gain)/Loss

Contingency Expenses

39,264,300 Total Expenditure 38,039,000

32,008,800

Revised Net Revenue Near Cash Expenditure

30,495,900

Reduction in funding for 2% savings (778,900) Unallocated Corporate Procurement Savings (994,300)

28,722,700 20,620,700 Depreciation 20,305,000

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

52,629,500 Revised Net Revenue Non Cash Expenditure 49,027,700

Treasury and Resources

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 £

Base Department Budget 31,412,400

Price Inflation Dept Income (196,500) Price Inflation Dept Expenditure 577,700

Price Inflation Provision for Pay Award	75,000

Commitments from Existing Policies

CSR Growth and Other Growth (34,000) Unallocated Growth Provision (251,000)

Department Savings Department User Pays

Departmental Transfers Capital to Revenue Transfers

Property Holdings: Backlog Maintenance Programme

MTFP Growth

Proposed Procurement Savings Proposed Other Budget Measures

Reduce PECRS Pre 1987 Repayment Term to

1,000,000 Reduce

Reduce Proporty Backlog Repairs and

(2,000,000) Maintenance (JPH)

Net Revenue Near Cash Expenditure per MTFP

30,583,600

2015 £

Approved Variations to Expenditure Limits since MTFP

Service Transfers

Transfer of Rental and Service Charges

budget for Jubilee Wharf to Housing (50,000) Department

Transfer upon the Disbanding of the

Customer Services Centre from Chief Minister s 75,400 Department

Transfer of staff budget for Finance Resource

(89,800) to Health and Social Services

Transfer for Corporate Procurement Savings

(31,700) Recharge to Housing Department

Transfer of Additional Resource to Chief

(93,400) Minister s Department

Allocations of Central Growth 2015 Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

137,400 Award

Recurring effect of 2014 4% Consolidated Pay

555,000 Award

Procurement Savings (590,600) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (778,900) Unallocated Corporate Procurement Savings (994,300)

Revised Net Revenue Near Cash Expenditure 2015

28,722,700

Depreciation per MTFP 11,919,100 2015 Depreciation Adjustment 8,385,900 Revised 2015 Depreciation 20,305,000

Revised Net Revenue Non Cash Expenditure

49,027,700 2015

Non-Ministerial States Funded Bodies

NON-MINISTERIAL STATES FUNDED BODIES PAGE 133

Non-Ministerial States Funded Bodies

The Public Finances (Jersey) Law 2005 defines the Non-Ministerial Bodies as being a States funded body for which no Minister is responsible to the States for its administration and funding. Each Non Ministerial Body has an appointed accounting officer personally responsible for the proper financial management of its resources. The application of the Public Finances Law applies in the same manner as to Ministerial Departments except in instances of disagreement with regard to a budget offered to a Non Ministerial Body by the Council of Ministers.

In such circumstances, the offered budget and the requested budget should be published in the States Medium Term Financial Plan with a disclosure from the Council stating why a variation is recommended.

No such disagreements were included in the Medium Term Financial Plan 2013 2015. The Non Ministerial Bodies were offered budgets in line with the financial framework of the Council, including inflation funding and efficiency savings. It is appreciated that all Non Ministerial Bodies have accepted these offers having recognised both the principles and budgetary constraints of the Council.

It is recognised that there are particular and individual financial pressures within each of these bodies and the Council of Ministers will consider these pressures.

The legal services budgets contain estimates for Court and Case Costs. By its nature, expenditure on Court and Case Costs is an unpredictable element in the budget. A Smoothing Reserve has been put in place to deal with the volatile nature of Court and Case Costs expenditure. This is primed with £2.8 million of carry forwards from 2011 and £0.5 million from 2012. Quarterly budget monitoring procedures have also been put in place to monitor expenditure in this area which will give early notice if there is to be a need to draw on the Smoothing Reserve.

2015 Budget Measures

As part of the 2015 Budget it was identified that additional savings would be required from all Departments as part of a range of measures necessary to manage the consolidated fund balance in 2015. The quantum of savings allocated to the Non Ministerial Departments amounts to £548K and although each of these departments are fully committed to meeting this target, it is not yet known precisely how they will make these savings. Non Ministerial Departments are small and predominantly staff-based, reducing the staff costs would have a detrimental impact on the services provided therefore they will need to look at other areas in which these savings can be made.

Service Transfers

Cadet and Military Support Officer £8,000 from Home Affairs

Transfer of the post of the Island Military Liaison Officer to a new post of Cadet and Military Support Officer at the Office of the Lieutenant Governor. The new post has additional duties including responsibility for the Island Cadet Force organisations, military visits and liaising with the Bailiff s

Chambers helping to organise States occasions which will be funded from carry forwards in 2014 and 2015. There will be a growth bid in 2016 for additional funding.

Jersey Employment Tribunal £50,000 from Social Security

The transfer of service from Social Security to Judicial Greffe originally occurred in 2011 with a recurring transfer of budget in 2012. An increase in the number of Tribunal hearing days has led to an increase in required funding from Social Security. A growth bid was made by the Social Security Department in the Medium Term Financial Plan (MTFP) to cover this increase. This growth bid was successful and the MTFP has approved the required funding for the Social Security Department for each of the years, 2013 to 2015. This is a permanent budget transfer which will automatically go into 2016 to 2018.

Non-Ministerial Departments

Bailiff 's Chamber

AIM:

Support for the r le of the Bailiff as President of the Royal Court and the States Assembly, and in his other customary and statutory duties as Civic Head of the Island.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Support the Island's judiciary in the delivery of civil and criminal justice.

Success criteria:

Criminal trials heard within three months of indictment;
Civil disputes heard within date fix targets;
Judgments produced within three months of the close of proceedings;
Orders of justice etc. processed within 24 hours;
Warr ants before a judge produced on date of request;
Judges allocated to civil and criminal cases within agreed financial parameters.

Strategic Plan References: Vision:

Vision: A safe and caring community;

Key Objective 2: Assist in facilitating the democratic processes of the States.

Success criteria:

Arrangements made to provide an experienced President for meetings of the States in the form of the Bailiff , or in his absence, the Deputy Bailiff ;
Withthe assistance of the States Greffe, propositions and questions approved in accordance with Standing Orders;
Confidential advice provided to members about procedural matters. Strategic Plan References:

Vision: A safe and caring community;

Key Objective 3: Encourage awareness of the Island's constitutional position and to ensure that the position is not compromised.

Success criteria:

Advice provided to members about the constitutional position of the Island;
Manage the flow of officialcorrespondenceforwarding incoming items on day of receipt, and processing replies for signature by the Bailiff within the deadlines set by theUKauthorities (in conjunction with Government House and Chief Minister s Department);
Visiting groups to the Royal Court and States Chamber encouraged and an understanding of the constitutional development of the institutions provided.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 4: Provide the appropriate frameworks to enable the Bailiff to discharge his customary and statutory responsibilities.

Success criteria:

Successful organisation of ceremonial and civic activities and events (Liberation Day, Visite Royales etc);
Increased awareness of the Island s unique historical and constitutional position generated by organising, with Government House and Chief Minister s Department, successful visits by Ambassadors, High Commissioners and other senior level diplomats and distinguished visitors including members of the Royal Family;
Participation by the Bailiff in community events and functions to support community endeavour;
Management of public entertainment applications process, securing the advice from the statutory and parish authorities on matters of public entertainment in order to properly manage the permit system;
Management of applications for extension and transfer licenses under Article89 of the Licensing (Jersey) Law 1974, as amended, and processed within seven working days;
Public collections to support charitable activity managed.

Strategic Plan References:

Vision: A safe and caring community

Data Protection Commission

AIM:

Promote respect for the private lives of individuals by promoting compliance with, and enforcing the Data Protection (Jersey) Law 2005.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Preparing for the implementation of a Freedom of Information Law for Jersey.

Success criteria:

Provision of effective guidance for individuals;
Publication of clear and complete guidance for compliance under theproposed FoI Law;
Develop performance management targets.

Strategic Plan References:

Vision: Preparing for the future

Priority: Reform government and the public sector

Key Objective 2: Review proposed changes to the Data Protection regulatory Framework in Europe.

Success criteria:

Assess impact on local business, economy and Jersey s independence as a non-EEA jurisdiction;
Provide advice to stakeholders on agreed changes to the European regulatoryframework;
Examine the appropriateness/feasibility of secondary legislation and/or codes of practice relating to associated impacting drivers, eg. Cookies Regulations and Privacy and Electronic Communications Regulations.

Strategic Plan References:

Vision: Preparing for the future

Priority: Develop sustainable long term planning

Key Objective 3: Seek improved pan-Island co-operation between Jersey and Guernsey offices.

Success criteria:

Maintained continuity of the effective day to day operation of both offices;
Establishment and publication of consistent and common guidance for both Islands;
Development of a common platform for IT/Notification systems.

Strategic Plan References:

Vision: Preparing for the future

Priority: Develop sustainable long term planning

Key Objective 4: Purposeful regulatory action.

Success criteria:

Adopt policies, procedures and criteria for prioritising and targeting cases/issues to be investigated;
Produce guidance on regulatory action available to the Commissioner under the Data Protection (Jersey) Law 2005;
Ensure complaints and issues of non-compliance are dealt with in a prompt, consistent and just manner;
Ensure that where appropriate, cases involving the allegation of the commission of a criminal offence are referred to the AG for consideration in a timely manner.

Strategic Plan References:

Vision: A safe and caring community

Priority: Develop sustainable long term planning

Key Objective 5: Increased awareness of data protection and privacy issues, choices and obligations across the business and public community.

Success criteria:

Ongoing development and review of external communications strategy;
Constant review and update of website;
Awareness levels raised individuals assisted in making informed choices and protecting their own interests and commercial organisations aware of their compliance obligations under the Law.

Strategic Plan References:

Vision: A safe and caring community; Preparing for the future

Priority: Promote family and community values; Develop sustainable long term planning

Key Objective 6: Influence domestic and international debates concerning information and privacy issues.

Success criteria:

(i) Involvement in policy debate on selected issues that affect the way in which data is processed, or where debates on privacy are involved.

Strategic Plan References:

Vision: Preparing for the future

Priority: Develop sustainable long term planning

Judicial Greffe and Viscount

AIM:

An efficient and effective Court Service.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: An efficient and effective administrative service provided to the Royal Court, the Court of Appeal and the Tribunals Service.

Success criteria:

Issue Convening Acts and Acts ordering Public Elections within 1 working day;
Issue Company Acts, Decrees Absolute and Acts of the Royal Court within 5 working days;
Issue Decrees Nisi and Liquor and Gambling Licences within 10 working days;
Process applications for legal aid disbursements within 5 working days;
Issue all Court of Appeal Acts and Register Orders in Council within 1 working day;
Issue all Interlocutory Acts within 3 working days;
Appointment to fix a hearing date within 3 working days of request.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 2: Provide a Public Registry, Intellectual Property Registry and Probate Registry.

Success criteria:

Register Judicial Hypothecs within 5 working days;
Register Wills of Immovables, Powers of Attorney and Public Service and Water Notices within 7 working days;
Appointment for cancellation of Acts within 4 working days of request;
Issue Acts of Probate Division, Curatorship Acts of Jurats Appointment and Curatorship Acts of Appointment within 5 working days;
Issue Grants of Probate and Letters of Administration within 5 working days;
Issue Intellectual PropertyCertificates and Certificates of Eligibility within 3 working days.

Strategic Plan References:

Vision: A strong and sustainable economy

Key Objective 3: Provide an administrative service to the Magistrate's, Youth and Petty Debts Courts.

Success criteria:

Issue ArrestOrders and Acts of Committal within 2 working days;
Issue Petty Debts Court Acts within 3 working days;
Acts of Court completed within 1 working day.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 4: The efficient enforcement of all Court Orders.

Success criteria:

Enforcement of Royal Court and Petty Debts Court Judgments for Debt instigated within 2 working days of Act being lodged and registered;
Service of Process effected within the relevant statutory time period;
Enforcement of fines and compensation orders (payment completed in full or imprisonment imposed in lieu);
Enforcement of orders made under the Maintenance Orders (Facilities for Enforcement) (Jersey) Law 2000.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 5: Efficient and effective Désastre proceedings.

Success criteria:

Arrange for inventory of valuables and disposal of perishables within 2 working days;
Circulars to banks and identifiedUK creditors notifying declaration sent within 7 working days;
Enter debtors details in DMIS and proceed to recover funds owing within 21 days of declaration.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 6: Effective management of the financial affairs of impecunious interdicts.

Success criteria:

Notification of appointment of Curator to identifiedparties completed within 2 weeks of receipt of Act of Court;
Compilation of inventory of both real and personalproperty within the relevant statutory time period;
Periodic contact withcarers of interdicts at least quarterly;
Production of annual accounts within the relevant statutory time period;
Monitoring and processing of items of income and expenditure on a monthly basis.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 7: Effective investigation of sudden deaths to establish cause and reason.

Success criteria:

Order post-mortem examinations following receipt of Police report within 1 working day;
Set dates for inquest openings within 1 working day;
Issue post-inquest documentation within 1 working day.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 8: Compile and manage the jury selection procedure and manage the jury during assize trials.

Success criteria:

Respond to queries regarding the duties of a juror within 1 working day;
Respond to requests for exemption fromjuryservice within 1 working day;
Provide support and guidance to jurymembers for the duration of the trial.

Strategic Plan References:

Vision: A safe and caring community

Law Officers' Department

AIM:

Provide efficient and effective legal advice to the Crown and States, including Ministers and Departments, and a high quality criminal prosecution service.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Objective strategic advice provided to the States of Jersey directly or through the Council of Ministers having regard to constitutional and legal developments.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 2: Objective legal advice of a high quality provided within reasonable timescales to the Crown, the States of Jersey and all others it serves.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 3: A high quality prosecution service working in the interests of justice and contributing to a reduction in the level of crime in the Island.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 4: The interests of the Crown and the States of Jersey are protected by acting on their behalf in civil proceedings brought by or against the Crown or the States.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 5: The functions and duties of the Attorney General arising from custom or statute performed to a high standard and in a timely manner.

Strategic Plan References:

Vision: A safe and caring community

Key Objective 6: Effective assistance provided within reasonable timescales to overseas judicial and law enforcement agencies in criminal matters.

Strategic Plan References:

Vision: A safe and caring community; A strong and sustainable economy

Key Objective 7: Efficient conveyancing in relation to property matters affecting the Crown and the States of Jersey.

Strategic Plan References:

Vision: A safe and caring community

Official Analyst

AIM:

Authoritative and impartial scientific analysis and advice for the States of Jersey and the Island community. SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Objective 1: Proficient and effective forensic analysis of samples and evidence in criminal investigations and unexplained deaths.

Success criteria:

95per cent of services delivered within target times;
Satisfactory results in all relevant external quality assurance schemes.

Strategic Plan References:

Vision: A safe and caring community

Objective 2: Proficient and effective environmental and consumer protection analysis services for our customers.

Success criteria:

95per cent of services delivered within target times;
Satisfactory results in all relevant external quality assurance schemes.

Strategic Plan References:

Vision: A safe and caring community

Probation and After Care Service

AIM:

An effective and efficient social work service that supports the criminal justice system and the family division of the Jersey Royal Court.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Key Objective 1: Provide and information and assessment to the Parish Hall s, Criminal and Family Courts, Lt Governor and prisons which are accurate, timely and aid decision making.

Success criteria:

Having published standards detailing the structure and process for the production of reports and assessments;
Conducting inspections into reports for both the criminal justice and family court arenas which include the views of serviceusers and thosewho receive reports and assessments;
Ensuring all writtenreports are peer reviewed prior to submission. Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values

Key Objective 2: Provide supervision services to the Parish Hall s, Courts and prisons which are effective in assisting people to make positive changes in their lives which reduce re offending

Success criteria:

Having published evidence based standards for supervision which reflectthe expectations of the Centeniers, Courts and thePrisonauthoritieswho entrust people to our care;
Using theLSI-R likelihood of re-offending measure at the beginning and the end of Probation Orders to measure change and producing at least one reconviction study in conjunction with an academic institution which measures actual reconviction rates for the range of measures used by theCourts;
Ensuring that all members of staff receive appropriate training, resources and supervision in line withthe evidence about effective practice;
Conducting inspections into CommunityService and Probation work at HMprisonLa Moye.

Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values

Key Objective 3: To provide monitoring and where necessary timely enforcement action to assist in the protection of the public from further offending.

Success criteria:

Having fair, clear and transparent written compliance and enforcement policies;
Sharing information with other agencies when it is reasonable and proportionate to do so for the protection of the public;
Conducting inspections into CommunityService and Probation work at HMprisonLa Moye and contributing to reviews of the Jersey Multi Agency Public Protection Arrangements established under the Sex Offenders Jersey Law.

Strategic Plan References:

Vision: A safe and caring community

Priorities: Promote family and community values

Comptroller and Auditor General

ROLE: The role of the Comptroller and Auditor General is prescribed in the Public Finances (Jersey) Law 2005. It includes the provision of assurance that the public finances of Jersey are being regulated, controlled and accounted for in accordance with the Law, and reporting on the economy, efficiency and effectiveness of the use of resources by States funded bodies and States aided independent bodies.

Office of the Dean of Jersey

ROLE: The role of the Dean of Jersey in relation to the States is as a representative of all the Churches of Jersey in the States Chamber.

Office of the Lieutenant Governor

ROLE: The Lieutenant-Governor is the representative of Her Majesty The Queen, by whose Royal Warr ant he is appointed Lieutenant-Governor and Commander-in-Chief . As such, he is the formal, official channel of communication between the States of Jersey and the UK Government through the Ministry of Justice.

Non-Ministerial States Funded Bodies

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash Near Cash Non Cash

2014 2015 2015

Revised Net Income Expenditure Revised Expenditure Revised 2015

Revenue Net Revenue Net Revenue FTE Expenditure Expenditure Expenditure

£ £ £ £ £ £

Bailiff s Chambers

1,344,500 Bailiff s Chambers General (86,800) 1,432,700 1,345,900 1,345,900 10.0

309,100 Court and Case Costs (110,100) 427,700 317,600 317,600

Reduction in funding for 2% savings (36,600) (36,600) 1,653,600 Subtotal (196,900) 1,860,400 1,626,900 1,626,900 10.0

Law Officers Department

5,878,000 Law Officers General (176,500) 6,122,900 5,946,400 5,946,400 68.0 2,091,500 Court and Case Costs (1,656,100) 3,698,000 2,041,900 9,000 2,050,900

Reduction in funding for 2% savings (203,900) (203,900) 7,969,500 Subtotal (1,832,600) 9,820,900 7,784,400 9,000 7,793,400 68.0

Judicial Greffe

2,800,800 Judicial Greffe General (948,300) 3,773,400 2,825,100 19,400 2,844,500 45.2 4,123,600 Court and Case Costs (442,000) 4,563,800 4,121,800 4,121,800

Reduction in funding for 2% savings (161,200) (161,200) 6,924,400 Subtotal (1,390,300) 8,337,200 6,785,700 19,400 6,805,100 45.2

Viscount s Department

1,200,800 Duties of the Viscount (601,200) 1,775,100 1,173,900 66,900 1,240,800 23.9

257,900 Court and Case Costs 251,900 251,900 251,900

Reduction in funding for 2% savings (39,300) (39,300) 1,458,700 Subtotal (601,200) 2,027,000 1,386,500 66,900 1,453,400 23.9

683,300 Official Analyst (63,000) 702,100 639,100 87,500 726,600 9.6

Reduction in funding for 2% savings (13,100) (13,100)

683,300 Subtotal (63,000) 702,100 626,000 87,500 713,500 9.6 733,000 Office of the Lieutenant Governor (98,000) 829,000 731,000 3,500 734,500 14.4

Reduction in funding for 2% savings (16,600) (16,600) 733,000 Subtotal (98,000) 829,000 714,400 3,500 717,900 14.4

26,100 Office of the Dean of Jersey 26,300 26,300 26,300

Reduction in funding for 2% savings (500) (500)

26,100 Subtotal 26,300 25,800 25,800 234,400 Data Protection Commission (156,600) 391,200 234,600 5,000 239,600 4.0

Reduction in funding for 2% savings (7,700) (7,700)

234,400 Subtotal (156,600) 391,200 226,900 5,000 231,900 4.0

Probation

2,003,500 Probation and Aftercare Service (445,000) 2,416,700 1,971,700 20,800 1,992,500 32.3

236,400 Court and Case Costs 242,300 242,300 242,300

Reduction in funding for 2% savings (53,100) (53,100) 2,239,900 Subtotal (445,000) 2,659,000 2,160,900 20,800 2,181,700 32.3

768,700 Comptroller and Auditor General 777,200 777,200 777,200 1.5

Reduction in funding for 2% savings (16,200) (16,200) 768,700 Subtotal 777,200 761,000 761,000 1.5

22,691,600 Revised Net Revenue Expenditure (4,783,600) 27,430,300 22,098,500 212,100 22,310,600 208.9

Non-Ministerial Departments

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(700,100) Duties, Fees, Fines & Penalties (713,900) (901,700) Sales of Goods and Services (904,200) (1,000) Investment Income (1,000) (3,109,400) Other Income (3,164,500) (4,712,200) Total Income (4,783,600)

Expenditure

Social Benefit Payments

13,754,100 Staff Costs 13,798,700 11,118,500 Supplies and Services 11,184,600 451,200 Administrative Expenses 466,900 1,737,700 Premises and Maintenance 1,779,100 92,700 Other Operating Expenses 92,700 100,000 Grants and Subsidies Payments 100,000

Impairment of Receivables

8,500 Finance Costs 8,300

Foreign Exchange (Gain)/Loss

Contingency Expenses

27,262,700 Total Expenditure 27,430,300

22,550,500

Revised Net Revenue Near Cash Expenditure

22,646,700

Reduction in funding for 2% savings (548,200) 22,098,500

141,100 Depreciation 212,100

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

22,691,600 Revised Net Revenue Non Cash Expenditure 22,310,600

Non-Ministerial Departments

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 21,895,700 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (105,500) Price Inflation Dept Expenditure 330,200 Price Inflation Provision for Pay Award

Commitments from Existing Policies

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers MTFP Growth

Proposed Procurement Savings Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

22,120,400

Service Transfers

Transfer of budget for part-funding of Cadet

8,000 and Military Support Officer from Home Affairs

Transfer of Jersey Employment Tribunal

50,000 budget from Social Security

Allocations of Central Growth 2015 Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

118,400 Award

Recurring effect of 2014 4% Consolidated Pay

478,400 Award

Procurement Savings (128,500) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (548,200)

Revised Net Revenue Near Cash Expenditure

22,098,500

Depreciation per MTFP 141,600 2015 Depreciation Adjustment 70,500 Revised 2015 Depreciation 212,100 Revised Net Revenue Non Cash Expenditure 22,310,600

States Assembly and its Services

STATES ASSEMBLY AND ITS SERVICES PAGE 153

States Assembly

Introduction

The budget for the States Assembly and its services is under the political control of the Privileges and Procedures Committee (PPC) and in addition to the costs of running the Assembly itself and its committees/panels also covers the cost of remuneration for States members, the operation

of the States Greffe, members facilities, inter-parliamentary bodies such as the Commonwealth Parliamentary Association and the AssemblØe Parlementaire de la Francophonie.

Under the provisions of Article 24B of the Public Finances (Jersey) Law 2005, PPC is free to propose its own cash limit without interference from the Council of Ministers or the Minister for Treasury and Resources. Once the annual estimates for the States Assembly are prepared by PPC they must nevertheless be submitted to the Comptroller and Auditor General for comment and then inserted

in the draft Medium Term Financial Plan without amendment. If the Comptroller and Auditor General makes any comments on the estimates those comments must be presented to States members alongside the Medium Term Financial Plan. The Council of Ministers has no power to alter the estimates submitted by PPC and the role that the Council normally has to prioritise expenditure across States funded bodies does not apply to the Assembly estimates. It is simply for States members to decide whether the estimates are appropriate when the Medium Term Financial Plan is debated and any member (including Ministers) can lodge amendments for debate in the usual way.

Article 24B also states that PPC must consult the Minister for Treasury and Resources before preparing the estimates on the proposed budgetary policy of the Council of Ministers for the Medium Term Financial Plan. It is therefore implicit in the law that PPC should take account of this budgetary policy when finalising its estimates even though the Committee is not, in law, formally required to follow the Council s budgetary policy.

The estimates for 2013 2015 have been prepared by PPC in accordance with the overall policy of the Council of Ministers and incorporate CSR savings of £130,000 for 2013 and further CSR procurement savings of £10,450 for 2013 bringing the combined 2011 2013 CSR savings to £414,450. The estimates for 2014 also include a transfer of £31,000 from the Chief Minister s Department to cover the cost of IT provision for States members.

2015 Budget Measures

As part of the 2015 Budget it was identified that additional savings would be required from all Departments as part of a range of measures necessary to manage the consolidated fund balance in 2015. The quantum of savings allocated to the States Assembly amounts to £98K. These savings will be taken from the States decision on 15th March 2011 (P.118/2010) to reduce total number of States Members from 51 to 49 thereby reducing States Members remuneration costs.

States Assembly

AIM:

The States Assembly budget is held under the responsibility of the Privileges and Procedures Committee and its aim is to enable the States Assembly to operate effectively as Jersey s legislature, to facilitate the work of all panels and committees of the Assembly and to fund members remuneration, interparliamentary exchanges and the support services provided by the States Greffe.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA Objective 1: States Assembly able to operate effectively.

Success criteria:

Assembly able to meet on a regular basis according to agreed schedule of States meetings;
Allofficial publications published and provided to members in accordance withstatutory timescales;
States Chamber and other facilities for States members provided and maintained to agreed standards;
States members remuneration paid in accordance withthe recommendations of the States Members Remuneration Review Body;
Active and effective participation by States members in inter-parliamentary bodies (CPA, APF, BIPA).

Objective 2: Effective and efficient scrutiny function.

Success criteria:

Scrutiny panels and the PAC undertake reviews that hold the Executive to account and that influence policy in a positive way;
Chairmen s Committee oversees scrutiny resources and provides appropriate co-ordination of the scrutiny function;
Public engagement withthe scrutiny function is enhanced and public understanding of the work of the panels is increased;
Effective supportservice provided to panels by the Scrutiny Office.

Objective 3: Government and electoral reform progressed.

Success criteria:

States of Jersey Law 2005 and Standing Orders of the States of Jersey kept under review and appropriate amendments brought forwardifnecessary;
Reform of the composition of the States progressed in line with any States decisions on this issue afterthe elections in October 2014;
Public Elections (Jersey) Law 2002 reviewed and amendments brought forwardifnecessary in the light of experience gained during the single election day in 2014.

Strategic Plan References:

Priorities: Reform Government & the public sector

Objective 4: Public kept well-informed about the work of the Assembly.

Success criteria:

Public information services provided by the States Greffe enhanced;
Active co-operationwiththe citizenship programme being brought forward by the Education, Sport and Culture Department and the Year 5 primary school visits to the States Chamber;
Information published on revised States Assembly website enhanced and expanded.

Objective 5: Effective and efficient administrative support provided to the Assembly, its members, its committees and panels and a number of other bodies by the States Greffe.

Success criteria:

Timely and accurate advice provided to all members as required;
OfficialReport ( Hansard ) available according to agreed timescales;
Efficientservice provided to Council of Ministers and other bodies served by Clerks Secretariat;
Allofficialrecords maintained in an accurate and secure manner and available as required to meet obligations under the Freedom of Information (Jersey) Law 2011;
Complaints submitted to States of Jersey Complaints Panel processed according to statutory requirements.

States Assembly

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash			Near Cash Non Cash
2014 Revised Net Revenue Expenditure		Income	2015 Revised Expenditure Expenditure Net Revenue Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£		£	£ £ £		£

(94,700)	1,546,800 1,452,100 1,452,100			19.8

	1,378,300 1,378,300 1,378,300			14.0

	2,405,600 2,405,600 2,405,600

(94,700)	5,330,700 5,236,000 5,236,000			33.8

Reduction in funding for 2%

(98,000) (98,000) savings

5,138,000 5,138,000

States Assembly

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties

(90,400) Sales of Goods and Services (94,700)

Investment Income

Other Income

(90,400) Total Income (94,700)

Expenditure

Social Benefit Payments

3,986,100 Staff Costs 3,986,100 489,100 Supplies and Services 551,700 157,400 Administrative Expenses 181,400 642,500 Premises and Maintenance 611,500

Other Operating Expenses

Grants and Subsidies Payments

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

5,275,100 Total Expenditure 5,330,700

5,184,700

Revised Net Revenue Near Cash Expenditure

5,236,000

Reduction in funding for 2% savings (98,000) 5,138,000

11,000 Depreciation

Impairment of Fixed Assets Asset Disposal (Gain)/Loss

5,195,700 Revised Net Revenue Non Cash Expenditure 5,138,000

States Assembly

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget 5,114,300 Approved Variations to Expenditure Limits since MTFP

Price Inflation Dept Income (2,300) Service Transfers

Price Inflation Dept Expenditure 91,400

Price Inflation Provision for Pay Award Allocations of Central Growth 2015

Commitments from Existing Policies Pay

Department Savings Department User Pays

Departmental Transfers

Capital to Revenue Transfers MTFP Growth

Proposed Procurement Savings Proposed Other Budget Measures

Net Revenue Near Cash Expenditure per MTFP

5,203,400

Recurring effect of 2013 1% Consolidated Pay

14,000 Award

Recurring effect of 2014 4% Consolidated Pay

56,400 Award

Procurement Savings (37,800) Capital to Revenue Transfers

Other Variations

Reduction in funding for 2% savings (98,000)

Revised Net Revenue Near Cash Expenditure

5,138,000

Depreciation per MTFP 12,000

2015 Depreciation Adjustment	(12,000)

Revised 2015 Depreciation

Revised Net Revenue Non Cash Expenditure	5,138,000

Central Contingency Allocations

CENTRAL CONTINGENCY ALLOCATIONS PAGE 161

Central Contingency Allocations

Introduction

The Medium Term Financial Plan proposed reductions in the contingency levels for 2013 to 2015 originally provided in the 2012 Business Plan in order to fund the proposed level of growth and balance the States of Jersey budget overall. The revised position is shown below:

Carry

MTFP Allocations Forward

(Nov 2012) from 2012

2013 2013 2014 2015 Central Allocations

£ 000 £ 000 £ 000 £ 000

Pay Provision 19,900 31,000 39,700 Corporate Terms and Conditions Savings (14,000) (14,000) (14,000) Net Pay Provision 5,900 17,000 25,700

Restructuring Provision 5,220 5,098 6,540 7,170 Corporate Procurement Savings (3,451) (3,451) (3,451) Restructuring Provision (Net of Savings) 5,220 1,647 3,089 3,719

Central Contingency AME 6,000 2,000 2,000 Central Contingency DEL

Central Contingency Smoothing Reserve 3,396

Central Contingency One Off 6,866 1,000 Central Contingency Emerging Items 4,000 4,000 4,000 Total Allocation of Contingencies 20,262 6,000 7,000

Total Central Contingencies Available

25,482

7,547

26,089

36,419

At the end of 2012 the Council of Ministers agreed for the level of underspend on Central Contingencies to be carried forward to 2013. The Medium Term Financial Plan earmarked £9.1 million of this funding for 2013 but prudent management of the Contingency budgets in 2012 enabled a further balance to

be carried forward. These funds were required to supplement the 2014 and 2015 base Contingency allocations.

Central Contingency (Pay Provision)

Allocations from the Central Contingency (Pay Provision) have been made to individual departments heads of expenditure for 2015 in respect of the 2013 (1% consolidated) and 2014 (4% consolidated) recurring pay awards. Allocations have also been for the additional specific awards made in respect of Nurses and Medical staff, Firefighters, and Doctors and Consultants for 2013. A sum of £1.856 million

is earmarked to be carried forward from the Central Contingency (One-off) provision in 2014 for this additional funding.

The Medium Term Financial Plan originally allocated a 2.5% pay provision to be set aside for 2015 as well as a separate allocation for a Doctors and Consultants award in 2015 which will be settled in line with UK agreements.

The 2015 Budget, approved on 24th September 2014, agreed a range of Proposed Measures to balance the consolidated fund, which included reducing the 2015 Central Pay Provision by 1%. A sum of £3.48 million has therefore been transferred to a specific area of the Central Contingency Allocations and will be used along with other contributions to manage the consolidated fund balance in 2015.

MTFP Allocations (Nov 2012)

2013 2014 2015 Central Allocations

£ 000 £ 000 £ 000

July 2012 Employer Offer

Non Consolidated 1% Pay Offer 2013 (July 2012) 2,600

Consolidated 1% Pay Offer 2013 (July 2012) 3,300 3,300 3,300 Consolidated 4% Pay Offer 2014 (July 2012) 13,300 13,300 Consolidated 2.5% Pay Provision 2015 8,700

5,900 16,600 25,300 Earmarked Carry Forwards from 2013 1,410 1,856

Earmarked Carry Forwards from 2014 1,856 7,310 18,456 27,156

Estimated Pay Award Doctors and Consultants 2015 400 7,310 18,456 27,556

Less 1% of 2015 Pay Provision (2015 Budget Measures) (3,480) 7,310 18,456 24,076

Allocations agreed for 2013 and 2014 Pay Awards

7,310

18,456

Central Restructuring Provision

The Restructuring Provision was established in 2011 to provide invest to save funding as part of the CSR process. This funding was allocated to departments to assist in the delivery of savings projects with a defined payback period. Since 2012, this provision has also been utilised to fund the enabling phase of the Public Sector Reform programme.

As part of the 2012 Business Plan a commitment was made to continue the successful Fiscal Stimulus Programme for various skills and training initiatives and £1.9 million from the Restructuring Provision has been permanently transferred to departments for this purpose.

As part of the Medium Term Financial Plan proposals, the Restructuring Provision has also been reduced by about £1 million for the period of the plan to provide an allocation of funding for growth proposals from the Human Resources department.

The Restructuring Provision also provided an offset for procurement savings until these were defined and transferred to departments. Over the last three years the Procurement team has worked with departments to identify £3.045 million of savings which were allocated to departments from 2013 and the balance of £3.451 was allocated to departments in 2014. Of this final allocation a balance remains in Treasury and Resources still to be resolved.

The freeing up of Restructuring Provision will allow allocations to support elements of the public sector reform programme. In 2014/15 this will include the funding for the first phase of eGovernment, the continued support for the Workforce Modernisation workstream such as the Job Evaluation and Pay Reward projects as well as implementing and supporting the roll-out of Lean methodology throughout all States departments.

2015 Budget Measures

As part of the 2015 Budget a range of measures were proposed in order to manage the consolidated fund balance in 2015. It was identified that the balance on the Restructuring Provision at the end of 2015, taking into account all approved projects, would be £2.7m. This sum will be returned to the consolidated fund in 2015.

Central Contingencies

In addition to the Pay and Restructuring Provisions the allocations in the MTFP for Central Contingencies are made up of provisions for:

Annually Managed Expenditure: this represents the more volatile areas of expenditure which are difficult to forecast and which are influenced by factors outside of the control of the department.

In 2013 to 2015 this will only represent Income Support and Social Security benefits as the level of Supplementation required was determined with the States approval of the new certainty formula proposed alongside the Medium Term Financial Plan by the Social Security Minister.

Emerging Items: this provision was established in the 2012 Business Plan for a number of emerging

items for which a future significant cost was likely but where the exact cost and the timing were both uncertain. These emerging items included Freedom of Information and the HCAE Inquiry. The costs of these items are now clearer and the Council of Ministers has considered requests to earmark the required sums from this Contingency in 2013, 2014 and 2015.

One-Off Contingency: in 2015 a base provision of £1 million together with any carry forward funding

will provide some flexibility to manage any unexpected one-off items.

The 2015 allocation for Central Contingencies, excluding the pay provision and restructuring provision, amounts to £7 million.

Transfers of Budget for 2015

The recurring effects of the 2012 2014 pay awards, along with the specific pay awards, have been

transferred to Departments base budgets for 2015.

The recurring effects of the remaining Procurement Savings which were agreed during 2014 have

been transferred to Departments base budgets from the Restructuring Provision.

The Central Pay Provision has been reduced from 2.5% to 1.5% for 2015 and the 1% has been

transferred to a specific area created within Central Contingency Allocations which will hold the sums identified in the 2015 Budget Proposed Measures as being required to manage the consolidated fund in 2015.

As agreed in the 2015 Budget, Departments 2015 cash limits have been reduced by a sum

equivalent to 2% of their Gross Expenditure budgets. These sums have also been transferred into the same specific area within Central Contingency Allocations and will be used to increase the consolidated fund balance in 2015.

Central Contingency Allocations

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash			Non Cash
2014 Revised Net Revenue Expenditure	Income	Expenditure	2015 Revised Net Revenue Expenditure	Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£	£	£	£

Central Contingencies
144,400 AME Contingency		2,000,000	2,000,000		2,000,000
DEL Contingency
One-Off Contingency		1,000,000	1,000,000		1,000,000
Smoothing Reserve
4,000,000 Emerging Items Contingency		4,000,000	4,000,000		4,000,000

400,000 Central Pay Provision 1		3,764,400	3,764,400		3,764,400

6,540,000 Restructuring Provision		7,170,000	7,170,000		7,170,000

(3,451,300) Corporate Procurement Savings

2015 Budget Measures 2
1% reduction on Central Pay Provision		3,480,000	3,480,000		3,480,000
2% savings on Departmental 2015 Gross Expenditure budgets	12,068,500		12,068,500	12,068,500

7,633,100 Revised Net Revenue Expenditure	33,482,900		33,482,900	33,482,900

Note 1: Allocations have been made from the Central Pay Provision for 2015 in respect of the 2013 (1%) and 2014 (4%) recurring pay awards as well as specific awards made in respect of Nurses and Medical staff, Firefighters and Doctors and Consultants for 2013. Additional funding of £1.856m is required to replenish the Central Pay Provision in order to make provision for a 2015 pay award for all pay groups amounting to 1.5% of the total States pay bill and an allocation for a Doctors and Consultants award in 2015. This sum is already earmarked to be carried forward from the Central Contingency (One-off) provision in 2014.

Note 2: The 2015 Budget, approved on 24th September 2014, agreed a range of Proposed Measures to balance the consolidated fund, which included a reduction of 1% from the Central Pay Provision and 2% savings on Departmental Gross Expenditure budgets in 2015. These funds have been transferred into a specific area within Central Contingency Allocations and will be used to increase the consolidated fund balance in 2015.

Central Contingency Allocations

NET EXPENDITURE – STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties Sales of Goods and Services

Investment Income

Other Income

Total Income

Expenditure

Social Benefit Payments

Staff Costs

Supplies and Services

Administrative Expenses

Premises and Maintenance

Other Operating Expenses

Grants and Subsidies Payments

Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

7,547,000 Contingency Expenses 33,482,900 7,547,000 Total Expenditure 33,482,900

7,547,000

Net Revenue Expenditure

33,482,900

Depreciation

Impairment of Fixed Assets Asset Disposal (Gain)/Loss

7,547,000 Net Revenue Expenditure 33,482,900

Central Contingency Allocations

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Base Department Budget Approved Variations to Expenditure Limits since MTFP

Central Contingencies

AME Contingency 2,000,000 DEL Contingency

One-Off Contingency 1,000,000 Smoothing Reserve

Emerging Items Contingency 4,000,000 Central Pay Provision 25,700,300

Restructuring Provision 7,170,000 Corporate Procurement Savings (3,451,300)

Pay Provisions

Recurring effect of 2013 1% Consolidated Pay

(3,252,400) Award

Recurring effect of 2013 Firefighters Pay

(83,300) Award

Recurring effect of 2013 Doctors and

(189,000) Consultants Pay Award

Recurring effect of Additional Funding for 2012

(550,000) Nurses Pay Award

Recurring effect of Additional Funding for 2013

(1,050,000) Nurses Pay Award

Recurring effect of 2014 4% Consolidated Pay

(13,331,200) Award

Net Revenue Expenditure per MTFP 36,419,000

Other Variations

Recurring effect of 2014 Procurement Savings 3,451,300 2% Savings on Departmental 2015 Gross

12,068,500 Expenditure budgets

Revised Net Revenue Near Cash Expenditure

33,482,900

Central Growth Allocation

CENTRAL GROWTH ALLOCATION PAGE 171

Central Growth Allocation

Allocation of Growth for 2015

In the debate of the draft Budget 2014 (P69/2013) in December 2013, the States agreed the allocation of the central growth allocation for 2014 and 2015 of £2,210,000 and £1,460,000 respectively.

Article 11(3) of the Public Finances (Jersey) Law 2005 allows the allocation of future year s growth where this is recurrent.

The table below shows the allocations of recurrent funding for 2015 agreed in the 2014 Budget. These allocations to departments total the available central growth allocation provided in the MTFP for 2015. There is no further allocation of central growth available in 2015 and therefore there were no further proposals in the 2015 Budget.

CENTRAL GROWTH ALLOCATION AGREED FOR 2014 AND 2015

2013 2014 2015 Growth bids transferred to Central Growth Allocation 2014/15

Dept £ 000 £ 000 £ 000 External Relations: International meetings, monitoring and visitors

33 CMD 0 160 160

dignitaries

34 External Relations: External specialist advice CMD 0 100 100 52 CSR: Fund permanent members of the CSR delivery team CMD 0 150 150 Subtotal 0 410 410

43 Marine Response Team HA 0 25 25 43a Increased running costs of new prison facilities HA 0 25 25 Subtotal 0 50 50

18 Private Sector Rental Support SSD 0 750 1,000 49 Treatment and disposal of ash TTS 0 1,000 0 Total 0 2,210 1,460

External Relations: International meetings, monitoring and visitors dignitaries (CMD) £160,000 for 2014 and 2015

External Relations was established using non-recurring funding sources. During 2010 and 2011

this cost was met from Fiscal Stimulus. This budget has been reduced from £260,000 in 2011 after agreeing joint monitoring contracts with Guernsey from 2012 onwards, closing the London office space used previously by the Director International Finance and cancelling the Paris monitoring contract. Whilst there is now a recurring budget for the 6 core staff and office expenses, the international operations programme is not funded. The international operations programme requires a recurring budget of £160,000 from 2014.

External Relations: External specialist advice (CMD) £100,000 for 2014 and 2015

52. CSR: Fund permanent members of the CSR delivery team (CMD) £150,000 for 2014 and 2015

18. Private Sector Rental Support (SSD) £750,000 in 2014 and £1.0 million for 2015

One impact of the proposed Housing incorporation and subsequent adjustment to social housing rental will be a likely knock on affect in private sector social housing rents. The affect of increased income support due to these rent increases will be recovered from both the new housing association and existing housing trusts. However, there will be an increase to those private sector social housing rents through income support which will not be recoverable. This could be in the order of £1 million. The increase in housing rents to 90% of market value is proposed to be introduced from April 2014.

43. Marine Response Team (MRT) (HA) £25,000 for 2014 and 2015

The funding for a UK Maritime off-shore ship firefighting capability has not been re-instated by either the UK Department for Transport or the Department of Communities and Local Government. There remains no UK provision to assist with emergency firefighting, industrial accidents or chemical incidents at sea. Many UK Fire and Rescue Services and their Authorities with notable maritime risk have taken the decision to fund the shortfall in order to maintain such a capability in and around their coastal waters.

The States of Jersey Fire and Rescue Service has developed and implemented a comprehensive local Marine Response Strategy, supported by capability, tactics and operations. These have been incorporated into Jersey Coastguard and Condor Marine Services Emergency Response Plan.

Central Growth allocation is required in order that the States of Jersey Fire and Rescue Service can maintain its capability to deal with fires, chemical release or industrial accidents on a vessel in Channel Island waters. This will also enable Jersey Fire and Rescue Service to access mutual assistance from those Services that have a maritime response capability, if required.

43a. Increased Running Costs of New Prison Facilities (HA) £25,000 for 2014 and 2015

The prison was designed in the late 1960s and was opened in 1974. A programmed redevelopment (Masterplan) commenced in 2003 to address some of the prison estate s shortcomings which were reinforced in previous inspections. The first five phases of the Masterplan have been delivered or are currently on site.

The construction of a new visit room and staff facility (phase four) opened in April 2013 and construction work on a new stores and engineers facility (phase five) commenced in May 2013 with a target completion date of February 2014. In addition, a new classroom, boiler house and greenhouse have now been constructed in the horticultural area of the prison.

These new facilities have increased the running costs of the prison which cannot be accommodated within the Home Affairs Department s net revenue expenditure.

49. Treatment and disposal of incinerator ash (TTS) £1,000,000 for 2014 only

Currently bottom and fly ash (APC residue) are disposed of in fully lined ash pits built to a specification to store the hazardous and non hazardous ash. There is increasing pressure to find sustainable methods for disposal or recycling of both bottom and fly ash. These pressures will require investment in new infrastructure in order to implement alternative disposal / recycling methods which will also increase the life of La Collette. The capital costs of these infrastructure improvements are currently estimated at £1,500,000 and are not included in the revenue figures below. Estimated revenue costs going forward are as follows:

2014 £1,000,000 APC Off Island disposal for current ash 2015 £1,000,000 APC Off Island disposal for current ash, 2015 £700,000 to clear backlog of ash

2015 £300,000 On Island recycling of bottom ash

Growth funding of £2 million from 2015 was approved as part of the Transport and Technical Services Department spending limit in the MTFP.

Central Growth Allocations

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash			Non Cash
2014 Revised Net Revenue Expenditure	Income	Expenditure	2015 Revised Net Revenue Expenditure	Expenditure	2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£	£	£	£

Note: The 2014 Budget approved the allocation of the Central Growth Allocations for 2014 and 2015 to Departments revenue heads of expenditure as originally proposed by the Council of Ministers. Funding for Central Growth now appears within individual Departments net revenue expenditure limits and no further decisions are required in 2015.

Central Growth Allocation

NET EXPENDITURE – STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties Sales of Goods and Services

Investment Income

Other Income

Total Income

Expenditure

Social Benefit Payments

Staff Costs

Supplies and Services

Administrative Expenses

Premises and Maintenance

Other Operating Expenses

Grants and Subsidies Payments Impairment of Receivables

Finance Costs

Foreign Exchange (Gain)/Loss

Contingency Expenses

Central Growth Allocation

Total Expenditure

Revised Net Revenue Near Cash Expenditure

Depreciation

Impairment of Fixed Assets Asset Disposal (Gain)/Loss

Revised Net Revenue Non Cash Expenditure

Central Growth Allocation

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 £

Base Department Budget 1,460,000

Net Revenue Near Cash Expenditure per MTFP

1,460,000

2015 £

Approved Variations to Expenditure Limits since MTFP

Central Growth Allocations

External Relations: International meetings,

(160,000) monitoring and visiting dignitaries

External Relations: External specialist advice (100,000) CSR: Fund permanent members of the CSR

(150,000) delivery team

Marine Response Group (25,000) Increased Running Costs of New Prison

(25,000) Facilities

Private Sector Rental Support (1,000,000) Revised Net Revenue Near Cash Expenditure

2015 Capital Programme

2015 CAPITAL PROGRAMME PAGE 179

Capital Programme 2015

Introduction

The Medium Term Financial Plan (MTFP) set out the capital programme for each of the years 2013 2015 and the debate on the MTFP approved the capital programme, in total, for each of these years. The Budget for each of these years then approves the detailed list of projects. The 2015 Budget, agreed by the States Assembly on 24th September 2015, approved the 2015 Capital Programme without amendment.

The MTFP approved a total allocation in 2015 of £77,341,000. A review and reprioritization of the proposed programme reduced the total capital requirement to £75,144,000. The payroll software replacement, the second phases of additional primary school accommodation and sports strategy infrastructure have all been accommodated within the revised programme. The removal of the Social Housing programme following the incorporation of Andium Homes Ltd allowed for the second phases of the Future Hospital and Liquid Waste Strategy to be accommodated.

VARIATIONS OF 2015 CAPITAL PROGRAMME FROM INDICATIVE 2015 CAPITAL PROGRAMME IN THE MTFP

2015 Variance to MTFP

Budget MTFP

Department Description of Capital Project

£ 000 £ 000 £ 000 2015 2015 2015

Chief Minister s Department JDE Development and upgrade 450 (450) Department of the Environment Countryside Infrastructure 200 (200) Home Affairs Replacement Assets 200 (200)

Prison Improvement Works Gatehouse and Admin

7,532 (7,532) Block

Housing Department Social Housing Programme 45,873 (45,873) Transport and Technical Services Ash Cells & La Collette Headland 1,077 (1,077)

Sea Defence Backlog 425 (425) Vehicle Replacement Additional funding from consolidated fund 1,500 300 (1,200)

Total 57,257 300 (56,957) Chief Minister s Department E Government 320 320

Payroll Replacement 1,000 1,000 Education, Sport & Culture Additional Primary School Accommodation 2,134 2,134

Sports Strategy Infrastructure 1,450 1,450 Health & Social Services Future Hospital 22,700 22,700

Refurbishment of Limes 1,662 1,662 Transport and Technical Services Liquid Waste Strategy 25,494 25,494

Total 54,760 54,760

Capital Programme for 2015

FUNDING SOURCES

£ 000 2015

Funding Sources

Consolidated Fund (4,090) Strategic Reserve (22,700) Contribution from Currency Fund (25,494) Contribution from Car Parks Trading Fund (1,135) JPH receipts (9,140) Housing Repayment (528) Repayment of JT Preference Shares (1,757) Repayment of Jersey Water Preference Shares (6,800) Jersey Post Extraordinary Dividend (2,000) Funded from the Central Planning Vote (1,500)

Funding Available (75,144) Departmental Capital Programme 75,144

Social Housing Programme* Housing Funding Sources*

TOTAL CAPITAL EXPENDITURE 75,144

Funding from Consolidated Fund (Main allocation) 4,090 Funding from Other Sources (Income to Consolidated Fund etc) 71,054 Housing Funding*

TOTAL FUNDING 75,144

*The Housing Department was incorporated as Andium Homes Ltd on 1st July 2014 and therefore the Social Housing capital programme is no longer included.

Capital Programme for 2015

£ 000 2015

Chief Minister s

E Government 320 Enterprise Systems Development Payroll Replacement 1,000 Chief Minister s total 1,320

Education, Sport and Culture

School ICT 1,000 Additional Primary School Accommodation 2,134 Sports Strategy Infrastructure 1,450 Education, Sport and Culture total 4,584

Health & Social Services

Future Hosiptal 22,700 Replacement of MRI Scanner 2,277 Replacement of RIS/PACS 1,567 Refurbishment of Limes 1,662 Health & Social Services total 28,206

Transport and Technical Services

Infrastructure Rolling Vote 11,097 Liquid Waste Strategy 25,494 EFW Plant La Collette Replacement Assets 681 Road Safety Improvements 635

Transport and Technical Services total

37,907

Vehicle replacement (additional from consolidated fund)

300

Replacement assets 2,827

Total Projects Capital Allocation

75,144

Housing

Social Housing Programme*

Total Programme 75,144

*The Housing Department was incorporated as Andium Homes Ltd on 1st July 2014 and therefore the Social Housing capital programme is no longer included.

Capital Programme 2015

Chief Ministers Department

E Government (£320,000 for 2015). Public Sector Reform will create a more innovative and efficient and lower cost government. A key strand to the reform programme is the creation of an effective and efficient eGovernment model to deliver services to its customers.

eGovernment will provide the platform the States needs to achieve its strategic goals by:

Providing the mechanisms to make it easier for customers, businesses and partners to interact with

the States;

Creating an environment that will increase the digital skills of the States employees and citizens; Delivering services through more cost effective channels, creating value for money for taxpayers;

Becoming a major catalyst for the development of a Digital sector in Jersey, consistent with the Digital

Jersey Business Plan.

The purpose of this programme therefore is to put in place the technology necessary to achieving an efficient and effective eGovernment model for the States of Jersey.

Payroll Replacement (£1,000,000 for 2015). This funding will aid the procurement of a new Payroll system. The current Payroll system is at the end of its life with many limitations; it will also be unsupported from July 2015. A replacement is essential to ensure we are on current, supported technology / software, and ensure the system can support the current and future business operating model.

The current payroll system pays approximately 10,000 employees / pensioners through a variety of monthly and weekly payrolls. The Payroll Team input around 90,000 variable claim forms per annum for the payment of overtime, mileage claims etc.

A modern payroll system and processes are important building blocks to support the provision of streamlined back office support services. The Payroll Replacement Project Board has concluded

that improvements to payroll processes and systems should be met via the purchase of a new payroll system to support the in-house provision of payroll services by the Treasury & Resources Department to all States Departments.

A future payroll system should also have the ability to deal with the diverse and wide-ranging terms and conditions that are prevalent in the States of Jersey whilst also being able to deal with any modern reward structure introduced in the future.

Education, Sport and Culture

School ICT (£1,000,000 for 2015). The IT skills strategy was launched on 11 October 2013 to inspire the next generation to be digital champions, confident and able in a challenging business world where IT is increasingly at the forefront. This money is necessary to upgrade the infrastructure and provide equipment and training to schools to enable students to learn anytime, anyplace and to harness the

maximum benefit from mobile technology. Funding of £1,000,000 is the final part of a 3 year strategy from 2013 to 2015 making the overall total £3,000,000 for the School ICT project.

Additional Primary School Accommodation (£2,134,000 for 2015). Latest information on primary demographics indicates a significant increase in pupil numbers over the next few years. As a result it will be necessary to provide increased facilities for the schooling of these students. Feasibility studies have been completed to review and evaluate the options and a decision was made to provide additional classrooms on existing sites. The final cost for this option is £10,322,000, of which £8,188,000 was provided in 2014 and the balance of £2,134,000 is in the 2015 capital programme. Plans have been submitted for all projects with the exception of one, which will have plans submitted later this year. The first new classrooms will open for the 2015 16 academic year.

Sports Strategy Infrastructure (£1,450,000 for 2015). Projects include but are not limited to; artificial grass pitches at school sites, tennis court resurfacing, Les Quennevais cycle track resurfacing and the refurbishment of sport centres. This is a continuation of the Sports Infrastructure upgrade following the launch of the Sport Strategy and in preparation for the 2015 NatWest Island Games. This second phase of work will cost £1,450,000.

Health and Social Services

Future Hospital Feasibility Study and Initial Phases Design and Planning: (£22,700,000 for 2015). This funding provides for the development of the Feasibility Study Outline and Full Business Cases for the Future Hospital project to set out the proposed overall feasibility concept for the new build and refurbished Future Hospital capacity in response to the requirement placed upon the Council of Ministers under P.82/2012 to:

co-ordinate the necessary steps by all relevant Ministers to bring forward for approval proposals

for the priorities for investment in hospital services and detailed plans for a new hospital (either on a new site or a rebuilt and refurbished hospital on the current site), including full details of all manpower and resource implications necessary to implement the proposals.

The funding will enable the development of design work to provide a feasibility design for the whole future hospital concept for consideration by the States Assembly and the necessary design work to enable the tendering of initial phases of the Future Hospital capacity for States Assembly consideration such that recommendation for the appointment of construction contractors can be sought in Budget 2016.

In addition the funding will enable the relocation of Community and Social Services from existing failing buildings at Overdale, the demolition of these buildings in readiness for initial phases of development of the Future Hospital at Overdale and the undertaking of enabling works that would improve access and utility connections to the General Hospital and at Overdale to make them fit for development of fit for purpose Health Buildings.

The provisional allocation of 2015 funding comprises1:

Overdale Development (Design, demolition and enabling works) £6,415,000 General Hospital Initial phase design and enabling works £7,024,000 General Hospital Subsequent phases design and enabling works £7,845,000 Cancer Care Design Works £638,000 Planning Vote £778,000

£22,700,000

Note 1: The Budget 2014 budget profile for 2015 is retained for the purposes of project planning and has been applied to Strategic Outline Case estimates, within a single capital Head of Expenditure. The actual allocated spend may need to be modified to reflect improving information during development of the Feasibility Study, which will require reallocation of the available budget across the cost elements.

Replacement of MRI Scanner (£2,277,000 for 2015). The Health and Social Services Department currently owns and operates an MRI scanner, which was commissioned in December 2007. The MRI scanner is in constant use and in 2013, 7,418 scans were undertaken. The unit operates Monday

to Saturday (71 hours per week), however, in 2014 it has also operated on most Sundays to meet increased demand. The MRI scanner needs replacing in 2015 and the replacement costs include the purchase and commissioning of a new machine as well as the necessary building costs associated with installation.

Replacement of RIS/PACS (£1,567,000 for 2015). Replacement of the Picture Archiving Communication System (PACS) and the Radiology Information System (RIS). PACS and RIS are the names given to a number of computer based systems designed to run the Radiology Department and distribute reports and images to all relevant clinicians both inside and outside the hospital. The scope also covers updating a range of hardware including the main server infrastructure and visual display equipment for viewing the images and reports.

Limes Upgrade (£1,662,000 for 2015). The Limes is a care home built in the 1980s to a very high standard but not refurbished since. This project will:

Replace all floor, wall and ceiling finishes in all bedrooms, shower rooms (including new sanitary

ware), corridors and communal areas;

Install 3 new assisted bathrooms;

Modernise and increase number of sluice rooms; and Completely redecorate the building inside and out.

Transport and Technical Services

Infrastructure Rolling Vote (£11,097,000 for 2015). The infrastructure rolling vote is designed to allow TTS to facilitate the maintenance and further improvement of the Island s infrastructure network. The allocation is split broadly between highways (34%), traffic improvements/street lighting (11%), drainage infrastructure maintenance including pumping stations (46%) and other infrastructure assets (9%).

Liquid Waste Strategy (£25,494,000 for 2015). The liquid waste strategy is the master plan for the complete regeneration of the Bellozanne site.

The STW was originally constructed in the late 1950 s for a population of 57,000. In the intervening years it has been continually improved and upgraded to take into account significant population increases, changes in volume of incoming flow, increased environmental standards and technological enhancements.

Whilst the plant has generally performed well over the years, it is now struggling to meet its is charge consents, mainly due to the now inadequate and outdated design, poor performance of the main treatment technology installed, and the variability of loading to the works, particularly under high flow and storm conditions.

The only way forward is for a complete regeneration of the Bellozanne site including a new sewage treatment works.

Funding of £10,100,000 was awarded to Transport and Technical Services in 2014 to undertake the first phase of this work. This included undertaking planning and environmental impact studies, site investigations, initial service diversions and the replacement of the clinical waste incinerator, which currently sits in the middle of the site. The majority of this work should be completed by the end of 2014, although it is envisaged that some may run into the first half of 2015.

Funding of £25,494,000 has been proposed in the 2015 capital programme to allow the Department to begin phase 2 of this regeneration programme. This work will include the demolition and excavation of parts of the hillside at Bellozanne to provide a greater operating surface, site remediation, completion of the detailed design, procurement and awarding of the STW phase I construction contract. This contract is likely to be awarded towards the second half of the year with the contractor starting on

site in quarter 3. The scope of these works will include creation of new inlet works, primary settlement tanks, storm tanks and some of the final settlement tanks, sludge storage and the administration building. It is anticipated that this contract will last until the beginning of 2017. The total funding of £25,494,000 is required in order for the Department to enter into a construction contract with the approved supplier in accordance with the requirements of the Public Finance Law (Jersey) 2005.

Once these works are built, connected to the existing sewage treatment works and commissioned, phase II of the works can be commenced, which will involve removing the existing inlet works, primary settlement and sludge areas and constructing the new ASP lanes, remaining final settlement tanks and new UV treatment plant.

EFW Plant La Collette Replacement Assets (£681,000 for 2015). The Energy From Waste plant

(EFW) begun operations in October 2010 and is of strategic importance to the island. The asset

must be maintained to a high level to ensure that it can handle the Island s waste, maintain electrical generation and minimise the use of chemicals and utilities. The main financial benefits stemming from the replacement of these assets include lower operating and maintenance costs and preservation of the current level of service provided to the user. As the plant is a pressure system it must be maintained to an acceptable standard to satisfy the insurance inspector. The plant must continue to be able to meet its environmental emission standards as specified in its Waste Management Licence. The plant

is of strategic importance for managing the treatment of the Island s waste. A long term breakdown of the plant would be difficult and expensive to deal with so would constitute an unacceptable risk. The

plant also has to comply with the Waste Incinerator Directive (WID). Thus it is essential that the plant s emissions are maintained to internationally recognised safe levels.

Road Safety Improvements (£635,000 for 2015). In order to promote the current sustainable transport policy, additional funding is required to maintain and increase the infrastructure for non-motor vehicles. Various high level schemes have been identified although detailed analysis of each is still required:

Extension of the Eastern Cycle Network

Safety of the Western Cycle Network

Enhancing the cycle route in St Peters Valley

Various projects on bus stop safety

In addition, certain sections of road have been identified as having road traffic collision levels that are higher than appropriate especially for vulnerable users such as pedestrians, cyclists and motor cyclists.

Other Capital

Vehicle Replacement (£300,000 for 2015). This funding is to support the work of Jersey Fleet Management in the purchase of vehicles on behalf of departments. This is a continuation of the funding established in the 2012 Business Plan to enable the initial purchase of additional vehicles.

Replacement Assets (£2,827,000 for 2015). Departments go through a process of identifying those assets that are due for replacement and then conduct a prioritisation exercise to come to their final request.

Replacement Assets

Health and Social Services 2,595 Transport and Technical Services 232 Total 2,827

Summary of States Trading Operations

SUMMARY OF STATES TRADING OPERATIONS PAGE 189

Annual Update to the MTFP Department Annex for 2015

SUMMARY OF STATES TRADING OPERATIONS PAGE 191

Capital Allocations to States Trading Operations for 2015

£ 000 2015

Budget

Arrestor Bed Refurbishment 200 Fire Tenders 195 Grass Management 200 ILS 26/08A 775 Minor Capital Assets 300 Public Address/Fire Alarm System 450 Vehicle Fleet Replacement 273

Jersey Airport 2,393

Minor Capital Assets 250 Piers and Quays Infrastructure 350 St.Helier Marina Pontoons Replacement/Enhancement 320 Replacement West Berth Ro-Ro Ramp/Walkways & Future Refurbishment 450 Road Re-building 300

Jersey Harbours 1,670 Car Park Maintenance and Refurbishment 583 Jersey Car Parking 583 Vehicle and Plant Replacement 1,418 Jersey Fleet Management 1,418

Ports of Jersey

PORTS OF JERSEY PAGE 193

Annual Update to the MTFP Department Annex for 2015

Ports of Jersey

Minister's Introduction

The Ports of Jersey (PoJ) comprise the Island s key strategic transport assets, the Port of St Helier and Jersey Airport, the historic harbours plus numerous associated maritime and aeronautical assets and functions.

Jersey Airport provides a comprehensive network of commercial routes to 48 UK and European destinations, facilities for business aviation, and for local and visiting private aircraft. It is also contracted, through the Minister for External Relations, to provide air traffic control for the Channel Islands Control Zone on behalf of the French and UK authorities.

In addition to commercial port activity, Jersey Harbours provides marinas and moorings for local boat owners and visitors, including the Five Gold Anchor status marinas in St. Helier, as well as moorings in the outlying harbours and maintenance of those harbours. Importantly, Jersey Harbours also provides the coastguard service for our territorial waters, an essential public service, which in most jurisdictions is funded by taxpayers, but which in Jersey, is funded entirely by revenue generated through Ports commercial activity.

Following successful integration of Jersey Harbours and Jersey Airport into the Ports of Jersey in 2012, the Assembly gave its in principle approval through P.70/2012 for the incorporation of the Port of Jersey, following precedent set in respect of Jersey Telecom and Jersey Post. Incorporation will result in the creation of a single entity, with an independent Board. The States will retain 100% shareholding with shareholder responsibility discharged by the Minister for Treasury and Resources.

The technical elements of the incorporation project were completed within the timescale set out in P.70/2012. A White Paper with the following supporting papers was submitted to the Council of Ministers 19 May 2014:-

an externally verified case supporting incorporation,
details of theregulatoryframework which will surround the new company, and
the latest draft of theAir and SeaPorts (Incorporation) Jersey Law 201-.

The White Paper consultation ran from 29th May to 15th August 2014 and served primarily to pull together the considerable volume of work that has been done towards incorporation. The supporting documents were intended to detail for the public the rationale behind incorporation as well as informing Islanders of the policy issues surrounding the subject. At its heart, the consultation addressed the significant structural issues facing the harbours and airports and the potential implications of allowing the situation to continue without some positive action. It identified the benefits of incorporation and indicated how the corporate approach of an incorporated entity can be channelled to benefit the Public. The results of the White Paper consultation were published in October 2014.

PORTS OF JERSEY PAGE 195

Until incorporation, Jersey Airport and Jersey Harbours will remain within the existing States of Jersey structure and will continue their responsibilities as separate Trading Departments. The MTFP therefore assumes that both departments continue to remain self-financing in terms of both revenue and capital for the period 2013 2015.

Senator Alan Maclean

Minister for Economic Development

PAGE 196 PORTS OF JERSEY

Jersey Airport

JERSEY AIRPORT PAGE 197

Jersey Airport

AIM:

Our aim is to provide an Airport that strives to meet the economic and social needs of the Island while meeting the expectations of passengers and airlines by providing a safe and secure environment. Our success can be measured by:

Open and safe operations Business performance

Customer experience

Quality of our people

SUMMARY OF KEY OBJECTIVES AND KEY PERFORMANCE/SUCCESS CRITERIA Objective 1: Keep the ports open, safe and secure

Success Criteria:

Master Planning to meet the long term needs of the Trading Operation and the operational area;
Compliance with all safety and security measures applicable in each departmentwith no critical anomalies reported as a result of independent audits;
Compliance with States of Jersey corporate governance and accounting standards, including risk management;
Safety Management Systems (SMS) and Quality Management Systems (QMS) policies and procedures implemented and proven.

Strategic Plan References:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Objective 2: Satisfy all current and prospective demand for commercial and community services and facilities

Success Criteria:

Reduce the reliance on aeronautical revenue by increasing yield from non-aeronautical sources via retail, car parking and commercial development activities;
Appropriate and balanced tariff structure agreed in line with commercial objectives and economic criteria;

Customer user groups established to improve feedback, consultation and the development of improved new products and services;
Maintain Single European Sky (SES) certification.

Strategic Plan Reference:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Objective 3: Maintain robust financial management to achieve self-sufficiency, and positively contribute to Jersey's economic development

Success Criteria:

Established effective governance, leadership structure and accountability with Economic Development Department and Treasury & Resources ensuring commercial separation, economic partnership and operating effectiveness;
Clear financial management plans indicating long-term view on sustainability and funding;
Development and prioritisation of new business streams and infrastructure, encouraging new enterprise with innovation and entrepreneurship.

Strategic Plan Reference:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Objective 4: Improve operational and commercial efficiency through restructuring the organisation, and investment in the personal and professional development of staff

Success Criteria:

Clarify all roles, responsibilities and accountabilities;
Implement PRA system across the organisations (to the extent possible);
Sustain on-goingdepartmental training programmes;
Continue implementation of professional development programme to support future succession requirements.

Strategic Plan References:

The Vision: Preparing for the future; A highly skilled and motivated workforce

Objective 5: Work with the Economic Development Department to grow passenger numbers whilst sustaining existing services

Success Criteria:

Sustain existing services and destinations;
Restore passenger numbers through theAirport to positive growth (>1% pa);
Work with Airline Partners to grow number of destinations by up to one new destination a year.

Strategic Plan References:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Jersey Airport

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash	Near Cash Non Cash
2014 Revised Net Revenue Expenditure	Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£	£	£ £ £		£

(29,442,400) 21,264,000 (8,178,400) 5,908,300 (2,270,100)			188.7

(1,184,000) 1,255,400 71,400 61,800 133,200			8.6

(30,626,400) 22,519,400 (8,107,000) 5,970,100 (2,136,900)			197.3

Reduction in funding for 2% savings

(8,107,000) (2,136,900)

Jersey Airport

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(6,500) Duties, Fees, Fines & Penalties (6,700) (29,084,100) Sales of Goods and Services (29,712,200) (87,200) Investment Income (89,400) (815,100) Other Income (818,100) (29,992,900) Total Income (30,626,400)

Expenditure

Social Benefit Payments

11,956,700 Staff Costs 12,255,800 5,094,900 Supplies and Services 5,222,500 196,700 Administrative Expenses 201,400 4,159,300 Premises and Maintenance 4,263,700 216,600 Other Operating Expenses 222,000

Grants and Subsidies Payments

Impairment of Receivables

407,800 Finance Costs 354,000

Foreign Exchange (Gain)/Loss

Contingency Expenses

22,032,000 Total Expenditure 22,519,400

(7,960,900)

Revised Near Cash (Surplus) / Deficit for the year

(8,107,000)

Reduction in funding for 2% savings

(8,107,000) 6,006,500 Depreciation 5,970,100

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

(1,954,400) Revised Non Cash (Surplus) / Deficit for the year (2,136,900)

Jersey Airport

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Prior Year Net Revenue Expenditure (7,960,900) Approved Variations to Expenditure Limits since MTFP

Additional Expenditure

Price Inflation Dept Income (633,500) Price Inflation Provision for Pay Award 299,100 Price Inflation Dept Expenditure 249,200

Net Staff Savings/Cost

One off project Arrivals Building Removal of the Top Two Floors

One off ATE project

Expiry of Finance Lease (60,900) Corporate Restructure

Increase in running costs

Commitments from Existing Policies Capital to Revenue Transfers

Near Cash (Surplus)/Deficit for the year per MTFP

(8,107,000)

Service Transfers

Allocations of Central Growth 2015 Pay

Procurement Savings

Capital to Revenue Transfers Other Variations

Revised Near Cash (Surplus) / Deficit for the year

(8,107,000)

Depreciation per MTFP 6,259,000 2015 Depreciation Adjustment (288,900)

Revised 2015 Depreciation	5,970,100

Revised Non Cash (Surplus) / Deficit for the year	(2,136,900)

Jersey Airport

TRADING FUND BALANCE

2015 £

Estimated Trading Fund Opening Balance 28,948,200

Surplus/(Deficit) for the year 2,136,900 Add back: Depreciation 5,970,100

Less: Capital Expenditure

Above Ground works (2,393,000) Below Ground works

Plus: Capital Grant Funding

Other balance sheet movements

Capital Grant funding deferred income release (693,900) Capital element of loan repayments (1,212,600)

Estimated Trading Fund Closing Balance

32,755,700

Jersey Harbours

JERSEY HARBOURS PAGE 207

Jersey Harbours

AIM:

Our aim is to provide modern port, marina and coastguard services facilities within a safe and secure environment with guaranteed long term viability. Our success can be measured by:

Open and safe operations Business performance

Customer experience

Quality of our people

SUMMARY OF KEY OBJECTIVES AND KEY PERFORMANCE/SUCCESS CRITERIA Objective 1: Keep the ports open, safe and secure

Success Criteria:

Master Planning to meet the long term needs of the Trading Operation and the operational areas;
Compliance with all safety and security measures applicable in each departmentwith no critical anomalies reported as a result of independent audits;
Compliance with States of Jersey corporate governance and accounting standards, including risk management;
Safety Management Systems (SMS) and Quality Management Systems (QMS) polices and procedures implemented and proven;
Ensure cargo operations remain effective for our commercial port.

Strategic Plan References:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Objective 2: Satisfy all current and prospective demand for commercial and community services and facilities

Success Criteria:

Appropriate and balanced tariff structure agreed in line with commercial objectives and economic criteria;
Increase the number of boats, berths and associated businesses, and develop associated facilities in support of the marine leisure industry;

Customer user groups established to improve feedback, consultation and the development of improved new products and services;
Alignment withtheUK Coastguard and IALA standards through audits and benchmarking. Strategic Plan References:

The Vision: A strong sustainable economy; Preparing for the future

The Priorities: Sustainable long term planning

Objective 3: To maintain robust financial management to achieve self sufficiency, and positively contribute to Jersey's economic development

Success Criteria:

Established effective governance, leadership structure and accountability with Economic Development Department and Treasury & Resources ensuring commercial separation, economic partnership and operating effectiveness;
Clear financial management plans indicating long-term view on sustainability and funding;
Development and prioritisation of new business streams and infrastructure, encouraging new enterprise with innovation and entrepreneurship;
Review of heritage and other community functions and plans agreed for future management and funding.

Strategic Plan References:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Objective 4: Improve operational and commercial efficiency through restructuring the organisation, and investment in the personal and professional development of staff

Success Criteria:

Clarify all roles, responsibilities and accountabilities;
Implement PRA system across the organisations (to the extent possible);
Sustain on-goingdepartmental training programmes;
Continue implementation of professional development programme to support future succession requirements.

Strategic Plan References:

The Vision: Preparing for the future; A highly skilled and motivated workforce

Objective 5: Work with the Economic Development Department to grow passenger numbers through all ports whilst sustaining existing services

Success Criteria:

Sustain existing services and destinations;
Maintain passenger levels and number of routes at theHarbour at 2010 levels;
Together with our passenger ferry operators, establish promotions and campaigns targeted at passenger markets.

Strategic Plan Reference:

The Vision: A strong sustainable economy; Preparing for the future The Priorities: Sustainable long term planning

Jersey Harbours

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash			Near Cash Non Cash
2014 Revised Net Revenue Expenditure		Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£		£	£ £ £		£

(9,982,000)	7,442,000 (2,540,000) 4,136,600 1,596,600			43.2

(1,241,000)	1,103,000 (138,000) 35,100 (102,900)			11.0

(4,309,000)	3,417,000 (892,000) 1,621,700 729,700			12.3

(15,532,000) 11,962,000 (3,570,000) 5,793,400 2,223,400				66.5

Reduction in funding for 2% savings

(3,570,000) 2,223,400

Jersey Harbours

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(26,000) Duties, Fees, Fines & Penalties (27,000) (15,006,000) Sales of Goods and Services (15,381,000)

(83,000) Investment Income (83,000)

(40,000) Other Income (41,000) (15,155,000) Total Income (15,532,000)

Expenditure

Social Benefit Payments

4,104,000 Staff Costs 4,186,000 2,875,000 Supplies and Services 2,947,000 114,000 Administrative Expenses 117,000 4,247,000 Premises and Maintenance 4,354,000 55,000 Other Operating Expenses 56,000 23,000 Grants and Subsidies Payments 23,000

Impairment of Receivables

277,000 Finance Costs 279,000

Foreign Exchange (Gain)/Loss

Contingency Expenses

11,695,000 Total Expenditure 11,962,000

(3,460,000)

Revised Near Cash (Surplus) / Deficit for the year

(3,570,000)

Reduction in funding for 2% savings

(3,570,000) 4,770,400 Depreciation 5,793,400

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

1,310,400 Revised Non Cash (Surplus)/Deficit for the year 2,223,400

Jersey Harbours

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Prior Year Net Revenue Expenditure (3,460,000) Approved Variations to Expenditure Limits since MTFP

Additional Expenditure

Price Inflation Dept Income

Price Inflation Provision for Pay Award 82,000 Price Inflation Dept Expenditure 165,000

Commitments from Existing Policies

Department Savings

Department User Pays (357,000)

Capital to Revenue Transfers

Near Cash (Surplus) / Deficit for the year per MTFP

(3,570,000)

Service Transfers

Allocations of Central Growth 2015 Pay

Procurement Savings

Capital to Revenue Transfers Other Variations

Revised Near Cash (Surplus) / Deficit for the year

(3,570,000)

Depreciation per MTFP	3,570,000

2015 Depreciation Adjustment	2,223,400

Revised 2015 Depreciation	5,793,400

Revised Non Cash (Surplus) / Deficit for the year	2,223,400

Jersey Harbours

TRADING FUND BALANCE

2015 £

Estimated Trading Fund Opening Balance 13,019,000

Surplus/(Deficit) for the year (2,223,400) Add back: Depreciation 5,793,400 Add back: Depreciation on assets sold in year

Less: Capital Expenditure (1,670,000) Plus: Capital Grant Funding

Other balance sheet movements

Capital Grant funding deferred income release

Estimated Trading Fund Closing Balance

14,919,000

Jersey Car Parking

JERSEY CAR PARKING PAGE 217

Jersey Car Parking

Minister's Introduction

The main areas of operation for Jersey Car Parking (JCP) are: Provision of public parking facilities

Policing of public parking areas

The key projects and issues in 2013 15 are as follows:

Jersey has been using the paycard system of payment for parking for more than 20 years. Following the success of the trial of an alternative payment system at Sand Street car park, officers from JCP have been evaluating other payment systems to establish the best system to roll out to other public car parks. Since the initial trial, other payment methods have continued development and further options are now being evaluated for suitability for Jersey.

The Sustainable Transport Policy aims to reduce the number of cars on the road, particularly commuter traffic. It is still early days in the Policy s implementation, but it is expected that there will be more people taking the bus, cycling, walking and motorcycling over the coming years. JCP will need to carefully monitor car park demand to ensure there is an appropriate supply of public parking. Motorcycle parking has already been increased in recent years and it is expected that the demand for commuter parking will reduce, but it is recognised that an adequate supply of well-located shopper parking is important for the town centre.

The future of the Esplanade car park is dependent upon development plans for the Esplanade Quarter; spaces affected by construction work will, in the short-term, be displaced to temporary parking on the Waterfront, before being ultimately replaced within the new development.

Once the North of St Helier Flood Alleviation Scheme is complete at Philips Street it is intended that the existing surface car part at Ann Court will be developed for social housing. The proposals for the site are still under consideration, and JCP continues to work with the developers to ensure that these town car parking spaces are maintained for public access. The North of Town Masterplan also identified

the need for further spaces in the North of Town, and JCP is also working with the Department for the Environment and developers in order to try to deliver the plan.

In parallel with the Public Accounts Review of Jersey Car Parking, JCP has been updating the model which is used to plan and provide for the future capital and revenue requirements of the Trading Operation. Uncertainty over the extent of development of car parking in the North of Town and requirements for refurbishment of existing car parking facilities means that the model assumptions are currently being reviewed prior to inclusion of proposals in the next Medium Term Financial Plan.

2015 Budget Measures

The opening balance on the Car Parks Trading Fund at 1 January 2015 takes into account the transfer of £2,635,000 to the Consolidated Fund in 2014 as part of the measures to balance the 2015 Budget.

Deputy Kevin Lewis

Minister for Transport and Technical Services

Jersey Car Parking

AIM:

Our aim is to provide and manage public parking facilities in accordance with the Island s needs. SUMMARY OF KEY OBJECTIVES AND KEY PERFORMANCE/SUCCESS CRITERIA

Objective 1: Provide sufficient car parking spaces to meet the needs of the Island.

Success criteria:

Maintain an appropriate number and balance of town parking spaces for workers and shoppers;
Ensure there are sufficient funds fromparking charges to cover the maintenance and provision of public parking facilities;
Determine charging mechanism policy for parking.

Strategic Plan Reference:

Vision: A strong and sustainable economy, Preparing for the future The Priorities: Develop long-term planning

Objective 2: Police public parking areas effectively and fairly.

Success criteria:

(i) Public surveys show that people are being treated fairly by the staff and that the policing is effective.

Strategic Plan Reference:

Vision: A safe and caring community

Jersey Car Parking

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash			Near Cash Non Cash
2014 Revised Net Revenue Expenditure		Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£		£	£ £ £		£

(6,827,600)	5,476,300 (1,351,300) 921,800 (429,500)			24.0

(6,827,600)	5,476,300 (1,351,300) 921,800 (429,500)			24.0

Reduction in funding for 2% savings

(1,351,300) (429,500)

Jersey Car Parking

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

(452,000) Duties, Fees, Fines & Penalties (373,500) (6,084,100) Sales of Goods and Services (6,255,500) (147,000) Investment Income (149,000) (48,200) Other Income (49,600) (6,731,300) Total Income (6,827,600)

Expenditure

Social Benefit Payments

812,100 Staff Costs 812,600 928,800 Supplies and Services 859,600 20,400 Administrative Expenses 20,600 1,923,500 Premises and Maintenance 1,939,200

Other Operating Expenses

Grants and Subsidies Payments

63,000 Impairment of Receivables 63,000 109,600 Finance Costs 150,300 1,591,000 Financial Returns 1,631,000

Foreign Exchange (Gain)/Loss

Contingency Expenses

5,448,400 Total Expenditure 5,476,300

(1,282,900)

Revised Near Cash (Surplus) / Deficit for the year

(1,351,300)

Reduction in funding for 2% savings

(1,351,300) 921,800 Depreciation 921,800

Impairment of Fixed Assets

Asset Disposal (Gain)/Loss

(361,100) Revised Non Cash (Surplus) / Deficit for the year (429,500)

Jersey Car Parking

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 2015

£ £

Prior Year Net Revenue Expenditure (1,320,500) Approved Variations to Expenditure Limits since MTFP

Additional Expenditure

Price Inflation Dept Income

Price Inflation Provision for Pay Award

Price Inflation Dept Expenditure (109,100) Technical Adjustments

(Decrease)/Increase in financial return to

40,700 General Revenue

Service Transfers

Allocations of Central Growth 2015

Pay Provisions (funded from Trading Fund)

Recurring effect of 2014 4% Consolidated Pay

37,600 Award

Procurement Savings

Capital to Revenue Transfers

(1,388,900)

Near Cash (Surplus)/Deficit for the year per MTFP

Other Variations

Revised Near Cash (Surplus)/Deficit for the year

(1,351,300)

Depreciation per MTFP 1,933,900 2015 Depreciation Adjustment (1,012,100) Revised 2015 Depreciation 921,800

Revised Non Cash (Surplus) / Deficit for the

(429,500) year

Jersey Car Parking

TRADING FUND BALANCE

2015 £

Estimated Trading Fund Opening Balance 14,700,100

Surplus/(Deficit) for the year 429,500 Add back: Depreciation 921,800

Less: Capital Expenditure

Car Park Maintenance and Refurbishment (395,100) Rebuild car parks

Automated charging system (706,400)

Plus: Capital Receipts

Estimated Trading Fund Closing Balance

14,949,900

Jersey Fleet Management

JERSEY FLEET MANAGEMENT PAGE 227

Minister's Introduction

The main aims of operation for Jersey Fleet Management (JFM) are to:

provide the States with a fleet of vehicles fit for purpose at the best possible whole life costs; and provide cost effective fuel and workshop services for States fleet vehicles.

From 2012, Jersey Fleet Management (JFM) was tasked with providing fleet procurement and fleet maintenance for all States Departments. The process of bringing departments on board continues, as departmental vehicle stock is assessed and prioritised for replacement.

Unfortunately due to pressures on the States Capital Fund in 2015, the third tranche of funding for the States Fleet Management project has been partially deferred to 2016, with £1.2 million funding now having to be provided by running the trading fund at a deficit for a short period, if required.

A full fleet audit of states vehicles has identified that the total requirement for replacement of departmental vehicles is significantly in excess of the £5 million assigned in 2013 15 and discussions will need to take place to establish a funding route for 2016 20. Once all vehicles have been brought under the JFM lease arrangements, the trading fund should be mainly self-sustaining.

The new contract for the lease hire car fleet for the States of Jersey commenced in January 2013 and will run for the MTFP period of 2013 2015. The new fleet meets more stringent carbon dioxide standards and includes a trial of ten electric vehicles in three States Departments.

Deputy Kevin Lewis

Minister for Transport and Technical Services

Jersey Fleet Management

AIM:

Our aim is to provide the States with a fleet of vehicles fit for purpose at the best possible whole life costs.

SUMMARY OF KEY OBJECTIVES AND KEY PERFORMANCE/SUCCESS CRITERIA

Objective 1: Procure vehicles on behalf of the States that are fit for purpose and that achieve best value

Success criteria

Lease hire contract for the car fleet achieves best value for the States;
General fleet and specialist vehicles procured at best possible prices and fit for purpose;
Meet the vehicle replacement requirements for new lease customer departments following the decision to fund all States vehicle procurement through Jersey Fleet Management;
Inter-departmental lease charges are fair, reasonable and transparent and provide for future asset replacement.

Strategic Plan Reference:

Vision: A strong and sustainable economy, Protecting the environment

Objective 2: Ensure States vehicles and specialist equipment are kept operational

Success criteria:

Minimise cost and turnaround time for servicing and repairs, ensuring workshop billing and maintenance records are detailed, timely and accurate;
Ensure the minimum level of operational availability is met for emergency vehicles.

Strategic Plan Reference:

Vision: A strong and sustainable economy

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

Near Cash			Near Cash Non Cash
2014 Revised Net Revenue Expenditure		Income	2015 Revised Net Revenue Expenditure Expenditure Expenditure		2015 Revised Net Revenue Expenditure	2015 FTE
£		£	£ £ £		£

(5,541,000)	4,167,800 (1,373,200) 1,094,700 (278,500)			29.0

(5,541,000)	4,167,800 (1,373,200) 1,094,700 (278,500)			29.0

Reduction in funding for 2% savings

(1,373,200) (278,500)

Jersey Fleet Management

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2015 Revised Net Revised Net Revenue Revenue

Expendture Expendture

£ £

Income

Duties, Fees, Fines & Penalties

(5,341,400) Sales of Goods and Services (5,526,000) (14,500) Investment Income (15,000)

Other Income

(5,355,900) Total Income (5,541,000)

Expenditure

Social Benefit Payments

1,123,300 Staff Costs 1,124,800 1,051,600 Supplies and Services 1,077,200 1,200 Administrative Expenses 1,300 1,904,100 Premises and Maintenance 1,964,500

Other Operating Expenses

Grants and Subsidies Payments

Impairment of Receivables

Finance Costs

Financial Returns

Foreign Exchange (Gain)/Loss

Contingency Expenses

4,080,200 Total Expenditure 4,167,800

(1,275,700)

Revised Near Cash (Surplus) / Deficit for the year

(1,373,200)

Reduction in funding for 2% savings

(1,373,200) 1,094,700 Depreciation 1,149,700

Impairment of Fixed Assets

(65,000) Asset Disposal (Gain)/Loss (55,000) (246,000) Revised Non Cash (Surplus) / Deficit for the year (278,500)

RECONCILIATION OF NET REVENUE EXPENDITURE

2015 £

Prior Year Net Revenue Expenditure (1,329,400)

Adjustment to non cash disclosure for Asset Disposal (Gain)/Loss

Additional Expenditure

Price Inflation Dept Income

Price Inflation Provision for Pay Award

Price Inflation Dept Expenditure (97,500)

Technical Adjustments Capital to Revenue Transfers Depreciation Adjustment

(Surplus)/Deficit for the year per MTFP

(1,426,900)

2015 £

Approved Variations to Expenditure Limits since MTFP

Service Transfers

Allocations of Central Growth 2015

Pay Provisions (funded from Trading Fund)

Recurring effect of 2014 4% Consolidated Pay

53,700 Award

Procurement Savings Capital to Revenue Transfers Other Variations

Revised (Surplus) / Deficit for the year

(1,373,200)

Depreciation per MTFP 1,149,700 2015 Depreciation Adjustment

Revised 2015 Depreciation 1,149,700 Add: Asset Disposal (Gain) / Loss per MTFP (55,000) Revised (Surplus) / Deficit for the year (278,500)

Jersey Fleet Management

TRADING FUND BALANCE

2015 £

Estimated Trading Fund Opening Balance 811,100

Surplus/(Deficit) for the year 278,500 Additional funding for other States Departments 300,000 Add back: Depreciation 1,149,700

Less: Capital Expenditure

Vehicle and Plant Replacement (2,588,900) Plus: Capital Receipts 85,000 Other balance sheet movements

Estimated Trading Fund Closing Balance

35,400

Annual Update to the MTFP Department Annex for 2015.