States Meeting Transcript - 24/10/2006

STATES OF JERSEY OFFICIAL REPORT

TUESDAY, 24th OCTOBER 2006

QUESTIONS ......................................................................................7

1. Written Questions........................................................................7

1. DEPUTY K.C. LEWIS OF ST. SAVIOUR OF THE MINISTER FOR PLANNING AND ENVIRONMENT REGARDING THE

ADMINISTRATION OF DRUGS TO HORSES AND PONIES .....................7

2. DEPUTY K.C. LEWIS OF ST. SAVIOUR OF THE MINISTER FOR HOME AFFAIRS REGARDING THE BLOCKING OF MOBILE PHONE CALLS

TO INMATES AT H.M. PRISON, LA MOYE........................................7

3. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING A REVIEW OF PENSION LEGISLATION........................................................................8
4. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT REGARDING THE BUDGET FOR EVENT- LED TOURISM EVENTS.............................................................9
5. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT REGARDING THE ADDITIONAL

FUNDING GRANTED TO THE BATTLE OF FLOWERS ASSOCIATION

IN 2006-11-02...........................................................................9

6. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE ESTABLISHMENT OF A POPULATION REGISTER......11
7. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING RECENT CHANGES TO TRUST LEGISLATION..............................................................12
8. DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT OF THE MINISTER FOR HOME AFFAIRS REGARDING THE STATES OF JERSEY POLICE

THIRD QUARTER 2006 PERFORMANCE REPORT.............................13

9. DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT OF THE MINISTER FOR PLANNING AND ENVIRONMENT REGARDING LOCAL WEATHER FORECASTING ......................................................................16
10. DEPUTY R.G. LE HERISSIER OF ST. SAVIOUR OF THE MINISTER FOR TRANSPORT AND TECHNICAL SERVICES REGARDING THE SUBSIDY PAID TO CONNEX IN RESPECT OF THE OPERATION OF THE BUS SERVICE..............................................................................18

2. Oral Questions ..........................................................................19

1. Deputy G.P. Southern of St. Helier of the Minister for Treasury and Resources regarding the level of response to the Request for Information on the implementation of Goods and Services Tax (G.S.T.) information management system: ................................................................................19

Senator T.A. Le Sueur (The Minister for Treasury and Resources):......................19

1. Deputy G.P. Southern :................................................................19
2. Deputy G.P. Southern :................................................................20

2. Senator B.E. Shenton of the Minister for Transport and Technical Services regarding the recovery of a payment to Connex in respect of shift allowances:....20 Deputy G.W.J. de Faye of St. Helier (The Minister for Transport and Technical Services):..............................................................................20

1. Senator B.E. Shenton:................................................................20
2. Mr. W.J. Bailhache , Q.C., H.M. Attorney General: .................................20
3. Deputy G.P. Southern :................................................................20
4. Deputy R.G. Le Hérissier of St. Saviour : ............................................21
5. Deputy S. Pitman of St. Helier of the Chief Minister regarding: ....................21 Senator F.H. Walker (The Chief Minister):................................................21
6. Deputy G.P. Southern :................................................................21
7. Deputy P.V.F. Le Claire of St. Helier:................................................21
8. Deputy S. Pitman: ....................................................................22
9. Deputy G.P. Southern :................................................................22
10. Deputy G.P. Southern :............................................................22
11. Deputy G.P. Southern :............................................................23

3. Deputy J.A. Martin of St. Helier of the Minister for Treasury and Resources regarding reclaim of I.T.I.S. overpayments:.........................................23 Senator T.A. Le Sueur (The Minister for Treasury and Resources):......................23

1. Deputy J.A. Martin:..................................................................23
2. Deputy P.V.F. Le Claire:..............................................................24
3. Deputy C.J. Scott Warr en of St. Saviour : ............................................24
4. Deputy G.P. Southern :................................................................24

4. Senator J.L. Perchard of the Minister for Transport and Technical Services regarding the tendering process for the school and summer leisure bus services:................................................................................25 Deputy G.W.J. de Faye (The Minister for Transport and Technical Services):..........25

1. Deputy R.G. Le Hérissier:............................................................25
2. Senator B.E. Shenton:................................................................26

3. Deputy G.P. Southern :................................................................26
4. Deputy S. Power of St. Brelade:......................................................27
5. Deputy G.C.L. Baudains of St. Clement:.............................................27
6. Deputy C.J. Scott Warr en:............................................................28

5. Connétable A.S. Crowcroft of St. Helier of the Minister for Education, Sport

and Culture regarding the 200th Anniversary of Fort Regent:......................28 Senator M.E. Vibert (The Minister for Education, Sport and Culture):..................28

1. Deputy P.V.F. Le Claire:..............................................................29
2. The Connétable of St. Helier:.........................................................29
3. The Connétable of St. Helier:.........................................................29
4. Deputy P.V.F. Le Claire:..............................................................29

6. Deputy G.P. Southern of the Minister for Treasury and Resources regarding income tax assessment advice notices for 2005: ......................................30 Senator T.A. Le Sueur (The Minister for Treasury and Resources):......................30

1. Deputy G.P. Southern :................................................................30
2. Deputy G.P. Southern :................................................................30

7. Deputy K.C. Lewis of St. Saviour of the Minister for Economic Development regarding measures to assist local businesses and retailers as a consequence of

the introduction of G.S.T:............................................................30 Senator P.F.C. Ozouf (The Minister for Economic Development):........................30

1. Deputy K.C. Lewis :...................................................................31
2. Deputy R.G. Le Hérissier:............................................................31

8. Deputy D.W. Mezbourian of St. Lawrence of the Minister for Education,

Sport and Culture regarding the minimum term of residency required for

eligibility for funding towards university costs:......................................31 Senator M.E. Vibert (The Minister for Education, Sport and Culture):..................31

1. Deputy D.W. Mezbourian :............................................................32
2. The Deputy of St. Martin:............................................................32

9. Senator J.L. Perchard of the Minister for Transport and Technical Services regarding seating capacity of new vehicles for the school bus service: ..............32 Deputy G.W.J. de Faye (The Minister for Transport and Technical Services):..........32

1. Senator J.L. Perchard:................................................................33
2. Deputy J.A. Martin:..................................................................33
3. Deputy C.F. Labey of Grouville : .....................................................33
4. Deputy R.G. Le Hérissier:............................................................34
5. Senator J.L. Perchard:................................................................34

10. Deputy R.G. Le Hérissier of the Minister for Health and Social Services

regarding procedures for dealing with complaints against senior members of

the Health and Social Services Department:.........................................34 Senator S. Syvret (The Minister for Health and Social Services):.........................34 2.10.1 Deputy R.G. Le Hérissier:.........................................................35

11. Deputy J.A. Martin of St. Helier of the Minister for Social Security regarding

the current level of contributors to the Social Security Scheme:....................35 Deputy P.N. Troy of St. Brelade (Assistant Minister for Social Security -

rapporteur):...........................................................................35

1. Deputy R.G. Le Hérissier:.........................................................35
2. Deputy G.P. Southern :............................................................36
3. Deputy J.A. Martin:...............................................................36
4. Deputy J.A. Hilton of St. Helier:..................................................36
5. Deputy G.P. Southern :............................................................36

12. The Connétable of St. Helier of the Minister for Transport and Technical

Services regarding his comments on the Parish of St. Helier Roads

Committee's Draft Cycling Policy': .................................................37 Deputy G.W.J de Faye (The Minister for Transport and Technical Services):...........37 2.12.1 The Connétable of St. Helier:......................................................37

13. Deputy C.J. Scott Warr en of the Minister for Treasury and Resources

regarding the current gap in low income support provision :.......................37 Senator T.A. Le Sueur (The Minister for Treasury and Resources):......................38

1. Deputy C.J. Scott Warr en:........................................................38
2. Deputy J.J. Huet of St. Helier:....................................................38
3. Deputy C.J. Scott Warr en:........................................................38

14. Senator B.E. Shenton of the Minister for Economic Development regarding

the terms of the States grant to Jersey Finance Limited for 2007:..................39 Senator P.F.C. Ozouf (The Minister for Economic Development):........................39

1. Deputy J.A. Martin:...............................................................39
2. Deputy R.G. Le Hérissier:.........................................................40

3. Deputy G.P. Southern :............................................................40
4. Senator B.E. Shenton:.............................................................40
5. Deputy J.A. Martin:...............................................................41
6. Deputy G.P. Southern :............................................................41

15. Deputy K.C. Lewis of St. Saviour of the Minister for Home Affairs regarding compatibility of anti-discrimination legislation with encouragement to Jersey businesses to give priority to local applicants: .......................................41 Senator W. Kinnard (The Minister for Home Affairs):....................................42 Senator M.E. Vibert :........................................................................42

3. Questions without notice - The Minister for Treasury and Resources................42

1. Senator B.E. Shenton:................................................................42 Senator T.A. Le Sueur (The Minister for Treasury and Resources):......................42
2. Deputy G.P. Southern :................................................................42
3. Deputy G.P. Southern :................................................................43

1. Deputy G.P. Southern :................................................................43
2. Deputy G.P. Southern :................................................................43

4. Deputy R.G. Le Hérissier:............................................................43

3.4.1 Deputy R.G. Le Hérissier:............................................................43

5. Deputy G.P. Southern :................................................................44
6. Senator J.L. Perchard:................................................................44
7. Deputy J.A. Martin:..................................................................44
8. Deputy S. Power:......................................................................45
9. Connétable M.K. Jackson :............................................................45
10. Deputy R.G. Le Hérissier:............................................................45
11. Deputy P.J.D. Ryan of St. Helier:....................................................46
12. Deputy J. Gallichan of St. Mary:.....................................................46
13. Deputy S. Pitman: ....................................................................46

4. Questions without notice - The Minister for Home Affairs............................47

1. The Deputy of St. Martin:............................................................47

1. The Deputy of St. Martin:............................................................47
   2. The Deputy of St. Mary : ..............................................................47

4.2.1 The Deputy of St. Mary : ..............................................................48

3. Deputy K.C. Lewis :...................................................................48
4. The Connétable of St. Helier:.........................................................49
5. Deputy D.W. Mezbourian :............................................................49

4.5.1 Deputy D.W. Mezbourian :............................................................50

6. Deputy G.C.L. Baudains:.............................................................50

4.6.1 Deputy of St. Clement:................................................................50

7. Deputy R.G. Le Hérissier:............................................................50
8. Deputy S. Pitman: ....................................................................51
9. Senator J.L. Perchard:................................................................51 The Bailiff :..................................................................................51

STATEMENTS ON A MATTER OF OFFICIAL RESPONSIBILITY........................51 The Bailiff :..................................................................................51

1. Senator T.A. Le Sueur (The Minister for Treasury and Resources):................51

1. Deputy G.P. Southern :................................................................52
2. The Deputy of St. John : ..............................................................52

3. Deputy R.G. Le Hérissier:............................................................52
4. Deputy G.P. Southern :................................................................52
5. Deputy J.A. Hilton: ...................................................................52
6. Deputy K.C. Lewis :...................................................................53 The Bailiff :..................................................................................53

2. Deputy S. Ferguson (Chairman of the Public Accounts Committee):...............53

PUBLIC BUSINESS.............................................................................53

6. Goods and Services Tax: exempt or zero-rated items (P.86/2006).....................53

The Bailiff :..................................................................................53 Senator T.A. Le Sueur : .....................................................................54 Senator S. Syvret:...........................................................................54 The Bailiff :..................................................................................54 Senator T.A. Le Sueur : .....................................................................54 Senator J.L. Perchard:......................................................................55 Deputy F.J. Hill of St. Martin:..............................................................55 Senator M.E. Vibert :........................................................................55 The Bailiff :..................................................................................55 Deputy J.A.N. Le Fondré of St. Lawrence : ................................................55 The Bailiff :..................................................................................55 Senator B.E. Shenton:......................................................................55 Senator W. Kinnard:........................................................................56 Deputy C.J. Scott Warr en:..................................................................56

1. Senator S. Syvret:.....................................................................56 The Bailiff :..................................................................................64 Senator S. Syvret:...........................................................................64 The Bailiff :..................................................................................64 The Bailiff :..................................................................................66

LUNCHEON ADJOURNMENT ................................................................66

PUBLIC BUSINESS - RESUMPTION .........................................................66 Goods and Services Tax: exempt or zero-rated items (P.86/2006) (continued)...........66

The Bailiff :..................................................................................66

2. Senator P.F.C Ozouf : .................................................................67
3. Deputy P.V.F. Le Claire:..............................................................74
4. Deputy K.C. Lewis :...................................................................75
5. Deputy C. J. Scott Warr en:...........................................................75
6. Deputy J.A. Martin:..................................................................77
7. Deputy J.A.N. Le Fondré of St. Lawrence : ..........................................78
8. Deputy A.E. Pryke of Trinity :........................................................82
9. Deputy A.D. Lewis : ...................................................................83
10. Deputy S. Power:......................................................................84
11. The Very Reverend R.F. Key (The Dean of Jersey):.................................85
12. Senator P.F. Routier (The Minister for Social Security):............................86 Deputy R.G. Le Hérissier:..................................................................89 Senator P.F. Routier:........................................................................90 Deputy G.P. Southern :......................................................................90 Senator P.F. Routier:........................................................................90 Deputy J.A. Martin:........................................................................91 Senator P.F. Routier:........................................................................91

13. Senator F.E. Cohen:..................................................................92
14. Deputy G.P. Southern :................................................................92
15. Senator T.A. Le Sueur : ...............................................................96

ADJOURNMENT PROPOSED................................................................101

ADJOURNMENT..............................................................................102 The Bailiff :.................................................................................102

The Roll was called and the Dean led the Assembly in Prayer.

QUESTIONS

1. Written Questions

1. DEPUTY K.C. LEWIS OF ST. SAVIOUR OF THE MINISTER FOR PLANNING AND ENVIRONMENT REGARDING THE ADMINISTRATION OF DRUGS TO HORSES AND PONIES

Question

Following the recent show-jumping event at which some person or persons gave a sedative drug to at least four ponies does the Minister intend to bring forward for approval proposals to make it illegal to administer drugs to horses and ponies unless this is done or authorised by a veterinary surgeon, to ensure that no injuries to riders can occur as a result of a sedative being administered by an unauthorised person and, if not, why not?

Answer

I recognise the concerns that this case has raised in some quarters and add my own condemnation of the alleged actions.

The Protection of Animals (Jersey) Law 1980 contains provisions to protect animals from cruelty but the administration of a sedative would not generally pass the test of causing unnecessary suffering to animals.

There are a variety of different scenarios relating to animal doping both during competitive events and outside. It would be very difficult to draft legislation to cover all scenarios. It would also cause serious difficulties to amend the law so as to provide that only a veterinary surgeon in person can administer medicines to animals. Therefore whilst I will continue to look into this matter I do not presently intend to bring forward proposals.

2. DEPUTY K.C. LEWIS OF ST. SAVIOUR OF THE MINISTER FOR HOME AFFAIRS REGARDING THE BLOCKING OF MOBILE PHONE CALLS TO INMATES AT H.M. PRISON, LA MOYE

Question

Following recent reports concerning mobile phones in the possession of inmates at H.M. Prison La Moye would the Minister inform members whether it would be possible, and lawful, for mobile phone signals to prisoners to be blocked by the prison authorities and, if not, does the Minister intend to take any action to bring forward amendments to relevant legislation to address this issue?

Answer

It is currently illegal under section 13 of the Wireless Telegraphy Act 1949, as extended to Jersey by the Wireless Telegraphy (Channel Islands) Order 1952, to interfere with any wireless telegraphy', including mobile 'phones. The legislation governing this in Jersey is the same as that for the United Kingdom and would require a change to primary legislation to make any such interference lawful.

Such a practice could face a potential challenge under Article 8 of the European Convention on Human Rights (the right to respect for private and family life).

The technology available to block such transmissions is continuing to develop and while I believe it is being used in some prisons in Europe this is with varying degrees of success.

Senior Officers at HMP La Moye have regular contact with professionals in the Prison Service of England and Wales where this issue is a live topic. Investigation of both the legal and technical aspects of introducing such devices is being undertaken in those jurisdictions and I have asked to be kept informed of these developments, as this is likely to be the swiftest way of proceeding.

Of course, even once the legality of introducing a system of blocking calls has been established, there will remain the difficulty of finding the necessary funds to purchase the equipment which is likely to cost in excess of £100,000.

3. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING A REVIEW OF PENSION LEGISLATION

Question

In answer to a question on 10th October 2006 on pensions, the Minister stated that he will review the need for regulation as part of the preparation of a co-ordinated plan' on the ageing population by 2010'. Will the Minister inform members when this review will commence and when members will see any initial terms of reference or consultation documents?

Answer

In my answer of 10th October 2006, I referred to item 2.1.2 in the States Strategic Plan which states that we shall

monitor actuarial predictions and then prepare and start to introduce a co-ordinated plan, including a review of pension provision to meet the challenges and opportunities present by an ageing population by 2010'

This objective forms part of the Strategic Plan approved by the States.

I can assure members that such a fundamental plan will be trailed by and subject to extensive consultation throughout the community.

In order to achieve the deadline to start to introduce the plan by 2010, the department will be undertaking research and consultation well in advance of this, once the Income Support scheme is introduced and bedded in.

Based upon current plans for the implementation of Income Support, preparation is anticipated to commence in 2008, following the consideration of the Government Actuary's next triennial review which will be completed towards the end of 2007".

4. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT REGARDING THE BUDGET FOR EVENT- LED TOURISM EVENTS

Question

Would the Minister inform members what budgets have been allocated to support events to promote event-led tourism' over the years 2005 to 2007 and would he set out which events have been, or will be, supported and to what amount?

Answer

The support for event led tourism is provided by Economic Development in the form of both grants to external organisations who arrange events such as the Jersey Battle of Flowers and through the direct organisation of a series of events which are delivered by staff of the Economic Development Department.

In 2005 the total sum expended on grants and events amounted to £607,459. In 2006 the estimated amount is £594,500 and for 2007 a budget has been set of £639,000 reflecting the increased focus on the event led component of E.D.D.'s budget for the tourism sector. During 2006 the original budget of £449,500 was supplemented by internal reprioritisation of E.D.D. to budget both Air Display and Battle of Flowers of £50,000 and a payment from the Tourism Development Fund of £45,000, for the Jersey Battle of Flowers.

The provisional programme in 2007 will include elements of funding for the major events as follows -

• Liberation
• Battle of Flowers
• International Air Display
• Fête de Noué

in addition to a broad programme designed to add vibrancy and excitement to the visitor experience.

Final budget allocation to these events will be subject to rigorous analysis of business plans including full definition of outputs.

Additional funding for the Battle of Flowers and all other events will be contingent upon compliance with the findings recently published report into the 2006 Battle of Flowers event by the Comptroller and Auditor General.

5. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT REGARDING THE ADDITIONAL FUNDING GRANTED TO THE BATTLE OF FLOWERS ASSOCIATION IN 2006-11-02

Would the Minister inform members what consultation, if any, took place between him and the Department's Accounting Officer in deciding to award additional funding of £50,000 and £45,000 to the Battle of Flowers Association this year? Would he inform members what advice he received and whether he over-ruled the Department's Accounting Officer in this matter?

Answer

Deputy Southern will be aware that following a request from me, the Comptroller and Auditor General conducted a detailed review of the 2006 Battle of Flowers organisation and funding. The helpful report covers all aspects of the process that delivered funding to the event. The report's findings identify certain opportunities for improvement in the decision making and recording process. The report makes clear recommendations which the Ministerial team, the Chief Officer and the Department are implementing in full.

As far as the background to the advice given and received is concerned: it should be firstly pointed out that the previous ED committee had decided to cut the events programme for 2006 following FSR cuts. I decided to reverse this approach by providing more support to certain key events. These were/are to be funded from savings elsewhere and possible use of the TDF. For the avoidance of any doubt I had extensive and regular input and advice from my Chief Officer and the members of his team responsible for the department's input into the event. During the course of these discussions the strengths and weaknesses of Battle of Flowers were explored in detail.

This departmental advice led to my suggestion to the Battle of Flowers chairman, in an exchange of letters, that the additional funds should be handled by a specially appointed sub- committee with external input from outside the Association. Unfortunately, this suggestion was not taken up. In hindsight, I probably should have been more insistent and made the funding conditional on the forming of this sub-committee. Having said that, all of the areas that the additional funding was to be directed to – with the exception of the celebrity' - did yield the result that was intended: namely, a significantly improved carnival atmosphere, better fireworks and a higher quality arena.

As far as the matched funding decision is concerned – the Association advised late on in the process that, whilst considerable efforts had been made to get corporate sponsorship – they had been unsuccessful. Not agreeing to the additional money would have compromised the improvements the aforementioned improvements. A number of potential sponsors have now been identified and realising corporate sponsorship will be an important component for any funding discussions in 2007. It should also be noted that – whilst the commitment for the additional funding has been committed – the additional monies have not yet been paid.

Over the past few months the department and I have been working on a revised strategy designed to arrest the decline in the contribution to the economy made by the tourism sector. As a consequence throughout the past few months Economic Development has placed greater emphasis on the event-led components of the Jersey offering.

This is a departmental strategy and is fully endorsed and supported by the entire Ministerial and departmental team. Increased support for the Battle of Flowers was and is an integral component of the strategy and is supported by all."

6. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE ESTABLISHMENT OF A POPULATION REGISTER

Question

Would the Chief Minister inform members –

1. what progress, if any, has been made to date in the establishment of a population register?
2. whether or not the future scheme will involve some formof identity card and, if so, would he advise members whetherthe data will be made secure and, if so, at what cost?
3. what information, if any, will be attached toany unique identifier' produced by the register?
4. which departments are actively engaged in working to produce the register?
5. what level of liaison, if any, has there been with the Data Protection Registrar?
6. what timescale is envisaged for law drafting and bringing this project to the States?
7. whether the current proposed timetable is realistic in light of progress made to date?

Answer

1. The Migration Advisory Group recently considered proposals for a population register'. These proposals followed meetings with Information Services (formerly Computer Services), as well as the Data Protection Commissioner. These proposals are now being shaped into drafting instructions following consideration by the Migration Advisory Group, with a view to bringing the draft law to the Assembly in the second quarter of 2007.
2. Registration for the purposes ofthe population register' will be combined with Social Security registration to provide a simple, one stop shop to customers, and to reduce administration. It has been concluded by the Migration Advisory Group that it would be sensible for the combined registration document or card to incorporate a method of establishing identity, as registration will govern access to employment and housing, and potentially a range of other public services.

Information will be maintained on a secure database, and will be subject to the full range of States security procedures. Security measures have already been developed as part of the States information network, and they are applied as a matter of course in new data systems. The costs associated with their implementation in this case are therefore considered to be marginal.

3. No information will be maintained on the population register' other than name, date of birth, address, and possibly employer details. A unique personal reference will enable a person to be linked to their place of residence, and possibly, employment. All other information will continue to be maintained on departmental systems.
4. The Population Office is working with officers from Information Services who are responsible for partnering a rangeof departments. These departments include Social Security, Economic Development, and Health and Social Services. Other departments will become involved as the work progresses.
5. The Data Protection Commissioner has been liaised with, and consulted, at each stage in the development of proposals.
6. As previously notified to the States, a Law will be brought to the Assembly in thesecond quarter of 2007, with implementation ofthecorporate database in the second quarter of 2008.
7. The complexity of a project ofthis nature should not be underestimated, and indeed, the timescales are ambitious. Good progress continues to be made however, on the law drafting instructions and on proposals for the system's architecture. Accordingly, timescales are considered achievable based on work to date.

7. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING RECENT CHANGES TO TRUST LEGISLATION

Question

In an answer to a question on trusts on 10th October 2006 the Minister stated that there was always a risk that a Jersey trust will be attacked by a disgruntled person'. Would the Minister inform members whether discussions have taken place with the United Kingdom Treasury to ascertain whether the recent amendments giving wide reserved powers to a settlor are acceptable to the Treasury and, if so, would he give members details of the discussions that have taken place?

Answer

I fail to see the relevance of the first sentence of this question, but in any event no discussions took place with the UK Treasury in relation to the recent amendment to the Trusts Law, nor would it have been appropriate for such discussions to have taken place: Jersey is a self- governing jurisdiction and it is for the States to consider and pass legislation. The UK has ample opportunity to consider legislation at Privy Council, and Privy Council has given its assent to the Trusts Law amendment.

The Trusts Law amendment was approved by the States overwhelmingly in April, and if the Deputy had questions in relation to the amendment, they should have been raised at that time.

8. DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT OF THE MINISTER FOR HOME AFFAIRS REGARDING THE STATES OF JERSEY POLICE THIRD QUARTER 2006 PERFORMANCE REPORT

Question

With reference to the recently released States of Jersey Police Third Quarter Performance Report, would the Minister –

1. advise whetherthe data contained in the report is compiled by the StatesofJersey Police and, if so, whether it is independently verified?
2. give details of the methodology used to determine the figures under the Customer Focus heading (Figures 9 and 10) and state whether the survey was independently carried out or verified?
3. supply evidence supporting the statement Speed strips laid down on major routes with 30 mph restrictions over the past couple of years identified that between one and two thousand motorists were speeding at 36mph or more per day at each location'. In particular would she inform members –

1. how many routes are monitored and how often, what the daily traffic flow is on these routes, and what the percentile speeds logged were?
2. what the accident recordof these routes is compared with the Island average and explain the methodology used to obtain that comparison?

4. undertake to discuss the speed limits for roads where the statistics show that more than 50% of motorists are doing 36mph or more' with the Minister for Transport and Technical Services to ascertain whether the current speed limit in the areas concerned is realistic?
5. with reference to Figure 13, give a comparison of those figures withthe percentage that each nationality forms ofthetotal population.

Answer

1. The data is compiled by the States of Jersey Police Planning and Research Unit which is staffed by civil servants with the relevant professional qualifications. The information is taken from Police crime recording systems. The Force's processes for recording and collating crime data are independently audited by Her Majesty's Inspectorate of Constabulary. This was undertaken in the 2003 Inspection. The 2003 HMI Inspection Report stated –

At the time of the Inspection a crime audit was carried out to ensure that States of Jersey Police crime recording practices were both ethical and complied with Home Office Counting Rules. The results were very encouraging and verified States of Jersey Police compliance with key UK crime recording practices.'

2. The Deputy 's question relates to figures cited in the Quarterly Performance Report relevant to the perceived quality of service received by victims of crime in terms ofthe handling of their initial call for Police assistance, the service they receivedfrom attending officers, the feedback they subsequently received on the progress of the investigation and their overall impression ofthe job done by States of Jersey Police in policing the Island.

The data is gathered from a rolling programme of quality of service surveys sent to most individual victims of crime up to a month after the crime was reported. Where it is deemed inappropriate (e.g. a domestic violence victim), surveys are not issued. The responses are then processed as follows –

1. Calculate the total number of respondents to the question.
2. Subtract any blank responses, Don't Knows' and Neither Satisfied nor Dissatisfied' responses from the total number of respondents. This leaves a total number of respondents expressing a definitive opinion on the service they have received from totally satisfied' to totally dissatisfied'.
3. Add together the number of survey respondents stating that they were totally satisfied', very satisfied' or satisfied' inresponsetothe question. Thisgives a total for the number of respondents who were at least satisfied'.
4. Dividethetotalnumberofrespondentswhowereatleastsatisfied' with the number of people who expressed a definitive opinion in response to the question.

The question on overall policing performance offers respondents a different range of responses from a very good job through to a very poor job. The same method of calculation is used, excluding blank and don't know' responses. This same methodology has been applied to the survey findings as reported in annual and quarterly performance reports since the survey was introduced in 2003. Overall the surveys continue to show evidence of strong public satisfaction with the service provided.

It is normal practice for such surveys to be carried out in-house as their main purpose is to monitor quality of service provided by officers, address performance and training issues and, in some cases, follow up issues of concern with respondents. In any event there is no funding available to undertake this type of work by any other means. The surveys are carried out by the Force's Planning and Research Unit who developed the questionnaire in consultation with UK Forces who run similar surveys. The 2003 HMI Inspection reviewed their role in community consultation and quality of service surveys and commented –

Her Majesty's Inspector was impressed with the professional environment within which the planning and research department operates.'

Figure 9 also includes figures for the proportion of Police emergency response attended within target response times. The response time is calculated from the time the emergency call is received by the Police Control Room to the time of arrival at the scene.

3. The Police donot regularly monitor traffic flows and speeds but have occasionally dip sampled data provided by the Transport and Technical Services Department for routes with a higher occurrence of road traffic collisions. The data is gathered by laying monitors on the road surface that record volumes of traffic flow and the speeds of vehicles passing over the site. The quarterly performance report alluded to high levels of speeding across various 30mph sites in order to highlight the fact that more efficient methods of speed enforcement such as the hand held speed camera now in use may prove to be more effective in gradually changing driver behaviour in Jersey.

The routes referred to in the report were La Grande Route de la Côte, La Route de la Haule and La Grande Route de St Laurent.

On La Grande Route de la Côte, a five day period saw a daily average of 1,060 drivers speeding at 36mph or more. The daily number of vehicles passing through the monitoring site was nearly 12,800. Of these, 56% were within the speed limit, 31% were driving at between 30 and 35mph, 12% at between 36 and 45mph and 1%, or over 400 drivers, at 46mph or more. The route has the fourth highest reported RTC rate outside of St Helier with 85 reports since January 2004.

On La Grande Route de St Laurent, a sixteen day period saw a daily average of 1,755 drivers speeding at 36mph or more. The daily number of vehicles passing through the monitoring site was nearly 5,800. Of these 23% were within the speed limit, 47% were driving at between 30 and 35mph, 29% at between 36 and 45mph and 1% at 46mph or more. That 1% still equates to over 1,300 drivers over the 16 days. The route has the 15th highest reported RTC rate outside of St Helier with 36 reports since January 2004.

On La Route de la Haule, an 18-day period saw an average of 1,570 drivers speeding at 36mph or more. The daily number of vehicles passing through the monitoring site was nearly 15,400. Of these 53% were within the speed limit, 37% were driving at between 30 and 35mph, 10% at between 36 and 45mph and less than 1% at 46mph or more. The latter still equates to over 800 drivers over the 18-day period. The route has the tenth highest reported RTC rate outside of St. Helier with 48 reports since January 2004.

There is no such figure as an Island average for road traffic collisions per road and therefore no methodology for counting one.

4. Noneof the data seen by States of Jersey Police identifies 30mph zones where more than 50% of motorists were driving at 36mph or more.
5. The Deputy is referring to figures published in the Police quarterly performance report concerning the place of birth of persons arrested and placed in Police custodyduring 2006. Rounded up, these figures show that 53% of prisoners were Jersey born,24%from the UK, 10% from Portugal or Madeira, 5% from Poland and the remainder from elsewhere.

Any crude comparison of such data with the proportion of nationalities in the population would, at best, be meaningless and, at worst, give a totally flawed impression of offending amongst national groups in the population. For example - the overall proportions tell us nothing about the age breakdown of each national grouping. Over 37% of the Jersey born population are either young children or over the age of 60. Such age groups commit very little crime. By comparison, for example, only about 6% of the Portuguese-born population are in these age groups.

Seasonal labour does not figure in the count of the total resident population. The workforce increases by over 3,000 each summer. Any comparison purely on the basis of resident population would therefore distort the figures in relation to Polish and Portuguese nationals. Nor would it take into account crimes committed by short term visitors.

A person's socio-economic profile is a significant variable in interpreting data on offending and arrest rates. Any comparison on the basis of nationality alone would take no account of the socio-economic profile of each economic group. For example if one particular national group was predominantly engaged in manual work then a realistic comparison with other groups would only be possible if that comparison was made with those members of other nationalities who were engaged at a similar economic level.

Notwithstanding the problematic nature of working with data collected for different purposes and which may not be strictly comparable, should the Deputy wish to make the type of comparison to which he refers then I suggest that he makes use of the data from the last census which is fully within the public domain, although I am sure that he will be aware that some time has passed since then and that the data may not be an accurate reflection on the current composition of the Island's population. The States Statistics Unit would be able to provide updated estimates.

9. DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT OF THE MINISTER FOR PLANNING AND ENVIRONMENT REGARDING LOCAL WEATHER FORECASTING

Question 1

Would the Minister advise members –

1. whether all aspects ofthe meteorological infrastructure, such as the weather radar, are currently fully operational and, if not, why not?
2. what processes are in place to monitor qualityof local weather forecasts and compare their accuracy withother jurisdictions?
3. how muchofthedataused in local forecasting is bought in and how much is locally generated?

Answer

1. Apart from the wave rider buoy situated 6 miles south of Corbière, all aspects ofthe Meteorological infrastructure, including the weather radar are fully operational. The wave rider  buoy was set adrift from its mooring last month and is currently at St. Helier Harbour awaiting a replacement mooring attachment before being redeployed.

It should also be noted that one member of staff is on indefinite sick leave, having an impact on the routine administrative work of the Department while administrative staff cover the operational roster.

2. Verification schemes are in place to monitor today's forecast producedat 09.00 and tomorrow's forecast published in the Jersey Evening Post. For 2005, accuracy was assessed at 95.7% for today's forecast and 91.9% for tomorrow's. A similar scheme to verify the Guernsey Press forecast is to be introduced next year.

Wind warnings are assessed against a criteria of a wind of F6, or more, likely within the Channel Islands' area. For 2005, the assessment showed 88.5% correct warnings were issued. Only 2.2% of events (that is, winds of F6 or more) were missed and the average lead time between the issue of a warning and a strong wind occurring was 10.7 hours compared to the Harbour Office's requirement of 6 hours notice.

Forecasts for Jersey, Guernsey and Alderney Airports are routinely verified, using a scheme developed by the United Kingdom Meteorological Office. The target score set by the UK is 84%. Results for the twelve months ending August 2006 show an overall score of Jersey 87.4%, Guernsey 87.3%, Alderney 88.1%.

Accuracy with other jurisdictions is difficult to compare as -

1. Most verification statistics produced by the larger Meteorological services are typically based on the accuracy of computer models to predict, for example, the surface pressure at a number of specified locations as opposed totextual forecasts issued to the public.
2. For comparisons tobe meaningful they must: compare like with like; be over the same time period; and apply tothe same location.
3. Jersey Met. does not have the resources to collate and verify other jurisdiction forecasts, for example those produced by the United Kingdom Meteorological Office on BBC Ceefax or the Internet.

3. No data is purchased by the Department. The business of public service meteorology operates through the free exchange of data between the National Meteorological Services. Jersey Met.receivesthe vast majority ofthedata(over95%)usedin producing the local forecast from the United Kingdom Met.Officeandto a lesser extent from Météo France. In return, data from the Weather Radar and other local observations are sent to the United Kingdom Met. Office and Météo France. Jersey also has access to data producedby the European Centre for Medium range Weather Forecasting (ECMWF) in Reading, England and the National Oceanic and Atmospheric Administration (NOAA) in the USA. Without this free exchange of data Jersey would be faced with a bill of some £250,000 to £750,000 per year to receive the equivalent detailed data needed to complete the local forecast.

Question 2

1. Would the Minister inform members what control, if any, in is place over Jersey forecasts supplied from the United Kingdom through Jersey Met and whether local purchasers of those forecasts have any recompense when the system fails?
2. Would the Minister investigate why a customer who purchased a forecast from Jersey Met for the weekend of 14th/15th October 2006 was sent a forecast for Wednesday 13thandThursday14thSeptember2006and,having complained, was told byJerseyMetthat it was nothing to do with Jersey because the fault was in the UK?

Answer

1. No Jersey forecasts are supplied from the United Kingdom through Jersey Met. Forecasts are supplied from Jersey Met through the United Kingdom Met. Office, as part of the UK Met. Office's MarineCall and MetFAX Marine service operated by I-Touch. This is a fully automated service in which forecastsare faxed to a central fax server. Customers receive either a fax or pre-recorded forecast by dialling into the system. Apart from monitoring the validity oftheoutgoing forecast totheservice,noother local controls are in place.

A 20% royalty is received by Jersey Met for this service, all other revenue being shared between I-Touch and the UK Met. Office.

The service was set up in 1994 as an extension to the UK Met. Office's MarineCall and MetFAX Marine services to include the Channel Islands. It was seen as a cost effective method of providing a faxback service without the need for expensive infrastructure at Jersey Met. This has now been largely superseded by our own credit card Weather TO GO! service available to callers in the UK, France and the Channel Islands. Full controls for this service are in place to ensure customers receive the correct forecast .

2. Yes - the Minister will investigate.

10. DEPUTY R.G. LE HERISSIER OF ST. SAVIOUR OF THE MINISTER FOR TRANSPORT AND TECHNICAL SERVICES REGARDING THE SUBSIDY PAID TO CONNEX IN RESPECT OF THE OPERATION OF THE BUS SERVICE

Question

1. Would the Minister advise members what subsidy was paid to Connex for operating the bus service in the year 2005?
2. Would the Minister inform members whether all additional routes, for example the Airport Express Service or the new No.10, are set up on the basis that any losses will be sustained by the taxpayer? If so, would the Minister state what losses, if any, were sustained on the recently terminated Airport Express Service?

Answer

1. No subsidy is paid to Connex in respect of operating the bus service. Connex is paid a contractual sum for running the scheduled network and the States receives all the revenue. Theeffectofthisarrangement is that thetaxpayersubsidises bus travellers, not Connex.The subsidy that was expended on the travelling public in 2005 amounted to £2,489,279.

2. The bus service is not run on a profit and loss basis. The majority ofthe network is run for social rather than economic reasons and revenue is not expected to and is unlikely to ever coveroperatingcosts. This is no different to bus services anywhere in the world. Any additional services which are included inthe network are agreed and paid for bythe Transport and Technical Services department from its budget and the revenue is then received as income – on exactly the same basis as the scheduled network. The experimental Airport Express service cost £35,028 and raised revenue totalling £13,846.

2. Oral Questions

1. Deputy G.P. Southern of St. Helier of the Minister for Treasury and Resources regarding the level of response to the Request for Information on theimplementationof Goods and Services Tax (G.S.T.) information management system:

Would the Minister inform Members how many responses were received to the Request for Information (R.F.I.) over the implementation of the G.S.T. (Goods and Services Tax) information management system and whether the response rate was lower than anticipated? If so, what measures has he put in place to deal with this, and will he give Members details of the progress of the Request for Proposal (R.F.P.) process now underway?

Senator T.A. Le Sueur (The Minister for Treasury and Resources):

The R.F.I. was issued earlier in the year as a first step in a G.S.T. management system procurement process to establish the scope of the market in terms of suppliers' interest, estimate baseline costs and extract information ideas in order to develop the R.F.P.; 3 formal written responses and one verbal expression of interest in the R.F.I. were received. This response was commensurate with the specialised nature of the request and I was neither surprised nor disappointed that only 4 responses were received. After evaluating the responses to the R.F.I., it was agreed to follow an open procurement in respect of the R.F.P. On 10th October, the R.F.P. was sent to those organisations that had responded to the R.F.I. and a procurement notice was also issued in the Jersey Evening Post and the Financial Times. The closing date for submissions is 10th November and it is still early in the process, but already 2 other organisations in addition to those previously mentioned had expressed interest, and one is visiting the Island to obtain more information on Thursday, 26th October.

1. Deputy G.P. Southern :

In the light of the Minister's lack of surprise about the low response rate, why then in the preamble to the request for proposal process does it say this was a surprisingly low number?

Senator T.A. Le Sueur :

That may have been a surprise to some people, but it was not particularly a surprise to me, because I think this sort of issue is very specialised and Jersey is a relatively small market, so there are only a small number of people with expertise in this market, but they do not necessarily want to deal with an operation as small as this. So, for my part, Sir, I was not unduly surprised.

2. Deputy G.P. Southern :

Is the Minister confident that the bidding process to handle this procedure will be sufficiently competitive?

Senator T.A. Le Sueur : Yes, Sir.

2. Senator B.E. Shenton of the Minister for Transport and Technical Services regarding the recovery of a payment to Connex in respect of shift allowances: Would the Minister inform Members whether any actions have been taken to recover the £186,802 paid to Connex in respect of shift allowances (Recommendation 6 of the Committee of Inquiry into the tender process and award of the bus contract) and, if not, would he advise whether he intends to take any action and, if so, when; explaining the reason for the delay and whether interest will also be claimed?

Deputy G.W.J. de Faye of St. Helier (The Minister for Transport and Technical

Services):

I note that the Senator asked the same question in January of this year, and I regret that there is no further update on that position. As I advised the House at the time, the Committee of Inquiry into the bus tendering process recommended that the former Environment and Public Services Committee should take immediate action to determine whether the £186,000 payment in respect of the shift allowance can be recovered, either from Connex or from any other person. The previous Committee took that action and requested officers to seek the advice of the Attorney General. This was done on 6th September 2005. When that advice has been received, I will consider the appropriate action to take, which if it is to seek repayment of the monies from Connex or any other party, will include the issue of interest. In the meantime, Sir, I would humbly entreat the Senator to perhaps devote his attentions rather more usefully to the resourcing of our legal department. [Laughter]

1. Senator B.E. Shenton:

Is it not the case that the Minister has no intention of reclaiming the money from Connex, because with the amount of money he is throwing away on the bus service - £2.5 million last year - it is just a drop in the ocean and he does not want to upset his very cosy relationship with Connex? [Members: Oh!]

Deputy G.W.J. de Faye:

I form no intention and will not form any intention on this matter until I have received appropriate legal advice. I have to say, I reject the other illusory comments that the Senator added to his question.

2. Mr. W.J. Bailhache , Q.C., H.M. Attorney General:

Would the Minister accept my apologies that advice on this issue has been so delayed and also would he accept my assurances that the matter is now receiving urgent attention?

Deputy G.W.J. de Faye:

In my opinion, the Attorney General has no need to apologise, because I understand the pressures that his department works under. However, I am very pleased to hear that this matter is receiving urgent attention.

3. Deputy G.P. Southern :

Notwithstanding the pressures on the legal office, what actions did the Minister take to ensure that his office made sure that this was brought regularly to the attention of the legal department?

Deputy G.W.J. de Faye:

I am advised by my officers that an enquiry was made to the legal department on the process of this particular issue about just over one week ago, and prior to that, about one month previously and I gather that enquiries have been made on an ongoing basis.

4. Deputy R.G. Le Hérissier of St. Saviour :

Could the Minister inform us if all other recommendations of the Committee of Inquiry have now been implemented as suggested, and to which document could we go in order to have reassurance in that regard?

Deputy G.W.J. de Faye:

I cannot give that reassurance, Sir.

5. Deputy S. Pitman of St. Helier of the Chief Minister regarding:

Would the Chief Minister inform Members whether he was consulted by the Bailiff on the content of the recent speech given by the Bailiff to the Liechtenstein Dialogue on the Future of Financial Markets, and does the Chief Minister concur with the statement in that speech that: "Lip service is paid to tax competition"?

Senator F.H. Walker (The Chief Minister):

While I was not consulted directly by the Bailiff on his speech, because I was out of the Island, I can confirm that my department was fully aware of the content and indeed, advised on its preparation. I concur completely with the statement that: "Some countries pay lip service to tax competition." Our experience for a number of years has been that this is so. Our policy has always been to point out these inconsistencies and to do so in all available fora, of which the Liechtenstein Dialogue represented the latest opportunity.

6. Deputy G.P. Southern :

Would the Chief Minister give the House his interpretation of what he believes is meant by the words: "Lip service is paid to tax competition" and will he give examples of countries that are paying such lip service to it?

Senator F.H. Walker :

It is a well-known fact that Jersey has had to battle now for some considerable time and, I have to say, battled very successfully to protect our economy, our tax independence and our tax structures. It is a well-known fact that some of the larger nations, both in the E.U. (European Union) and the O.E. C.D . (Organisation for Economic Co-operation and Development), while supporting the principle of tax competition, when it comes to the reality, particularly when comparing themselves with small, successful jurisdictions such as Jersey, find it difficult to put the acceptance of the principle into practice. Those countries might well include Spain, Italy, Germany, France and one or 2 others further afield.

7. Deputy P.V.F. Le Claire of St. Helier :

Would the Chief Minister outline for Members whether or not it is the Chief Minister's desire and the government's desire to speak out on lip service and money laundering issues in financial markets and, if so, what programme does the Minister have for tackling this issue? Also, if we are speaking about this issue, rather than about a speech that the Bailiff has made, may I ask the Chief Minister in what context does the Chief Minister expect the Bailiff and other Members to consult about their content of their speeches?

Senator F.H. Walker :

I will take that last point first. The invitation originally to attend the Liechtenstein Dialogue was extended to myself and the Bailiff ; I was unable to attend. The Bailiff and I discussed the position, and we fully agreed that he should attend and take another opportunity to hammer home the Jersey message, which I have to say, I think he did very effectively indeed. That is the normal situation that exists in these matters. So far as Jersey effectively fighting its corner is concerned, which is, I think, the nub of the Deputy 's first point, Sir, this is something that never ceases. There is no particular programme. What Jersey does, what I do, what my officials do, what other Ministers do - indeed, what the Bailiff does - is take every possible opportunity, both verbally, in presentation form, at private meetings, at public meetings and in writing, to hammer home the message that Jersey is an extremely well-regulated finance centre and that we deserve the respect and the co-operation that we show other Member states of the O.E. C.D . and the E.U.; we deserve the same respect in return. Increasingly, it has to be said, we are winning that battle. We have not won it; hence the Bailiff 's comments and my support of his comments; but increasingly, we are winning that battle and we will continue to fight at every possible opportunity to promote Jersey's position in the future, just as we have done over the last 5 or 6 years or more.

8. Deputy S. Pitman:

This matter raises more questions about the Bailiff 's role. As an unelected Member of the States, should he be making political speeches on behalf of the people of the Island? Also, there is a clear conflict of interest here, with the Bailiff presiding over the legislator and head of judiciary.

Senator F.H. Walker :

That is a point of view with which I do not, in any shape or form, subscribe. I think it is sad, Sir, when the Deputy chooses to make a cheap, local, political point, when the issue here is Jersey's reputation and Jersey's economic strength internationally.

9. Deputy G.P. Southern :

If I may return the Minister to the international personality we appear to be developing and our international reputation, is it not the case that when representing this Chamber externally, we should primarily be dependent upon elected representatives to do that, and in the absence of the Chief Minister, should he not have been replaced by a political representative in that case?

Senator F.H. Walker :

Primarily, the job of representing Jersey in these matters does fall to Members of this Assembly, but is the Deputy really suggesting that the Bailiff , having been invited, that just because he is the Bailiff , that we, Jersey, should have turned away from this further opportunity to hammer home our position in, it has to be said, some very influential company indeed?

10. Deputy G.P. Southern :

Does the Minister not accept that the speech made to the Liechtenstein Dialogue was, in fact, a political speech?

Senator F.H. Walker :

I do not, Sir. I consider it to be a very well-written and very well-presented speech, which defended Jersey's interests and sought to protect and develop Jersey's interest, and Members of this House should be welcoming that, not questioning it in a negative way.

11. Deputy G.P. Southern :

Will the Chief Minister concede that some of the reservations expressed by the likes of Spain, Italy, Germany and places further afield over tax competition is due to the fact that taxation which is paid in places like Jersey is not being paid in those countries and going towards their basic services?

Senator F.H. Walker :

I am sorry. I think I must have missed the point of that question. Could I ask the Deputy to repeat it?

Deputy G.P. Southern :

Tax competition is presented in order to increase the taxation paid in the competitor country against that which they are competing with. An increase in taxation paid here results in a reduction in taxation paid in whatever country, which goes in that country towards the payment for basic public services, and that is the case for the reservations about tax competition, surely.

Senator F.H. Walker :

That is pure quotation from the tax justice network; absolute literal translation from the tax justice network who, we know, their main ambition is to put Jersey out of business as an international finance centre. It does the Deputy no credit whatsoever merely to spout their nonsense.

3. Deputy J.A. Martin of St. Helier of the Minister for Treasury and Resources regarding reclaim of I.T.I.S. overpayments:

Following the issue to the majority of the working population of assessment notices showing the total income tax payable for 2005, would the Minister inform Members of the methods that are in place to allow taxpayers to claim back any overpayment made through I.T.I.S. (Income Tax Instalment System)?

Senator T.A. Le Sueur (The Minister for Treasury and Resources):

I.T.I.S. overpayments are already being processed and repaid by the Income Tax Department to, for example, seasonal workers who leave the Island, so methods are already in place to handle such repayments on request. These requests may be made either by letter or by

personal application. For the majority of new taxpayers, it would not be possible to make a repayment claim for 2006 until the 2006 return of income has been received. Thereafter, repayments are made if requested by the taxpayer and are processed as soon as possible. They normally take some 2 weeks to process, but that time period is dependent on the volume of requests made, which are anticipated to be very high towards the end of January next year, when the final December I.T.I.S. figures would have been received from the employers. However, some employees will not ask for any overpayments to be repaid and they will have that overpayment factored into their subsequent year's I.T.I.S. deductions.

1. Deputy J.A. Martin:

I understand the Minister to be saying - and people who are approaching me who have had their assessments have already completely paid their income tax either weekly or monthly - I.T.I.S. or the Treasury will be now collecting money that they could well do with for the end of the year. So, the Minister is telling me they cannot claim the money back until January. Is that what I am led to understand, even if their tax is fully paid up to date of assessment?

Senator T.A. Le Sueur :

I think it would depend on the individual's personal circumstances, and I would be surprised if there were that many people who had had serious overpayments by this stage, but I am sure that if there are particular reasons like that, then they could certainly address the Income Tax Department and make such a submission. As I said, that can be done either by letter or by personal application.

2. Deputy P.V.F. Le Claire:

It is in a related issue, Sir, inasmuch as the Minister has said that overpayments will be factored into future I.T.I.S. deductions, and I wondered if the Minister has reviewed the Law that carries a penalty surcharge in respect of people who have not paid their contributions by the set date, which I believe is 8th December, in respect of the fact that they would be paying perhaps by I.T.I.S., and therefore, is there not a need to just look at that penalty clause and where people are paying by I.T.I.S., perhaps give them the opt-out in that circumstance?

Senator T.A. Le Sueur :

The Deputy is quite right. We have been looking at the penalty clause in relation to I.T.I.S. and the majority of people paying tax under deduction of I.T.I.S. That penalty clause will no longer be applicable, so I do not expect, for example, to get the same degree of revenue this year as I have in previous years.

3. Deputy C.J. Scott Warr en of St. Saviour :

Would the Minister consider scrapping the situation we have at present of collecting the previous year's tax, as I believe was scrapped in Guernsey, so that every year I.T.I.S. is paid on that current year's earnings?

Senator T.A. Le Sueur :

I think I mentioned this, Sir, at the time that I.T.I.S. was being brought in. There were already significant difficulties and changes of culture in bringing in an I.T.I.S. system, and I was anxious to make sure that those changes were manageable. I believe that in a couple of years' time, once the I.T.I.S. system has settled down, we can review the process and see whether it is possible to do what the Deputy suggests, but I can make no firm commitment at this stage.

4. Deputy G.P. Southern :

Given that everyone on I.T.I.S. system paying by monthly instalments has their percentage figure rounded-up, each and every one of those people will receive a surcharge; they will be paying too much tax. Is the Minister aware of what steps are in place for what could be a very large avalanche of claims in January?

Senator T.A. Le Sueur :

I think the Deputy may exaggerate the position. I understand that for the majority of taxpayers, the overpayment will be rather than less than £250 a year. Now, that may be a significant sum of money, I agree, to some people, but there may be other people to whom this will be factored into their following year's assessments. I think I.T.I.S. has always been accepted as a simple, broad-brush approach and does not, for example, take account of things like bank interest and other sources of income of that nature. So, there are inevitably going to be cases where there are overpayments and other cases where there are underpayments, and the department has to accept the fact that where repayment claims are to be made, they will be processed and they will be handled as swiftly as possible.

4. Senator J.L. Perchard of the Minister for Transport and Technical Services regarding the tendering process for the school and summer leisure bus services: Would the Minister inform Members whether the recent tendering process for the school and summer leisure bus services was conducted on a level playing field basis for all tenderers, and is he able to give an assurance that there will be no extra costs attached to the successful bid, or a decline in the current quality of service?

Deputy G.W.J. de Faye (The Minister for Transport and Technical Services):

I can assure all Members that the tender process for the schools and summer leisure bus services was undertaken on a completely level playing field basis, and that both I and the Transport and Technical Services Department did everything necessary to ensure that that was the case. This included inviting an independent Member, Deputy Ferguson, the Chair of the Public Accounts Committee, to scrutinise the process and paperwork, and ensure that it was undertaken in a fair and equitable manner. I understand that the Deputy is quite prepared to vouch that that was indeed the case. I can also give the Senator my assurance that there will be no extra costs attached to the successful bid, assuming naturally that the level of service required remains the same as that outlined in the tender specification, and that the quality of the service will, in fact, increase, as the vehicles being provided are more modern, more environmentally friendly in respect of exhaust emissions, have added security with seat belts on some of the school buses, and will allow integrated ticketing throughout.

1. Deputy R.G. Le Hérissier:

Would the Minister, given his complete adherence to the findings of the Committee of Inquiry, identify how one of its major findings; namely, the need to have somebody who understood the technical aspects of public service, particularly transport tendering, available - he will recall that was a major finding - was reflected in the process he set up? Secondly, would he confirm that, within the terms of the contract, the purchase of new buses and the provision of seat belt buses were explicit features of the contract that was put out to tender?

Deputy G.W.J. de Faye:

The Deputy appears to have read a different Committee of Inquiry report to the one that I did, Sir. My recollection of essentially the findings was that the employment of a consultant - in this case, a particular bus consultant from a U.K. company - was one of the major causes of most of the difficulties. Since that time, matters at the department have changed very dramatically. At the time of the original tender contract for the main scheduled service, the department had very little idea of how the local bus service worked, other than through purchase of the current - then extant - timetable. Since Connex have been operating on an open-book basis, the department now has a very thorough understanding of how bus operations work and consequently has no need of a bus consultant to offer advice. In respect of the seat belts, seat belts were not part of the tendering requirements, but have effectively arrived as one might call an add-on bonus.

2. Senator B.E. Shenton:

Can the Minister confirm that the summer leisure service that Connex will provide over the next 3 years will be equivalent to or superior to the service  level offered  in the recent unsuccessful tender by the current provider? Will he guarantee that there will be no further demands on the public purse in order to achieve the standards of service offered in the unsuccessful leisure part of the bid?

Deputy G.W.J. de Faye:

I can certainly give an assurance to the House that the summer leisure service will be, to all intents and purposes, as good as or an improvement on the existing service. In respect of being able to give guarantees on whether there will be any additional demands on the public purse; no, I do not expect that to happen. But as I have indicated to the Senator and the House, if there is a variation in requirement of what it is estimated the service should be, then clearly there would be, as happens currently with all those providing public services, potential for amendments to the contract and a potential variation in how things are paid for.

3. Deputy G.P. Southern :

It is my understanding that the estimate produced by Connex of the revenue produced from the latest service - which they are taking over - is somewhat optimistic. Is the Minister certain that we are not, in effect, underwriting the cost of this leisure service and there will not be any bill at the end? Secondly, since we have now rolled all our coach and bus services under one operator, has he talked to the J.C.R.A. (Jersey Competition Regulatory Authority) about this change?

Deputy G.W.J. de Faye:

Yes. I talked to the J.C.R.A. some time ago, before the tender process even began, and the J.C.R.A. has raised no objections whatsoever to either the concept or the manner in which the tender process was carried out. I regret I have forgotten the first part of the Deputy 's question. Could he remind me?

Deputy G.P. Southern :

The estimates of revenue on the leisure services are, I am told, highly optimistic, and there is a danger that we are, in effect, underwriting this service. While I am on my feet still, can he release to Members the advice from the J.C.R.A. so obtained?

Deputy G.W.J. de Faye:

I will look into the matter of releasing that advice. In respect of estimates and underwriting, this raises a series of very complex issues, which would take far too long to explain to the House adequately. However, if I can put it this way: it was the opinion of my advisors - and indeed, myself - that the estimate submitted by Connex for the proposed summer service was indeed optimistic, which is why we did not base our calculations on those estimates. We based our internal calculations on the known figures that are provided by the current Easylink Tantivy service, and we also based calculations on what we described as an even worse situation - what we call the worst possible scenario - and that is how the calculations are made. So, consequently, in that sense, the estimates proffered by Connex were not relevant.

Deputy G.P. Southern :

May I request a written, detailed answer to that question?

The Bailiff :

I think if you want a written answer, you had better put a written question in. [Laughter]

Deputy G.P. Southern :

As part of the answer given, he said it was extremely complex, but therefore would sum it up in an oral question. Nonetheless, I do believe that Members would appreciate a written response.

The Bailiff :

Procedurally, it would be helpful if you were to put a written question.

Deputy G.P. Southern :

That is wasting one of my two questions that I can ask in a week. Oh, no, it is not.

4. Deputy S. Power of St. Brelade :

Could I ask the Minister to confirm whether the new contracts with Connex are leaving him in a more comfortable position than the contract he inherited?

Deputy G.W.J. de Faye:

No, it leaves me in a different position to the contracts that I inherited. The essential contract I inherited was the contract for the main scheduled services that was negotiated with Connex several years ago. This is simply a tender process regularisation of the current position pertaining to the additional summer leisure service and the additional school services, which were dealt originally - Members will recall - all as one operation by a single monopoly operator; the former Jersey Motor Transport Company. The Island has subsequently had a position of not having a single monopoly operator for all services, although indeed, the extant policy under the transport policy was such that it would appear to be a single operator policy was the preferred policy. In effect, all that has happened by chance of the successful tender is, in fact, we currently moved to the policy position that the States originally outlined.

5. Deputy G.C.L. Baudains of St. Clement :

Could the Minister tell us whether he is concerned that the choice of tender has, in fact, created a monopoly out of a previously competitive situation and will that not reduce his opportunities in future for inviting tendering? Could he also assure us that the new fleet which Connex is bringing over is going to be no wider; the buses are going to be no wider than the current J.M.T. (Jersey Motor Transport) fleet, because the present Connex buses are proving to be somewhat of a nuisance on the road? In fact, in St. Clement they have to mount the pavement to pass in various places. Are the new buses within the prescribed Jersey width or, in fact, are they oversized?

Deputy G.W.J. de Faye:

Well, I regret I have not had an opportunity to measure the new buses yet. However, I can tell the House that width of vehicles is going to be an increasing problem for the Island, not just in terms of buses, but in terms of all heavy, commercial vehicles. It is now becoming increasingly difficult to find and source vehicles of any description that conform to the Island's road width demands. So, this is an ongoing matter. I am afraid - and I regret Members keep asking several questions at once - but I have forgotten the first part of the Deputy 's question. [Laughter]

Deputy G.C.L. Baudains:

It was to do with the concern of possible future problems arising out of tendering processes, because there is only one actual operator now, whereas previously there was a competitive situation.

Deputy G.W.J. de Faye:

I thank the Deputy for reminding me. No, I am not concerned about that, Sir, because it would be inaccurate to look upon this as a closed monopoly position. It is simply that we have at the moment effectively a single operator operating a number of contracts that are available in the Island. It is likely, although this will depend on the will of the States in response to the Integrated Transport and Travel Policy, that when the time comes round for the re-tendering of the main scheduled service, that both the summer service and the school service will be included as part of a whole package to be tendered for. Now, this is the competitive element. [Laughter] I am sorry that 2 Members appear to have a very vague grip on economics and contract, let alone competition, and find it amusing. The fact is that there is the potential for a full public transport contractual package to be competed for on a tender basis every so many years. The current number of years is 7. That is the competitive element and one of the advantages, in fact, to the Island of having a very substantial contractual package, that it will attract very large companies to be interested in tendering for it, thereby ensuring competition and potential advantage to the Island.

The Bailiff :

I think we must draw this to a close or it will become a debate. Final supplementary from Deputy Scott Warr en.

6. Deputy C.J. Scott Warr en:

Can the Minister confirm that the new buses will have adequate seating capacity?

Deputy G.W.J. de Faye: Yes, I can, Sir.

5. Connétable A.S. Crowcroft of St. Helier of the Minister for Education, Sport and Culture regarding the 200th Anniversary of Fort Regent:

Would the Minister explain what plans he has, if any, to mark the 200th anniversary of Fort Regent?

Senator M.E. Vibert (The Minister for Education, Sport and Culture):

May I thank the Constable for asking the question, which allows me to give some prominence to the 200th anniversary of Fort Regent? The foundation stone at Fort Regent was laid in November 1806 and to mark this 200th anniversary, there has been an awareness-raising programme throughout 2006, with banners in Fort Regent and a logo on literature sent out from Fort Regent. The Blue Badge Guides have included Fort Regent in many of their walks this year and highlighted the anniversary. Media coverage has highlighted the anniversary on various occasions throughout the year, and there have been photographic and art displays at the Fort. Two of the Fort's very large cannons have been refurbished and brought inside for the display. E.S.C. (Education, Sports and Culture), my department, will also  be shortly publishing a conservation statement on Fort Regent which will recognise its importance as an historical monument. I am pleased to say that the Lieutenant Governor has accepted an invitation to unveil a commemorative plaque to mark the anniversary on 9th November and all States Members will shortly be receiving their invitations to that event.

1. Deputy P.V.F. Le Claire:

Would the Minister agree with me that the 200th anniversary of Fort Regent represents a real, positive opportunity to decide once and for all a positive future for Fort Regent, and will he undertake with his department to try to establish one in this anniversary?

Senator M.E. Vibert :

Yes, and it is part of the Island's Strategic Plan approved by this House.

2. The Connétable of St. Helier :

I am pleased to hear about the awareness-raising programme being run by the Minister's department. Unfortunately, it has not raised my awareness at all. I was aware that the anniversary was coming up and, of course, it is just over 2 weeks away. Does the Minister not feel it is, frankly, discourteous that the Constable of the Parish in which the Fort is situated has not been invited to any function, and indeed, as far as I am aware, the public of Jersey have not really been involved in being able to put this event in their diaries? Does he think this is a fair way and a correct way to mark such an important anniversary?

Senator M.E. Vibert :

I am sorry that the Constable has been unaware. It has been featured in the Jersey Evening Post on several occasions and, of course, if he had visited the Fort - which is in his Parish - he would have seen large banners advertising the 200th anniversary. I am pleased to say he will be invited. Thousands of members of the public visit the Fort every day and see the displays and the fact that it is the 200th anniversary. I think that it is an opportunity to mark the 200th anniversary and we have done so. I personally would wish that we can secure the future of the Fort, and particularly improve the interpretation of the historical aspects, as we included in a plan that this States Assembly approved some years ago now, but unfortunately, no funds have been forthcoming to enable it to be put into action.

3. The Connétable of St. Helier :

The Minister does not obviously agree with me that it is discourteous not to invite a Constable to an event in his or her Parish, but to rely on the media to provide that invitation process for him. Now, of course, he has given us some information, I will be able to block off some appropriate time in the diary. Could I press the Minister on his view of the Fort? I note that there has been some fairly large structures erected on it around the signal station. Is he aware that it is a proposed S.S.I. (Site of Special Interest) and what are his comments on the damage which would appear to have been done to this building?

Senator M.E. Vibert :

Yes, I am very aware of it, and in my original answer I stated that we had had a conservation statement prepared, so that we are fully informed in future of the historical importance of the Fort, and we would not do anything without permission and we would not do anything to damage the historic integrity of the Fort.

4. Deputy P.V.F. Le Claire:

As the media has been mentioned, recent issue was given to the world heritage proposition in the media, and one of the aspects of establishing Jersey as a centre of world heritage - I believe - were the outstanding fortifications in Jersey. Will the Minister be looking into these issues to help establish Jersey, if it is desirable, for those reasons?

Senator M.E. Vibert :

Certainly, and the Jersey Heritage Trust will help us in our deliberations there. Our forts and fortifications are outstanding, particularly, of course, Mont Orgueil and Elizabeth Castle, which were used in anger. Fort Regent is a newer fortification, which of course - luckily - was never required.

The Bailiff :

We come to the next question, but before I call Deputy Southern , may I remind Members, please, that Standing Orders require that all supplementary questions and answers to them should be concisely expressed?

6. Deputy G.P. Southern of the Minister for Treasury and Resources regarding income tax assessment advice notices for 2005:

I will just ask the first half, because the second half, I believe, has been fully answered by the Minister. Would the Minister inform Members what period of time is referred to by the balance figure on the recently issued income tax assessment advice notices for 2005?

Senator T.A. Le Sueur (The Minister for Treasury and Resources):

I.T.I.S. credits up until the end of August, provided they were received by the Income Tax Department from the employer, were processed and included to reduce the balances shown on the advice notice attached to the letter of assessment. It was not possible to include the September credits because they did not have to be submitted to the Income Tax Department until 15th October.

1. Deputy G.P. Southern :

The Minister refers to credits which have been received. Is he aware of a figure for what proportion of employers are behind in returning their tax returns?

Senator T.A. Le Sueur :

I am not aware of the precise proportions, Sir. I believe the majority of employers are responsible enough to date, as far as they can be.

2. Deputy G.P. Southern :

Would the Minister come to the House with such a figure, because I think it may be substantial.

Senator T.A. Le Sueur :

I will endeavour to do so, Sir.

7. Deputy K.C. Lewis of St. Saviour of the Minister for Economic Development regarding measures to assist local businesses and retailers as a consequence of the introduction of G.S.T:

In view of the forthcoming introduction of G.S.T., and in light of the fact that the import of low value goods purchased via the internet shopping will not attract G.S.T., what measures, if any, will the Minister take to assist local businesses and retailers who have to pay very high rents?

Senator P.F.C. Ozouf (The Minister for Economic Development):

The retail industry is an important part of Jersey's economy, representing approximately 7 per cent of G.V.A. (Gross Value Added) and 16 per cent of the total employment. It is therefore right and proper that we are aware of the challenges facing the industry and, where appropriate, work with that industry to help meet those challenges that it faces. The Deputy may not be aware of just how much work we are doing with the retail industry. There is specific provision in my department's 2007 business plan for the work on the retail industry, and this year, for the first time, we have a designated post within the department to work specifically on retail industry matters. The department is actively engaging with the industry so that we can learn more about the issues that it faces, and throughout 2007, we are going to be doing a great deal on this issue. As far as rents are concerned, this is a complex issue and is a function of supply and demand, and something that we are engaging with the Planning Department on. It is also a function of the capitalisation of high margins in some of the retail sectors.