States Meeting Transcript - 12th April 2016

STATES OF JERSEY OFFICIAL REPORT TUESDAY, 12th APRIL 2016

COMMUNICATIONS BY THE PRESIDING OFFICER ......................................9

1. Welcome to His Excellency The Lieutenant Governor..................................9 The Deputy Bailiff : ............................................................................9
2. Appointment of next Lieutenant Governor - Air Chief Marshal Sir Stephen Dalton..9 The Deputy Bailiff : ............................................................................9
3. Apologies for absence from The Dean of Jersey.........................................9 The Deputy Bailiff : ............................................................................9

APPOINTMENT OF MINISTERS, COMMITTEES AND PANELS..........................9

2. Nomination of Deputy J.A. Hilton of St. Helier as a member of the Health and

Social Security Scrutiny Panel............................................................9

2.1 Connétable M.J. Paddock of St. Ouen (Chairman, Health and Social Security Panel): ...9

QUESTIONS ......................................................................................9

3. Written Questions........................................................................9

1. THE DEPUTY OF ST. JOHN OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING LOSS OF REVENUE IN RESPECT OF THE PERSONAL TAX SYSTEM:............................................................9
2. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING CORPORATION TAX: ..........................13
3. THE DEPUTY OF GROUVILLE OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING PRIVATE PENSION SCHEMES:......................14
4. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING PLANS TO RESTORE FORT REGENT:...........................................................15
5. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING THE AMOUNT SPENT ON INCOME SUPPORT PAYMENTS AND ALLOWANCES:..................................................17
6. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING HIGH NET WORTH INDIVIDUALS PAYING TAX IN JERSEY:......................................................................18
7. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR HOUSING REGARDING THE ACTION POINTS RAISED IN THE 2016 HOUSING STRATEGY:...........................................................................19

8. DEPUTY J.A. HILTON OF ST. HELIER OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING THE NUMBER OF ISLANDERS

DIAGNOSED WITH ASBESTOSIS:..................................................21

9. DEPUTY J.A. HILTON OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING CASES OF ASBESTOS RELATED DISEASES:.........21
10. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING OUTDOOR BASKETBALL COURTS: ............................................................22
11. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING THE

LEVEL OF PRIORITY GIVEN TO CULTURE:......................................22

12. DEPUTY M. TADIER OF ST. BRELADE OF THE PRESIDENT OF THE JERSEY SECTION OF THE ASSEMBLÉE PARLEMENTAIRE DE LA FRANCOPHONIE REGARDING MEMBERSHIP OF THE ASSEMBLÉE: ..............................23
13. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR HOME AFFAIRS REGARDING CANNABIS POSSESSION:................................23
14. DEPUTY M. TADIER OF ST. BRELADE OF THE CHIEF MINISTER

REGARDING THE REDEPLOYMENT OF DISABLED AND OLDER PUBLIC SECTOR EMPLOYEES:..............................................................25

15. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING THE POSSIBLE MERGER OF JERSEY TELECOM AND AIRTEL VODAFONE: .............................................26
16. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHAIRMAN OF THE PRIVILEGES AND PROCEDURES COMMITTEE REGARDING A SUMMONS ISSUED TO THE STATES OF JERSEY DEVELOPMENT COMPANY: ............27
17. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHAIRMAN OF THE PRIVILEGES AND PROCEDURES COMMITTEE REGARDING THE GROUNDS FOR REJECTING QUESTIONS AND PROPOSITIONS SUBMITTED BY STATES MEMBERS:............................................................................27
18. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE EFFECT OF THE LEAK OF CONFIDENTIAL DOCUMENTS FROM MOSSACK FONSECA UPON JERSEY AS AN INTERNATIONAL FINANCE CENTRE:..................................................................27
19. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE SUBMISSION OF COMPLAINTS AGAINST THE

JUDICIARY: ..........................................................................29

20. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING ADDRESSING TAX SECRECY:......................................31
21. THE CONNÉTABLE OF GROUVILLE OF H.M. ATTORNEY GENERAL REGARDING THE HUMAN RIGHTS COMPLIANCE OF THE ADMINISTRATION OF THE RED DIESEL TAX FREE CONCESSION:............33

4. Oral Questions ..........................................................................34

1. Deputy R. Labey of St. Helier of the Minister for Home Affairs regarding religious groups' access and input to the Prison Service's Discharge Planning Group:........35

Connétable D.W. Mezbourian of St. Lawrence (Assistant Minister for Home Affairs -

rapporteur) .............................................................................35 4.1.1 Deputy R. Labey : ......................................................................35

2. Deputy C.F. Labey of Grouville of the Minister for Treasury and Resources regarding the removal of private pension scheme restrictions: ........................35

Senator A.J.H. Maclean (The Minister for Treasury and Resources):.........................36

1. The Deputy of Grouville : ..............................................................36
2. The Deputy of Grouville : ..............................................................36

3. Deputy R.J. Renouf of St. Ouen of the Minister for Infrastructure regarding the findings of a recent Complaints Board regarding the Connex bus contract:..........37

Deputy E.J. Noel of St. Lawrence (The Minister for Infrastructure):..........................37 4.3.1 The Deputy of St. Ouen:................................................................37

4. Connétable A.S. Crowcroft of St. Helier of the Minister for Infrastructure

regarding the cost of bus travel in Jersey:..............................................37

Deputy E.J. Noel (The Minister for Infrastructure): ..........................................37

1. The Connétable of St. Helier : ..........................................................38
2. Deputy S.Y. Mézec : ....................................................................38
3. Deputy R. Labey : ......................................................................38
4. Deputy M. Tadier : ......................................................................39
5. Deputy M. Tadier :......................................................................39
6. The Connétable of St. Helier : ..........................................................39

5. Deputy A.D. Lewis of St. Helier of the Minister for Treasury and Resources regarding recent negotiations for the partial sale of JT:...............................39

Senator A.J.H. Maclean (The Minister for Treasury and Resources):.........................39

1. Deputy A.D. Lewis :....................................................................40
2. Deputy J.A. Martin of St. Helier:.......................................................40
3. Deputy J.A. Martin:....................................................................40
4. Deputy M. Tadier :......................................................................40
5. Deputy M. Tadier :......................................................................41
6. Deputy G.P. Southern :..................................................................41
7. Deputy S.M. Wickenden of St. Helier:..................................................42
8. Deputy A.D. Lewis .....................................................................42

6. Deputy S.Y. Mézec of the Minister for Infrastructure regarding ongoing

negotiations with employee representatives:............................................42

Deputy E.J. Noel (The Minister for Infrastructure): ..........................................42

1. Deputy S.Y. Mézec : ....................................................................43
2. Deputy G.P. Southern :..................................................................43
3. Deputy G.P. Southern :..................................................................43
4. Deputy M. Tadier :......................................................................43
5. Deputy M. Tadier :......................................................................43

7. Deputy K.C. Lewis of St. Saviour of the Minister for Education regarding the loss

to families caused by the withdrawal of 20 hours of free nursery care: ...............44

Deputy R.G. Bryans of St. Helier (The Minister for Education):..............................44

1. Deputy K.C. Lewis :....................................................................44
2. Deputy J.A.N. Le Fondré:..............................................................44
3. Deputy M. Tadier :......................................................................44
4. Deputy S.Y. Mézec : ....................................................................45
5. Deputy S.Y. Mézec : ....................................................................45
6. Deputy J.M. Maçon of St. Saviour:.....................................................45
7. Deputy J.A. Martin:....................................................................45
8. Deputy J.A. Martin:....................................................................46

9. Deputy G.P. Southern :..................................................................46

10. Deputy G.P. Southern :..............................................................46
11. Deputy T.A. Vallois of St. John : ....................................................46
12. The Deputy of St. John : .............................................................47
13. Deputy A.D. Lewis :.................................................................47
14. Deputy A.D. Lewis :.................................................................47
15. Connétable J. Gallichan of St. Mary:................................................47
16. The Connétable of St. Mary:........................................................48
17. Senator Z.A. Cameron: ..............................................................48
18. Deputy K.C. Lewis : .................................................................48

8. Deputy G.P. Southern of the Chief Minister regarding the registration of financial services companies based in Jersey:....................................................49

Senator I.J. Gorst (The Chief Minister):......................................................49

1. Deputy G.P. Southern :..................................................................50
2. Deputy G.P. Southern :..................................................................50
3. Deputy M.R. Higgins of St. Helier : ....................................................50
4. Deputy M.R. Higgins: ..................................................................50
5. Deputy J.A.N. Le Fondré:..............................................................51
6. Deputy M. Tadier :......................................................................51
7. Deputy M. Tadier :......................................................................51
8. The Connétable of St. Mary:............................................................52
9. Connétable C.H. Taylor of St. John:....................................................52
10. Deputy G.P. Southern :..............................................................52

9. Deputy M. Tadier of the Minister for Home Affairs regarding harm reduction as

the key focus of Jersey's drugs policy:..................................................53

The Connétable of St. Lawrence (Assistant Minister for Home Affairs - rapporteur):........53

1. Deputy M. Tadier :......................................................................53
2. Deputy M. Tadier :......................................................................54

10. Deputy R. Labey of the Minister for Infrastructure regarding the Island's legal

limit of 250 watts power output for electric bikes: .....................................54

Deputy E.J. Noel (The Minister for Infrastructure): ..........................................54

1. Deputy R. Labey :....................................................................55
2. Deputy M. Tadier :...................................................................55
3. Deputy M. Tadier :...................................................................55

11. The Deputy of St. Ouen of the Minister for Health and Social Services regarding

the timetable for lodging a proposition on the choice of a site for the new hospital: ..56

Senator A.K.F. Green (The Minister for Health and Social Services):........................56

1. The Deputy of St. Ouen : ............................................................56
2. Deputy M. Tadier :...................................................................56
3. Deputy M. Tadier :...................................................................57
4. Deputy J.M. Maçon: ................................................................57
5. Deputy J.A. Hilton of St. Helier:....................................................57
6. The Deputy of St. Ouen : ............................................................57

12. Deputy A.D. Lewis of the Minister for Infrastructure regarding the valuation of the States property portfolio: ...............................................................58

Deputy E.J. Noel (The Minister for Infrastructure): ..........................................58

1. Deputy A.D. Lewis :.................................................................58
2. Deputy J.A.N. Le Fondré:...........................................................58

3. Deputy J.A.N. Le Fondré:...........................................................58
4. Deputy R. Labey :....................................................................59
5. Deputy S.M. Wickenden:............................................................59
6. Deputy A.D. Lewis :.................................................................59

13. Deputy G.P. Southern of the Minister for Education regarding consultation with stakeholders regarding the provision of nursery education:...........................59

Deputy R.G. Bryans (The Minister for Education):...........................................60

1. Deputy G.P. Southern :..............................................................60
2. Deputy M. Tadier :...................................................................60
3. Deputy M. Tadier :...................................................................60
4. The Deputy of Grouville :............................................................61
5. Deputy J.A. Martin: .................................................................61
6. Deputy J.M. Maçon: ................................................................62
7. Deputy J.M. Maçon: ................................................................62
8. Deputy J.A.N. Le Fondré:...........................................................62
9. Deputy S.M. Wickenden:............................................................62
10. Deputy S.M. Brée of St. Clement:................................................63
11. Deputy S.M. Brée:................................................................63
12. Deputy G.P. Southern :............................................................63

5. Questions to Ministers without notice - The Minister for the Environment...........64

1. Deputy P.D. McLinton of St. Saviour:..................................................64 Deputy S.G. Luce of St. Martin (The Minister for Environment):............................64

1. Deputy P.D. McLinton:................................................................64
   2. Deputy J.A. Hilton: ....................................................................65

5.2.1 Deputy J.A. Hilton: ....................................................................65

6. Questions to Ministers without notice - The Minister for Health and Social Services 65

1. Deputy G.P. Southern :..................................................................65 Senator A.K.F. Green (The Minister for Health and Social Services):........................65

1. Deputy G.P. Southern :..................................................................66
   2. Deputy S.Y. Mézec : ....................................................................66
   3. Deputy J.A. Hilton: ....................................................................66

6.3.1 Deputy J.A. Hilton: ....................................................................66

4. Deputy R. Labey : ......................................................................66

6.4.1 Deputy R. Labey : ......................................................................67

5. The Deputy of St. Ouen:................................................................67
6. Deputy M. Tadier :......................................................................67

6.6.1 Deputy M. Tadier :......................................................................67

7. Deputy G.P. Southern :..................................................................67
8. Deputy A.D. Lewis :....................................................................68

6.8.1 Deputy A.D. Lewis :....................................................................68

9. The Deputy of St. John:................................................................68

6.9.1 The Deputy of St. John:................................................................68

10. Deputy J.A. Hilton: ....................................................................69
11. Deputy M. Tadier :......................................................................69

6.11.1 Deputy M. Tadier :...................................................................69

12. Deputy G.P. Southern :..................................................................69
13. Deputy J.A. Martin:....................................................................70
14. Deputy G.P. Southern :..................................................................71

6.14.1 Deputy G.P. Southern :..............................................................71

15. Deputy M.R. Higgins: ..................................................................71
16. Deputy M. Tadier :......................................................................71

6.16.1 Deputy M. Tadier :...................................................................71

17. Deputy G.P. Southern :..................................................................72

1. Deputy G.P. Southern :..............................................................72
2. Deputy G.P. Southern :..............................................................72

18. The Deputy of St. Ouen:................................................................72
19. The Connétable of St. John:............................................................72
20. Deputy M. Tadier :......................................................................73

6.20.1 Deputy M. Tadier :...................................................................73

STATEMENTS ON A MATTER OF OFFICIAL RESPONSIBILITY........................73

7. The Minister for Treasury and Resources will make a statement regarding Jersey Telecom ..................................................................................73

7.1 Senator A.J.H. Maclean (The Minister for Treasury and Resources):...................73

1. Deputy A.D. Lewis :....................................................................75
2. Deputy R. Labey : ......................................................................75
3. Deputy K.C. Lewis :....................................................................75
4. Deputy A.D. Lewis :....................................................................75
5. Deputy A.D. Lewis :....................................................................76
6. Deputy G.P. Southern :..................................................................76
7. Deputy G.P. Southern :..................................................................76
8. Deputy J.A. Martin:....................................................................77
9. Deputy J.A. Martin:....................................................................77
10. The Deputy of Grouville :............................................................77
11. Deputy A.D. Lewis :.................................................................78

8. The Chief Minister will make a statement regarding beneficial ownership of companies................................................................................78

8.1 Senator I.J. Gorst (The Chief Minister):................................................78

1. Deputy G.P. Southern :..................................................................80
2. Deputy G.P. Southern :..................................................................80
3. Deputy S.Y. Mézec : ....................................................................80
4. Deputy S.Y. Mézec : ....................................................................81
5. The Connétable of St. Mary:............................................................82
6. Deputy S.M. Wickenden: ..............................................................82
7. Deputy M.R. Higgins: ..................................................................82
8. Deputy M.R. Higgins: ..................................................................83
9. The Deputy of Grouville : ..............................................................83

LUNCHEON ADJOURNMENT PROPOSED .................................................84 LUNCHEON ADJOURNMENT ................................................................84 PUBLIC BUSINESS.............................................................................84

9. Children's Property and Tuteurs (Jersey) Law 201- (P.156/2015)....................84

1. Senator P.M. Bailhache (Chairman, Legislation Advisory Panel - rapporteur):.........84

1. The Deputy of Grouville : ..............................................................85
2. The Deputy of St. Ouen:................................................................86
3. Senator Z.A. Cameron:.................................................................86

2. Senator P.M. Bailhache :................................................................88

1. Deputy J.A. Hilton: ....................................................................89

2. The Deputy of Grouville : ..............................................................89 Mr. M.H. Temple Q.C., H.M. Solicitor General:..............................................90
   3. Senator P.M. Bailhache :................................................................90

10. Draft Aircraft Registration (Amendment) (Jersey) Law 201- (P.7/2016)..............90

10.1 Deputy M.J. Norton of St. Brelade (Assistant Minister for Economic Development Tourism, Sport and Culture- rapporteur):...............................................91

11. Draft Pet Travel Scheme (Amendment No. 2) (Jersey) Regulations 201- (P.16/2016) 91

11.1 The Deputy of St. Martin (The Minister for Environment):.............................91

12. Draft Animal Health (Jersey) Law 201- (P.17/2016) ...................................93

1. The Deputy of St. Martin (The Minister for Environment):.............................93
2. The Deputy of St. Martin:..............................................................96
3. The Deputy of St. Martin:..............................................................96

1. The Deputy of St. Ouen : ............................................................97
2. The Deputy of St. Martin:...........................................................98

4. Draft Animal Health (Jersey) Law 201- (P.17/2016): amendment (P.17/2016 Amd.).98

12.4.1 The Deputy of St. Martin:...........................................................98

5. The Deputy of St. Martin:..............................................................98

13. Draft E.U. Legislation (Aquatic Animal Health) (Jersey) Regulations 201- (P.18/2016)...............................................................................99

1. The Deputy of St. Martin (The Minister for Environment):.............................99
2. The Deputy of St. Martin:.............................................................101
3. The Deputy of St. Martin:.............................................................101

14. Draft Telecommunications (Amendment No. 3) and Crime (Miscellaneous Provisions) (Jersey) Law 201- (P.19/2016)............................................102

14.1 Senator P.F.C. Ozouf (Assistant Chief Minister - rapporteur):........................102

1. Deputy S.M. Wickenden:..........................................................106
2. Deputy M.R.Higgins:..............................................................106
3. The Connétable of St. John:........................................................107
4. Deputy J.M. Maçon: ...............................................................107
5. Deputy A.D. Lewis :................................................................107
6. Deputy M. Tadier :..................................................................108
7. Deputy M.J. Norton:...............................................................109
8. Deputy S.Y. Mézec :................................................................110
9. Senator P.F. Routier:...............................................................112
10. Senator P.F.C. Ozouf :...........................................................113 Deputy S.M. Brée (Chairman, Economic Affairs Scrutiny Panel):..........................118 Senator P.F.C. Ozouf :.......................................................................119 Deputy M.R. Higgins: ......................................................................119

Deputy M. Tadier :..........................................................................120

15. Jersey Police Complaints Authority: reappointment of members (P.21/2016) ......122

15.1 The Connétable of St. Lawrence (Assistant Minister for Home Affairs - rapporteur)..122

16. Commissioners of Appeal for Taxes: appointment (P.22/2016)......................122

16.1 Senator A.J.H. Maclean (The Minister for Treasury and Resources):..................123

17 Draft Intellectual Property (Plant Varieties) (Jersey) Law 201- (P.20/2016) ........123

1. Senator P.F.C. Ozouf (Assistant Chief Minister - rapporteur):........................123

1. The Deputy of St. Ouen : ...........................................................125
2. Deputy A.D. Lewis :................................................................125
3. Deputy M.R.Higgins:..............................................................126
4. Deputy J.M. Maçon: ...............................................................126 The Solicitor General: ......................................................................127

2. Senator P.F.C. Ozouf :.................................................................129
3. Senator P.F.C. Ozouf :.................................................................129

ARRANGEMENT OF PUBLIC BUSINESS FOR FUTURE MEETINGS..................131

18. Connétable L. Norman of St. Clement (Chairman, Privileges and Procedures Committee):..........................................................................131

ADJOURNMENT..............................................................................131

[9:31]

The Roll was called and the Greffier of the States led the Assembly in Prayer. COMMUNICATIONS BY THE PRESIDING OFFICER

1. Welcome to His Excellency The Lieutenant Governor

The Deputy Bailiff :

May I start by, on behalf of Members, welcoming His Excellency to the Chamber this morning? [Approbation]

2. Appointment of next Lieutenant Governor - Air Chief Marshal Sir Stephen Dalton The Deputy Bailiff :

I will also make the following announcement. The Ministry of Justice has advised that Her Majesty the Queen has approved the appointment of Air Chief Marshal Sir Stephen Dalton as the Island's next Lieutenant Governor. Sir Stephen joined the Royal Air Force in 1976 and after a distinguished career he was, in 2009, appointed a Chief of the Air Staff, a post that he held until 2013. Sir Stephen and Lady Dalton will come to Jersey early in the New Year and he will assume office early in 2017.

3. Apologies for absence from The Dean of Jersey

The Deputy Bailiff :

I am also asked by the Dean to pass on his apologies to the Assembly for his absence today. He is out of the Island by reason of a family medical emergency involving his daughter and we obviously express our hopes for a speedy recovery.

APPOINTMENT OF MINISTERS, COMMITTEES AND PANELS

2. Nomination of Deputy J.A. Hilton of St. Helier as a member of the Health and Social Security Scrutiny Panel

The Deputy Bailiff :

We come to F for the nomination of a member of the Health and Social Security Scrutiny Panel. The Chairman of the Health and Social Security Scrutiny Panel has nominated Deputy Hilton of St. Helier as a member of this panel, is that correct?

2.1 Connétable M.J. Paddock of St. Ouen (Chairman, Health and Social Security Panel):

Yes, I am very pleased to propose the nomination of Deputy Hilton who, as many Members will know, has served on the previous Health and Social Security Panel so her extensive knowledge and wide experience will be of value to us.

The Deputy Bailiff :

Thank you very much, Chairman. Is that nomination seconded? [Seconded] Are there any other nominations? If there are no other nominations then I declare that Deputy Hilton has been appointed as a member of the panel. [Approbation]

QUESTIONS

3. Written Questions

1. THE DEPUTY OF ST. JOHN OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING LOSS OF REVENUE IN RESPECT OF THE PERSONAL TAX SYSTEM:

Question

Following changes made to the personal tax system over the last 10 years, could the Minister please provide a statement of:

1. any actual loss of revenue due to allowances within the marginal relief tax system and the dates at which allowances were changed;
2. any actual loss of revenue due to the allowances within the 20-means-20 tax system and the dates at which allowances were changed;
3. any actual loss of revenue due to the change in the marginal rate; and
4. any actual loss of revenue due to changes in stamp duty?

Answer

The Deputy 's question has required a significant amount of work within the Taxes Office, some of which is still ongoing. The answers to the first three parts are expected to be provided over the course of the next two States sittings. The answer to the fourth part is below.

Question 4: any actual loss of revenue due to changes in stamp duty?

The following table summarises the significant changes made to stamp duty since 2007:

The stamp duty change made in the 2016 Budget (to reduce the stamp duty on all residential mortgage debt in respect of properties worth not more than £450,000) has not been included above as the resulting financial cost will not be available until 2017.

The financial implications of these changes are outlined in the table below:

* This measure has not cost the States more than £750,000. Under the current records maintained by the Judicial Greffe, the cost cannot be more accurately calculated without reviewing the source documentation for approximately 1,500 transactions.

2. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURYAND RESOURCES REGARDING CORPORATION TAX:

Question

How much has been collected in Corporation Tax each year since the introduction of zero-ten?

Could the Minister provide a breakdown for each year since its introduction of the total number of registered companies and how many of them were in each band of corporation tax (i.e. how many were paying 0%, 10% and 20%)?

Answer

Table: Analysis of corporate income tax paid for Years of Assessment 2009 to 2013. Data for 2014 Year of Assessment (received in 2015) is subject to audit and is not included.

Note 1: The zero-ten regime was introduced in 2008 only for companies registered on or after 3 June in that year. It was not until the 2009 year of assessment that all companies were included.

Note 2: Data extracted from the Taxes Office Systems on 6 April 2016 Note 3: The tax figures shown are by year of assessment in each case.

Note 4: An International Business Company was a Jersey company - or Jersey branch of an overseas company – wholly owned by non-residents carrying on overseas activities. There was a fixed annual fee for access to the regime with varying rates of taxation for domestic and overseas profits. The regime was closed to new entrants from 2005 and ended, after a transitional period, in 2011.

3. THE  DEPUTY  OF GROUVILLE OF THE  MINISTER  FOR  TREASURYAND RESOURCES REGARDING PRIVATE PENSION SCHEMES:

Question

Given that the Government is looking to achieve economic growth to provide greater opportunities within the community, why have rules and restrictions been placed upon access to private pension schemes?

Can the Minister explain why the majority capital sum of a person's private pension, once deposited into a scheme, is rendered unobtainable or has restrictions placed on it to render access unobtainable during that person's lifetime?

What is the purpose of imposing restrictions in this way and who does it benefit? Who does the Minister consult with to receive advice on pension policy?

Has the Minister considered whether restricting a person's access to their own monies and rendering them  unobtainable  especially  when  other  opportunities  may  present  themselves,  is  human  rights compliant?

Answer

To encourage people to save for their later years the Island's tax system provides generous tax relief for the contributions that working age people make into pension schemes, together with access to a 30% tax free lump sum payable from the age of 50. Pensions are tax advantaged in this way because the pensioner receives a stream of income from the pension scheme throughout their later years. It is this continuous stream of income which means that the pensioner is better able to plan for their retirement and is less likely to require financial support from the States and hence restrictions are placed on pension schemes regarding how funds can be paid out.

This approach is used in jurisdictions across the globe to encourage savings which produce an income stream for retirement and has been in operation in Jersey for many years (for example the use of tax relief to encourage people to save into personal pension schemes with restrictions commenced in 1987). In recent years the income tax legislation has been updated to introduce a much more simple, modern, flexible and accessible pension system. The key steps in this process being:

• 2003: the introduction of approved drawdown contracts – giving the pensioner access to 100% of their pension fund in certain circumstances
• 2014: greater flexibility in the payment of annuity equivalents from retirement trust schemes

• 2015: significant simplification of the income tax rules and additional flexibility over access to tax free lump sums and approved drawdown contracts

This modern, flexible approach can be seen, for example, in the context of retirement trust schemes where under current rules:

1. A 30% tax free lump sum can be paid out by the retirement trust scheme once the pension holder reaches the age of 50.
2. There is no obligation to purchase an annuity from an insurance company – the retirement trust scheme holds the pension fund throughout the retirement phase and whatever remains can be paid out as a lump sum to anyone following the death of the pension holder.
3. There is much greater flexibility over the quantum of the annuity equivalent paid by the retirement trust scheme – with the scheme being able to pay out 150% of the "basis calculation
4. The wholeof the pension fund can be commuted on the diagnosis of serious ill health.
5. From the age of 50, provided that the pension holder can demonstrate that they have minimum retirement income, the whole of the pension fund can be transferred into an approved drawdown contract whereupon up to 100% of the pension fund can be accessed.

In connection to the changes introduced in 2015, the Minister issued a public consultation paper alongside the 2014 Budget which received a broad spectrum of responses from across the pensions industry and other interested parties which helped to shape the final legislative changes (a summary of the responses to that consultation is available at: http://www.gov.je/government/consultations/pages/taxrulespensions.aspx). The Minister also receives correspondence from individuals and businesses with an interest in pensions. The Tax Policy Unit meets periodically with the Jersey Pensions Association (see: http://www.jerseypensions.org/about/).

The Minister understands that the restrictions on accessing private pensions do not interfere with the property rights outlined in the Human Rights Convention; the restrictions on pensions under the Income Tax (Jersey) Law prescribe when an investment vehicle qualifies for the tax advantages given to pension schemes. Individuals use their property rights when they choose to invest in private pension schemes knowing they are regulated by law and contain certain restrictions. After making such a choice, the individual's Convention right is to the return prescribed by the pension scheme rules.

4. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING PLANS TO RESTORE FORT REGENT:

Question

Could the Minister provide both the total amount and a breakdown of how much public money has been spent on the various projects over the past two decades to devise a plan to restore Fort Regent as a major commercial and recreation centre for the Island?

Answer

The requested time period spans several Departments and Committees. The studies conducted over this period are shown in the table below. Unfortunately in the time available it has not been possible to gather the information on the costs of the projects listed. I will ensure the Deputy , and the Assembly, are provided with this information as soon as it can be compiled with the assistance of colleagues from Treasury & Resources.

Since the recent transfer of functions in January 2016, where responsibility for Fort Regent moved to the Economic Development, Tourism, Sport & Culture Department, developing a long term solution balancing the needs of the Island has been made a priority. This work is being undertaken by a newly constituted Ministerial and officer team (Future Fort 50') under the Chairmanship of Assistant Minister, Connétable Steve Pallett.

Fort Regent Chronological record of recent Studies

5. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING  THE  AMOUNT  SPENT  ON INCOME  SUPPORT  PAYMENTS  AND ALLOWANCES:

Question

Could the Minister provide a breakdown for every year since its introduction of the total amount spent on –

1. Income Support payments;
2. Short Term Incapacity Allowance; and
3. Long Term Incapacity Allowance;

including an explanation as to how much of the rising cost of each of those payments is attributable to a higher number of claimants, rather than the component amounts being raised?

Answer

This information is published each year in the departmental annual report[1]. Values for the 5 year period from 2010 to 2014 inclusive are provided below.

Each table shows the total spend and the number of claims. Short Term Incapacity Allowance and Long Term Incapacity Allowance are contributory benefits and benefit rates are increased each year on 1 October in line with the  annual rise  in average  earnings.   Income  Support  payments  are  based  on  an assessment  of the household income and assets and the range of components available to the individual household. All current Income  Support  component  rates  are  published  on  www.gov.je [2].   All  historical  rates  are  available  at www.jerseylaw.je[3].

1. These values refer to Income Support weekly payments and exclude transitional payments, residential care payments and special payments.

2. Short Term Incapacity Allowance (STIA)

3. Long Term Incapacity Allowance (LTIA); This table includes Invalidity Benefit as well as LTIA which replaced Invalidity Benefit in October 2004. Claimants with ongoing claims from before this date are able to continue to claim the previous benefit.

6. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURYAND RESOURCES REGARDING HIGH NET  WORTH  INDIVIDUALS PAYING TAX  IN JERSEY:

Question

How many High Net Worth Individuals are there in total residing and paying tax in Jersey?

What is the total Income Tax received from those individuals? Of that tax take, how much of it is paid in the 20% tax bracket of their income, and how much is paid in the 1% tax bracket of their income?

How many of those High Net Worth Individuals do not pay any more in tax than their prescribed minimum required contribution?

How  many  of those High Net  Worth  Individuals pay Income Tax  of less than £10,000  more  than their prescribed minimum required contribution?

Answer

It is assumed that the question refers to High Value Residents ("HVR"), who are approved as having Entitled  status  under Regulation 2(1)  (e)  of the Control of Housing  and  Work  (Residential and Employment Status) (Jersey) Regulations 2013, or previously having been granted 1(1)(k) status.

In 2014 there were 159 HVR living in, and liable to tax in, Jersey. Of these, 83 arrived pre 2005 and 76 post 2005.

Their total 2014 income tax contribution[4] amounted to approximately £12m.

In 2014 about £1.3m of this income tax was generated at the 1% tax rate, representing approximately 11% of the total income tax take. Approximately £600,000 was generated at the 10% tax rate (the tax legislation that took effect from 2005 applied this rate to certain income. it is no longer relevant). The remainder would be generated at the standard rate.

Of those HVR who came to Jersey after 2005, the majority, almost 60%, paid more than their annual minimum tax contribution in 2014. (45 out of 76 taxpayers).

About 28% of those HVR who came to Jersey after 2005 paid less than £10,000 additional income tax in excess of their annual minimum contribution (22 out of 76 taxpayers). It should be noted these figures include 8 new arrivals whose contributions for 2014 (only) are time apportioned and therefore not representative of a full year's liability.

7. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR HOUSING REGARDING THE ACTION POINTS RAISED IN THE 2016 HOUSING STRATEGY:

Question

Further to the action points raised in the March 2016 Housing Strategy, could the Minister –

1. outline the policies described in Action point 1.2, and, if they do not yet exist, advise what are they likely to include;
2. advise how she intends to incentivise vacant property owners in accordance with action point 2.6;
3. outline how she intends to enforce the minimum standards for the physical condition, repair and maintenance of all categories of rental accommodation referred to in action point 3.3;
4. state how she intends to "encourage residents to make homes more energy efficient and therefore cheaper to run" in accordance with action point 3.4;
5. commit to opposing any further cuts to support for recipients of Long Term Incapacity Allowance, given that action point 4.2 says: "Promote independent living for residents with specific needs";
6. advise whether the review of the current system of residential regulation to create a more equitable rental market under action point 4.4 includes a review of the impact of the introduction of rent control?

Answer

The Housing Strategy outlines an aspiration that all islanders should be able to live in secure, high- quality homes that they can afford, and establishes a set of objectives towards achieving this aspiration, including:

• ensuring balanced housing supply;
• making the best use of housing resources;
• improving standards; and
• creating strong communities.

The Housing Strategy will be supported by a series of specific policy measures, which will be developed in accordance with the timescales that are set out in the Strategy and will be subject to consultation with stakeholders. As such, the overall response to points (a) to (f) of the question is that the Housing Strategy provides an overview of initial thinking in terms of policy development, and that the development of further evidence, evaluation of options and consultation on specific policy proposals will provide the answers to these questions as the Housing Strategy is implemented in the coming years. Where specific points can already be made, these are outlined below.

On point (a), I intend to publish an affordable housing paper in Quarter 3 of 2016. This paper will provide an assessment of the term affordability' in relation to property purchase prices and household incomes, and how affordability can be improved through measures such as affordable home ownership products. The eventual policies will make use of the results of the latest Housing Needs Survey to ensure that there is an appropriate mix of tenure types (affordable homes to rent and to purchase) to meet demand for affordable housing.

In respect of point (b), the Housing Strategy includes an action to identify ways to make vacant properties available to the market. I would expect this work to be started in Quarter 2 of 2016 and completed in 2017. One policy option might be to consider parish rates in the context of long-term vacant properties, which would need to be considered in cooperation with the Comité des Connétable s.

Improving the condition of homes is a primary objective in the Housing Strategy. In response to point (c), draft legislation is, therefore, being prepared to introduce minimum standards of repair and maintenance for all categories of rental accommodation, including a means for the Environmental Health Department to monitor and enforce minimum standards. The draft Health and Safety (Rental Dwellings) Law should be brought forward by Quarter 3 of 2016 and work is already underway.

Along with the condition of homes, the Housing Strategy also recognises that homes need to meet higher energy efficiency standards (point (d)). The Strategy is aligned with the Energy Plan Pathway, which the Minister for Planning and Environment published in 2014, and I will be working closely with the Minister to encourage investment in energy efficiency measures to reduce domestic energy consumption such as changes to the Building Bye-Laws.

In response to point (e), whilst it is not directly related to the Housing Strategy, the Minister for Social Security has not reduced the value of Long Term Incapacity Allowance, but has changed the treatment of the overlap between Income Support and LTIA benefit income. As part of the Housing Strategy, I am working with the Minister for Social Security and affordable housing providers to meet the housing needs of vulnerable people, including people with disabilities, care leavers, and ex-offenders, to support them to live independently.

Finally, as point (f) of the Deputy 's question indicates, the Housing Strategy includes an action to review the current system of residential qualifications to create a more equitable rental sector, which I anticipate be carried carry out by early 2017. This does not include a review of the impact of the introduction of rent controls. As I indicated in R.87/2015 Rental Sector in Jersey – proposed policy direction,' I am not minded to introduce rent controls. The advice provided by the Economics Unit was clear that rent controls reduce the availability of rental accommodation and reduces the quality of rental accommodation

Rather, my focus is on supporting affordability through an increased supply of affordable homes for rent and purchase, and delivering on our Island Plan commitment to build 1,000 affordable homes up to 2020. Supply is tightly balanced, which makes it essential that all sites identified in the Island Plan are brought forward, including on rezoned and former States-owned land, and on existing estates such as La Collette.

Overall, the measures set out in the Housing Strategy are intended to improve people's housing situations and help them to achieve their housing aspirations. The Strategy recognises that there are considerable challenges and we cannot make things better overnight – but we can move firmly and clearly in the right direction.

8. DEPUTY J.A. HILTON OF ST. HELIER OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING THE NUMBER OF ISLANDERS DIAGNOSED WITH ASBESTOSIS:

Question

"Can the Minister confirm how many people in Jersey have been confirmed as diagnosed with pleural plaques, asbestosis and mesothelioma in the last five years?"

Answer

The question cannot be answered directly because:

1. out-patient attendance diagnoses are not captured by condition, just by volume and by consultant;
2. without retrieving each patient record, the date of diagnosis is not readily available so we cannot state how many have been diagnosed' in the last 5 years;
3. we are not able to state how long someone has been in Jersey, just that they have at some point in the last 5 years accessed our service;
4. patients may have more than one of the conditions stated above so there is a potential to double count.

However, subject to these caveats, there have been 112 patients over 5 years who have had an in- patient episode in the hospital where the primary or secondary coded diagnosis was one of the conditions set out above.

9. DEPUTY J.A. HILTON OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING CASES OF ASBESTOS RELATED DISEASES:

Question

"Can the Minister confirm that all cases of asbestos related diseases attributed to asbestos exposure are communicated to her Department?

Can the Minster further confirm how many people have been communicated to the Health and Safety Executive in the last five years as having been diagnosed with pleural plaques, asbestosis and mesothelioma?"

Answer

I can confirm that there is no legal requirement for any cases of asbestos related diseases attributable to asbestos exposure (or any other specific diseases or types of illness) to be reported to the Social Security Department.

The Inspectorate has had one case of mesothelioma reported to it in the past 5 years. There are no other recorded cases of the diseases listed in the question being communicated to the Department within this time period.

10. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING OUTDOOR BASKETBALL COURTS:

Question

Will the Minister provide a list of all outdoor courts which are available exclusively for basketball, for public use, as well as the opening times of these areas?

Answer

There are no outdoor courts which are exclusively' for basketball. Wherever possible, facilities are provided for multi sports when it is appropriate as this makes better use of available resources.

Outdoor basketball courts and baskets on public facilities are at:

• Les Quennevais ball court - open to public at all times free of charge
• Highlands College ball court – open to public at all times free of charge
• Fort Regent ball court – open to the public at all times during Fort Regent opening hours free of charge.

In addition to the outdoor courts, basketball facilities are available in many sports halls in Jersey. These include:

Fort Regent (2 courts), Les Quennevais Sports Centre, Springfield, Le Rocquier School, Grainville School, Haute Vallee School, Oakfield Sports Centre, Langford Sports Centre, St Michael's School Sports Hall , St George's School Sports Hall . Many of the Youth Service facilities have basketball courts with hoops. They are not all full size but do allow basketball to be played. They are at Le Squez, Gorey, Maufant, Grand Vaux, St Peter's Community Centre, St John, St Ouen and St Lawrence.

11. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR ECONOMIC DEVELOPMENT, TOURISM, SPORT AND CULTURE REGARDING THE LEVELOF PRIORITY GIVEN TO CULTURE:

Question

Will the Minister state what priority he gives to culture in his portfolio, whether culture is currently a high enough priority and what ratio of economic multiplier, pound for pound, can be expected from investment in culture in Jersey?

Answer

Having only recently taken on responsibility for the Culture portfolio, I would like to reassure the Deputy that it represents one of the highest priorities within the expanded EDTSC Department, not only in terms of performance or engagement, but in developing important skills, nurturing creativity, contributing to a vibrant and inclusive community and providing the quality of life required to attract and retain talent

In the short time since the transfer of functions was completed, Assistant Minister Deputy Norton - holding delegated responsibility for Culture - has committed a significant amount of his time to meeting Arts and Heritage organisations, devising plans and proposals for their futures. Under EDTSC's draft submission to Treasury for MTFP 2017-19, Culture has largely been protected, taking a cut of less than 1% during a period when the Department's budget is due to fall 21% from its previous 2015 cash limit.

In terms of economic multipliers there is no formal measure used by the States to evaluate the economic benefits of Culture sector, given the lack of accurate data regarding on and off Island expenditure, plus the effort required to define both culture and cultural expenditure.

Over the period 2011- 2014 however, based on publicly available accounts, the ratio of levels of self- generated funding by the three primary arts organisations in Jersey (Opera House, Jersey Arts Centre, Jersey Arts Trust) as a proportion of States grant funding was £1.70:£1, (i.e. £1.70 of self-generated income for every pound of States investment) in 2014 (latest year for which figures are available). This represents a significant increase from the 2011 figure of £1.05:£1.

The level of self-generated income by the three organisations has increased from just over 50%, to over 63% in the same period, meaning that the States now contributes about one pound in every three of their income, compared to one in every two in 2011.

The Boards and management of these arts organisations should be commended on their efforts in securing significant private sector funding for their respective programmes.

12. DEPUTY M. TADIER OF ST. BRELADE OF THE PRESIDENT OF THE JERSEY SECTION OF THE ASSEMBLÉE PARLEMENTAIRE DE LA FRANCOPHONIE REGARDING MEMBERSHIP OF THE ASSEMBLÉE:

Question

Will the President state how many of the current 49 elected States Members have a verified level of competence in French, including who those are and to what level? Is there a sufficient proportion of Francophone members to justify the bilingual status of the States Assembly and its membership of the Assemblée Parlementaire de la Francophonie (APF)?

If no member of the Assembly spoke French, would it be possible for the States to remain a member of the APF? If not, what would the minimum number of Francophone  members need to be before membership of the APF was deemed unviable?

Answer

Membership of the APF is open to jurisdictions whose official or administrative language is French, or where French is currently spoken. Jersey qualifies for full membership because French is an official language of the island. There is no requirement for a certain proportion of parliamentarians in APF member countries to speak French to a set standard.

Jersey continues to play an active part in the APF, including hosting 50 delegates to the APF's Europe regional conference in October 2015.

The Alliance Française holds information about the level of competence in French of States Members. It is currently closed for Easter but the information the Member has requested will be made available as soon as it reopens.

13. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR HOME AFFAIRS REGARDING CANNABIS POSSESSION:

Question

Will the Minister state –

1. how many individuals have been cautioned for Cannabis possession in the past 5 years;
2. how many of those were prosecuted, and
3. what the outcome of the prosecutions were; including, in each case, how many of those individuals claimed to be medicinal users'?

What has the estimated cost been, over the last five years, for dealing with Cannabis enforcement, including Police time, Customs, Crown Officers, Court costs and prison accommodation?

Answer

1. 665 individuals have been arrested by the police for cannabis possession in the past 5 years (1 April 2011 – 31 March 2016). It has not been possible to distinguish if the same individual has been arrested more than once, at different times over the 5 year period.
2. These individuals accounted for 714 cases of cannabis possession being referred to the Courts or Parish Hall for disposal.

(iii)Details of the outcomes of these prosecutions are overleaf. It is not possible to distinguish how

many of these individuals claimed to be medicinal users'.

It is, unfortunately, not possible for the services listed in the question to accurately estimate the cost of cannabis enforcement. For example, the prosecution of an individual for being in possession of cannabis can take different routes through the criminal justice system depending on the circumstances of the case. An individual might be dealt with by the Centenier at a Parish Hall enquiry, or charged for a court hearing which may result in a brief appearance or a case that goes to trial with a number of direction hearings. It should also be noted that the Prison Service is unable to attribute costs to the management of a specific category of offender.

The States of Jersey Police has, in recent years, reviewed and implemented new procedures for dealing with an individual found in possession of cannabis, with the aim of making the process more expeditious. This negates the need for the drugs to be officially analysed by the States Analyst, and allows the case to be processed through the judicial system quicker and more efficiently.

14. DEPUTY M. TADIER OF ST. BRELADE OF THE CHIEF MINISTER REGARDING THE  REDEPLOYMENT  OF DISABLED  AND  OLDER  PUBLIC  SECTOR EMPLOYEES:

Question

What consideration does the Chief Minister propose to give to the redeployment of disabled and older public sector employees who face redundancy; and what provisions, if any, are being put in place to ensure that such employees are not discriminated against when seeking alternative employment in the future, given that there is currently no age or disability discrimination legislation in place?

Answer

Public employees who are displaced as a result of organisational change and who face compulsory redundancy are given assistance from the redeployment and outplacement team of specialists based in Social Security, the Back to Work Team. This facility is available to all employees, including those with a disability and older members of the workforce.

A dedicated resource has also been set up to support States of Jersey staff made compulsorily redundant. The Outplacement Service will provide practical and emotional support to help staff explore their current job skills and work out their next steps.

This confidential service will help staff with career planning and research, writing CV's, application forms and covering letters and can provide bespoke training in skills development and personal resilience and motivation. Through the Back to Work Recruitment team, it has access to employers and vacancies and will ensure links with employers, wider support resources, external training providers, qualified career counsellors and local recruitment consultancies.

In addition, the service will monitor the States of Jersey Redeployment Register and match individuals to any relevant vacancies.

Regulations are being lodged today by the Minister for Social Security that would protect people in Jersey against age discrimination in recruitment and employment. If approved by the Assembly, the Regulations will come into force in September.

15. DEPUTYM.R.HIGGINSOFST.HELIEROF THE MINISTERFORTREASURYAND RESOURCES REGARDING THE POSSIBLE MERGER OF JERSEY TELECOM AND AIRTEL VODAFONE:

Question

With regard to the possible merger of Jersey Telecom and Airtel Vodafone, will the Minister advise why he informed the public that the deal was going ahead at the same time as Airtel Vodafone stated that the deal was off? Will he set out the current position and the role, if any, of the Channel Islands Competition Regulatory Authorities, in respect of any delay to, or the calling off, of the merger?

Answer

The Minister did not make a public announcement on this matter. When he was telephoned, while out of the Island, by a journalist on the morning of Friday 1st April 2016 and questioned as to the status of

discussions, he responded that he understood discussions between JT and Airtel were ongoing. At that point in time that was exactly the position as known to the Minister. The press release issued by the local management of Airtel announcing that they had disengaged from merger discussions was not issued until later on that Friday afternoon. Between these two times there was speculation in the media as to what Airtel had or had not stated and much confusion as to whether such statements were on or off the record.

CICRA  had in the earlier stages of merger  negotiations carried out a stage 1 assessment of the proposals and its considered view was that there were issues that may lead to the refusal of approval for the merger or an approval with conditions. This being the case, it advised on 26th October 2015 that it would subject the transaction to a stage 2 detailed review if it were formally to proceed. This is entirely standard process and was therefore a known and expected position which was factored into the ongoing commercial negotiations. There has been no subsequent change to this known position.

16. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHAIRMAN OF THE PRIVILEGES AND PROCEDURES COMMITTEE REGARDING A SUMMONS ISSUED TO THE STATES OF JERSEY DEVELOPMENT COMPANY:

Question

Would the Chairman advise members of the reasons for the delay in determining whether or not to uphold or dismiss the appeal of the States of Jersey Development Company against the summons issued by the Corporate Services Scrutiny Panel who are seeking information about the International Finance Centre and will he further explain what changes, if any, the Committee will introduce to prevent such delays occurring in the future?

Answer

The appeal by the States of Jersey Development Company (SoJDC) against the summons issued by the Corporate Services Scrutiny Panel has raised a number of complex points of law and parliamentary privilege. The Committee heard from representatives of SoJDC and the scrutiny panel on 14th January and decided to defer its decision pending receipt of submissions on points relating to human rights law.

The Committee met to consider those submission on 21st January, reached its decision and instructed H.M. Solicitor General to prepare a draft decision document which would set out in full the reasons for its decision. The Committee considered that it would be inappropriate and unhelpful to announce its decision without its full reasons, which address all of the legal points raised during the appeal, being made available at the same time. The time taken to prepare the draft decision document reflects the complexity of the subject matter and the importance of providing thorough and robust reasons for the Committee's decision.

17. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHAIRMAN OF THE PRIVILEGES AND PROCEDURES COMMITTEE REGARDING THE GROUNDS FOR REJECTING QUESTIONS AND PROPOSITIONS SUBMITTED BY STATES MEMBERS:

Question

Will the Chairman set out for members the grounds by which the Bailiff or Deputy Bailiff may reject questions and/or propositions submitted by States Members and the justification for non-elected members of the States of Jersey to take such decisions, which may prevent elected members from scrutinizing the government of the Island or raising matters of public concern?

Answer

The Bailiff 's role in approving written, oral and urgent oral questions, as well as propositions, is set out in Standing Orders 11, 13, 15 and 21 respectively. It is common practice for the presiding officer of a parliamentary body to be given such responsibility.

18. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE EFFECT OF THE LEAK OF CONFIDENTIAL DOCUMENTS FROM MOSSACK FONSECA UPON JERSEY AS AN INTERNATIONAL FINANCE CENTRE:

Question

Will the Chief Minister advise members what effect, if any, the leak of confidential documents from Mossack Fonseca in Panama is likely to have on Jersey as an international finance centre?

Answer

As the Chief Executive of Jersey Finance Limited has said there will always be a risk of Jersey being caught up, albeit most unfairly, in any general reaction by the international community, or individual jurisdictions, to the "Panama Papers" revelations . However there is much comfort to be drawn from the response of the OECD Secretary General, and others, to the revelations in focussing on Panama as a jurisdiction that has failed to adopt the international standards on transparency and exchange of information in tax matters, standards that are designed to ensure that there is no hiding place for tax evaders and those engaged in abusive tax avoidance.

The following action taken by Jersey has been well recognised by the OECD, by the UK Government and by other jurisdictions, and is reflected in an increasingly positive view of Jersey's standing as a compliant and cooperative jurisdiction in meeting the international standards on transparency and exchange of information –

• Jersey has been a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters since June 2014. Together with the TIEAs and DTAs that have been entered into, Jersey is currently in a position to exchange information on request with some 80 countries;
• Jersey is fully committed, as an early adopter', to automatic exchange of information in accordance with the international Common Reporting Standard and next year will be providing information to over 50 countries;
• Jersey has received commendations from the Secretary General of the OECD and the EU Tax Commissioner on the extent of Jersey's commitment to and compliance with the international standards on transparency and information exchange;
• Jersey has a Central Register of beneficial ownership backed by effective regulation of trust and company service providers which has provided law enforcement authorities with adequate, accurate and current information on the beneficial ownership of Jersey incorporated companies . Through the trust and company service providers beneficial ownership information is also available in respect of foreign incorporated companies and trusts being administered in Jersey.
• Jersey has gained international recognition of its leading position from the World Bank, the IMF and Moneyval (the FATF style regional body for Europe) for the standard of compliance with the international standards of transparency and information exchange.
• Jersey is supporting the OECD BEPS programme and is currently engaged in consultation on the arrangements for information exchange through country by country reporting by MNEs .
• Jersey has taken steps to discourage the use of Jersey by those engaged in tax evasion and abusive tax avoidance. Following a statement made by the Chief Minister in July 2014 Jersey has further tackled the issues of tax evasion and abusive tax avoidance on three fronts:

1. Jersey Finance Ltd has issued a best practice document to finance industry practitioners;
2. the financial regulator (JFSC) is looking for evidence of tax schemes being administered when undertaking on-site examinations;
3. the government is refusing applications for licenses for the setting up of a business and the employment of staff where the activities are considered to pose a risk to the Island's international reputation.

Jersey has long adopted this policy of seeking to be among those jurisdictions that are in the forefront in the adoption of the international standards on transparency and information exchange. It is firmly believed that the continued pursuit of this policy will help to secure a successful future as an international finance centre upon which the employment and incomes of Island residents and the funding through tax revenues of high quality public services will continue to depend. The international recognition of Jersey as a cooperative jurisdiction complying with the international standards has stood the Island in good stead to-date and the benefits derived from this reputation are not expected to be diminished by the events in Panama.

19. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE SUBMISSION OF COMPLAINTS AGAINST THE JUDICIARY:

Question

What mechanisms are there for people who are dissatisfied with the work of the Crown Officers, the Judiciary, and the legal system in general, to (a) complain, or (b) express their dissatisfaction, and to whom should such complaints be made? How can such mechanisms be strengthened and made more accessible to ordinary members of the public in Jersey?

Answer

The following mechanisms are in place: Bailiff / Deputy Bailiff

Complaints in respect of the alleged misconduct of the Bailiff and Deputy Bailiff are made in writing to the Lieutenant Governor in accordance with the Bailiff Complaints Procedure.

The Bailiff Complaints Procedure is available on the gov.je website at:

https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/ID%20 Bailiff % 20Complaints%20Procedure%2020150901%20JR.pdf

The Code of Conduct for the Members of the Judiciary of Jersey referred to in the Bailiff Complaints Procedure is available on the gov.je website at:

https://www.gov.je/Government/NonexecLegal/JudicialGreffe/Pages/CodeConduct.aspx Judiciary

Complaints in respect of the alleged misconduct of any Commissioner of the Royal Court, the Magistrate, the Assistant Magistrate, any Relief Magistrate, any Ordinary Judge of the Court of Appeal, the Judicial Greffer, the Deputy Judicial Greffier and any officer of the Judicial Greffe who is authorised to discharge the judicial function of the Judicial Greffer are made in writing to the Bailiff in accordance with the Judicial Complaints Procedure.

The Judicial Complaints Procedure is available on the gov.je website at:

https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/ID%20Judicial %20Complaints%20Procedure%2020150901%20JR.pdf

The Code of Conduct for Members of the Judiciary of Jersey referred to in the Judicial Complaints Procedure is available on the gov.je website at:

https://www.gov.je/Government/NonexecLegal/JudicialGreffe/Pages/CodeConduct.aspx Attorney General and Solicitor General

Complaints in respect of the alleged misconduct of the Attorney General and Solicitor General are made in writing to the Lieutenant Governor in accordance with the Law Officers' Complaints Procedure.

The Law Officers' Complaints Procedure is available on the gov.je website at:

https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/ID%20Law%20 Officers%27%20Complaints%20Procedure%2020150904%20ALS.pdf

Other Complaints Mechanisms

Lawyers working in the Law Officers' Department

Complaints in respect of the alleged misconduct of lawyers working in the Law Officers' Department are made in writing to the Attorney General in accordance with the Law Officers Department Disciplinary Procedure and Code of Conduct for Lawyers:

The Law Officers' Department Disciplinary Procedure is available on the gov.je website at https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/LD%20LOD%2 0Disciplinary%20Policy%20and%20Procedure%202014-07-08%20BJL.pdf

The Law Officers' Department Code of Conduct for Lawyers is available on the gov.je website at https://www.gov.je/SiteCollectionDocuments/Government%20and%20administration/LD%20Code%2 0of%20Conduct%20for%20lawyers%2020140708%20BJL.pdf

Advocates and Solicitors of the Royal Court of Jersey

Complaints in relation to alleged professional misconduct and poor service of members of the Law Society of Jersey are made in writing in accordance with The Law Society of Jersey (Disciplinary Proceedings) Rules 2010 and the Law Society of Jersey Code of Conduct.

Information on making a complaint can be found on the Law Society of Jersey website at http://www.jerseylawsociety.je/public/complaints/.

The Law Society of Jersey (Disciplinary Proceedings) Rules 2010 are available on the jerseylaw.je website  at http://www.jerseylaw.je/Law/display.aspx?url=lawsinforce%2fconsolidated%2f07%2f07.570.40_The LawSocietyofJersey(DisciplinaryProceedings)Rules2010_RevisedEdition_1January2011.htm

The Law Society of Jersey Code of Conduct is available on the Law Society of Jersey website at http://www.jerseylawsociety.je/lawyer/code-conduct/code-conduct/

Legal System in General

The States Assembly confirmed,  following P.92/2013[5], that the Chief Minister is responsible for justice policy and resources. The Proposition explained that:

"This means that the Chief Minister has –

1. democratic responsibility within the executive branch of government for the components of the overall justice system(e.g. the overall criminal, civil, family and administrative justice system; the courts, tribunals, access to justice and legal aid);

2. responsibility for safeguarding human rights, data protection, legal services, constitutional reform, and strengthening democracy, as part of the overall justice and constitutional affairs portfolio;
3. responsibility for the Legislation Advisory Panel.

Any dissatisfaction with the legal system in general should therefore be addressed to the Chief Minister.

P.92/2013 further explained that:

"this clarification of the Chief Minister's responsibility for overall justice policy and resources is not intended to affect the existing framework within which relevant offices and arm's-length bodies perform their functions; and therefore does not suggest that the Chief Minister has responsibility for individual cases, operational or administrative matters, legal or constitutional advice provided by officers of the Crown, or day-to-day resource management – all of which remain the responsibility of the relevant offices and arm's-length bodies. The States Assembly will wish to recognise the importance of maintaining the independence of the courts and the prosecution and data protection authorities as part of upholding the rule of law."

As such, any matters falling outside the Chief Minister's responsibility should be addressed using the complaints mechanisms set out above or addressed to the relevant office.

In accordance with his responsibility the Chief Minister has established an Access to Justice Review[6], chaired by Senator P.F. Routier M.B.E. Details of the Review can be found at https://www.gov.je/CrimeJustice/AccessToJusticeReview/Pages/index.aspx.

The Review is still open to submissions from the public who have experience of access to justice in Jersey. Details on how to provide a submission can be found at https://www.gov.je/CrimeJustice/AccessToJusticeReview/Pages/CommentAccessJustice.aspx.

20. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING ADDRESSING TAX SECRECY:

Question

What effect, if any, is the recent leak of documents from Mosseck Fonseca likely to have on the Chief Minister's response to the requirement set out by the UK Prime Minister in 2011 to "sweep away" tax secrecy and to "shine a spotlight on who owns what and where the money is really flowing"?

Answer

Tax secrecy is being swept away by the G20, OECD and EU initiatives on transparency and information exchange with which Jersey is fully committed. This commitment is well recognised by the international community . The importance of this commitment is reflected in the response of the OECD Secretary General, and others, to the "Panama Papers" revelations in focussing on Panama as a jurisdiction that has failed to adopt the international standards on transparency and exchange of information in tax matters, standards that it is stated are designed to ensure that there is no hiding place for tax evaders and those engaged in abusive tax avoidance.

[Note: the question from Deputy Southern is similar to the question from Deputy Higgins. However they stand alone and therefore it is considered that the content that follows should be included even though it duplicates what is in the answer to the question posed by Deputy Higgins.]

The following action taken by Jersey has been well recognised by the OECD, by the UK Government and by other jurisdictions, and is reflected in an increasingly positive view of Jersey's standing as a compliant and cooperative jurisdiction in meeting the international standards on transparency and exchange of information –

• Jersey has been a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters since June 2014. Together with the TIEAs and DTAs that have been entered into, Jersey is currently in a position to exchange information on request with some 80 countries;
• Jersey is fully committed, as an early adopter', to automatic exchange of information in accordance with the international Common Reporting Standard and next year will be providing information to over 50 countries;
• Jersey has received commendations from the Secretary General of the OECD and the EU Tax Commissioner on the extent of Jersey's commitment to and compliance with the international standards on transparency and information exchange;
• Jersey has a Central Register of beneficial ownership backed by effective regulation of trust and company service providers which has provided law enforcement authorities with adequate, accurate and current information on the beneficial ownership of Jersey incorporated companies. Through the trust and company service providers beneficial ownership information is also available in respect of foreign incorporated companies and trusts being administered in Jersey.
• Jersey has gained international recognition of its leading position from the World Bank, the IMF and Moneyval (the FATF style regional body for Europe) for the standard of compliance with the international standards of transparency and information exchange.
• Jersey is supporting the OECD BEPS programme and is currently engaged in consultation on the arrangements for information exchange through country by country reporting by MNEs .
• Jersey has taken steps to discourage the use of Jersey by those engaged in tax evasion and abusive tax avoidance. Following the statement by the Chief Minister in July 2014 Jersey has further tackled the issues of tax evasion and abusive tax avoidance on three fronts:

1. Jersey Finance Ltd has issued a best practice document to finance industry practitioners;
2. the financial regulator (JFSC) is looking for evidence of tax schemes being administered when undertaking on-site examinations;
3. the government is refusing applications for licenses for the setting up of a business and the employment of staff where the activities are considered to pose a risk to the Island's international reputation.

Jersey has long adopted this policy of seeking to be among those jurisdictions that are in the forefront in the adoption of the international standards on transparency and information exchange. It is firmly believed that the continued pursuit of this policy will help to secure a successful future as an international finance centre upon which the employment and incomes of Island residents and the funding through tax revenues of high quality public services will continue to depend. The international recognition of Jersey as a cooperative jurisdiction complying with the international standards has stood the Island in good stead to-date and the benefits derived from this reputation are not expected to be diminished by the events in Panama.

21. THE CONNÉTABLE OF GROUVILLE OF H.M. ATTORNEY GENERAL REGARDING THE HUMAN RIGHTS COMPLIANCE OF THE ADMINISTRATION OF THE RED DIESEL TAX FREE CONCESSION:

Question

Could H.M. Attorney General advise the Assembly under what circumstances it is proportionate and human rights compliant to require users of red diesel to sign a document that gives customs officers the right to make random, un-announced visits on property that could be part of a user's home, given that there is little or no evidence that abuse of the red diesel tax free concession has been taking place?

Answer

Diesel ordinarily attracts duty under the Customs (Jersey) Law 1999, but by an Order made under Article 41 of that Law, seven million litres of fuel are supplied duty free for agriculture, construction, aircraft marine and other prescribed uses.

Paragraph 9(3) of the Excise Duty (Relief and Drawback) (Jersey) Order provides for the Agent D'Impots to give directions for the administration of the relief. The question relates to a compliance measure ("the document") introduced in December 2015 by the Customs and Immigration Service under that power. The measure follows a 2015 review of the administration of red diesel. Previously, the only compliance measure was to make random roadside checks – set out in the answer of the Minister for Home Affairs to a written question tabled by the Connétable of Grouville on 8th

March 2016.

When considering the proportionality of the measure and the extent to which it affects the privacy rights of individuals, it must be stressed that signing the document is voluntary. Red diesel may be obtained directly from seven approved garages in Jersey. Agreeing to the document enables end users to receive large supplies which can be stockpiled. In return for being permitted to receive such substantial supplies, the end user must agree to compliance measures.

It is difficult to see how such a voluntary measure can be a violation of the human right of privacy. The relevant part of the document that the question refers to is this:

"In order to benefit from the relief of excise duty on hydrocarbon oil the End User' must abide by the following TERMS AND CONDITIONS;

7. To agree as a condition of this relief, that Customs Officers will be granted access to properties where duty free fuel is stored to take samples of the contents of any drum, storage tank or other container or the fuel tank of any vehicle or appliance belonging to the End User or their business in order to determine whether or not there has been a contravention of, or failure to comply with, any provision of Part 2 of the Excise Duty (Relief and Drawback) (Jersey) Order 2000 or any contravention of, or failure to comply with, the Terms and Conditions.

NB: Article 52 (1) (C) of the Customs and Excise (Jersey) Law 1999 relates to the power to search vehicles or vessels and allows officers to search any vehicle, regardless of its owner, on the premises of an End User if they have reasonable grounds to suspect an offence has been committed."

The Terms and Conditions add a measure which is targeted to the specific area where non-compliance is most likely to be detected, that is, where the fuel is stored in large quantities.

Human rights and proportionality

Even if the voluntary nature of the agreement is not immediately fatal to human rights claims, taking a sample from a petrol tank targeted at end user premises involves a low level of invasion of privacy rights under Article 8 of the European Convention. As such, a court would give a broad margin of discretion to Customs and Immigration as to whether the measure is proportionate and thus a justified restriction on privacy.

The only suggestion that the measure is disproportionate is that, because there is "little or no evidence" of non-compliance, either: (a) there is no legitimate end in terms of securing compliance as compliance is already secure; or (b) the measure fails to strike a fair balance as it authorises searches but brings no advantage.

However, the margin of discretion given by human rights law is such that it is difficult to see a court disagreeing with the professional judgment of an enforcement agency that the detection of existing non-compliance, or the deterrence of future non-compliance, would be best served if the receipt of large quantities of fuel were made contingent on agreeing to random sampling where the fuel is held. It may be that there is "little or no evidence" of current abuse because the present random roadside measures are inadequate.

Even if there is in fact no current abuse, the potential for abuse is well known from the United Kingdom, and it is most unlikely that a court would condemn a measure on the basis that it is not justifiable to act before a foreseeable risk becomes a reality. These are matters on which a court, in the language of human rights jurisprudence, would apply a "broad margin of discretion" and "defer" to the judgment of the enforcement authority.

4. Oral Questions Senator I.J. Gorst

Sir, before we move to the first question, could I just say to the Assembly that Deputy Southern has question 9, which is addressed to me, and I was asking Senator Ozouf to answer that question because it falls in his delegated remit, particularly as I will be making a statement later in the morning as well about these particular matters. He may not be back in the Assembly until 11.00 a.m. and I wonder if that question could be rolled over until his absence and I just put Members on notice of that. Thank you.