Fiscal Stimulus Fund – Update Report – August 2021 [R.136-2021]

STATES OF JERSEY

FISCAL STIMULUS FUND – UPDATE REPORT – AUGUST 2021

Presented to the States on 27th August 2021 by the Minister for Treasury and Resources

STATES GREFFE

2021  R.136

REPORT FISCAL STIMULUS FUND – UPDATE REPORT

1. Purpose of Report

This report sets out the progress on the allocations of the Fiscal Stimulus Fund and the current status of projects, as required by P.128/2020 Establishment and funding of the Fiscal Stimulus Fund.

2. Background

The Fiscal Stimulus Fund was established by the Government of Jersey by P.128/2020 as part of a range of measures designed to assist the economy to recover from the impact of COVID-19.

Fiscal measures have been implemented in Jersey because of the need to manage the risk of permanent scarring of the economy as a result of the pandemic. In Jersey, due to the monetary union with the UK, fiscal policy is important as monetary policy is set by the Bank of England and not easily affected to benefit the local economy. At the current juncture, monetary policy is also constrained as interest rates are already at a record low and are approaching the lower-bound, limiting the prospect of strong monetary stimulus.

In the face of a pronounced shock or persistent weakness it is right for governments to actively intervene and finance fiscal stimulus, and this case is strengthened by the limited  scope  for  monetary  stimulus.  Fiscal  stimulus  is  appropriate  when  private demand is weak and the economy operating below capacity. In such circumstances it can compensate for a shortfall in private demand and help to bring the economy closer to full capacity. It should be temporary to avoid crowding-out' private investment when capacity is reached.

The benefits of fiscal stimulus are principally to reduce the size of the temporary cyclical downturn in economic activity in the short term, and secondly reduce the size of the permanent structural loss of potential output and economic activity in the medium term. Recessions can have permanent effects on the potential output or full-employment level of economic activity. These effects are typically outlined as operating through the impact on both capital and labour e.g., plant and machinery employed in production and the labour force that can be employed. As an example, shedding of labour during a deep recession may result in difficulty in quickly developing the same level of capacity again after the recession – this is true for an individual business but also for the economy.

One of the considerations at the outset of the Fiscal Stimulus Fund was the impact that funding  might  have  if  applications  came  based  largely  on  either  construction  or maintenance projects. The Fiscal Stimulus Fund is designed to stimulate the economy and so it is possible to ask not so much whether construction needs stimulating but whether it can accommodate Fiscal Stimulus without crowding out other work. Based on economic data, it appears that the overall sector is worth £1bn per year which would mean that even if all of the Fiscal Stimulus Fund were spent on these types of projects that  would  only  mean  accommodating  an  additional  5%  of  work  in  2021.  The Construction Council have commented that whilst there is a solid pipeline for 2022 there is capacity for Fiscal Stimulus because of the delay in timing of other projects which the industry had anticipated in terms of labour.

There is a broad consensus across the economics profession that a well-designed fiscal stimulus that has the greatest impact with the least long-run cost should be Timely, Targeted and Temporary – the "three T" principles ("3T"):

• Timely. Action should start immediately to have an impact as quickly as possible and ideally within the next 6 to 9 months. However, it is far better to have done too much too quickly rather than too little too late.

• Targeted. Policy should hit the intended target whether it is to support activity and employment in the Island, support those most adversely affected by the downturn or implement projects that have intrinsic benefit.

• Temporary. There should be no negative long-term implications for the public finances, i.e., no long-term damage to the tax base and no long-term spending commitments. Stimulus measures should therefore be designed to stimulate the economy but without a commitment to an ongoing or recurring cost.

P.128/2020 set out the oversight framework for the application process.

A Fiscal Stimulus Oversight Group (FSOG) has been set up to oversee the programme. FSOG comprises the Treasurer of the States, the Chief Economic Advisor, the Group Director for External Relations and two independent members appointed by the Minister for Treasury and Resources and supported by a programme manager and programme administrator. FSOG works within the guidelines established by the Operational Terms of Reference which have been approved by the Minister for Treasury and Resources. The assessment process has been assisted by external advice, where appropriate. The high-level process for each tranche of up to £25 million has been managed in a 4-month timeframe and has adopted the following staged approach:

• Stage One  - Expression of Interest submission

• Stage Two  - Business Case submission

• Stage Three  - Consideration of all Business cases

• Stage Four  - Oversight of Draft Recommendations

• Stage Five  - Minister for Treasury and Resources decision

There is an understanding that the Fiscal Stimulus Fund initiative comes with the risk of deadweight loss or leakage, but the Fund was approved on the basis that the potential benefits, and the imperative for policy intervention, are sufficient for those risks to be accepted, consistent with advice and mitigation.

3. Stage One – Expressions of Interest Submission

In Tranche One there were 93 Expressions of Interest Received with a total funding value of £102.4 million. The oversubscription of Tranche One gave FSOG a significant task in terms of the application of the criteria and communicating the outcomes of each stage of the process.

In Tranche Two there were 65 Expressions of Interest Received with a total funding value of £42.6 million. In addition to these, there were additional projects considered by FSOG that had been carried over from Tranche One based on further information requirements or because the Corporate Services Scrutiny Panel (CSSP) raised comments as part of their review. Overall, therefore, 81 projects with a total value of £65.7m of project applications were considered.

After the application of the Expression of Interest criteria (See Appendix One) 47 projects with a total value of £41.8 million were advanced as part of Tranche One. For Tranche Two, there were 26 projects with a total value of £36 million considered as part of the Stage Two appraisal process.

4. Stage Two – Business Case Submission

The business cases for both Tranches received were sufficiently detailed for FSOG to be able to consider each application against the criteria.

5. Stage Three – Consideration of all Business cases

FSOG used the criteria as a basis for the decision-making process but also chose to see them as a lens and not a collar. This has meant that the Group made recommendations that  had  the  right  level  of  objectivity  but  also  considered  the  broader  aims  of Government and which allowed for a deeper consideration of the individual projects as part of the overall Tranche applications.

In particular, this was necessary because the variety and complexity of the projects gave rise to some specific issues which FSOG have had to take a view on based on the objectives of the Fund and against the wider risks associated with this type of initiative:

• Strategic and club projects for sports facilities – leases of land & buildings; alignment with the Sports strategy; availability for community use. The views of Jersey Sport were obtained although FSOG considered these comments taking into account the organisation's connections with certain applications

• Construction projects – view of capacity of the industry and the requirement to receive specialist advice

• Diversity – the issue of diversity in either the service provision or the project provision

• Economic standing of the organisation and how to deal with this in the grant arrangements

• Type of organisation and how to manage risk in cases where the applicant is not a Government department

• Whether  planning  permission  or  other  regulatory  requirements  had  to  be

obtained.

In addition, in Tranche Two, after much consideration FSOG decided that construction projects would have to meet some of the following criteria:

• Smaller scale – below £250,000

• Whether they contributed to a wider community or tourism economic benefit

• Whether there had been any funding to the organisation or organisation type in Tranche One

Given these considerations and based on the application of the criteria, FSOG have recommended that £22.8 million of projects receive funding as part of Tranche One and £6.8 million of projects receive funding as part of Tranche Two of the Fiscal Stimulus Fund.

6. Stage Four – Oversight of Draft Recommendations

The Fiscal Stimulus Fund proposition makes provision for the Minister to receive comments on the recommendations from the following bodies:

• Economic Recovery Political Oversight Group (ERPOG) – political members

• Corporate Services Scrutiny Panel (CSSP)

The presentation to ERPOG on the recommendations gave rise to no specific comments.

After presenting the recommendations to CSSP an information pack was sent out which enabled the panel to make the following specific comments on the types of organisations permitted to apply for funding:

• The  Fund  continues  to  risk  being  allocated  without  a  great  deal  of diversification of benefit across sectors especially those significantly affected by the Pandemic and demographics such as gender and younger age groups of the Island;

• The Fund fails to seize the opportunity to use public finances in a visionary and innovative way, to benefit the island in both the short and long-term, despite being provided with a report by the Economic Council to assist in defining such a vision; and

• Utilisation of the Fund for States' Bodies and arm's-length organisations which has risked financing projects that should appear in the Government Plan.

Overall, FSOG recognises that the level of oversubscription and the complexity of the applications does give rise to risk in terms of the potential for the initiative to achieve the desired economic impact and the agreement that the projects should achieve an impact in terms of diversity. The types of applications have made this more problematic but FSOG have concluded that the projects that have been recommended will, on balance, achieve a positive economic impact in 2021. This view is based on economic advice and information received from the Construction Council which indicates some spare capacity for construction/refurbishment projects and that they are unlikely to contribute to inflation within the construction sector. This was based on economic advice that demonstrated that £25 million represents circa 2% of the overall value of the construction sector (as at December 2021).

The impacts of the second wave restrictions and the implications arising from the scale of bids increases the risk that projects cannot all be delivered by 31 December 2021. Economic  advice  suggests  that  slippage  of  projects  into  Q1  2022  would  remain consistent with the aims of delivering stimulus into the economy. Accordingly, there is now  a  process  for  the  Minister  to  approve  extension  requests  for  projects  to  be completed by 31st March 2022 and this is contained in the individual grant agreements.

7. Stage Five – Minister for Treasury and Resources decision

The  final  stage  of  the  process  was  providing  the  Minister  with  FSOG's recommendations. The Minister reviewed the recommendations before making a final decision.

The successful applicants and specifics of each project are: Customer and Local Services (CLS)

The department provided its support for all the recommended applications. It also applied for Howard David Hall Redevelopment and unemployment support scheme.

20-008 Jersey Citizens Advice Bureau - Website/Digital Channels Technology Project

£50,000  

The funding will improve the Jersey Citizens Advice Bureau's website, by providing an improved and up-to-date source of information for both Jersey Citizens Advice staff, volunteers,  and  clients  from  across  the  community.  The  Jersey  Citizens  Advice Bureau's aim is to support Jersey residents by helping to ensure accurate and helpful guidance is provided.

This is a technology project which will employ a project manager to work throughout the term of the project and employ a local company to develop the service.

Alignment  to  CSPs  (Common  Strategic  Priorities)  –  We  will  reduce  income inequality and improve the standard of living

20-029 – Howard Davis Hall Redevelopment (Howard Davis Park) Construction Project (Multiple trades for renovation work) £750,000  

This  project  will  see  the  development  of  Howard  Davis   Hall ,  into  a  high-end commercial events venue and enhanced public facility. The funding will allow the Hall and Lodge to be refurbished as an events venue with associated facilities. The aim for the venue is to become a self-sustaining commercial events business.

Alignment to CSPs – We will improve islanders wellbeing and mental and physical health; We will create a sustainable, vibrant economy and skilled local workforce for the future

20-071 Jersey Employment Trust - Acorn collections and processing facilities Construction Project (Multiple Trades and multiple local contractors) £808,336

This project's funding will build a collections, processing, and delivery hub to improve donation operations and provide additional employment opportunities. Acorn estimated that this investment will enable them to increase their revenue by £253,400 per annum. Which would create a minimum of 10 paid jobs and 60 training opportunities for people with disabilities, long-term health conditions and people being supported by the Back to Work scheme. It would help improve the transferable and employability skills of young people/people with a disability.

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-099 Unemployment Support

Support for Business & Skills improvement £1,250,075

This project will provide an improved employment support package that will enable islanders to move back into paid employment post COVID 19. There are two Financial Incentives which will be available to employers:

• Employment Incentive: Jersey businesses would receive up to £8,063 over 6 months when they fill a new permanent position with a jobseeker who is registered as Actively Seeking Work with Back to Work.

• Paid Training: Funding for trainees' wages for up to 12 weeks, for those with no previous experience in the specified job role or industry.

The aim is to help and support job seekers, and hopefully get them back into long term employment.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled local workforce for the future; We will reduce income inequality and improve the standard of living

20-163 The Shelter Trust – Women Only accommodation Construction project

£189,500  

The pandemic has affected a variety of Islands in various ways. Due to the pandemic the need for homeless shelter has increased, especially for women. This project will provide accommodation for up to 25 women with 19 beds and 2 apartments. These women will be supported by permanent and continuous staffing. The funding will also create  9  roles  to  deliver  the  women  only  service.  This  project  will  benefit  the communities most vulnerable members. The project delivery plan indicates that local tradesman and contractors will be used to deliver the project.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

Children, Young People, Education and Sport (CYPES)

The department provided its support for all the recommended applications and applied for the Retrain Skills program.

20-001 Jersey Scouts Association – Refurbishment of Kenneth Faucon Hall Construction Project (Refurbishment with multiple trades)

£50,694  

The Kenneth Faucon Hall building is used by the wider community and provides opportunities of adventure for young people on the island regardless of their social- economic background. This project will upgrade and refurbishment the building in St Saviour. Local contractors and suppliers will be employed to complete the project with it taking 2 months to complete the refurbishment.

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-002 Ebenezer Church – Refurbishment of Kitchen area Construction Project (Refurbishment with multiple trades) £11,000  

The church currently uses the main hall to provide refreshments. This project will provide them with a dedicated area to enable the provision of refreshments, which will allow a wider reach and improved facilities for the users. There is in principle planning permission and the church are in the process of submitting a planning application. This is a refurbishment project which will require local tradesman and source goods through local suppliers

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-038 Jersey Youth Service – First Tower Youth Project Development Construction Project (Redevelopment of the centre to utilise building and upgrade current facilities)

£1,500,000

In partnership with First Tower Community Association, the Youth service deliver four evening sessions per week from the site. In 2019, the youth project ran 144 Youth project sessions at which 139 different young people attended 1842 times. The building is also utilised by First Tower Primary School during the day. The building is in a very basic condition and is not big enough to accommodate the number of young people who attend or to accommodate use by the wider community. The top floor of the building has lots of potential and could provide additional community space. The funding will allow the redevelopment of the centre to utilise the whole building to include heating, adequate toilet facilities, disabled access, and a daytime community access Café area.

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-039 Jersey Youth Service – Queen's Silver Jubilee Activity Centre Crabbe Construction Project (Refurbishment with multiple trades)

£32,000  

The Queen's Silver Jubilee Activity Centre Crabbe is a well-used residential centre, used by all Jersey Primary and Secondary Schools, youth organisations and youth groups all year round. It is also used for the Duke of Edinburgh Award scheme. It provides opportunities for young people in outdoor learning, which contribute to the development of children and young people along with various mental health and wellbeing factors. This project would see the development and upgrade of facilities and would take about 4 weeks. It would be completed by 2 local businesses.

Alignment to CSPs – We will put children first

20-041 Trinity Youth Centre Trust – Alterations to Trinity Youth Centre Construction Project (Multiple trades)

£828,330

This project will carry out essential maintenance and make alterations to address functionality  of  the   Trinity  Youth  Centre.  The  work  will  be  completed  by  local tradesman and will take about 30 weeks to complete. Once the project is complete it will benefit the local community, local clubs, children, and young people. The centre will be able to hold events and fitness classes as it will have updated facilities. The project will include:

• Replacement of external roof coverings

• Replacement of the mechanical and electrical services

• Alterations to the internal layout

• Improvements  to  the  toilet  facilities  from  a  disability  and  safeguarding perspective

Alignment to CSPs – We will put children first; We will improve Islanders' well-being and mental and physical health; We will create a sustainable, vibrant economy and skilled local workforce for the future

20-051 RETRAIN skills Skills and Training £1,700,000

This project is a skill-led project that will provide support to those who have found themselves economically inactive or underactive due to the Covid-19 pandemic. It will help provide technologically enabled careers and a job matching service linked with skills and training development opportunities for targeted sectors of the community or industries. Upskilling on-Island people in these areas will reduce the dependence on overseas markets for these skills.

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-102 Jersey Scouts Association – Refurbishment of St Luke's Hall Construction Project (Refurbishment with multiple trades)

£50,328

This  project  will  see  an  upgrade  and  refurbishment  of  the  St  Luke's  Scout  and community  hall.  The  building  is  used  by  the  wider  community  and  provides opportunities of adventure for young people on the island regardless of their social- economic background. Only local contractors and suppliers will be used to complete the project, ensuring all money will be spent locally. It is anticipated that the work will take approximately 2 months to complete.

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-171 Beaulieu Convent School – Sports Centre

Construction Project (Construction project with multiple trades) £1,500,000  

This project will see the construction of a sports centre for both the school to use and the wider community. Planning permission has been granted so work has started. Local contractors will complete the work and the indication is that this is a 29-week work programme.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-125 Every Child Our Future – Summer School Skills and Training  

£60,000

A 2-week summer school run in August 2021 at Haute Vallee School, will benefit children who have been affected by the pandemic. The project's aim was to provide 100 free places to children aged 11-16 secondary school pupils.

Alignment to CSPs – We put children first.

20-160 Jersey Scouts Association – Refurbishment of Les Creux Scout Hall Construction Project (Multiple trades)

£93,200  

This project requires planning permission as it will entail stripping and restoration of the building envelope, reroofing the hall, relaying some of the internal flooring and replacing the boiler and some of the related pipework. The building is used by the wider community and provides opportunities for young people on the island regardless of their social-economic background. The project will see local contractors employed and use local suppliers. It will take 6 months to complete the refurbishment of the community hall.

Alignment to CSPs – This project aligns with all the core Government Priorities

20-161 Jersey Scouts Association – Refurbishment of Jersey Scout's Centre St Ouen  

Construction Project

£244,100

This project will see the renovation of the Jersey Scouts Centre in St Ouen. It will include renovation of the building and its surroundings. The building will be stripped and repainted, doors and windows will be replaced along with the roof. The centre is used by the wider community and provides opportunities of adventure for young people on the island regardless of their social-economic background. The project will see local

contractors employed and use local suppliers and will take 6 months to complete once planning permission has been received.

Alignment to CSPs – This project aligns with all the core Government Priorities Health and Community Services (HCS)

The department provided its support for all the recommended applications and applied for the Domiciliary Care Market Stimulation.

20-069 Brook Jersey Premises – Leasehold refurbishment Construction Project (Refurbishment with multiple trades) £188,992  

Funding will be used to convert currently unoccupied offices into, clinical rooms, an education room, and an inviting waiting area for young people. Brook provides a variety of services which are used by diversity of young people as well as schools. It is a benefit to many young people who wish for guidance or support with sexual health. The project will take about 6 months to complete.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-026 Brighter Futures – Springboard, Digital Strategy Technology Project

£135,000  

This project consists of three elements that aim to reduce the fall in output in the economy  by  providing  employment  to  local  people  and  developing  their  skills, knowledge, and expertise in a range of roles and skills development areas. The project will offer opportunities across a breadth of roles and skills development, ranging from the highly skilled, developing and leading a digital strategy, to Early Years and childcare to internships.

Alignment  to  CSPs  –We  will  create  a  sustainable,  vibrant  economy  and skilled workforce for the future;

20-136 Domiciliary Care Market Stimulation  Skills and Training  

£621,500  

The Domiciliary Care Market Stimulation project is a skills-led, economic development and market stimulation project, providing targeted, temporary, and timely support to encourage skills development and new employees into the local care market. The project will offer training support as well as career prospects to a range of stakeholders from NEETS (Not in Employment, Education or Training) who are over the age of 18 due to

regulatory requirement, to those actively seeking work. All services and resources used will be local.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled workforce for the future

20-107 Jersey Action Against Rape – Refurbishment of JAAR premises Construction Project (Refurbishment with multiple trades)

£11,575.50  

Due to the pandemic Jersey Action Against Rape (JAAR) has seen a rise in requests for their services. JAAR provide therapy to sexual assault survivors and the refurbishment will provide a supporting environment for survivors. This project will employ local painting and decorating tradespeople, floor fitting and local retails to purchase furniture. The project will see two contractors carry out the work within a 3-month period.

Alignment to CSPs –We will improve Islander's wellbeing and mental and physical health

20-116 Jersey Action Against Rape – Counselling hours  Support for business

£10,448.55

As a result of the pandemic the requirement for the Jersey Action Against Rape services has risen and funding has decreased due to lack of fundraising events being able to take place. The funding received will be used to employ a counsellor for 7 additional paid counselling hours a week. The counselling hours will provide highly specialised 1:1 counselling for survivors of sexual assault. By employing an extra counsellor, it will reduce the waiting time from 6-9 months to 3-4 months.

Alignment to CSPs – We will improve Islander's wellbeing and mental and physical health

20-135 Jersey Action Against Rape – Develop an Ecommerce and Ticket Site Technology project

£5,406  

This project will provide employment for multiple industries as the development of an ecommerce and ticket site. It will be fulfilled by a Jersey on island full-service marketing agency and a Jersey based web development company. The development of the site will not only help provide funding for Jersey Action Against Rape but also support local small businesses, such as Genuine Jersey. It will give the producers a platform to sell their products with retail profile going to the charity. Due to the pandemic donations have fallen and the need for the charities services has increased. The project will take about 2 months to complete.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled workforce for the future; We will improve Islander's wellbeing and mental and physical health.

20-131  –  Jersey  Hospice  Care  –  Recruiting  and  Training  of  5  Health  Care Assistants

Skills and Training  

£75,725  

Jersey Hospice Care has identified a need to recruit up to five new health care assistants. The project would see the creation of 5 new posts. Training for the new posts will take up  to  6  months  and  the  individuals  who  apply  would  not  require  any  previous experience. Jersey Hospice Care have also confirmed that no further funding will be required, they have budgeted for the salaries in 2022.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled workforce for the future

Infrastructure, Housing and Environment (IHE)

The department provided its support for all the recommended applications and applied for Coronation Park Paddling Pool, Springfield, Oakfield and FB fields Sports Pavilion.

20-009 Jersey Cheshire Homes – Solar PV Panels Construction Project (Refurbishment with multiple trades) £67,094  

Jersey Cheshire Home currently has 28 residents and supports over 200 external users in the community. In order to improve the carbon footprint, enhance energy efficiency and reduce the operating costs of the home, this project funding will allow Solar Panels to be mounted on the roof of the Home's Hydrotherapy Centre, generating per year 54,870 kWh's (units) of PV Energy Saving. The electricity cost savings are estimated to be between £7,000-£8,426 a year over a 20-year period. This project will require the following  tradespeople  to  complete  the  project,  a  structural  engineer,  scaffolders, installers and a project manager from a local company who will oversee the installation.

Alignment to CSPs – We protect and value our environment

20-020 Coronation Park Paddling Pool

Construction Project (Replacement project with specific trades) £749,650  

The funding for this project is to replace and upgrade the paddling pool facilities in Coronation Park, Millbrook. The existing paddling pool is a popular listed structure that had to close 18 months ago because it developed a significant leak which could not be repaired. This project will completely remove the existing structure and replace it with

a new waterplay facility that is larger in area but shallower and safer. The park is used by the islands community and will provide an updated facility for islanders to enjoy.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-021 Jersey Cricket Limited (JCL) – Grainville Cricket Facility Refurbishment Construction Project (Replacement project with specific trades)

£300,000  

This project funding will contribute to the Club's infrastructure, providing new and improved facilities. These improvements will include the replacement of all windows, doors, toilets, showers and a reconfiguration of changing room facilities, catering facilities and office space. The club currently has approximately 4,000 members. All work complete will be undertaken by local tradesman and the work would take about 8 months to complete.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-027 Jersey Baptist Church – Facilities Modernisation Construction Project (Replacement project with specific trades) £164,850

The Jersey Baptist Church provides services to children, families, and the community. Also, during out of service hours, the church is used by young and old through a variety of clubs. This project will improve and modernise the church facilities providing a better experience for those users. The project will employ local tradesmen in the plumbing, construction, retail, and service industries. Planning permission has also been approved.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health; We will protect our environment

20-034 The Jersey Race club – Racecourse Improvements Construction Project (Replacement project with specific trades) £37,500  

The funding for this project will be used to upgrade and maintain racecourse facilities. This would create jobs for local people, agricultural companies, catering and other concessions,  bookmakers,  printing  companies,  tote  operators,  security  firms, scaffolding, marquee suppliers and cleaning firms. The Jersey Race Club hold a variety of events throughout the race season, and these can be enjoyed by the island community. The project will take up to two months to complete.

Alignment to CSPs –We will improve Islander's wellbeing and mental and physical health

20-057 Springfield

Construction Project (Expansion of facilities with multiple trades) £1,964,558  

This project will convert the exiting sports hall and gym facilities at Springfield to provide decant facilities to allow some of the sports and fitness to be moved from Fort Regent. This project will:

• Create a high-quality fitness facility and group fitness studios

• Convert the existing fitness suite to create additional studio and martial arts space

• Remodel and extend parking to accommodate increased use

• Relocate the existing play area to the multi-use gym area

Springfield can be used by the island community and having improved facilities will enhance the services and experience received. Springfield is also based in St Helier which means it is easlierly accessible to everyone.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-061 Enable Jersey – Changing Places St Brelade's Bay Construction Project

£87,000  

The funding will develop disabled changing facilities and toilet facilities in Winston Churchill  Park.  The  project  will  provide  disabled  people  with  complex  needs somewhere to change, clean themselves, and use a toilet. Access to the island's beaches is limited for people with disabilities as there are no adequate changing and toileting facilities for those with complex needs. It is anticipated that the project would take about 6 months to complete.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health;

20-068 Oakfield

Construction Project (Expansion of facilities with multiple trades) £3,148,030  

This project will see the conversion of existing facilities to improve the sports offering and form part of the Fort Regent decant strategy. The project will benefit the whole community and will help with physical and mental wellbeing. It will create local jobs and have a long-term benefit on the economy. The new facilities at Oakfield will ensure that over 30 sports can continue to operate beyond the life of Fort Regent. These include:

• Conversion of the existing sports halls to create a permanent gymnastics facility

• Development of a 3 netball/12 badminton court sports facility on the existing tennis court area

• Provision of new changing facilities and a classroom to improve the PE and sport  offer  at  Hautlieu  School  and  Highlands  College  plus  island  coach education provision

• Additional parking to support the increased use of the facility

The fact that Oakfield Sports Centre is near Hautlieu School and Highlands College means that the investment in facilities at this location will enhance this asset and provide valuable resources to the school and college during the day. One of the biggest benefits to Oakfield is its central location within St Helier, this means that the services will be close to the main population and be accessible from all parts of the Island.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-077 Jersey Spartans Athletic Club – JSAC Clubhouse Upgrade Construction Project (Refurbishment project with multiple trades) £580,000  

This project will see the refurbishment of the Jersey Spartan Athletic Club (JSAC) clubhouse  to  create  enhanced  indoor  training  facilities.  The  space  will  create  an education centre to host development days and workshops for local coaches, athletes, and teachers to learn with experienced off-island professionals, further enhancing local skills and expertise. The JSAC has a membership of over 300 ranging from as young as 8 to people within their retirement. There is also a waiting list of 100 junior athletes meaning the project will provide enhanced training and competition facilities for use by members and the wider community.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-084 Jersey Padel Community – Padel facilities at St Clements Recreation Fields Construction Project (Refurbishment project with multiple trades)

£425,350  

This project will see the construction of three new championship canvas covered indoor courts and put lighting onto the two existing courts. These new facilities will help implement  a  Padel  specific  and  playing  programmes  which  in  turn  will  provide opportunities and possible employment for coaches/trainers. The club have a scheme called Padel for All'. This is targeted to specifically improve all Islanders' wellbeing, mental and physical health by learning and playing the game of Padel. It will also have several other economic benefits to the Island and provide construction employment in the short term. Planning permission will be required and has been included in the plan. The project will take 4 months to complete.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-104 FB Fields Sports Pavilion Refurbishment

Construction Project (Refurbishment project with multiple trades) £95,000  

This application for funding is to update the existing facility, which are in a very poor state and do not meet current gender requirements for changing facilities or for DDA (Disability Discrimination Act) requirements. The refurbishment would provide a fit for purpose changing and rest facilities for local sport users at FB Fields. In addition, it would extend the life of the building until the masterplan comes into effect. The project would use local suppliers and contractors to complete the refurbishment.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-060  7  Overseas  (Jersey)  Squadron,  Air  Cadets  –  Air  Cadets  Building Maintenance

Construction Project (Refurbishment project with multiple trades)

£203,600  

This project will see the refurbishment and upgrade of Air Cadet facilities. Improving conditions for young people, including internal classroom improvements and creation of an outdoor classroom, store and outdoor gym and improved outdoor space. The project would use local construction companies and local technology industries. The building will benefit not only young people but the wider community. The only small spend  offshore  would  be  the  outdoor  gym  equipment.  The  Squadron  also  have contingency funds in the sum of £30,000 should anything highlighted in the risks or otherwise arise when work is being undertaken.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health

20-150 Durrell Wildlife Conservation Trust – Warty House and other works (As part of Gorilla Project)

Construction Project (Multiple trades)

£980,000  

This project is part of a multi-phased project which has the ultimate aim of providing the Gorillas with a new home. This part of the project will construct a new warty pig enclosure, carry out work on new trees and hedges, construct a service road and create a temporary boundary wall. The project will employ locally based professionals and contractors to complete the project. This project requires planning permission and if successful will be complete within 9 months.

Alignment to CSPs – This project aligns with all the core Government Priorities

20-153 Healing Waves – Adaptive Surf Centre Construction Project

£411,000  

This project will see the creation of an adaptive surf centre. This will benefit people with disabilities by breaking down barriers to allow them to experience water sports. Healing Waves provides sessions to 200 residents and delivers sessions every day throughout the school holidays. The project will see the creation of an educational area where water safety and awareness will be taught. Healing Waves predominantly assists adults and children with disabilities and conditions such as mental health struggles. The project has received planning permission and will take about 22 weeks to complete.

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health.

20-106 Jersey Association of Youth and Friendship – Essential maintenance grant for JAYF hotels

Construction Project (refurbishment trades)

£30,000  

Due to the pandemic the charity has seen a drop in donations and has not been able to run annual events, which will raise a considerable amount of money. The funds will be used towards maintenance costs. Jersey Association of Youth and Friendship (JAYF) will employ local suppliers and contractor to complete the project. The JAYF provides benefits and accommodation for 29 young people who might otherwise be homeless.

Alignment to CSPs – We will put children first.

20- 148 Jersey Biodiversity Centre – Engage Jersey with Nature 2021 Technology project

£56,070.24

The Jersey Biodiversity Centre strives to strengthen islanders' connections with nature and improve understanding and knowledge of local wildlife through participation in biological recording. The project will utilise the skills of local businesses to raise the profile of the Jersey Biodiversity Centre and increase awareness of the importance of biological  recording.  Engaging  with  nature  can  improve  the  mental  and  overall wellbeing of people. The project will employ local business to provide services in website maintenance, media, and retail.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled workforce for the future; We will protect and value the environment

Office of the Chief Executive (OCE)

The department provided its support for all the recommended applications and does not have any of its own applications.

20-016 Jersey Opera House – Jersey Opera House refurbishment Construction Project (Refurbishment project with multiple trades) £2,237,124  

The Jersey Opera House is an intrinsic part of the cultural offering of the Island and this project is to undertake critical and essential works at the Jersey Opera House. The Opera House has been closed since March 2020 and has been unable to generate income since then. The refurbishment project largely relates to implementing the recommendations of the condition surveys conducted on this Government asset and will include:

• Internal repairs to all floors including crack repairs, damp repairs, upgrade of all fire doors, upgrade emergency lighting installation

• External repairs to structure and façade including roof repairs and external wall works, redecoration externally

• Preservation of the historic fabric of the building

• Identification and incorporation of energy saving and sustainable measures into the scheme

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health; We will create a sustainable, vibrant economy and skilled workforce for the future

20-024 Jersey Heritage – Hamptonne Agricultural Museum Construction Project (Refurbishment project with multiple trades) £1,308,114  

The project will create an agricultural museum to improve children's', locals', and visitors'  experiences.  The  museum  will  highlight  the  development  of  Jersey's countryside. The space will enable formal learning with school groups, private and event hire, enhancing tourism offerings. The project will create opportunities to support Jersey Heritage's inhouse team and allow the creation of a cultural facility in support of community wellbeing through engagement with a wide section of the Island. The project will include:

• A new two storey building to replace the existing toilet block

• Landscaping works to level the site and ramps installed to provide improved access

• The external courtyard area will be improved with the addition of a new pergola to provide solar shading

• Inclusion of disabled toilet and changing room facilities

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-025 Jersey Heritage – La Hougue Bie Gallery and Workshop Construction Project (Refurbishment project with multiple trades) £271,302  

The project will comprise of two elements that complete the site masterplan of 2015, by updating the current exhibition space to modern standards and creating a new building to house equipment on site. The project aims to:

• Improve the new gallery facility which will improve the experience for local and tourist visitors by improving access around the building and more generally for those with restricted mobility

• Address the maintenance and replacement of ageing plant and equipment

• Create a new external storage structure which will provide better facilities for the archaeology section of the Société Jersaise

• Act  as  a  facility  to  support  the  volunteer  work  of  the  Jersey  Young Archaeologists Club and the Société Archaeological Section

Alignment to CSPs – This project aligns with all of the core Government Priorities

20-037 Jersey Consumer Council – Consumer Confidence and Data Security Technology Project

£37,000  

This project will see the creation of a new secure Jersey Consumer Council website which enables easy access to the information needed by the Islands' consumers. This would boost consumer confidence in the Island's retail sector, especially those offering competitive prices for products (and possibly services). Costs will be more transparent and easily compared, which in turn should improve competition. The project will use an on-island IT expert, thereby providing short term employment security.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled local workforce for the future; We will reduce income inequality and improve standards of living

20-049  Royal  Jersey  Agricultural  and  Horticultural  Society  –  Grounds Refurbishment

Construction and Technology Projects

£495,000  

The Royal Jersey Showground was established in Trinity in 2000 and since then it has developed into a flexible events facility in the Island, hosting a range of events from meetings to music festivals. The usage and need for additional facilities have arisen because  of  the  need  to  upgrade  in  time  for  the  restart  of  the  events  industry. Improvement of existing facilities at the Showground include:

• a new catering facility, within existing structures, to enable a professional food service  to  be  delivered  to  the  growing  number  and  range  of  events accommodated by the Showground.

• The provision of additional and modernised services required in support of current  and  future  events.  These  include  additional  W.C.s,  improved  air handling and ventilation, and upgraded IT infrastructure.

Alignment to CSPs – We will put children first; We will improve Islander's well-being and mental and physical health; We will create a sustainable, vibrant economy and skilled local workforce for the future; We will protect and value the environment

20-074 Jersey Art Centre – Jersey Arts Centre refurbishment Construction Project (Refurbishment project with multiple trades) £2,959,516  

The Jersey Art Centre is an intrinsic part of the cultural offering of the Island and this project is to undertake critical and essential works at the Jersey Art Centre. The refurbishment project will ensure that when it is able to fully reopen at full capacity it will be within a fit for purpose building. The project relates to implementing the recommendations  of  the  condition  survey  as  well  as  other  refurbishment  and enhancements and will include:

• Works related to electrical and mechanical works (condition survey)

• Foyer and Box office to become open plan

• Refurbishment of the hiring rooms

• Technology upgrades in the learning centre

• Refurbishments of the performer areas as well as new carpeting and signage

Alignment to CSPs – We will put children first; We will improve Islander's wellbeing and mental and physical health; We will create a sustainable, vibrant economy and skilled workforce for the future

20-091 Jersey Heritage – Membership, website, supporting systems upgrades Technology Project

£226,641  

This  project  will  invest  in  the  technology  used  by  Jersey  Heritage  to  update  its membership system, website, Electronic Point of Sale system and accounting system. The project will provide opportunities for local digital companies in terms of website development and IT consultancy. Due to the pandemic many local people have not been able to get off the island. As a result, Heritage has seen an increase in demand for their services. This project will upgrade the website so that it easier for the community, Jersey Heritage members and tourists to use the platform. Once the project is complete there will be no further ongoing costs.

Alignment to CSPs – We will create a sustainable, vibrant economy and skilled workforce for the future

20-174 National Trust – Morel Farm Project Construction Project

£2,166,425  

Morel Farm has always been enjoyed by the island population. The project will provide opportunities for developing a farm bed and breakfast together with a glamping space. This will provide jobs within the construction industry and work will be provided to local companies. Once the project is complete it will create jobs for the bed and breakfast site, café, and glamping. Planning permission has been approved with a further application being made for the glamping site. The project will provide free access to the island's countryside and natural environment, which in turn will help with mental health and wellbeing.

Alignment to CSPs – This project aligns with all the core Government Priorities

8. Further economic advice

The Fiscal Stimulus Fund is part of a broader package of stimulus measures. This is in addition to measures to support businesses and unemployed Islanders, which will also have a stimulus effect.

The broader package included:

• A temporary cut in employee Social Security contributions (cost estimated at £26 million)

• A £100 Spend Local card distributed to all Jersey residents (cost estimated at £10 million)

• £100 additional payment to those in low-income households (cost estimated at £1 million)

• The option for firms to defer GST and Social Security payments (cost estimated to not exceed £22m)

• CRESS, which provided weekly payments to those who had lost their jobs but were ineligible

• for income support due to residency requirements (cost estimated at £0.5

million)

• The Co-Funded Payroll Scheme (cost over £130 million to date)

• The abolition of the prior-year-basis tax regime, which will have had a cashflow benefit to

• personal taxpayers who saw their incomes fall in 2020

Other business support measures included the Business Disruption Loan Guarantee Scheme, the Visitor Accommodation Support Scheme, the Visitor Attraction and Events Scheme and the Fixed Cost Support Scheme. These support measures will have put an additional £13 million to date into firms in Jersey that were particularly affected by restrictions on economic activity.

In the absence of monetary policy levers, the Fiscal Policy Panel recommended that government implemented a temporary package of fiscal stimulus. The benefits of fiscal

stimulus are principally to reduce the size of the temporary cyclical downturn in economic activity in the short term, and secondly reduce the size of the permanent structural loss of potential output and economic activity in the medium term.

An important factor in this dynamic is timing and the need to have money spent in a fashion  that  will  provide  consistent  support to  aggregate  demand  across time.  In practical terms, this means seeking to avoid exacerbating capacity constraints as can happen if there is too much spending in a short period of time. As a small, open economy Jersey will not be able to capture all of the benefits of stimulus spending – it is inevitable that some will leak' off island due to imports or remittances of wages or profits. This does not necessarily mean all benefits are enjoyed off-island. The impact of economic stimulus is to encourage the circulation of money through the local economy and that is best  done  with  a  programme  of  spending  commensurate  with local  capacity  and production schedules.

Whilst there have been questions on capacity constraints in the construction industry and concerns of stimulus being overly concentrated on one sector, feedback from the construction sector is fairly consistent in pointing towards the difficulty in adjusting to unpredictable government timelines rather than an issue of having too much work. In other words, stakeholder engagement suggests being able to predict and anticipate the timing of large projects is a greater impediment to local industry than insufficient capacity.

Recent Economic Data

There are a number of economic indicators which suggest the recovery has been quite strong in Jersey and therefore there is not a strong case for further stimulus in addition to that already in place. Perhaps the most important indicator has been the number of those registered as actively seeking work, the closest to an unemployment figure available for the island. This figure has more than halved since peaking at 2,300 in May last year and is relatively close to pre-pandemic levels.

In addition to this metric is the number of claims against the co-funded payroll scheme. The number of claims against the scheme has fallen steadily from 3,470 in April 2020 to 850 firms by April 2021. The Business Tendency Survey (BTS) gives an indication of the spare capacity within firms and the June 2021 BTS results show continued improvement  in  a  number  of  indicators.  Of  particular importance  is  the  capacity utilisation indicator, which shows firms' view of current business activity compared to normal capacity'. Only 15% of construction firms reported being below capacity and 28% reported being above capacity. Hospitality was the only sector where a large proportion of firms (63%) remain below normal capacity.

Potential Inflationary pressures

There has been global discussion about inflationary pressures building up as economies begin to recover and this applies to Fiscal Stimulus to the extent that investment in specific sectors or projects can have an inflationary impact. In particular, these pressures can arise in the following way:

• Imported inflation relating to commodity prices which are unrelated to supply and demand in Jersey

• Base effects arising from falls in certain prices or temporary slow growth in prices which unwind as the economy recovers

• Unwinding of savings causing a temporary increase in demand and therefore an inflationary pressure

• Input shortages relating to shortages of some inputs especially related to labour

The first two effects are outside of Jersey's control and are not related to the level of demand locally. However, the other two effects may be exacerbated by any further support to demand. If these effects are strong, this could lead to a price-wage spiral where for example labour shortages lead to an increase in wage demands, leading to an

increase in consumer prices and a further increase in wage demands to compensate for increased costs of living.

However, evidence around labour shortages is not entirely clear in locally facing sectors that have the most impact directly on consumer prices – with hospitality reporting that they have significant spare capacity and the retail sector reporting that capacity concerns are largely balanced (17% of firms reporting above capacity vs 16% reporting they are below  capacity).  However,  any  concern  around  inflationary  pressures  may  be particularly an issue for Jersey, which has no control over monetary policy. Thus, there is the potential that the monetary stance set for the UK may be suited to the UK at a particular time but less suited to Jersey.

9. Fiscal Stimulus Fund - Recommendations on Final allocations

The economic advice available to FSOG set out some options for the allocation of the remaining funds from the £50 million potentially available:

• Further fiscal stimulus

• Reducing the borrowing requirement

• Alternative projects

On the basis of the data available, the economic advice is that there is no strong case to be made that significant further fiscal stimulus is required in the near-term. This view is supported by the Fiscal Policy Panel in its most recent advice. The extension of the CFPS and fixed cost schemes should continue to support firms affected by restrictions.

However, the economic advice states that it would be prudent to continue to follow the FPP advice to retain flexibility to respond to changes in economic conditions. Therefore, the most appropriate use of the £20 million which could be approved would be to hold that ability in reserve to allow a further round of fiscal stimulus to be implemented quickly later in the year, should economic conditions deteriorate.

On the basis of the economic advice, the Fiscal Stimulus Oversight Group recommends that the remaining potentially available funds (£20 million) not be allocated at this stage and be held in reserve to provide flexibility in responding to economic indicators. The ability to borrow the balance falls away in December 2022 when P.128/2020 sets out the process for winding up the Fund. On the basis that the proposition sets out that funds should be spent by December 2021 it is likely, therefore, that any decision on the potential remaining funding will be made by March 2022 at the latest.

The Minister accepts and supports the recommendation of FSOG.

This recommendation means that the remaining projects which have not been allocated funding at business case stage will not be considered further by the Fiscal Stimulus Oversight Group.

10. Current progress on Funded Projects

There are 47 projects that now form part of the Fiscal Stimulus Fund live projects with a total funding of £29.6 million. The projects are monitored by Departments and centrally to ensure that they are progressing in line with their project plans and the delivery outcomes from a costing and timing perspective. Six requests for project extensions to the end of March 2022 have been approved by the Minister. These are:

• Oakfield

• Springfield

• First Tower Youth Club

• Brighter Futures

• Healing Waves

• Padel Tennis

In order to access the funding, there is a requirement to complete a grant agreement and 25 projects with a total value of £14.3 million have completed agreements. It is anticipated that the remaining grant agreements will largely be received by the end of August 2021.

Minister for Treasury and Resources August 2021

APPENDIX ONE – EXPRESSION OF INTEREST CRITERIA

Appraisal

Is the application in Scope (applying these particularly due to volume)?  

• Organisation  –  private  for-profit  entities  which  are  not  Arm's  Length Organisations be considered out of scope

• Grant Funds created – where FSOG consider that the 3T compliance test has been passed to a third party this will be considered out of scope

• Alternative Funding availability – where FSOG consider that the applicant has an ability to fund the project by other means will be considered out of scope. This applies particularly where there is a high volume of transactions.

What are the primary criteria?

• Timely – action should start immediately and ideally be completed by the end of 2021.

• Targeted – should hit the intended target whether it is to support activity and employment in the Island, support those most adversely affect or implement projects which have intrinsic benefit

• Temporary – there should not be a creation of any ongoing or recurring cost

• Departmental support of sponsorship

Consequences and likely outcomes of the application of criteria for Expressions of Interest

• States Owned entities will be excluded from Tranche 1 but may be considered in Tranche 2 dependent on scale of applications

• Parishes will be excluded from Tranche 1 but may be considered in Tranche 2 dependent on scale of applications

• The appraisal of timely particularly for larger construction projects will be done by considering the progress of necessary permissions, particularly planning permission

APPENDIX TWO – BUSINESS CASE CRITERIA

These criteria should be considered a lens and not a corset; they are a way of viewing the proposed activities in terms of their applicability for funding. There is clearly overlap between categories, the Oversight Group will be working with limited and summary information, and their judgment will also be informed by the application of the core 3T criteria.

APPENDIX THREE – TOTAL FISCAL STIMULUS FUND PROJECTS The below tables show the amount for each project that has been awarded funding. Tranche one projects

Tranche two projects

Total of all allocations: