States Assembly Annual Report 2016.

States Assembly ANNUAL REPORT 2016

PRESENTED TO THE STATES BY THE PRIVILEGES AND PROCEDURES COMMITTEE

R.3/2018

CONTENTS Page

Foreword by the Bailiff of Jersey, President of the States .....................................................  5 Introduction by the Chairman of the Privileges and Procedures Committee ......................  7

1. THE STATES ASSEMBLY ..........................................................................................  9

1. Introduction ......................................................................................................................  9
2. The make-up of the Assembly .........................................................................................  9

1. Average length of service as an elected Member ................................................  9
2. Average age of elected Members ........................................................................  10
3. Number of male and female Members ................................................................  10

3. Tributes to former Members ............................................................................................  11

1. Tribute to the late Mr. Michael John Touzel .......................................................  11
2. Tribute to the late General Sir Peter Whiteley, G.C.B., O.B.E., D.L. .................  12
3. Tribute to the late Mr. Donald George Filleul, O.B.E.........................................  13
4. Tribute to the late Mr. Francis Hamon, O.B.E. ...................................................  14
5. Tribute to the late Mrs. Jacqueline Jeannette Huet .............................................  15
6. Tribute to the late Mr. Richard Winter Le Sauteur .............................................  16

2. MEETINGS OF THE STATES ....................................................................................  17

1. Length of meetings...........................................................................................................  17
2. Allocation of time ............................................................................................................  17
3. Oral Questions with notice ...............................................................................................  18
4. Oral Questions without notice ..........................................................................................  18
5. Written Questions ............................................................................................................  19
6. Statements ........................................................................................................................  19
7. Public Business ................................................................................................................  20
8. Significant debates during 2016 .......................................................................................  23

3. PRIVILEGES AND PROCEDURES COMMITTEE ................................................  33

1. Membership .....................................................................................................................  33
2. Meetings ...........................................................................................................................  33
3. Significant items dealt with by the Committee ................................................................  33
   4. SCRUTINY PANELS AND PUBLIC ACCOUNTS COMMITTEE ........................  36

1. Chairmen's Committee President's Foreword .................................................................  36
2. Annual Reports of the Scrutiny Panels and the PAC .......................................................  38

1. Chairmen's Committee .......................................................................................  38
2. Corporate Services Scrutiny Panel ......................................................................  39
3. Economic Affairs Scrutiny Panel ........................................................................  42
4. Education and Home Affairs Scrutiny Panel ......................................................  46
5. Environment, Housing and Infrastructure Scrutiny Panel...................................  50
6. Health and Social Security Scrutiny Panel ..........................................................  52
7. Public Accounts Committee ................................................................................  56

Foreword by the Bailiff of Jersey, President of the States

I am pleased to write this Foreword to the Annual Report of the States Assembly for 2016.

The middle year of an Assembly is often one where there is a consolidation, and 2016 is  no  exception.  New  Members  elected  in  2014  and  Members  elected  to  new positions, whether as Ministers or to Scrutiny, have settled. The number of questions asked and the number of statements made has gone up, and slightly more time has been spent on Public Business.

As always, this Report shows the breadth of the work undertaken in and about the States Assembly for the benefit of the Public, and it repays study. I would like to take this opportunity of thanking the Greffier and his staff for all their work over the year in supporting me and the Deputy Bailiff in our Presiding Officer duties.

Outside  the  direct  work  of  the  Assembly,  2016  marked  the  retirement  of  the Lieutenant  Governor,  General  Sir  John  McColl,  K.C.B.,  C.B.E.,  D.S.O.  He  was assiduous in his attendance upon the States, and a regular attender in the coffee room too, emphasizing his availability to Members. The dinner we were able to give him at Highlands College in November of that year, produced by the students, to thank him for his service to the Island, was a highlight for him, as he has been pleased to tell me.

We were also pleased to welcome, in 2016, members of the British Islands and Mediterranean region of the Commonwealth Parliamentary Association here for their annual conference. The conference theme was "Parliaments and Public Engagement" which is an extraordinarily important theme and a topic which many parliaments are now considering. The conference went very well and Jersey was much appreciated by the delegates.

We had 4 ambassadorial visits during 2016, and also a visit from the UK Minister of State for Justice, the Right Honourable Oliver Heald, Q.C. The Island recognised those members of the Jersey Contingent who fell at the Battle of the Somme with the monument – a piece of Jersey granite with a core removed where the heart of a man would have been – erected at Guillemont in north-eastern France, in a ceremony at which I was joined by His Excellency the Lieutenant Governor, the Chief Minister, Senator P.F. Routier, M.B.E., and others. That core will come on display at the celebrations to mark the end of the First World War in November 2018, but as I said at the time, it carries a dual symbolism, reflecting as it does that the hearts of those who died will be in their beloved Island, and conversely that they will likewise remain in our hearts forever.

A busy year – and more again next year no doubt!

William James Bailhache , Esq.

Introduction by the Chairman of the Privileges and Procedures Committee

Connétable L. Norman of St. Clement

It is with pleasure that I introduce the States Assembly's Annual Report for 2016. The report is an important document of record, which sets out in one place information about the Assembly's activities in 2016, as well as the work undertaken by the staff of the States Greffe, who support the Assembly and its various Panels and Committees.

The number of Sittings of the Assembly remained at a historically low level. There were 33 Sittings in 2016, the same number as in 2015, which was the lowest number since 2000. However, the Assembly sat for 14 hours longer in 2016 than in 2015. The number of oral  questions continues to  increase:  there were 257 during the  year, 46 more than in 2015. The Assembly usually gets through all of the oral questions tabled during the 2 hours provided for questions with notice; but if numbers continue to  increase,  there  may  be  more  occasions  where  questions  go  unanswered.  The number of written questions also increased, from 312 to 333.

Two-thirds of the Assembly's time was spent on Public Business, which was divided roughly equally between draft legislation, the Budget and the Medium Term Financial Plan, and propositions lodged by backbenchers. The Medium Term Financial Plan, which  sets  out  the  States'  spending  priorities  for  the  rest  of  the  decade,  was undoubtedly the Assembly's main item of business during the year, and occasioned a Sitting which lasted for 4½ days. This debate was the first to be webcast live, and all of the Assembly's Sittings can now be watched live or using an online archive, which is a significant step forward in opening up the Assembly's work to the Public.

Scrutiny  Panels  and  the  Public  Accounts  Committee  were  at  the  heart  of  the Assembly's work throughout the year; and were influential in a number of areas, as the sections in this report on the work of each Panel and the foreword by Deputy Le Fondré make clear. For the first time, the Privileges and Procedures Committee was required to determine whether a summons for information issued by a Panel (in this case, Corporate Services, which summonsed material relating to the new finance centre  from  the  States  of  Jersey  Development  Company  ("SoJDC"))  should  be upheld. The Committee considered the matter carefully and agreed that the summons should  be  upheld,  subject  to  certain  conditions,  and  the  SoJDC  complied.  This demonstrated that the legal rules designed to ensure that the Assembly has access to the information it requires to scrutinise decisions which involve public spending, are effective.

Another important aspect of the Assembly's work is participation in international parliamentary networks, such as the Commonwealth Parliamentary Association ("CPA"), the Assemblée Parlementaire de la Francophonie and the British-Irish Parliamentary Assembly. In May 2016, Jersey hosted the British Islands and Mediterranean Regional Conference of the CPA, welcoming over 40 delegates and officials from as far afield as the Falkland Islands. A full account of all of these activities can be found in this report.

The Greffe organised a Senatorial by-election on 7th September 2016, following the resignation of former Senator Zoe Cameron in July 2016. This involved re-activating the vote.je website, providing all households with a booklet containing the manifestos of all 11 candidates, and ensuring that all of the hustings meetings were filmed and available to watch online. Senator Sarah Ferguson was the victor, returning to the Assembly after her narrow defeat in 2014, but the turnout was only a little over 20%, showing that much more work needs to be done to engage the Public in Jersey's politics.

I wish to thank my fellow members of the Privileges and Procedures Committee for their work during the year, as well as the States Greffe for their hard work and commitment to the work of the Assembly.

1. THE STATES ASSEMBLY

1. Introduction

There were 33 Sittings in total in 2016 (including the ceremonial sitting for Liberation Day) – the same number as in 2015, which was the lowest number of meeting days since 2000.

2. The make-up of the Assembly

1. Average length of service as an elected Member

The  overall  average  length  of  elected  service  of  the  49  elected  Members  as  at 31st December 2016  was  8 years.  The  longest-serving  Member  of  the  Assembly remains Connétable L. Norman of St. Clement , who had served as an elected Member for 33½ years.

2. Average age of elected Members

In 2016 the average age of elected Members of the Assembly was 56 years. The breakdown in age of the 49 Members of the Assembly is given in the following chart –

3. Number of male and female Members

The make-up of the membership of the Assembly by gender in 2016 is set out below –

3. Tributes to former Members

Four former Members of the States, a former Deputy Bailiff of Jersey, and a former Lieutenant Governor passed away during 2016, and the Presiding Officer paid tribute to each one at the next Sitting of the Assembly. Extracts from those tributes are reproduced below in chronological order.

1. Tribute to the late Mr. Michael John Touzel

On 2nd February 2016, the Deputy Bailiff paid tribute to the late Mr. Michael John Touzel, former Connétable of St. John –

"Members may be aware that a former Member of the  Assembly,  the  former   Connétable Michael John Touzel of St. John passed away on 17th January at the age of 78 years. He was elected  to  this  Assembly  as   Connétable  of St. John  in  December  of  2000.  While  his background was in agriculture, he worked for a number  of  years  in  the  insurance  industry before  starting  his  own  insurance  business working from home. He was a stalwart servant of his Parish and in the late 1960s and 1970s he was  Parish  Secretary,  a  Roads  Inspector  and then later a Rates Assessor. In his professional life  outside  of  the  Assembly  he  will  be remembered  by  the  agriculture  community because he wrote a farmers' policy unique for Jersey  farmers,  and  every  year  he  took  the trouble  personally  to  contact  each  farmer  to check  that  the  policy  was  tailored  to  their specific  needs.  In  2000  he  was  elected Connétable and served for a single term, as he was not in the best of health. On retirement he continued to serve his Parish as Procureur for a further 3 years. Although not a frequent contributor to debates in the Assembly, he served on the Employment and Social Security Committee and also, unsurprisingly in the light of his interests, on the Agriculture and Fisheries Committee. Our thoughts are, as ever, with his wife, Odette, his son, Ian, and his 3 grandchildren. I would ask Members to rise for a minute's silence in his memory. May he rest in peace."

2. Tribute to the late General Sir Peter Whiteley, G.C.B., O.B.E., D.L.

On 2nd February 2016, the Deputy Bailiff paid tribute to the late General Sir Peter Whiteley, G.C.B., O.B.E., D.L., former Lieutenant Governor of Jersey –

"It  is  with  great  sadness  that Government House have heard of the death of General Sir Peter Whiteley, G.C.B., O.B.E.  D.L.,  who  died peacefully  yesterday  in  hospital  in England aged 95 years old. Sir Peter was  Lieutenant  Governor of Jersey from  1979  to  1984.  Educated  at Bembridge  School,  General Whiteley  was  commissioned  as  a Second  Lieutenant  in  the  Royal Marines in 1941. He was confirmed as a Lieutenant on 20th March 1942. General  Whiteley  was  selected  to become  Commanding  Officer  of 42 Commando in 1965. He was then appointed  Commander  of 3 Commando  Brigade  in  1968.  He became Commandant-General Royal

Marines in 1975 and Commander-in- Chief Allied Forces Northern Europe in  1977.  He  served  as  Lieutenant Governor  of  Jersey  from  1979  to 1984. He was welcomed to the States in November of 1979 and the States paid tribute to him upon his retirement on 29th November 1984. He went on to become the Deputy Lieutenant of Devon and our thoughts today are with his wife, Nancy, and I would ask Members to rise for a minute's silence in his memory."

3. Tribute to the late Mr. Donald George Filleul, O.B.E.

On 22nd March 2016, the Deputy Bailiff paid tribute to the late Mr. Donald George Filleul, O.B.E., former Deputy of St. Helier No. 1 –

"As  Members  will  be  aware, Mr. Donald George  Filleul, formerly  a  Member  of  this Assembly, died on Sunday, 20th March.  Mr. Filleul  was  born  in Jersey  and  was  educated  at Victoria College. He ran a family business,  Filleul's  Business Equipment  Limited,  which  sold stationery  and  office  equipment. He served in the Honorary Police, and  was  first  elected   Deputy of St. Helier  No. 1  on  20th December 1978. During his time in the States, Mr. Filleul served as President  of  the  Public  Works Committee, Vice-President of the Fort  Regent  Development Committee and of the Liberation Anniversary  Committee  and  the Land Reclamation Committee. He served  on  the  Policy  Advisory Committee and was elected to the Executive  Committee  of  the Commonwealth Parliamentary Association, Jersey Branch, in 1983. He retired from this Assembly in 1987. While he was serving as President of Public Works the controversial  decision  was  taken  to  flood  Queen's  Valley  and  to  create  a  new reservoir.  Mr. Filleul  served  as  Chairman  of  the  Jersey  Heritage  Trust  and  the Waterfront Enterprise Board and was made an officer of the Order of the British Empire in 1999 for his services to the cultural and historical heritage of Jersey. Our thoughts today are with his wife, Veronica, and his son and daughter."

4. Tribute to the late Mr. Francis Hamon, O.B.E.

On 22nd March 2016, the Deputy Bailiff paid tribute to the late Mr. Francis Hamon, O.B.E., former Deputy Bailiff and President of the States –

"As Members will also be aware, the former   Deputy   Bailiff  and President of the Assembly, Francis Hamon, O.B.E. passed away over the  weekend.  Prior  to  taking  up public  office,  Mr. Hamon  was  a leading member of the Jersey Bar, until  he  retired  from  practice  as

senior  partner  in  Crill,  Cubitt- Sowden  and  Tomes.  He  was appointed a Commissioner of the Royal  Court  by  the  then   Bailiff , Sir  Peter  Crill,  and  served  for some  20 years  as  a  judge  of  the Royal Court. He also served as a Commissioner  of  the  Jersey Financial  Services  Commission and was a chairman of the Jersey Arts  Trust.  It  was,  however,  as Deputy   Bailiff  that  he  is remembered in this Assembly. He was appointed to that office in 1995 to allow for an orderly succession because of the gap caused when Mr. Vernon Tomes left office. Mr. Hamon served in that office for some 6 years and the Island was fortunate that he was prepared to serve in that way at a time when he was contemplating retirement. In 2000 he was awarded an O.B.E. in the New Year's Honours List.  He will be remembered as a robust and efficient President and a man of great humour and courtesy, and our thoughts are with his widow, Sonia, and his family. May I accordingly ask Members to stand and observe a minute's silence as a mark of respect and remembrance for both Mr. Filleul and Mr. Hamon? May he rest in peace."

5. Tribute to the late Mrs. Jacqueline Jeannette Huet

On 11th October 2016, the Deputy Bailiff paid tribute to the late Mrs. Jacqueline Jeannette Huet, former Deputy of St. Helier No. 3/4 –

"As  was  announced from the Chair at the last Sitting, former  States Deputy ,  Jacqui  Huet, died  the  week  before last.  After  a  career  in banking  she  was  first elected  as   Deputy  for St. Helier No. 3 District on  9th  December  1993 and  was  subsequently re-elected in 1996, 1999 and  2002,  ultimately leaving  the  Assembly following the election in 2008 having served for some 15 years. While in the Assembly she served on  many  committees, including Planning, Harbours and Airport, Education and Housing, and she was the first ever Assistant Minister for Transport and Technical Services. She was a member of the Overseas Aid Committee from 1996, becoming President of that Committee in 2002 and then Chairman of the Overseas Aid Commission in 2005. Even when she left politics and was challenged by illness, she was active in the 2014 elections, organising  seminars  to  encourage  women  to  stand  for  the  States.  She  is  fondly remembered by those who served and worked with her for her straight-talking, her earthly sense of humour, infectious laugh and kind heart. As to her sense of humour, the Bailiff has no difficulty in remembering her turning round in the Chamber to offer him a toffee shortly after he had joined the Assembly as Attorney General, and then a minute later asking the Presiding Officer in her sweetest voice if the Attorney General might help on a point of law. She was a dedicated politician, dedicated to preserve the Island that she loved and committed to serving those whom she represented to the best of her ability. She was devoted to her husband and 2 children and our thoughts are with them. May I ask Members to rise for a minute in silence in memory of her? May she rest in peace."

6. Tribute to the late Mr. Richard Winter Le Sauteur

On 12th December 2016, the Deputy Bailiff paid tribute to the late Mr. Richard Winter Le Sauteur, former Connétable of Grouville –

"Members may be aware that the former Connétable of Grouville , Mr. Richard Winter Le Sauteur, passed away last Tuesday on 6th December. Mr. Le Sauteur was elected as Connétable on 4th January 1989, following a career in the finance industry as managing director of Kleinwort Benson. A keen conservationist, at his first meeting of the Assembly on 24th January 1989 he was elected on to the Island Development Committee, as well as the Resources Recovery Board. Following the elections in 1990 he continued to serve on the I.D.C. and also joined the Gambling Control Committee. In 1991 he was chosen by Members to serve on the Sport, Leisure and Recreation Committee following the creation of that Committee. His last meeting of the Assembly was on 3rd March 1992. Our thoughts today are with Mr. Le Sauteur's family. May I ask Members to rise for a minute in his memory? May he rest in peace."

2. MEETINGS OF THE STATES

1. Length of meetings

The Assembly's 33 meetings in 2016 lasted for a total of 173 hours and 49 minutes: 14 hours more Sitting time than in 2015, but 70 hours less than in 2014.

The longest Sitting was on 30th September 2016, when the Assembly sat for 8 hours and  13 minutes,  adjourning  at  7.13 p.m.  The  shortest  Sitting  was,  as  usual,  the ceremonial Liberation Day meeting, which lasted for 15 minutes.

2. Allocation of time

The Assembly's Sitting time was broken down as follows –

3. Oral Questions with notice

Most oral questions with notice (in other words, where the question is published in advance) are asked on the first morning of scheduled meetings of the Assembly. Occasionally, urgent questions are allowed by the Bailiff , and these can be asked at other times. There were 5 urgent questions asked in 2016.

A total of 257 oral questions with notice were answered during the year, 46 more than in 2015. The largest number answered at one Sitting in 2016 was 19 oral questions on 2nd February. On 3 occasions, the time allowed for oral questions with notice was not sufficient for all of the questions which had been tabled, and 7 went unanswered at that time.

The breakdown of Ministers and other Members with official responsibility answering oral questions with notice was as follows –

4. Oral Questions without notice

Following the period of oral questions with notice at every scheduled States meeting there is a period of 30 minutes set aside for oral questions without notice to Ministers. Two Ministers answer for up to 15 minutes each on a rota basis, with the Chief Minister answering at every other States meeting. A total of 9 hours and 24 minutes was spent on oral questions without notice during the year.

Ministers answered as follows –

5. Written Questions

During 2016, 333 written answers were tabled, compared with 312 in 2015. The largest number tabled at one Sitting was 29, on 19th January.

The breakdown of Ministers and other Members answering written questions was as follows –

6. Statements

Twenty-seven statements were made in the Assembly during 2016, more than twice the number made in 2015. Eighteen were on matters of official responsibility, rather than personal or ceremonial statements, and 9 of these were made by the Chief Minister or an Assistant Chief Minister.

7. Public Business

During 2016, the Assembly spent a total of 114 hours and 43 minutes on Public Business – principally debating legislation and policy propositions. This was over 2 hours longer spent on this category than in 2015, and amounted to 66% of the Assembly's total Sitting time.

The  total  number  of  propositions  debated  during  2016  was  128,  compared  to 151 in 2015. The breakdown of the number of each type of proposition debated during the year was as follows –

The total time spent on the various categories of proposition, and the average time spent per proposition in each category is shown in the following table –

Total  Average time  time per projet

Appointments  2h 22m  6m Budget/Medium Term Financial Plan  36h 18m  18h 9m Legislation:

Acts (including Appointed Day Acts)  35m  6m

Laws  24h 30m  42m

Regulations  8h 45m  15m

Standing Orders  1m  1m Ministers' policy matters  5h 48m  44m Private Members' ("Backbenchers' ") policy matters  34h 40m  1hr 56m

SUB-TOTAL  112h 59m Debates held "In Committee" (no proposition)  1h 44m TOTAL  114h 43m

If the time spent in debates is divided into 3 broad categories, namely –

1. draft legislation (Laws, Regulations, Acts and Standing Orders);
2. ministerial policy and appointments; and
3. private Members' ("backbenchers' ") business,

the percentage of time spent on each can be illustrated as follows –

This demonstrates that the trend towards there being proportionately less time spent in the Assembly on backbenchers' propositions, noted in the 2015 Annual Report, is continuing.

The number of propositions lodged au Greffe' during any year will always differ from  the number of propositions debated, as some propositions  that are debated during the year have been lodged in the last few months of the previous year and, similarly,  some  propositions  lodged  during  a  year  will  not  be  debated  until  the following  year.  In  addition,  there  are  a  quite  significant  number  of  propositions lodged that are never debated, because they are withdrawn before coming to the Assembly. The number of propositions lodged during the year is nevertheless a useful indication of the level of activity, and can be compared from year to year.

During 2016, 140 new propositions were lodged, compared to 163 in the previous year (which was itself 18 fewer than in 2014).

The following chart shows who lodged propositions in 2016 –

Any proposition lodged can be subject to amendment and, in turn, amendments may themselves be subject to amendment. Forty-nine amendments were lodged in 2016 (compared  to  55  in  2015  and  59  in  2014),  and  there  were  12 amendments  to amendments (compared to 10 in 2015 and 15 in 2014).

8. Significant debates during 2016

As stated in previous Annual Reports, it is clearly a subjective judgement for anyone to attempt to identify the most important or significant items debated by the Assembly during the year, as the relative importance of matters will depend largely on every person's individual and political opinions, but some of the items discussed by the Assembly that may be considered as the most significant were as follows.

Draft Dormant Bank Accounts (Jersey) Law 201- (P.25/2016 lodged by the Chief Minister ,

adopted by the States (as amended) on 28th June 2016)

The adoption of this draft Law enabled balances standing to the credit of "dormant" bank accounts (i.e. accounts where contact has been lost with the customer or where no instructions have been received from the customer for a period of at least 15 years) to be transferred from the banks to a central fund called the Jersey Reclaim Fund, from which monies can be paid out to support a number of charitable and other related purposes in the local community. This also enabled the setting-up of the post of Charities Commissioner for Jersey.

The purpose of the amendment to the draft Law, also lodged by the Chief Minister, was to require an Order to be made to set out statutory policies and procedures concerning the decision as to the amount of funds to be held back for dormant account holders who claim their money back, and the amount available to be distributed. Article 20 of the Law was substituted in its entirety by the amendment, which also allowed any part, or the whole of, Article 20 of the Law to be amended by Regulations in the future. The revised Article further ensures that a grant-awarding organisation independent of the Chief Minister must be appointed, by Order, to make decisions and distribute the monies from the Dormant Accounts Fund to worthy causes.

Draft Discrimination (Age) (Jersey) Regulations 201- (P.37/2016 lodged by the Minister for Social Security, adopted by the States on 24th May 2016)

These draft Regulations introduced the next protected characteristic (age) into the Discrimination (Jersey) Law 2013, which already contained the protected characteristics of race, sex, sexual orientation, gender re-assignment, pregnancy and maternity. Having co-ordinated the work with other States' policies and strategies, such as changes to the Social Security pensionable age, the Minister proposed to introduce protection against age discrimination with effect from 1st September 2016, and protection against disability discrimination in 2018.

The States of Jersey Statistics Unit included questions about discrimination in the 2012 Jersey Annual Social Survey. A quarter of adults reported having been discriminated against in the previous 12 months, the 2 top grounds for discrimination being age (9%) and race or nationality.

The Minister issued a Consultation Paper in December 2015, inviting comments from stakeholders on the proposed scope of protection against age discrimination, and the exceptions that might be required to ensure that age can continue to be taken into account when it is proportionate and reasonable to do so, and was pleased to receive a good response.

In jurisdictions worldwide, it is taken for granted that laws exist to protect people against discrimination. It is important that we have legislation in place to demonstrate internationally that Jersey is a jurisdiction that promotes modern standards of respect for individuals' rights and equality.

Draft Employment (Amendment No. 10) (Jersey) Law 201- (P.38/2016 lodged by the Minister for Social Security, adopted by the States (as amended) on 25th May 2016)

This draft Law amended the  Employment (Jersey) Law 2003 to introduce employment protection for Armed Forces Reservists; and made a number of other unrelated changes to that Law, including the introduction of additional employee compensation awards and the alignment of the unfair dismissal qualifying period for short, fixed-term contracts.

Jersey's Armed Forces Reservists consist of civilians from a wide range of industries, whose collective skills are used to reinforce Britain's Regular Armed Forces in the shape of the Jersey Field Squadron – Jersey's contribution to defence and part of an inter-governmental agreement.

It is understood that Squadron members generally have supportive employers, but the lack of specific employment protection is a potential barrier to the recruitment of reservists which can impact, not only on the number of reservists, but also on the breadth, professions and skill types of those who undertake reserve service. Reservists are expected to commit to up to 6 months' active service, plus pre-mobilisation training and de-mobilisation in any 5-year period. The period of active service is a maximum of 12 months in a 3-year period.

The following employment protections became available to Armed Forces Reservists on the commencement of this Law –

• a right to return to the same job or an equivalent job after a period of reserve service
• a requirement for the reservist to notify the employer of their intention to return to work
• protection of the reservist's period of continuous employment
• protection against unfair dismissal from Day 1 of employment, where dismissal is related to membership of a reserve force
• provision for an employer to fairly dismiss an employee who was contracted to temporarily replace a reservist.

The amendment to the draft Law, lodged by Deputy S.Y. Mézec of St. Helier , enabled the removal of all the clauses which would enable the States Assembly to set a lower minimum wage rate for people based on their age.

Draft Mental Health (Jersey) Law 201-

(P.78/2016 lodged by the Minister for Health and Social Services, adopted by the States on 13th September 2016)

and

Draft Capacity and Self-Determination (Jersey) Law 201- (P.79/2016, lodged by the Minister for Health and Social Services, adopted by the States on 14th September 2016)

The draft Law replaces the Mental Health (Jersey) Law 1969 with a modern Mental Health Law fit for purpose in the 21st Century. Although the 1969 Law has, from time to time, been updated in minor respects, it has not been updated comprehensively to reflect the many advances made in the care and treatment of people experiencing mental illness, or to afford the safeguards for their dignity and liberty that are available elsewhere.

The new Mental Health Law provides a modern and clear legal framework which safeguards the rights, dignity and wellbeing of people experiencing mental health problems, and also provides assurance of protection from harm to the Public.

A person's circumstances, or the availability of specialist services elsewhere in the British Isles, will sometimes mean that a person needs to be transferred to another place in the British Isles to receive care. The legislation in the UK and in Guernsey has already been extensively modernised, and it is important that Jersey's legislation keeps pace to ensure that people can access the care they need, when they need it, and with appropriate safeguards.

The absence of separate legal provision from the 1969 Law, to support the provision of care for people who lose capacity to make decisions for themselves, also failed to reflect the fact that people experiencing mental illness will usually engage with different services. Such people will typically be provided with different treatments compared with people who have a learning disability or physical injury or illness that causes mental disorder (e.g. dementia). For this and other reasons, the implementation of modern mental health legislation needed to be combined with an appropriate legal provision to support people who lose capacity to make decisions for themselves and whose needs will often be different.

In light of these challenges, it was agreed that a project should be undertaken, not only to replace the 1969 Law with a new Mental Health Law, but also to simultaneously develop a new draft Law to enable people to plan for a time when they may lose capacity to make their own decisions. This new Law would ensure that, in such a situation, a person no longer able to make their own decisions would be supported in continuing to determine their future to the fullest extent possible.

The consultation process for this project culminated in the development of the Draft Capacity and Self-Determination (Jersey) Law 201- alongside the Draft Mental Health (Jersey) Law 201-. The purpose of the Capacity and Self-Determination Law is to provide a legal framework for assessing whether a person has capacity to make a decision if they are supported to do so. In this respect, the Law promotes supported decision-making by the person affected, over decision-making by family members, carers and other professionals; but if a person does not have capacity to make a decision with support, then the Law provides a number of processes to ensure that any decision made for the person is made appropriately and in their best interests.

Draft Medium Term Financial Plan Addition for 2017 – 2019 (P.68/2016 lodged by the Minister for Treasury and Resources, adopted by the States (as amended) on 30th September 2016)

The following amendments were adopted –

• P.68/2016 Amd.(4), Deputy J.A.N. Le Fondré of St. Lawrence
• P.68/2016 Amd.(5), part 1 only, Deputy J.A.N. Le Fondré of St. Lawrence

• amended by P.68/2016 Amd.(5)Amd., Council of Ministers

• P.68/2016 Amd.(7), Deputy M. Tadier of St. Brelade

The Medium Term Financial Plan ("MTFP") Addition for 2017 – 2019 contained a package of proposals designed to keep Jersey successful by planning prudently for the future. Its strategy was to focus the available funds on priority areas and to balance budgets by 2019, as advised by the Fiscal Policy Panel.

It followed the direction set for government by the States' Strategic Plan 2015 – 2018, which recommended that investment should be allocated to the agreed priority areas of health, education and St. Helier , whilst also upgrading the Island's essential infrastructure, supporting the economy and keeping spending under control. The MTFP Addition concentrated on investing key public services and boosting economic growth and diversification.

The following parts of the proposition were approved by the States –

• The States' expenditure, as set out in paragraph (a) of the proposition, for the financial years 2017 to 2019, with the provisos adopted that –

• under the fourth amendment  (P.68/2016 Amd.(4), lodged by Deputy J.A.N. Le Fondré of St. Lawrence ), in relation to the Education Department, the introduction of Nursery Education Fund means-testing should apply in respect of all providers of nursery education; and
• under the seventh amendment (P.68/2016 Amd.(7), lodged by Deputy

M. Tadier of St. Brelade ), the amount of £30,000 to fund the support of Jèrriais in 2017, 2018 and 2019 should be transferred from the Education Department to the Economic Development, Tourism, Sport and Culture Department.

• The States' estimated income, expenditure, and minimum contribution to be made to the Consolidated Fund, in respect of the Jersey Car Parking and Jersey Fleet Management States trading operations for the financial years 2017 to 2019, as set out in paragraph (b) of the proposition.
• The withholding of consent to the application of resources for work on the development of user pays' charges in relation to domestic liquid and solid waste, other than work connected to the development and implementation of commercial liquid and solid waste charges, as set out in the new paragraph (c) of the proposition (inserted by part 1 of P.68/2016 Amd.(5), lodged by Deputy J.A.N. Le Fondré of St. Lawrence , which in turn was amended by P.68/2016 Amd.(5)Amd., lodged by the Council of Ministers).

• The endorsement of the total estimated non-cash net revenue expenditure for depreciation for States-funded bodies for the financial years 2017 to 2019, as set out in paragraph (d) of the proposition.

Under the original paragraph (c) of the proposition, the introduction of an income- based Health Charge to raise £7,500,000 in 2018 and £15,000,000 in 2019, with details of the charging mechanism and legislation to be proposed and debated as part of the Budget 2017, was rejected by the States. There was an equality of votes for this paragraph, being 23 pour and 23 contre, with one abstention, and the matter was therefore determined in the negative in accordance with Article 16(2) of the States of Jersey Law 2005.

Draft Social Security (Christmas Bonus) (Jersey) Regulations 201- (P.85/2016 lodged by the Minister for Social Security,

adopted by the States on 11th October 2016)

These draft Regulations provided for an extension to the Social Security (Bonus) (Jersey) Law 2014 to deliver a Christmas bonus to claimants over pension age with limited financial means. A Christmas bonus will be payable to people who –

• are above pension age (currently 65, and set to increase in 2020);
• are in receipt of a Jersey old-age pension or hold an entitled status under the Control of Housing and Work (Jersey) Law 2012;
• are ordinarily resident in Jersey – the bonus will only be paid to people living in Jersey and it cannot be exported;
• are not eligible to pay income tax;
• have household savings of under £30,000 (as well as income, the means test looks at the level of household assets, however, the value of the family home and normal household possessions are excluded from this test).

From 2017, individuals will need to apply for this bonus. Having made one successful application, the bonus will be payable in future years without the need for further paperwork from the individual.

On the commencement of the Regulations, transitional arrangements in 2016 provided a Christmas bonus to claimants who were included in the 65+ health scheme. A pensioner receiving income support would automatically receive a Christmas bonus with their regular income support payment.

Future Hospital: preferred site

(P.110/2016 lodged by the Council of Ministers, adopted by the States on 1st December 2016)

On adoption of this proposition, the States approved in principle as the site location for the new General Hospital, the current Jersey General Hospital site, with an extension along the east side of Kensington Place and other nearby sites, including Westaway Court, as set out in the Map in Appendix 1 to P.110/2016.

The Future Hospital will be the largest single capital investment in a generation. It will be a building that re-purposes the old Hospital site to provide a foundation for the regeneration of part of St. Helier , both through the development of a health campus and through restoring to the public realm the setting of the original Hospital building. The preferred site location consists of the footprint currently occupied by Peter Crill

House and Gwyneth Huelin out-patient buildings in the existing Hospital estate, together with certain properties adjoining the current Hospital and Patriotic Street Car Park on the east side of Kensington Place, together with the use of Westaway Court.

This area has been identified as the most viable option to maintain the safe continuing operation of the current Hospital while the Future Hospital is built, because it avoids the need to relocate high-risk services such as the Emergency Department and in- patient departments, and and the need to refit or refurbish these high-risk services by disruptive and risky replacement of expensive building services. It also provides the ability to isolate the building work from the operational Hospital, thereby reducing risks of disruption to patient care associated with the construction.

Draft Budget Statement 2017

(P.109/2016 lodged by the Minister for Treasury and Resources, adopted by the States (as amended) on 14th December 2016)

The following amendments were adopted –

• P.109/2016 Amd., paragraph (i) only, Deputy R. Labey of St. Helier
• P.109/2016 Amd.(3), Deputy S.Y. Mézec of St. Helier

• amended by P.109/2016 Amd.(3)Amd., Minister for Treasury and Resources

• P.109/2016 Amd.(4), Senator S.C. Ferguson

• amended by P.109/2016 Amd.(4)Amd., Minister for Treasury and Resources

• P.109/2016 Amd.(5), Deputy T.A. Vallois of St. John

• amended by P.109/2016 Amd.(5)Amd., Minister for Treasury and Resources

The adoption by the States of the Budget Statement 2017 set the estimate of income from taxation to be raised during 2017 through existing taxation measures and agreed changes to income tax, impôts duty, stamp duty, land transactions tax and vehicle emissions duty. An amendment of Deputy R. Labey of St. Helier to reduce the percentage increase on duty on all categories of alcohol was also adopted by the States.

The Budget Statement 2017 set heads of expenditure for capital projects commencing or continuing in 2017 for States trading operations, as well as for States-funded bodies; and also authorised net transfers from  the Strategic Reserve Fund to the Consolidated Fund.

The amendment of Deputy T.A. Vallois of St. John inserted a new paragraph (e) in the proposition, to remove the additional personal tax allowance previously awarded to co-habiting couples with one child or more. The aim of this amendment was to remedy the situation of married couples having to pay more tax than co-habiting, unmarried couples living in equivalent circumstances. A minor amendment from the Minister for Treasury and Resources to this amendment, making the change to the tax allowance a gradual, rather than a sudden one, was also adopted.

Deputy S.Y. Mézec of St. Helier 's amendment inserted a new paragraph (f) in the proposition, to ensure that landlords would no longer be entitled to claim the payment of their owner's parish rates on their rental properties as a business expense which they could use to reduce their taxable income and mitigate their income tax liability. An amendment from the Minister for Treasury and Resources to this amendment was also adopted, which removed the restriction to residential properties and ensured that landlords of commercial properties would also be prevented from deducting the owner's rate when calculating their property income subject to income tax.

The amendment of Senator S.C. Ferguson was adopted, which inserted a new paragraph (g) in the proposition, to agree in principle that from 2018 a 20% tax on profit should be applied to all large retail businesses operating in Jersey, whether owned by Jersey resident companies or by non-resident companies, where taxable profits are above GBP 500,000 per annum. The Minister for Treasury and Resources' amendment to this amendment was also adopted, which removed the specifications of a 20% tax' and GBP 500,000', and replaced them with the non-specific terms: a higher rate of tax' and a certain threshold'.

Draft Finance (2017 Budget) (Jersey) Law 201-

(P.113/2016 lodged by the Minister for Treasury and Resources, adopted by the States (as amended) on 14th December 2016)

The Draft Finance (2017 Budget) (Jersey) Law 201- gave effect to the proposals within the Draft Budget Statement 2017 (P.109/2016). Most Articles were adopted.

Article 17 of the draft Law  was rejected by the States during debate. Article 17 would have amended Articles 17 to 19 of the Rates (Jersey) Law 2005, with the effect of removing the exemption from liability of a public authority (including the States) to pay foncier and occupier's rates in respect of land which it owns and uses for public purposes. The proposed amendments to the Rates Law would have required parochial authorities (but not public authorities) to pay the Island-wide rates on land owned by them and used exclusively for parochial purposes. Note: all subsequent Articles in the Law were then renumbered as a result of Article 17's rejection.

The substitution of Article 22 (which increased duty on, separately: spirits, wines, beer and cider, including beer and cider produced by small independent brewers and cider-makers, and all other alcoholic beverages) with an amended Article (now numbered 21) was necessitated by the adoption by the States of paragraph (i) of Deputy R. Labey of St. Helier 's amendment to the Draft Budget Statement 2017 (P.109/2016 Amd.). The substitution of the Article on Excise duty: alcohol' was achieved by an amendment to the draft Law proposed by the Minister for Treasury and Resources during debate on the Articles.

International Agreements

The States again ratified a number of international agreements negotiated by the Government of Jersey, such as Tax Information Exchange Agreements and Double Taxation Agreements. Agreements ratified included those with –

• the Government of the Republic of Chile (see P.90/2016)
• the Government of the Republic of Cyprus (see P.91/2016)
• the Government of the United Arab Emirates (see P.67/2016);

and the States also ratified the Multilateral Competent Authority Agreement on the Exchange of Country-By-Country Reports (see P.119/2016).

Private Members' propositions

Of the 24 new propositions lodged au Greffe by private Members in their own right during 2016 (as distinct from private Members' Amendments to lodged propositions), only 5 were adopted during 2016 by the States (4 adopted in full and one partially adopted). (Some of those lodged during 2016 were not due for debate until 2017, and are not therefore listed in this Report.) In addition, 3 private Members' propositions lodged  during  2015  were  debated  and  adopted  in  the  first  2 months  of  2016 (2 adopted in full and one partially adopted). All private Members' propositions adopted during 2016 are listed in the table below, along with a brief description of the outcome of their adoption by the States –

3. PRIVILEGES AND PROCEDURES COMMITTEE

1. Membership

The membership of the Privileges and Procedures Committee (PPC) during 2016 was as follows –

Connétable L. Norman of St. Clement (Chairman)

Senator P.F.C. Ozouf

Connétable D.W. Mezbourian of St. Lawrence (Vice-Chairman) Connétable C.H. Taylor of St. John

Deputy J.A. Martin of St. Helier

Deputy S.Y. Mézec of St. Helier

Deputy S.M. Brée of St. Clement

2. Meetings

The  Committee  held  17 formal  meetings  during  the  year  and  recorded  another 13 meetings as telephone/electronic-mail meetings. Meetings were normally held on a monthly basis in the meeting rooms in the States Building.

3. Significant items dealt with by the Committee

The Committee dealt with a number of different matters during the year. Some of the most significant of these were as follows –

• Composition and Election of the States: PPC had established a sub- Committee in 2015 which comprised the Chairman of PPC, Connétable
  50. Norman, the Vice-Chairman, Connétable D.W. Mezbourian , Senator P.F.C. Ozouf and Deputy S.Y. Mézec of St. Helier , and was supported by an officer group including the Deputy Greffier of the States, the Chief Officer of the Community and Constitutional (Home) Affairs Department, and the Director of Constitutional Affairs and Justice Policy. Draft proposals were presented to the main Committee during 2016, but it proved impossible for a consensus to be reached as to which options should be put before the Assembly.
• Standing Orders reform: PPC's other Sub-Committee (Senator P.F.C. Ozouf and Deputy J.A. Martin of St. Helier , supported by the Assistant Greffier of the States) put forward a number of amendments to improve Standing Orders and internal procedures which were anticipated would be lodged in early 2017.
• Web-Streaming/filming the Assembly and the introduction of clocks: Following the States' approval of  P.39/2015 (States Assembly: filming proceedings and the installation of clocks') on 2nd June 2015, a tender process was undertaken, and webcasting of the meetings of the States commenced on 13th September 2016. The installation of a display clock proved more complicated, and throughout 2016 efforts were made to find a supplier able to provide the desired functionality.
• Complaints in relation to States Members under the Code of Conduct: The Committee dealt with several complaints made against States Members regarding alleged breaches of the Code of Conduct for States Members. In most instances, the complaints were determined to be unfounded and were not progressed beyond initial discussions amongst the Committee.
• Commissioner for Standards: A revised version of the Draft Commissioner for Standards (Jersey) Law 201- (P.87/2016) was lodged by the Committee during 2016 and was due to be debated in early 2017.
• Electronic Registration: In March 2016 the States approved a proposition of Deputy G.P. Southern of St. Helier entitled Public Elections: electronic voting' (P.10/2016) which had requested the Committee to work with the Comité des Connétable s and other bodies to research and trial electronic voting systems. It was proposed that Jersey should aim for automatic elector registration based on the People Directory, a database under development as part of the e-Gov programme. The Committee presented a report in relation to this matter at the end of 2016 – Public Elections: electronic voting – electoral registration review' (R.127/2016). It was not possible to guarantee that the new system would be working appropriately in time for the 2018 elections, and it was envisaged that there would be a period when the current and new systems would operate in tandem.
• Complaints Board: The members of the independent Complaints Panel continued to review the actions of ministerial departments referred to them by complainants throughout 2016. The Committee extends its thanks to the members of the Panel, who carry out their work in an honorary capacity.

• Challenge to Summons: In September 2015 there was a challenge to a Summons served by the Corporate Services Scrutiny Panel on the States of Jersey Development Company. Regulation 6 of the States of Jersey (Powers, Privileges and Immunities) (Scrutiny panels, PAC and PPC) (Jersey) Regulations 2006 established that any challenge had to be considered by the Committee and they did so during 2016, determining in May 2016 to uphold the Summons (States of Jersey Development Company: challenge to a Summons dated 12 August 2015 issued by the Corporate Services Scrutiny Panel – decision of the PPC', R.54/2016 refers).
• Parliamentary Privilege: Following concerns expressed by the Chairmen's Committee regarding the lack of action afforded to third parties mentioned in Scrutiny proceedings, it was agreed that a review of parliamentary privilege should be undertaken, and Sir Malcolm Jack, former Clerk to the House of Commons, was appointed to undertake the necessary work.
• Senatorial by-election: the Committee oversaw the www.vote.je registration and voter campaign associated with the 2016 autumn by-election which was called when Senator Zoe Cameron resigned.
• Draft Referendum (Jersey) Law 201-: Arising from its review of public election law, the Committee considered changes to the Referendum (Jersey) Law 2002 in order to provide for the designation of campaign groups in referenda, the regulation of spending, and the provision of advice on the questions asked in referenda, in line with international best practice. A proposition was due to be lodged in early 2017 in which it would be recommending the establishment of a standing referendum commission which would assess the suitability of the wording proposed for the referendum question and also designate the lead campaign groups for each side in a referendum.
• Voting Rights for Prisoners: The Legislation Advisory Panel raised this matter with PPC in May 2016, and it was decided to bring forward a draft Law to enfranchise some convicted prisoners. The Draft Public Elections (Amendment No. 7) (Jersey) Law 201- (P.124/2016) was subsequently lodged au Greffe  on 23rd November 2016 and sought to enfranchise convicted prisoners who were registered to vote if they were serving sentences of 4 years or less. Prisoners sentenced for more than 4 years would remain disenfranchised, as would prisoners on the run.

4. SCRUTINY PANELS AND PUBLIC ACCOUNTS COMMITTEE

1. Chairmen's Committee President's Foreword

It  has  been  very  satisfying  to  see  the  valuable  work  undertaken across the Scrutiny function by my colleagues in  2016,  and  to  continue  to  make  my  own  contribution  as  Chairman of the Corporate Services Panel and President of  the  Chairmen's  Committee.  Scrutiny  has  now  become  an  influential  and  increasingly  respected  feature  of  the  machinery of government in Jersey, performing a vital role on  behalf of the States Assembly (and therefore the Public) in  providing a check and balance to the decisions and policies of  the Council of Ministers.  

We have continued to work on ways to further improve the standing and effectiveness of Scrutiny, notably through ongoing work to improve the codified framework within which the Panels and Committees operate, but also through initiatives such as holding all-States  Member  briefings  on  publication  of  Scrutiny  Reports,  as  routinely undertaken for example by the Corporate Services Panel. We envisage proposing a package of improvements to the Scrutiny Code of Practice, Standing Orders and relevant  legislation  in  due  course.  This  includes  recommendations  made  by  the Chairmen's Committee to PPC to improve the process of legislative scrutiny, and to ensure  that  Panels  are  afforded  adequate  time  and  authority  to  scrutinise  all Propositions that they identify the need to examine.

In addition, the Chairmen's Committee has been mindful of trying to ensure that Scrutiny Members have appropriate recognition and resources to effectively carry out their role, beyond just overarching budget and staff resource matters. Areas addressed have included improvements to the facilities in the designated Scrutiny rooms, and minor, but nonetheless helpful, initiatives such as the provision of business cards and assistance with scrutiny-related communications expenses for Scrutiny Chairmen (on a comparable level to Ministers).

Panels and Committee have remained very conscious of facilitating community access to and involvement with our work. Many initiatives were undertaken over the course of the year, including holding evening public meetings at various locations across the Island, an enhanced social media presence, high-profile Island-wide surveys, inviting the Public to submit questions that Panels ask Ministers at Public Hearings, and the trial filming of a Public Hearing which was made available to view on our website. The  Chairmen's  Committee  has  subsequently  supported  proposals  to  deliver webcasting of all Scrutiny Public Hearings, a project that will be further developed in 2017.  This  will  coincide  with  the  ongoing  project  to  significantly  enhance  the Scrutiny/States Assembly website.

Despite the positive public standing of Scrutiny and the undoubted influence that Panels  and  Committees  have  had  on  improving  policy  and  legislation,  certain challenges remain that serve to unduly frustrate this important work. Most significant amongst these remains access to information, especially from States Departments or States-owned  bodies,  which  should  be  provided  without  resistance  in  line  with approved  procedures  and  rules  established  by  Standing  Orders  and  the  Code  of Practice for Scrutiny Panels, or associated legislative powers. Whilst it is often the case that information is provided as required, on too many occasions this is not so. It is in nobody's interest for compliance with such requests for information to be unduly protracted, given the expectation, and requirement, for full and timely provision of information.

By way of example, it was regrettable that the Corporate Services Scrutiny Panel was left with no option but to issue a Summons to the States of Jersey Development Company ("SoJDC") to provide information required for its review of the Jersey International Finance Centre, the first such use of those powers by a Scrutiny Panel. SoJDC challenged the Summons, and a Hearing was heard by PPC in January. PPC published its decision in May, upholding the Panel's right of access to the requested information,  to  which  SoJDC  was  obliged  to  comply,  and  duly  provided  the information. It is my sincere hope that Ministers and States-owned entities take note of such obligations, and that in future there is less contention and more pro-active co-operation with information requests.

I would like to thank all Members who have served so effectively in Scrutiny and with  the  PAC  throughout  the  year,  doing  so  in  accordance  with  the  important principles of objectivity and transparency, without fear or favour. I also thank the staff of the States Greffe's Scrutiny Office for their continued efforts working on our behalf.

Deputy J.A.N. Le Fondré of St. Lawrence  

PRESIDENT, CHAIRMEN'S COMMITTEE  (Chairman, Corporate Services Scrutiny Panel)  

2. Annual Reports of the Scrutiny Panels and the PAC

1. CHAIRMEN'S COMMITTEE Introduction

The Chairmen's Committee has responsibility for maintaining oversight of the work of  the  Scrutiny  Panels/Sub-Panels/Review  Panels  and  the  PAC,  and  monitoring Scrutiny expenditure. The membership of the Committee comprises the Chairmen of the 5 Scrutiny Panels and the Chairman of the PAC.

2016 Priorities

In  additional  to  its  general  oversight  responsibilities,  the  primary  focus  of  the Committee  throughout  the  year  has  been  leading  progression  of  the  replacement documents  for  the  existing  Code  of  Practice  for  Scrutiny  Panels  and  the  Public Accounts Committee. This is a considerable piece of work that will see the creation of separate  Codes  of  Practice:  one  for  Scrutiny  Panels/PAC  engagement  with  the Executive, and the other to cover Scrutiny/PAC's own internal procedural matters. The  work  and  necessary  liaison  with  the  Chief  Minister  is  ongoing,  and  the Engagement  Protocol  and  Proceedings  Code  should  be  presented  to  the  States during 2017.

As part of its work to revise the Code of Practice for Scrutiny Panels and the PAC, the Chairmen's Committee also identified possible associated amendments to the States of  Jersey  (Powers,  Privileges  and  Immunities)  (Scrutiny  Panels,  PAC  and  PPC) (Jersey)  Regulations  2006.  The  underlying  aim  of  any  amendments  is  to  bring Jersey's Scrutiny function in line with practice seen in other jurisdictions, notably for instance within the U.K. Select Committee system. This has included ongoing work regarding the ability for Scrutiny Panels and the PAC to place witnesses on oath, and an evolving piece of work around Assembly privilege as extended to Panels and the PAC.

The matter of privilege has since been referred to the Greffier of the States and PPC, as it became clear that the wider framework of privilege covering all States Assembly business would benefit from further attention.

Review Panels

Residential Property Transactions Review Panel:

2016 has seen the Chairmen's Committee establish the first example of a Review Panel'. These are Panels that the Chairmen's Committee can establish outside the framework  of  the  5  permanent  Panels  and  PAC,  comprising  any  non-Executive Members to consider specific topics within a certain timeframe.

The Residential Property Transactions Review Panel has been established to examine issues raised with the system of buying and selling residential properties in Jersey. They were regarded as having scope to cause significant and avoidable cost, stress and frustration for buyers, sellers and third parties. They were also perceived as having  scope  to  depress  property  market  activity  and  to  discourage  prospective purchasers from entering the market.

The Panel is being led by Deputy R.D. Johnson of St. Mary , accompanied by Panel members   Deputy  A.D. Lewis  of   St. Helier ,   Deputy  R.J. Renouf  of   St. Ouen  and Connétable M.P.S. Le Troquer of St. Martin . The Panel has been gathering evidence from a range of stakeholders and is expected to report in 2017.

2. CORPORATE SERVICES SCRUTINY PANEL INTRODUCTION  

The  Corporate  Services  Scrutiny  Panel's  remit  is  to  look  into  matters  relating  to  policies  and  actions  brought  forward  predominantly by either the Chief Minister,  the Minister for Treasury and Resources, or  the  Minister  for  External  Relations.  The  Panel  also  looks  at  other  areas  that  are  matters of public interest.  

PANEL REVIEWS IN 2016

Jersey International Finance Centre ("JIFC")

Following publication of an interim report in October 2015, the Panel continued to work throughout the year on its final report on the JIFC.

The Panel encountered a number of challenges in obtaining access to confidential documentation relevant to the review. This had culminated in the Panel serving a Summons on the States of Jersey Development Company ("SoJDC") in 2015. The SoJDC lodged a challenge to the Summons, and the Hearing before PPC took place in January 2016. PPC published its decision in May 2016, which gave the Panel right of access to the confidential documentation, subject to certain conditions.

This was the first time that a Scrutiny Panel had been compelled to issue a Summons in order to obtain information. The outcome of the Summons appeal upheld the right of access for Scrutiny to information relevant to its work.

The  process  was  extremely  time-consuming  and  caused  a  significant  amount  of additional work. The Panel has recommended that changes are made to the rules governing information held by arm's-length States-owned entities to ensure that in future, appropriate access is afforded to parliamentarians scrutinising the activities of these publicly-owned assets.

Having reviewed the confidential documentation, the Panel commenced the drafting of its final report, which was subsequently published in July 2017.

Medium Term Financial Plan ("MTFP") Impact Assessments

The Panel conducted a short desktop review of the Council of Ministers' proposals for assessing the distributional impact of measures contained within the MTFP Addition. The  Panel  engaged  the  Chartered  Institute  of  Public  Finance  and  Accountancy ("CIPFA") to undertake a review, and CIPFA's work was published alongside the Panel's own report in May 2016.

Medium Term Financial Plan Addition 2017 – 2019 (P.68/2016)

The MTFP Addition is a key part of the States' financial planning, and sets the expenditure levels for States Departments for a 4-year period. The MTFP Addition set out the detailed expenditure plans for States Departments for the period 2017 – 2019, within the framework set out by the MTFP 2016 – 2019 which was agreed in 2015. Building on its work in 2015, the Panel reviewed the proposals contained within the

MTFP Addition, and presented its report to the States in September 2016.  The  Panel  engaged  the services  of  the  same  2 advisers used  in 2015:  CIPFA  and  MJO Consultancy Limited.

The  Corporate  Services  Scrutiny

Panel took the lead in reviewing

the MTFP Addition, by looking at

the overarching themes as well as the  detailed  expenditure  plans  of  the  Treasury,  External  Relations  and  Chief Minister's Departments. Each of the other Scrutiny Panels reviewed the expenditure plans of departments within their own remits. The overarching themes reviewed by the Panel included economic forecasts and income forecasts, growth expenditure and the impact  of proposed charges.  The Panel  held  Public Hearings with the Chief Minister and Minister for Treasury and Resources as part of the review.

During the course of the review, the Panel's advisers raised concerns about the high rates of funded vacant posts across the States. The Panel lodged an amendment to the MTFP  Addition  to  reduce  the  vacancy  rate,  which  was  rejected  by  the  States Assembly.

Draft Budget 2017

The  Draft  Budget  Statement  was  lodged au Greffe on 18th October 2016 and debated on  13th  December  2016.  It  contained proposals from the Minister for Treasury and Resources  in  respect  of  taxation,  capital expenditure  and,  more  generally,  the  fiscal framework. The Panel received a number of submissions  from  key  stakeholders, particularly in relation to rises in duty on alcohol and tobacco. The Panel also held hearings with the Minister for Treasury and Resources and engaged the services of CIPFA and MJO Consulting as expert advisers. The Panel's report was presented to the States on 9th December 2016.

Future Hospital Sub-Panel  

Two members of the Panel ( Deputy  J.A.N. Le  Fondré  of  St. Lawrence  and the Connétable of St. John ) sat  on  the  Future  Hospital  Sub-Panel,  which reviewed the progress of the  Future  Hospital  project  and  the  decision to rebuild the hospital on  the existing site.  

Future Hospital Funding Strategy  

The  Future  Hospital  Funding  Strategy  was  lodged  in  November  2016. The Panel started the work to procure suitable advisers during December 2016. The majority of the Panel's work was subsequently undertaken in 2017, following a decision by the States Assembly to formally refer the matter for scrutiny.

ADDITIONAL WORK

The Panel met 73 times during the year. In addition to its review work, the Panel received private briefings and information on a number of other topics, including JT Group,  e-Gov,  2015 out-turns,  Income  Forecasts,  College  Gardens  and  JIFC Building 5.

The Panel also held regular quarterly Public Hearings with the Chief Minister and the Ministers for Treasury and Resources and External Relations. These Hearings were focused on the relevant Minister's overall workload, and gave an insight into the areas currently being worked on in each Department. The Panel also gave one briefing to States Members during the year (in relation to its report on the MTFP Addition).

In June 2016, the Panel invited members of the Public to send in questions to be put to the Chief Minister at a quarterly Hearing. This received a good response, with the majority of questions relating to student loans. The initiative was repeated in 2017 and was also taken up by other Scrutiny Panels. During the year, the Panel increased its engagement with social media, including live-tweeting updates from quarterly Public Hearings.

3. ECONOMIC AFFAIRS SCRUTINY PANEL INTRODUCTION

The Panel's remit covers all matters relating to the policies and actions of the Minister for Economic Development, Tourism, Sport and Culture (following the transfer of functions which came into effect at the beginning of January 2016). In addition, the Panel  retains  responsibility  for  the  scrutiny  of  Financial  Services,  Digital, Competition and Innovation, previously administered by the Economic Development Department, but since transferred to the Chief Minister's Department.

REVIEWS

The Panel undertook the following reviews during 2016:

Dormant Bank Accounts

The Draft Dormant Bank Accounts (Jersey) Law 201- (P.25/2016) was lodged  by  the  Chief  Minister  on 15th  March  2016.  The  Panel received a briefing on the draft law from the Assistant Chief Minister with  responsibility  for  Financial Services  (Senator  P.F.C. Ozouf ) and  departmental  officers  on 5th April 2016,  when  the  Panel indicated that it intended to review the matter. As the Assistant Chief Minister was reluctant to delay the debate,  it  was  decided  that  the Panel  would  call  it  in  to  allow sufficient time to scrutinise its provisions. The principles were subsequently approved by the States on 26th April 2016, at which point the draft Law was called in for scrutiny.

The reasoning behind the Law was a concern that dormant bank accounts in Jersey might be swept up into the U.K. Reclaim Fund. While the relevant U.K. law did not include  Jersey  or  other  Crown  Dependencies,  it  was  thought  that  Jersey  could potentially be drawn into the U.K. scheme by default, if it could not demonstrate that it planned to bring in its own legislation. Local branches of major banks based in the U.K. could have been required to identify dormant accounts according to U.K. rules and transfer funds back to the U.K. for eventual distribution. This could have meant that local charitable causes would not have been able to benefit from locally-based dormant accounts.

The Panel's review considered a range of issues, including –

• the  appropriateness  of  the  legislation  in  respect  of  different  classes  of unclaimed private assets
• the definition of dormancy
• action to be taken by banks to identify owners of dormant accounts

• the  balance  to  be  struck  between  the  distribution  of  capital  and  income accruing to the Fund
• how to determine what causes should benefit from the Fund.

The Panel met with witnesses from the Jersey Bankers' Association ("JBA"), the Jersey Financial Services Commission ("JFSC"), and officers from the Department of Economic  Development,  Tourism,  Sport  and  Culture  ("EDTSC")  and  the  Chief Minister's Department in May 2016. Subsequently, another detailed discussion took place with the Assistant Chief Minister and officers on 9th June 2016. Following that meeting, in response to comments made by the Panel, the Chief Minister lodged an amendment to the draft Law (P.25/2016 Amd.) on 14th June. The Panel presented Comments on the draft Law on 24th June (P.25/2016 Com.), indicating Members' support for the proposition as amended. The draft Law was adopted by the States on 28th June 2016.

Harmful Telecommunications

The Panel called in P.19/2016 (Draft Telecommunications (Amendment No. 3) and Crime (Miscellaneous Provisions) (Jersey) Law 201-) for scrutiny on 12th April 2016 following a debate on the principles, which were approved by the States.

The Panel received a briefing from departmental officers and the Assistant Chief Minister with responsibility for Digital (Senator P.F.C. Ozouf ) on 5th April. Members subsequently met with representatives of  the States of Jersey Police, and officers  from  the  Chief  Minister's  Department,  Community  and  Constitutional  Affairs  and  the  Law  Officers'  Department  to  discuss  the  issues  in  detail.  A  Public  Hearing with the Chief Minister and the  Minister for Home Affairs followed on  26th May.  

The Panel's review considered the reasons for the proposed legislative changes, their fitness for purpose and likely outcomes. It did not focus on the nature of the crimes they were designed to address, or the incidence of such crimes in Jersey, although members were aware of concerns about the increasing incidence of online crimes elsewhere.

The Panel heard that, in many cases, existing legislation allowed for the prosecution of  crimes  committed  online.  However,  Jersey's  previous  Attorney  General  had expressed concern that there might be a gap in legislation in the Island. The types of offences being committed online were evolving, and means of communication were also changing with the uptake of new technology and ever-increasing use of social media. There was some doubt as to whether existing legislation would continue to be fit for purpose in the changing circumstances.

This  led  to  consideration  of  how  legislation  could  be  future-proofed'  against technological and behavioural changes. It was felt that the opportunity should be taken  to  improve  provisions,  so  that  they  would  not  be  overtaken  by  future developments. The Panel presented Comments on the Proposition to the States on 10th  June  (P.19/2016 Com.),  which  concluded  that  the  amendments  proposed  in P.19/2016 were proportionate and fit for purpose, and highly unlikely to have any negative impact on freedom of speech, a potential concern raised by other States Members.  The  legislative  changes  were  subsequently  approved  when  the  debate resumed on 14th June 2016.

Draft Medium Term Financial Plan Addition 2017 – 2019

The Draft Medium Term Financial Plan Addition for 2017 – 2019 (P.68/2016) was lodged by the Council of Ministers on 30th June 2016. The implications of the MTFP Addition for Economic Development, Tourism, Sport and Culture were discussed in detail with the Minister at a Quarterly Public Hearing with the Panel on 6th July. Members subsequently received a private briefing from the Assistant Chief Minister (Senator P.F.C. Ozouf ) and his officers on 27th July concerning the areas of Financial Services, Digital, Competition and Innovation.

The Panel received advice and assistance with its review from Mr. Stuart Fair of CIPFA,  who  also  assisted  other  Panels  with  their  work  on  the  MTFP  Addition. Mr. Fair  provided  a  written  report  to  the  Panel  which  was  included  with  Panel Comments  on  the  Proposition  presented  to  the  States  on  23rd  September (P.68/2016 Com.(2)), prior to the debate which commenced on 27th September.

OTHER WORK Financial Services

Other matters relating to Financial Services given close consideration by the Panel during the year included draft legislation for the Regulation of Virtual Currency, Bank Recovery  and  Resolution  and  the  Limited

Liability  Partnerships  Law.  The  Panel  was provided with detailed briefing papers and met with  officers  of  Financial  Services  and  the Assistant  Chief  Minister  concerning  these matters,  which  in  some  instances  resulted  in changes to the draft legislation, although formal