Annual Update to the MTFP Department Annex for 2014

ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2014

ANNUAL UPDATE TO THE MTFP DEPARTMENT ANNEX FOR 2014

(for information only)

Council of Ministers

I.J. Gorst

B.I. Le Marquand

P.F.C. Ozouf

A.J.H. Maclean

P.J.D. Ryan

A.E. Pryke

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

R.C. Duhamel

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

J.D. Richardson L.J. Rowley

Senator  Chief Minister

Senator  Home Affairs and Deputy Chief Minister Senator  Treasury and Resources

Senator  Economic Development

Deputy  Education, Sport and Culture

Deputy  Health and Social Services

Deputy  Housing

Deputy  Planning and Environment

Senator  Social Security

Deputy  Transport and Technical Services Senator  External Relations

Chief Executive Treasurer of the States

Contents

PAGE

Introduction   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  7 Summary of States Revenue Expenditure Allocations 2014   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  9 Consolidated Statement of Comprehensive Net Expenditure  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10

Estimates of States Funded Bodies 2014

Chief Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Grant to Overseas Aid  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29 Economic Development   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35 Education, Sport and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Department of the Environment  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 57 Health and Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Home Affairs  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 81 Housing (excluding Incorporation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Housing (post Incorporation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Social Security  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  113 Transport and Technical Services  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  127 Treasury and Resources .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  139 Non Ministerial States Funded Bodies .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  155

States Assembly and its services   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  175 Central Contingency Allocations  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  183 Central Growth Allocations   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  191

Capital Programme 2014

Capital Programme Funding Sources   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  204 Capital Programme   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  205 Capital Programme narratives   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  206

States Trading Operations 2014

Summary of States Trading Operations 2014   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  215 Capital Allocations to States Trading Operations for 2014 . . . . . . . . . . . . . . . . . . . . . . . 216 Economic Development

  Jersey Airport   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  223   Jersey Harbours .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  233 Transport and Technical Services

  Jersey Car Parking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243   Jersey Fleet Management .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  253

Comprehensive Spending Review 2011 16 Update. . . . . . . . . . . . . . . . . . . . . . . . . . . . 261

Introduction

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 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 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 2014 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 2014 Financial Report and Accounts. Importantly, ALL the changes in expenditure allocations reported in the annual update remain within the total States expenditure limits agreed in the MTFP by the States.

A further Update will be provided for 2015, which will include any further approved changes in the next twelve months to give a starting position for 2015 and a point of reference for the 2015 Financial Report and Accounts.

The Annual Update to the Medium Term Financial Plan Department Annex for 2014 includes permanent and approved changes in expenditure allocations for:

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

   capital expenditure allocations to individual projects for 2014 as agreed in the 2014 Budget,    service transfers between departments

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

   transfers approved between Capital and Revenue Heads of Expenditure.

The Annual Update to the Medium Term Financial Plan Department Annex for 2014 also includes:

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

and success criteria for the department in 2014,

   a detailed service analysis for each department for 2014, including manpower levels and a

split of gross expenditure and income across DEL (Departmental Expenditure Limits) and AME (Annually Managed Expenditure),

   a statement of comprehensive net expenditure for each department for 2014,

   a reconciliation of the changes in expenditure allocations since the MTFP for 2014,

   an update to the distribution of Comprehensive Spending Review savings and user pays,    a summary of the States net revenue expenditure for 2014, and

   a summary of the States proposed capital programme for 2014.

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

Medium Term Financial Plan Compromises

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.

These compromises allowed the MTFP proposals to be substantially unaltered and a balanced budget position to be maintained over the 3 years of the MTFP. In each case agreement was reached with the respective States member and the affected department such that alternative funding measures were put in place. These alternative funding measures were recorded in the Addendum to the MTFP 2013 2015 and more information on the progress made on these compromises during 2013 can be found in R114/2013.

Summary of States Revenue Expenditure Allocations 2014

2014 2014 2014

Gross  Net

Income

States Funded Bodies Expenditure  Expenditure

Allocation

Allocation Allocation

£ 000

£ 000 £ 000

Depreciation  59,858.6  59,858.6 Impairment of Fixed Assets  5,498.1  5,498.1 Net Revenue Expenditure Allocation  864,474.3  (129,518.2)  734,956.1

Consolidated Statement of Comprehensive Net Expenditure

2013

2014 Net Revenue

Estimate Expenditure

£

£

41,657,000  Depreciation  59,858,600

- Impairment of Fixed Assets  5,498,100

- Asset Disposal (Gain)/Loss  -

675,427,800  Net Revenue Expenditure  734,956,100

Detailed Estimates of States Funded Bodies

– Chief Minister

Chief Minister

DETAILED ESTIMATES OF STATES FUNDED BODIES CHIEF MINISTER  PAGE 11

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; Public Sector Reform Review Team

   Law Draftsman s Office    Information Services

   Human Resources

   Financial Services Director of International Affairs

   All areas of external and international relations, including managing the Island s close

relationship with the UK.

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 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.

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.

In this period, the Department is leading a programme of Public Sector Reform and develop wide- ranging policy and plans to modernise and prepare the organisation to meet the challenges of the future.

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 will be 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

   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 Talent management process focussing on supplying successful

local candidates for key roles.

External Relations

During 2013, the importance of UK and international affairs was recognised by the appointment of a Minister for External Relations.

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

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   £20,600 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 £222,400 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.

Senator Ian Gorst

Chief Minister

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:

1. 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;
2. Housing Strategy developed and agreed;
3. 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:

1. Continued focus on delivering essential services through the prioritisation of budgets and manpower in accordance with strategic priorities;
2. Agreed model for reformed public sector based on service redesign, workforce modernisation and cultural change;
3. 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:

1. States assisted to meet its objectives through the provision of sound advice;
2. Ministerial decisions supported by robust evidence;
3. AllStatistics Unit releases produced independently to pre-announced release dates and statistical information made available on an impartial basis;
4. Structures in place to ensure proper governance processes and information management;
5. 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:

1. Revised migration/population policy agreed by the States;
2. 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:

1. Agreed overall savings package delivered by the end of 2013;
2. 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

Key Objective 6: Jersey's international responsibilities fulfilled and beneficial relations

advanced with the United Kingdom, other countries and international organisations.

Success criteria:

1. International obligations met;
2. Relevant international conventions and bi-lateral agreements are ratified/extended, recognising Jersey s autonomy and commitment to international standards;
3. Close relationship with the UK maintained and our unique constitution and autonomy protected;
4. 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

Financial Services

Objective 7: Maintain and support the growth of financial services sector capacity.

Success criteria:

1. Development of both existing (UK/EU) and new markets in line with the strategy agreed following the jurisdictional review;
2. Alignment of Jersey Finance Ltd, the Jersey Financial Services Commission and Government operating within a set of common objectives;
3. Contribute to increasing the speed of legislative development alongside the Law OfficersDepartment;
4. Maintain Jersey s international profile as a transparent and co-operative jurisdiction;
5. 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

2014 2014

2013

Net Revenue  Gross Revenue Expenditure 2014 Revised Net  2014

Income Revenue

Expenditure DEL AME £ Expendture FTE

£ £ £ £

Policy Unit 43.5  1,135,100  Chief Executive s Office 1,374,700  1,374,700

 217,900  Communications Office 264,500  (34,700) 229,800

 612,900  Population Office 1,156,100  (921,800) 234,300

 401,400  Statistics 431,900  431,900

 394,500  Economics 468,400  (60,000) 408,400

 9,700  Legislation Advisory Panel 9,900  9,900

920,700  External Relations 2,053,600  2,053,600 7.0 Financial Services 1,029,700  1,029,700 5.0

843,000  Law Drafting Department 1,011,200  1,011,200 10.0 10,101,300  Information Services 10,408,500  485,300  (718,700) 10,175,100 87.9 4,655,000  Human Resources 5,495,100  (134,000) 5,361,100 74.0 Pensions 0.0

78,900  CSR  232,900  232,900 1.0  19,370,400  Net Revenue Expenditure 23,936,500  485,300  (1,869,200) 22,552,600 228.4

514,900  Less: Depreciation 485,300  485,300

18,855,500  Net Revenue Expenditure 23,936,500 (1,869,200)  22,067,300

Update to the MTFP Department Annex for 2014

Chief Minister

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2013

Revised Net Net Revene

Revenue Expenditure

Expendture £

£

514,900  Depreciation  485,300

 Impairment of Fixed Assets

 Asset Disposal (Gain)/Loss

19,370,400  Net Revenue Expenditure  22,552,600

Detailed Estimates of States Funded Bodies – Chief Minister

RECONCILIATION OF NET REVENUE EXPENDITURE

2014 £

Base Department Budget 18,855,500

Commitments from Existing Policies

2014 £

Procurement Savings

Capital to Revenue Transfers

Other Variations

Revised Net Revenue Expenditure 2014 22,067,300 Depreciation per MTFP 485,300 2014 Adjustment

Revised 2014 Depreciation 485,300 Revised Net Revenue Expenditure 2014 22,552,600

Jersey Overseas Aid Commission

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. £1,250,000 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:

1. working closely with the private and voluntary sectors;
2. ensuring the consistency of policies affectingpoorer countries;
3. using resources efficiently and effectively;
4. 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;
5. 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

2014 2014

2013

Net Revenue  Gross Revenue Expenditure 2014 Revised Net  2014

Income Revenue

Expenditure DEL AME £ Expendture FTE

£ £ £ £

9,324,100  Grant to Overseas Aid 9,794,200  9,794,200  1.0 9,324,100  Net Revenue Expenditure 9,794,200  9,794,200  1.0

Less: Depreciation

9,324,100  Net Revenue Expenditure 9,794,200  9,794,200

Jersey Overseas Aid Commission

STATEMENT OF COMPREHENSIVE NET EXPENDITURE

2014 2013

Revised Net Net Revene

Revenue Expenditure

Expendture £

£

 Depreciation

 Impairment of Fixed Assets

 Asset Disposal (Gain)/Loss

9,324,100  Net Revenue Expenditure  9,794,200

Jersey Overseas Aid Commission

RECONCILIATION OF NET REVENUE EXPENDITURE

2014 £

Base Department Budget 9,324,100

2014 £

Approved Variations to Expenditure Limits since MTFP

Service Transfers

Allocations of Central Growth 2014

Procurement Savings

Capital to Revenue Transfers

Other Variations

Revised Net Revenue Expenditure 2014 9,794,200 Depreciation per MTFP

2014 Depreciation Adjustment

Revised 2014 Depreciation

Revised Net Revenue Expenditure 2014 9,794,200

Economic Development

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 worldwide economic crisis has lasted longer than most predicted and Jersey, as an international finance centre, has not been immune to its effects. The most devastating outcome of this has been rising unemployment which is at its highest recorded levels; if left unchecked, this will have a long- lasting and damaging effect on the social fabric of this Island. That is why one of the key priorities identified in the States Strategic Plan is to get people into work.

At a time when we are aiming to facilitate the creation of more jobs in our economy, it is vital we take a strategic view and establish 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. This is not growth for the sake of growth but growth to deliver the tax receipts necessary to avoid having to raise taxes whilst still being able to fund our 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. There are 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 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. This would have a highly damaging impact to those sectors and the people who work within them as well as to Island life as a whole.

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

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 an 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 our 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 a new, independent organisation, there is an opportunity to provide a step-change in business support, which the additional funding will enable them to deliver. Furthermore, the Tourism sector gets additional support, with a stable and secure funding mechanism in the Tourism Development Fund, to help enable 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.

Service Transfers

Transfer of Rent and Service Charges   £33,600 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