States Meeting Transcript - 13th September 2016

STATES OF JERSEY OFFICIAL REPORT

TUESDAY, 13th SEPTEMBER 2016

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

1. The Bailiff :..............................................................................9

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

2. Nomination of the Connétable of St. Helier as a member of the Public Accounts Committee ................................................................................9

2.1 Deputy A.D. Lewis of St. Helier:........................................................9

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

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

1. DEPUTY J.A.N. LE FONDRÉ OF ST. LAWRENCE OF THE CHIEF MINISTER REGARDING THE COST OF INWARD MIGRATION FROM THE E.U: [9569]....10
2. DEPUTY J.A.N. LE FONDRÉ OF ST. LAWRENCE OF THE CHIEF MINISTER REGARDING THE IMPACT OF INWARD MIGRATION: [9570] ...................10
3. DEPUTY R. LABEY OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE ROLE OF THE BAILIFF: [9572]..............................................................11
4. DEPUTY R. LABEY OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE ROLE OF THE LAW OFFICERS: [9573].....................................................13
5. DEPUTY R. LABEY OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE APPOINTMENT PROCESS OF THE BAILIFF AND CROWN OFFICERS: [9574]..14
6. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING FUNDING MECHANISMS FOR THE PLANNED NEW HOSPITAL: [9576]....................................................................14
7. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING INVESTIGATIONS INTO THE IMPACT OF AN INCREASE IN THE MINIMUM WAGE: [9577]............................................................15
8. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING POLICY IN RESPECT OF ORGAN DONATION: [9578]..................................................................................15
9. DEPUTY M. TADIER OF ST. BRELADE OF THE CHIEF MINISTER REGARDING THE POSSIBILITY OF INVITING LORD CARSWELL TO SPEAK TO MEMBERS BEFORE THE DEBATE ON P.54/2016: [9579].......................................16
10. DEPUTY M. TADIER OF ST. BRELADE OF H.M. ATTORNEY GENERAL REGARDING THE PROSECUTION OF PEOPLE CLAIMING TO BE MEDICINAL USERS OF CANNABIS: [9580].......................................................16

11. THE DEPUTY OF ST. OUEN OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING THE LIABILITY OF JERSEY STUDENTS FOR NHS CHARGES WHEN IN FURTHER EDUCATION IN THE U.K: [9581] ...............17
12. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING POSSIBLE IMPROVEMENTS TO MATERNITY LEAVE PROVISION: [9582]...................................................................17
13. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE IMPACT OF MTFP SAVINGS PROPOSALS ON NEGOTIATIONS AND POLICY IN RESPECT OF SALARIES FOR NEWLY QUALIFIED TEACHERS: [9583] .....................................................18
14. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING THE DEPARTMENT'S USE OF AGENCY WORKERS BETWEEN 2009 AND 2016: [9584]...................................................19
15. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR EDUCATION REGARDING GCSE RESULTS IN JERSEY'S NON-FEE-PAYING 11-16 SCHOOLS: [9585]..................................................................................21
16. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING A STATISTICAL BREAK-DOWN OF TAXPAYERS: [9586]..................................................................22
17. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING FUND MANAGEMENT COMPANIES IN JERSEY: [9587]..........................27
18. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING FINANCIAL SERVICES BUSINESSES WHICH DO NOT PAY TAX: [9588]............................................................28
19. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING THE TAXATION OF FINANCIAL SERVICES BUISNESSES: [9589]..................................................................29
20. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING THE LEVELS OF FUNDS AND BANK DEPOSITS HELD IN JERSEY: [9590]................................................30

4. Oral Questions...........................................................................33

1. Deputy K.C. Lewis of St. Saviour of the Chief Minister regarding proposals for an Island-wide census: [9599]..............................................................33

Senator I.J. Gorst (The Chief Minister):......................................................33

1. Deputy G.P. Southern of St. Helier:....................................................33
2. Senator S.C. Ferguson:.................................................................34
3. Deputy L.M.C. Doublet of St. Saviour:.................................................34
4. Deputy J.A.N. Le Fondré:..............................................................34

2. Connétable C.H. Taylor of St. John of the Minister for Economic Development, Tourism, Sport and Culture regarding the potential impact of proposed new waste charges on tourism and catering establishments: [9593]...............................35

Senator L.J. Farnham (The Minister for Economic Development, Tourism, Sport and Culture):

.........................................................................................35

1. The Connétable of St. John:............................................................35
2. The Connétable of St. John:............................................................35
3. Senator S.C. Ferguson:.................................................................36
4. Senator S.C. Ferguson:.................................................................36
5. Deputy G.P. Southern :..................................................................36

6. Deputy G.P. Southern :..................................................................36
7. Deputy J.A.N. Le Fondré:..............................................................37
8. The Connétable of St. John:............................................................37

3. Deputy M. Tadier of the Minister for Treasury and Resources regarding income inequality in Jersey since 2008: [9602]..................................................37

Senator A.J.H. Maclean (The Minister for Treasury and Resources):.........................37

1. Deputy M. Tadier :......................................................................38
2. Deputy S.Y. Mézec of St. Helier:.......................................................38
3. Deputy S.Y. Mézec :....................................................................38
4. Deputy A.D. Lewis :....................................................................39
5. Deputy G.P. Southern :..................................................................39
6. Deputy G.P. Southern :..................................................................40
7. Deputy A.D. Lewis :....................................................................40
8. Deputy M. Tadier :......................................................................40

4. Deputy R.J. Renouf of St. Ouen of the Minister for Health and Social Services regarding the referral of young adult wheelchair users to the facility provided by Les Amis at Maison Allo: [9594] ............................................................40

Senator A.K.F. Green (The Minister for Health and Social Services):........................41

1. The Deputy of St. Ouen:................................................................41
2. Deputy G.P. Southern :..................................................................41
3. The Deputy of St. Ouen:................................................................41

5. Deputy G.P. Southern of the Chief Minister regarding vacant posts across States Departments:............................................................................42

Senator I.J. Gorst (The Chief Minister):......................................................42

1. Deputy G.P. Southern :..................................................................42
2. Deputy A.D. Lewis :....................................................................42
3. Deputy A.D. Lewis :....................................................................42
4. Deputy G.P. Southern :..................................................................43

6. Deputy C.F. Labey of Grouville of the Chief Minister regarding potential problems facing people buying or selling a house: [9600].........................................43

Senator P.F. Routier (Assistant Chief Minister - rapporteur):.................................43

1. The Deputy of Grouville :...............................................................43
2. Deputy D. Johnson of St. Mary:........................................................44
3. Connétable L. Norman of St. Clement:.................................................44
4. Deputy A.D. Lewis :....................................................................44
5. Deputy M. J. Norton of St Brelade:.....................................................45
6. The Deputy of Grouville :...............................................................45

7. Deputy G.P. Southern of the Minister for Education regarding appointments to specialist posts in secondary school teaching: [9598]...................................45

Deputy R.G. Bryans of St. Helier (The Minister for Education):..............................46

1. Deputy G.P. Southern :..................................................................46
2. Deputy G.P. Southern :..................................................................46
3. Deputy A.D. Lewis :....................................................................46
4. Deputy K.C. Lewis :....................................................................47
5. Deputy G.P. Southern :..................................................................47
6. Deputy G.P. Southern :..................................................................47

8. Deputy P.D. McLinton of St. Saviour of the Minister for Education regarding the testing of students for dyslexia: [9591]..................................................47

Deputy R.G. Bryans (The Minister for Education):...........................................47

1. Deputy P.D. McLinton: ................................................................48
2. Deputy M. Tadier :......................................................................48
3. Deputy M. Tadier :......................................................................48
4. Connétable D.W. Mezbourian of St. Lawrence:........................................49
5. Senator S.C. Ferguson:.................................................................49
6. Deputy J.A. Martin:....................................................................49
7. Deputy P.D. McLinton: ................................................................50

9. Deputy K.C. Lewis of the Minister for Social Security regarding measures to ensure less well-off people would not be disadvantaged by budget cuts: [9604] ..............50

Deputy S.J. Pinel of St. Clement (The Minister for Social Security):..........................50

1. Deputy K.C. Lewis :....................................................................50
2. Deputy G.P. Southern :..................................................................51
3. Deputy G.P. Southern :..................................................................51
4. Deputy M. Tadier :......................................................................51
5. Deputy J.A. Martin:....................................................................52
6. Deputy S.Y. Mézec :....................................................................52
7. Deputy K.C. Lewis :....................................................................52

10. The Deputy of Grouville of the Minister for Economic Development Tourism, Sport and Culture regarding the requirement of tourism establishments to keep records of their guests: [9601]......................................................................52

Senator L.J. Farnham (The Minister for Economic Development, Tourism, Sport and Culture):

.........................................................................................52

1. The Deputy of Grouville : ............................................................53
2. Senator S.C. Ferguson:..............................................................53
3. Senator S.C. Ferguson:..............................................................53
4. Deputy M. Tadier :...................................................................54
5. Deputy J.A. Martin: .................................................................54
6. The Deputy of Grouville : ............................................................55

11. Deputy M. Tadier of the Chairman of the Privileges and Procedures Committee regarding steps to determine the reasons for voter abstention and to increase voter turnout in future: [9603]................................................................55

The Connétable of St. Clement (Chairman, Privileges and Procedures Committee):..........55

1. Deputy M. Tadier :...................................................................56
2. Deputy S.Y. Mézec :.................................................................56
3. Senator S.C. Ferguson:..............................................................57
4. Deputy P.D. McLinton:..............................................................57
5. Senator L.J. Farnham : ...............................................................57
6. The Connétable of St. John : .........................................................58
7. Deputy G.P. Southern : ..............................................................58
8. Deputy G.P. Southern : ..............................................................58
9. Deputy M.J. Norton: ................................................................58
10. Deputy L.M.C. Doublet : ..........................................................59
11. Deputy M. Tadier :................................................................59

5. Questions to Ministers without notice - The Minister for Health and Social Services 59

1. Deputy J.A. Hilton of St. Helier:........................................................60 Senator A.K.F. Green (The Minister for Health and Social Services):........................60
2. Deputy G.P. Southern :..................................................................60

5.2.1 Deputy G.P. Southern :..................................................................60

3. Deputy R. Labey : ......................................................................60
4. The Deputy of St. Ouen:................................................................60
5. Deputy M. Tadier :......................................................................61
6. Senator S.C. Ferguson:.................................................................61
7. Deputy R.J. Rondel of St. Helier:.......................................................61
8. The Deputy of Grouville :...............................................................61

5.8.1 The Deputy of Grouville :...............................................................62

9. Connétable S.A. Le Sueur -Rennard of St. Saviour:.....................................62
10. Deputy A.D. Lewis :....................................................................62

5.10.1 Deputy A.D. Lewis : .................................................................62

11. Deputy G.P. Southern :..................................................................63

5.11.1 Deputy G.P. Southern : ..............................................................63

12. Deputy J.A. Hilton:.....................................................................63
13. The Deputy of St. Ouen:................................................................63
14. Deputy M. Tadier :......................................................................63

5.14.1 Deputy M. Tadier :...................................................................64

6. Questions to Ministers without notice - The Chief Minister............................64

1. Deputy G.P. Southern :..................................................................64 Senator I.J. Gorst (The Chief Minister):......................................................64

1. Deputy G.P. Southern :..................................................................64
2. Deputy G.P. Southern :..................................................................65
3. Deputy G.P. Southern :..................................................................65

2. Deputy M. Tadier :......................................................................65

6.2.1 Deputy M. Tadier :......................................................................65

3. Deputy G.P. Southern :..................................................................66
4. Deputy J.A. Martin:....................................................................67
5. Deputy J.M. Maçon:....................................................................67
6. Deputy S.Y. Mézec :....................................................................67
7. Deputy G.P. Southern :..................................................................67
8. Deputy M. Tadier :......................................................................68

STATEMENTS ON A MATTER OF OFFICIAL RESPONSIBILITY........................68

7. The Chief Minister - statement regarding Brexit ......................................68

7.1 Senator I.J. Gorst (The Chief Minister):................................................68

1. Deputy K.C. Lewis :....................................................................70
2. Deputy G.P. Southern :..................................................................70
3. Deputy J.A. Martin:....................................................................71
4. Connétable J. Gallichan of St. Mary : ...................................................72
5. Deputy A.D. Lewis :....................................................................72
6. Deputy T.A. Vallois of St. John:........................................................72
7. The Deputy of Grouville :...............................................................73

8. The Chairman of the Health and Social Security Scrutiny Panel - statement regarding its report entitled Living on a low income' (SR.4/2016)...............................73

8.1 The Deputy of St. Ouen (Chairman, Health and Social Security Scrutiny Panel):.......73

1. Senator S.C. Ferguson:.................................................................74
2. Deputy S.Y. Mézec :....................................................................75
3. Senator P.F.C. Ozouf :..................................................................75
4. Deputy J.A. Martin:....................................................................76
5. The Deputy of St. John:................................................................76
6. Deputy L.M.C. Doublet :................................................................76
7. Connétable A.S. Crowcroft of St. Helier:...............................................77
8. Senator P.F.C. Ozouf :..................................................................77

PUBLIC BUSINESS.............................................................................78

9. Jersey Gambling Commission: appointment of Chairman (P.70/2016)................78 [Debate proceeded in camera] ................................................................79

LUNCHEON ADJOURNMENT PROPOSED..................................................79 LUNCHEON ADJOURNMENT................................................................79

10. Draft Former La Motte Street School (Validation and Abrogation of Covenants) (Jersey) Law 201- (P.9/2016)............................................................79

1. Deputy E.J. Noel of St. Lawrence (The Minister for Infrastructure):....................80

1. Deputy S.M. Brée of St. Clement:...................................................82
2. Deputy R. Labey :....................................................................83
3. Deputy R.J. Rondel:.................................................................83
4. The Connétable of St. John : .........................................................84
5. Deputy J.A. Martin: .................................................................84
6. The Connétable of St. Helier:........................................................85
7. Deputy A.D. Lewis : .................................................................85
8. Deputy E.J. Noel:....................................................................86

2. Deputy E.J. Noel: ......................................................................88

10.2.1 Deputy J.A.N. Le Fondré: ...........................................................88

11. Draft Air Navigation (Amendment) (Jersey) Law 201- (P.64/2016)....................90

11.1 Senator P.M. Bailhache (The Minister for External Relations):.........................90

12. Draft Policing of Parks (Amendment No. 6) (Jersey) Regulations 201- (P.66/2016) ..91

12.1 Deputy E.J. Noel (The Minister for Infrastructure):.....................................91

1. The Connétable of St. Lawrence:....................................................91
2. Connétable S.W. Pallett of St. Brelade : ..............................................92

13. Ratification of the Agreement between the Government of Jersey and the Government of the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (P.67/2016)..........93

13.1 Senator P.M. Bailhache (The Minister for External Relations):.........................93

14. Draft Criminal Justice (Miscellaneous Provisions) (Jersey) Regulations (P.74/2016).94

1. Senator P.M. Bailhache (Assistant Chief Minister - rapporteur):........................94
2. Senator P.M. Bailhache : ................................................................95

15. Draft Criminal Justice (Miscellaneous Provisions) (Jersey) Law 2016 (Appointed Day) Act (P.75/2016)..........................................................................95

15.1 Senator P.M. Bailhache (Assistant Chief Minister - rapporteur):........................95

16. Draft Children and Adoption (Amendment) (Jersey) Law (P.76/2016)................96

1. Senator A.K.F. Green (The Minister for Health and Social Services):..................96

1. Deputy L.M.C. Doublet :.............................................................97
2. Senator A.K.F. Green:...............................................................97

2. Senator A.K.F. Green: ..................................................................98

1. Deputy L.M.C. Doublet :.............................................................98
2. Senator A.K.F. Green:...............................................................99
   3. Senator A.K.F. Green: ..................................................................99

1. The Deputy of St. John:..............................................................99
2. Senator A.K.F. Green:...............................................................99

17. Immigration Act 2014 (Fees): extension of certain sections to Jersey; and repeal of an associated part of the Immigration Asylum Act 1999 (Jersey) Order 2003 (P.77/2016) ..........................................................................................100

17.1 Deputy K.L. Moore of St. Peter (The Minister for Home Affairs - rapporteur):........100

18. Draft Mental Health (Jersey) Law 201- (P.78/2016)..................................102

1. Senator A.K.F. Green (The Minister for Health and Social Services):.................102

1. Deputy J.A. Hilton:................................................................105
2. The Connétable of St. John : ........................................................105
3. Senator P.F. Routier:...............................................................106
4. Deputy J.A. Martin: ................................................................106
5. The Deputy of St. John:............................................................107
6. Senator S.C. Ferguson:.............................................................107
7. Deputy P.D. McLinton:............................................................108
8. Senator I.J. Gorst : ..................................................................108
9. Senator P.F.C. Ozouf : ..............................................................109
10. Deputy A.E. Pryke of Trinity : ...................................................110
11. Senator A.K.F. Green:...........................................................111

2. Senator A.K.F. Green: ................................................................114

1. Senator P.F. Routier:...............................................................115
2. Senator A.K.F. Green:..............................................................115
   3. Senator A.K.F. Green: ................................................................115

1. The Connétable of St. John : ........................................................117
2. The Deputy of St. John:............................................................117
3. Senator S.C. Ferguson:.............................................................117
4. Senator A.K.F. Green:..............................................................117

4. Senator A.K.F. Green: ................................................................119

1. Deputy J.A. Hilton:................................................................120
2. Senator A.K.F. Green:..............................................................120

5. Senator A.K.F. Green: ................................................................121

1. Deputy J.A. Hilton:................................................................121
2. Senator A.K.F. Green:..............................................................122

6. Senator A.K.F. Green: ................................................................122

1. Deputy J.A. Martin: ................................................................123
2. Senator A.K.F. Green:..............................................................123

7. Senator A.K.F. Green: ................................................................124
8. Senator A.K.F. Green: ................................................................126
9. Senator A.K.F. Green: ................................................................126 18.10Senator A.K.F. Green: ................................................................127

18.11Senator A.K.F. Green: ................................................................128 ADJOURNMENT..............................................................................130

[9:34]

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

1. The Bailiff :

First of all, can I welcome all Members back after the summer break for the work that is yet to be done in the Assembly until Christmas? Secondly, as usual, can I welcome His Excellency? [Approbation] I was going to welcome Senator Ferguson but I shall still welcome her. [Laughter] She has already been welcomed when she answered the roll call, but congratulations on her election. [Approbation] Finally, I would like to let Members know that web streaming is going to be in place as from today but on a test basis. Depending on whether there are any glitches that appear, it will go live perhaps in the next sitting in 2 weeks' time. Members are able to look at the streaming from today if they contact the Greffe, and he would welcome any comments which Members have to make on the test as it goes. Turning to the Consolidated Order Paper ..

Senator L.J. Farnham :

I wonder if I just may ask: can the test be viewed by Members? Thank you. I just would need to make sure that I am here, that is all.

The Bailiff :

Well, you will be able to check later on whether you were here, Senator. Deputy R. Labey of St. Helier :

The last email I had from Deputy Martin was that she was unwell and she missed our Deputies' meeting this morning in the Town Hall , but I understand that she is making her way here and is feeling better. I just did not want to be misleading the House in that respect.

The Bailiff :

Thank you, Deputy . I quite understand that you took the oath under a misapprehension. It does emphasise that Members must be sure before they take the oath that somebody is malade before they take it.

[9:45]

APPOINTMENT OF MINISTERS, COMMITTEES AND PANELS

2. Nomination of the Connétable of St. Helier as a member of the Public Accounts Committee

The Bailiff :

Deputy Lewis , do you wish to nominate the Connétable of St. Helier as a member of the Public Accounts Committee?

2.1 Deputy A.D. Lewis of St. Helier : That is correct.

The Bailiff :

Is that seconded? [Seconded] Are there any other nominations? Then I declare the Connétable of St. Helier is elected as a member of the Public Accounts Committee. [Approbation]

QUESTIONS

3. Written Questions

1. DEPUTY J.A.N. LE FONDRÉ OF ST. LAWRENCE OF THE CHIEF MINISTER REGARDING THE COST OF INWARD MIGRATION FROM THE E.U: [9569]

Question

What was the gross cost to the taxpayer of a person entering Jersey from the EU in 2015 to work for a range of hourly rates commencing with the minimum wage and increasing in bands of £1 per hour until the average Island wage is attained, assuming that:

1. the person works 40 hours per week;
2. the person has at least one family member aged over 65 in their household on the Island, who makes average use of health and social services for their age group;
3. the personhasonechildofprimaryschoolage in their household, attending a States school;
4. the person and the child make average use of health care for their age groups;
5. the person and the child speak English;
6. costs take account of supplementation where relevant and of any other benefit the individual might be entitled to within the time period of 9 years, averaged over a period of 9 years?

What additional gross per capita cost to the taxpayer arises if the person or the child do not speak English?

What additional gross per capita cost to the taxpayer arises if the child is in secondary education? Answer

Research and analysis is being planned by the Economics Unit to examine the economic and fiscal implications of different levels and types of inward migration, collating and aggregating as required the range of existing information which departments use to plan public finances and services, for example, the absolute and marginal costs of health care by age band, the average weighted pupil costs at primary and secondary school, and other information covering social security contributions and benefits.

Completing the work in this rigorous fashion will deliver rounded and expert information to support the development of the long term plan, inclusive of population policies, and clear aspirations for our economy, community, and environment. Once the scope of this research work is complete, this will be reported, inclusive of expected timing, in support of the long term plan.

In the meantime it is not possible in the time available to provide this information, or some of this information in response to this question and in the form requested, requiring as it does detailed collation across a number of years and departments. In addition, other variables make any easy presentation challenging, for example, a person over 65 would need to be assessed as a separate household for Income Support purposes, and the ability of a person to qualify for pension in due course depends on length of contribution to the Social Security scheme, and indeed, any reciprocal arrangements with the country of origin.

2. DEPUTY J.A.N. LE FONDRÉ OF ST. LAWRENCE OF THE CHIEF MINISTER REGARDING THE IMPACT OF INWARD MIGRATION: [9570]

Question

If the costs per individual identified in written question 1240/5(9569) are applied to 50% and then separately 75% of the gross inward migration increase since 2005, on this basis what would the total cost per year be of gross inward migration to the taxpayer?

Does the States of Jersey collect data on the number of people coming to Jersey who work for employers that pay tax locally?

What proportion of the increase in the number of primary school children in States schools since 2011 belong to families that arrived in Jersey within 10 years of the date when the first child in such families first started at such a school? What is the total capital and revenue expenditure for the provision of facilities and staff required to cater for increased pupil numbers since 2011? What is the estimated annual cost to the public purse of additional facilities and staff required for teaching pupils whose first language is not English?

What proportion of the current demand for housing units stems from individuals who have achieved their 10 year housing qualifications since 2010?

Answer

Research and analysis is being planned by the Economics Unit to examine the economic and fiscal implications of different levels and types of inward migration, collating and aggregating as required the range of existing information which departments use to plan public finances and services, for example, the absolute and marginal costs of health care by age band, the average weighted pupil costs at primary and secondary school, and other information covering social security contributions and benefits.

Completing the work in this rigorous fashion will deliver rounded and expert information to support the development of the long term plan, inclusive of population policies, and clear aspirations for our economy, community, and environment. Once the scope of this research work is complete, this will be reported, inclusive of expected timing, in support of the long term plan.

In the meantime it is not possible in the time available to provide this information, or some of this information in response to this question and in the form requested, requiring as it does detailed collation across a number of years and department, and consider the factors mentioned in response to question 9569 (as well as indepth analysis of businesses and their employees, and the marginal impact of people becoming resident after or before given dates).

3. DEPUTYR.LABEYOFST.HELIEROFTHECHIEFMINISTERREGARDINGTHE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE ROLE OF THE BAILIFF: [9572]

Question

What progress has been made to implement each of the following recommendations made by the Carswell Review of 2010 into "The Roles of the Crown Officers" and, if a decision has been taken not to implement any of the recommendations, how and when was that position adopted and by whom?

1. The Bailiff should cease to act as President of the States and the States should elect their own President, either from within or from without the ranks of their members.
2. The Bailiff should cease to be responsible for giving permission for public entertainments.
3. The requirement in Article 1(1) of the Crown Advocates (Jersey) Law 1987 of the Bailiff 's approval to the appointment of Crown Advocates should be repealed.

Answer

On 30th March 2011, the States Assembly held an In Committee' debate on the Carswell Review[1] following the presentation of R.28/2011 Review of the Role of Crown Officers ("Carswell Review")[2] by the Privileges and Procedures Committee on 14th March 2011.

Since that time, many of the recommendations have been considered and action taken (including by way of States questions, Propositions and debate) by individual States Members, Privileges and Procedures Committee, Ministers and the States Assembly.

The current status of the recommendations is as follows:

1. On the 29th and 30th of April 2014, this recommendation was considered when the States Assembly debated P.160/2013, Elected Speakerof the States Assembly', as amended. The States Assembly minutes of that date record:

"THE STATES resumed consideration of the proposition of the Connétable of St. Helier entitled Elected Speaker of the States' (P.160/2013), as amended, and rejected the proposition that from the date of retirement of Sir Michael Birt as Bailiff of Jersey, Recommendation 2 of the Review of the Roles of the Crown Officers (the Carswell Review'), namely that "2. The Bailiff should cease to act as President of the States and the States should elect their own President, either from within or from without the ranks of their members" should be implemented, subject to the approval of the public voting in a referendum to be held on 15th October 2014 on the question Should the Bailiff cease to be the President of the States?', provided that the referendum should not be held unless the States had already adopted legislation to give effect to the change which contained a commencement provision which specified that the legislation should automatically come into force if the change was supported by a majority of those voting in the referendum (subject to a minimum turnout threshold to be specified in the legislation) and should not come into force if it was not."[3]

On 24th May 2016, Deputy Tadier lodged P.54/2016 Bailiff of Jersey: Cessation of Dual Role and the Appointment of an Elected Speaker of the States'. Comments have been presented by the Privileges and Procedures Committee (P.54 Com./2016) and HM Attorney General (P.54 Com.(2)/2016) which it is anticipated will be debated by the States Assembly in due course.

2. On 27th May 2016 the Minister for Home Affairs lodged the draft Unlawful Public Entertainments (Jersey) Regulations 201-[4]. The Report noted:

"In December 2010, Lord Carswell's Review of the Roles of the Crown Officers (R.143/2010), recommended that "the Bailiff should cease to be responsible for giving permission for public entertainments" (Recommendation 6).

In April 2015, the States adopted the 7th amendment (P.27/2015 Amd.(7)) to the Draft Strategic Plan 2015 – 2018 (P.27/2015), agreeing to –

"Delegate authority to the Parish of St. Helier for the licensing of small-scale events within the parish, including in its public squares and precincts, after appropriate consultation with the relevant authorities and subject to all necessary safeguards, risk assessments being in place".

In June 2015, the States also agreed in principle that marriage should be allowed to take place in the open air and in public spaces (see P.65/2015).

In light of these decisions, work has now commenced on scoping an alternative route for the management and approval of entertainments and events in the public domain.

This is, however, a very significant piece of work, which interfaces with a number of other pieces of legislation; for example, the Road Works and Events (Jersey) Law2016 (L.11/2016). Hence, it is appropriate that these draft Regulations are enacted and brought into force to maintain the current position whilst this work is undertaken."

This work is ongoing.

3. P. 25/2015 Draft Crown Advocates (Amendment) Law 201-'[5] ("the Amendment Law") was lodged by the Chief Minister on 24th February 2015 and was approvedbytheStates Assembly on 14th April 2015. The Amendment Law, which came into force on 20th June 2015, amended the Crown Advocates (Jersey) Law 1987[6]. The Report to the Amendment Law provided that:

"The Legislation Advisory Panel, having consulted with the Attorney General and the Bailiff , has advised the Chief Minister to implement the recommendation of the Review of the Roles of the Crown Officers (the "Carswell Review") to remove the Bailiff 's veto under the principal Law in respect of the appointment of Crown Advocates. Consequentially, the draft Law also removes the Bailiff 's veto in respect of terminating the appointment of any Crown Advocate."

4. DEPUTYR.LABEYOFST.HELIEROFTHECHIEFMINISTERREGARDINGTHE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE ROLE OF THE LAW OFFICERS: [9573]

Question

What progress has been made to implement each of the following recommendations made by the Carswell Review of 2010 into "The Roles of the Crown Officers" and, if a decision has been taken not to implement any of the recommendations, how and when was that position adopted and by whom?

1. Procedures should be adopted to minimise the possibility of conflict arising from the advisory and prosecuting functions of H.M. Attorney General.
2. Ministers and government departments should disclose to Scrutiny panels legal advice received by them where it is possible to do so. If that is not possible, or if Scrutiny panels cannot obtain reasonably prompt advice from the Law Officers, they should be free to obtain independent advice.
3. H.M. Attorney General should continue to act as titular head of the Honorary Police until an appropriate substitute has been obtained.

Answer

1. The procedures referred to are a matter for the HM Attorney General. This question should therefore be directed to HM Attorney General.
2. The provision of legal advice is a matter for HM Attorney General. This question should therefore be directed to HM Attorney General.
3. It is important to recognise that, in the context of paragraphs 6.28 to 6.30 ofthe Review, it is clear that it did not recommend that the Attorney General should be replaced as the titular head ofthe honorary police. In particular, the Review made it clear that there was no difficulty in principle with the Attorney General continuing in his role in respect ofthe honorary police, including in relation to disciplinary matters. In this case there was, therefore, no recommendation to implement.

5. DEPUTYR.LABEYOFST.HELIEROFTHECHIEFMINISTERREGARDINGTHE RECOMMENDATIONS OF THE CARSWELL REVIEW REGARDING THE APPOINTMENT PROCESS OF THE BAILIFF AND CROWN OFFICERS: [9574]

Question

What progress has been made to implement each of the following recommendations made by the Carswell Review of 2010 into "The Roles of the Crown Officers" and, if a decision has been taken not to implement any of the recommendations, how and when was that position adopted and by whom?

1. The membership of the recommending panel for the appointment of the Bailiff and Deputy Bailiff should be augmented by the addition of two persons with substantial legal experience, one of whom should be from outside Jersey, to be appointed by the Lieutenant Governor
2. The membership of the recommending panel for the appointment of the Law Officers should be augmented by the addition of two members of the States, to be appointed by the States.
3. The Bailiff 's Consultative Panel should no longer be consulted about the appointment of the Crown Officers.

Answer

These recommendations will be addressed through the development of a proposal for the establishment of a Judicial and Legal Services Commission. This project is referred to at page 57 of the Draft Annex to the Medium Term Financial Plan Addition for 2017-2019. Officers within the Department for Community and Constitutional Affairs are currently developing this proposal, which it is expected will be the subject of public consultation in early 2017.

6. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR TREASURYAND RESOURCES REGARDING FUNDING MECHANISMS FOR THE PLANNED NEW HOSPITAL: [9576]

Question

What discussions, if any, have the Minister or the Department had with the Minister for Health and Social Services regarding funding mechanisms for the construction of the planned new hospital?

What consideration, if any, has been given to the introduction of a charge on taxpayers to pay for the new hospital? Are other funding mechanisms being investigated and, if so, what are they?

Answer

The replacement of the General Hospital has been a cross departmental project from the start. An officer group has met regularly to discuss and manage the project and a political group was created to agree policy decisions and receive updates on progress.

Responsibilities for different aspects of the project have been shared with Health and Social Services being responsible for the clinical needs and Treasury and Resources originally being responsible for delivery and funding. When Jersey Property Holdings moved to become the responsibility of the Department for Infrastructure, delivery responsibilities moved to them leaving funding as Treasury and Resources' responsibility.

As far as funding is concerned, until a preferred site was decided and therefore the sum of money required identified, the Deputy will appreciate that discussions have been limited to high level options at this stage. However, those options have been discussed and were, in fact, the subject of an oral question from Deputy Southern in February of this year.

A charge has been considered. Other options currently being modelled include the use of existing reserves, the potential sale of strategic assets and accessing the debt market.

7. DEPUTY S.Y. MÉZEC OF ST. HELIER OF THE MINISTER FOR SOCIAL SECURITY REGARDING INVESTIGATIONS INTO THE IMPACT OF AN INCREASE IN THE MINIMUM WAGE: [9577]

Question

Following the adoption on 20th January 2016 of Part (b) of Minimum Wage: revised hourly rate from 1st April 2016' (P.150/2015), could the Minister update the Assembly on what progress, if any, has been made in investigating the potential impact on the tax and benefits system of a significant rise in the minimum wage, and confirm whether or not she will be in a position to report back to the States on this matter by December 2016?

Answer

Work to date is proceeding as planned. As promised by the Council of Ministers in response to P.150/2015[7], the Statistics Unit included questions about the impact of a higher minimum wage in the Business Tendency Survey for the first quarter of 2016. In April 2016, the Minister directed the Employment Forum to consider – as part of its annual minimum wage review - the impact of a more significant minimum wage increase, specifically in relation to the aspiration of the States to reach 45 percent of mean weekly earnings by 2026. The Forum consulted in June and July and will deliver its recommendation to the Minister by the end of September. The Minister will then decide whether to accept the recommendation and will lodge any legislation for States debate at the earliest opportunity.

The outcomes of the Forum's review and data from the Business Tendency Survey will feed into the response to part (b) of P.150/2015. It is not anticipated at this time that the report to the States will be delayed. However, further discussions will be required to determine the terms of reference for any further investigations that might be required and to determine the priorities and resources of the Economics Unit in the last quarter of 2016.

8. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING POLICY IN RESPECT OF ORGAN DONATION: [9578]

Question

Will the Minister advise what work, if any, has been carried out following the adoption on 24th September 2013 of Part (b) of Organ Donors' Register' (P.89/2013) to review the current policy in respect of organ donations and to bring forward recommendations for improvement? What consideration, if any, has been given to an opt-out system of organ donation for Jersey?

Answer

Since the adoption of Part b) of P89/2013, a number of measures have been taken to increase organ donation on the island and to seek to create a more positive culture around the topic, such that families are aware of the wishes of a loved one to donate their organs. This has included local publicity to support national organ donor awareness events and campaigns and organ donor registration linked to Jersey driving licence applications via the parishes.

Also a new organ donation committee has been set up, chaired by the Hospital Managing Director. These meetings have been particularly successful in raising awareness of the opportunities for organ donation with clinical staff, with early referral where an opportunity for donation arises. The committee has also facilitated close relationships with the NHS Blood and Transplant Special Health Authority.

In terms of the opt-out system of organ donation we continue to follow with great interest developments in Wales with its soft opt-out' system introduced on 1 December 2015. The intention is to review the position once the Welsh scheme has been operating for a year or more. Other jurisdictions are adopting a similar watch and learn' approach – notably England, the jurisdiction through which most organs obtained from Jersey patients, or organs being donated to Jersey patients, are channelled.

Any move to adopt something like the Welsh system, however desirable, would of course have resource implications in terms of, for example, possible public consultation, communications, and law drafting time.

9. DEPUTY M. TADIER OF ST. BRELADE OF THE CHIEF MINISTER REGARDING THE POSSIBILITY OF INVITING LORD CARSWELL TO SPEAK TO MEMBERS BEFORE THE DEBATE ON P.54/2016: [9579]

Question

What steps, if any, were made to invite Lord Carswell to speak to Members ahead of the planned debate on Bailiff of Jersey: cessation of dual role and the appointment of an elected Speaker of the States' (P.54/2016)? When was correspondence sent, what did it say, and what was the outcome?

Answer

Lord Carswell was contacted in August in order to ascertain whether he would be willing to speak to States Members on this subject once again. Lord Carswell has kindly agreed to address States Members again, but due to other personal commitments, is only available to visit Jersey at the end of September or after the end of October.

I would hope to have an opportunity to discuss potential dates with both Deputy Tadier and with the Chairman of the Privileges and Procedures Committee before agreeing a final date with Lord Carswell. However, given the important debate on the Medium Term Financial Plan on the 27th September, the end of September is therefore not feasible.

10. DEPUTY M. TADIER OF ST. BRELADE OF H.M. ATTORNEY GENERAL REGARDING THE PROSECUTION OF PEOPLE CLAIMING TO BE MEDICINAL USERS OF CANNABIS: [9580]

Question

Will H.M. Attorney General state how many people claiming to be medicinal users of cannabis were prosecuted in 2015, if any? What were the sentences in such cases and what was the total known cost of those cases?

Answer

Under the Misuse of Drugs (Jersey) Law 1978, an assertion made by an accused that he or she was in possession of a controlled drug solely for medicinal purposes would not provide them with a defence.

Information of the nature envisaged by the question is not formally recorded either by the Law Officers' Department or the States of Jersey Police. In the time available, we have been able to identify two cases prosecuted in 2015 in which the suspects, when interviewed by the police, asserted that they used cannabis for medicinal reasons. Both cases were dealt with in the Magistrate's Court. In one, the court imposed a Community Service Order; in the other a Probation Order.

It is not practical to provide an estimate of the costs of bringing these two cases to court.

11. THE DEPUTY OF ST. OUEN OF THE MINISTER FOR HEALTH AND SOCIAL SERVICES REGARDING THE LIABILITY OF JERSEY STUDENTS FOR NHS CHARGES WHEN IN FURTHER EDUCATION IN THE U.K: [9581]

Question

In what circumstances, if any, would Jersey students following a course of further education be liable for NHS charges in either England, Scotland, Wales or Northern Ireland if they required:

1. Primary care services;
2. Accident and Emergency services;
3. Ongoing treatment for medical conditions present before commencing further education; or
4. Other hospital treatment.

Answer

As has been the practice for many years, Jersey students following courses of further education in the UK of six months or more are treated as though they are resident in the UK and therefore would only be subject to any NHS charges in the instances set out above where they are routinely applied to UK residents, such as prescriptions.

It is recommended that students should register with their university health centre when they enrol at university so they can access a GP (often based in the health centre) and receive an NHS number.

12. DEPUTY G.P.  SOUTHERN OF ST. HELIER OF THE MINISTER  FOR SOCIAL SECURITY REGARDING POSSIBLE IMPROVEMENTS TO MATERNITY LEAVE PROVISION: [9582]

Question

Given the statement in her response to Zero-Hour Contracts' (S.R.3/2016) that she wishes to prioritise further improvements in family friendly policies, will the Minister undertake to improve on "Family Friendly" and "1001 Days" initiatives by proposing to give employees the right to 26 weeks of maternity leave supported by maternity allowance paid for from contributions?

Since the debate on Maternity leave: rights of employees' (P.104/2014) in July 2014, has the Minister considered or consulted upon possible improvements in this area and, if so, will she report to Members the outcomes of any such consultation?

Answer

On 2 February this year, the Minister answered a similar question from Deputy Doublet as follows -

"I have said that I will direct the Employment Forum to review family friendly legislation later this year. This is confirmed in my department's business plan for 2016. The Forum will make recommendations to me following a period of public consultation and I will base my decisions on these recommendations. I have said on previous occasions that I would like to see a longer period of maternity leave, however we will develop the proposed scope of the Forum's review later this year. If Members have any suggestions they are welcome to contact me."[8]

The Minister's commitment to review the family friendly rights after one year in force is also recorded by the Health and Social Security Scrutiny Panel in the outcomes of its review of the family friendly legislation, as follows –

"The Panel has also been assured that the Amendment will be reviewed one year following its introduction to look at the overall impact and any areas that may need to be amended can be done through future regulations. The Panel has also agreed that within its legacy report, it will strongly recommend that the next HSSH Scrutiny Panel follow up on these assurances and ensure the necessary scrutiny is undertaken." In response to a number of questions in the States Assembly, the Minister has since confirmed that she intends to instruct the Forum to conduct this review." [9]

The Minister will not propose any changes to the legislation before the Forum's review has been completed. In accordance with the Department's business plan and the Minister's stated intentions, now that one year has passed since the amendment to the Employment Law came into force, the Minister has directed the Forum to review the existing family friendly employment rights with a view to extending them in a second stage of protection. The Forum has specifically been directed to consider extending the rights to provide a longer period of maternity leave. The Forum will start work on this review later this year, unless the Minister is required to re-direct the Forum to consult instead on other Employment Law changes.

At the Minister's request, the States of Jersey Statistics Unit included a number of questions relating to maternity, paternity and adoption leave in the Jersey Lifestyles and Opinions Survey' (JLOS) this year. The outcomes of that survey will be available in December 2016.

A major review of the Social Security scheme is underway and an initial public consultation is planned for later this year. The purpose is to place the Social Security fund on a sustainable footing for the future. The review will take several years to complete and it will seek to understand the extent to which people in Jersey value each benefit and the role each plays in supporting people with life's events. Maternity grant, adoption grant and the weekly maternity allowance currently cost around £2.5 million each year and are expected to be considered as part of this review.

13. DEPUTY G.P. SOUTHERN OF ST. HELIER OF THE CHIEF MINISTER REGARDING THE IMPACT OF MTFP SAVINGS PROPOSALS ON NEGOTIATIONS AND POLICY IN RESPECT OF SALARIES FOR NEWLY QUALIFIED TEACHERS: [9583]

Question

Will the Chief Minister explain why savings of £240,000 in 2018 and £480,000 in 2019 have been included in the MTFP Addition to be produced from changes to Newly Qualified Teachers' (NQT) salaries, given that any such changes to salaries must be subject to collective bargaining with teachers' representatives and no such negotiation has taken place?

How much freedom for each side to negotiate openly will there be if the savings are adopted by the Assembly, given that savings will need to be found elsewhere  if they are not delivered from salaries?

Has there been a change of policy away from free collective bargaining with employee representatives to the imposition of pay awards?

Answer

A review of NQT salaries was identified as an area for potential savings in the MTFP. There is a noted differential between NQT salaries paid outside of Jersey compared to those within and it is appropriate to consider this area as a possible source of savings.

Like all reward structures, the Teachers salary structure is subject to collective bargaining with our recognised Trade Unions. The NQT element of that structure is no different. Any proposals to amend that structure will be dealt with by collective bargaining using the Framework Machinery in place, with the outcome subject to be approved by SEB before any implementation. This was noted in a meeting with teaching unions (Education Consultative Council) from 6th June 2016, whereby the NASUWT raised a concern insofar as any changes to the pay scales would require consultation and negotiation to take place. This was acknowledged and minuted in the meeting.

The States Employment Board (SEB) has and continues to negotiate with its employees within both its agreements with its recognised Trade Unions and cash limits set by the States Assembly from time to time. When, after extensive negotiation and consultation, agreements cannot be reached, all parties need to consider their options, including any alternative savings which would need to be notified to the Assembly

Occasionally, the best outcome for all the workforce, not just union members, is the implementation of a proposal /outcome. This is especially true when the proposal results in an improvement or betterment for the workforce in its pay, terms and conditions. The SEB remains fully committed to collective bargaining both today and in the future.

14. DEPUTY G.P.  SOUTHERN OF ST. HELIER OF THE MINISTER  FOR SOCIAL SECURITY REGARDING THE DEPARTMENT'S USE OF AGENCY WORKERS BETWEEN 2009 AND 2016: [9584]

Question

Will the Minister detail the Department's use of agency workers over the period 2009 to 2016, to include the following?

1. The number of posts filled by agency workers each year.
2. The titles of those posts and a description of the duties of each.
3. Whether the posts were full-time or part-time and, if the latter, the hours ofworkthat were required.
4. The length of the contracts provided and the length of time each agency worker remained in the Department.

5. The number of such agency workerswhosubsequentlytransferredto full-time employment with the Department.
6. Thetotal cost per post if there were direct employment to the post, broken down by element (salary, Social Security contributions, PECRS contributions), compared tothetotalcostper post of salary and agency fees where an agency worker has been used.

Answer

Temporary staff are engaged by the Department to cover short-term fluctuations in workloads, to support initiatives and projects, or where permanent need or funding has not yet been established e.g. piloting new approaches to improve service. Through this approach the Department has been able to improve customer service, pilot new innovations and develop the Back to Work programme. This has proved to be a successful way of working and many of the temporary workers have secured employment in the Department subsequently.

Temporary workers are not employed by the Department – they are employed directly by the Recruitment Agencies. Their contractual arrangements are a matter for the Recruitment Agency and the individual.

At the Social Security Department, temporary staff are not engaged through an agency with the intention that they will remain on an assignment for extended periods of time of a year or more. However, in some cases, the initial temporary assignment may unexpectedly need to be extended. For example, if the post-holder is on sick leave longer than expected, if the duration of a project has to be extended, or if the person is offered a further temporary assignment to deal with a different project within the Department. A rigorous vacancy management process takes place before seeking to engage temporary staff.

Responses have been provided using available data, and where the number of individuals in these groups is so small (less than five) that disclosure could lead to individuals being identified, the totals have been grouped together.

1. Between  January  2014  and  July 2016  the  Department  engaged  142  different  individuals through Temporary Recruitment Agencies.
2. The table below provides a breakdown ofthe142 individuals engaged as temporary workers between January 2014 and July 2016 by the initial assignment the individual was recruited for only and does not account for changes in activity, i.e. if an individual moved from a Back to Work project to support an Administration assignment, then this would only be counted as Back to Work.

3. Most assignments for Temporary Agency workers are for 37 hours per week.
4. At the end of July 2016 the Department was engaging 34 staff through Temporary Recruitment Agencies. The periods workedintheDepartmentis provided in the table below and may cover multiple roles.

5. At the end of July 2016 approximately 1 in 4 ofthe current permanent or fixed term contract staff  working  in  the  Social  Security Department  had  previously  been  engaged  through  a Temporary Recruitment Agency.
6. Currentweeklycostsare provided inthe table below for comparison basedon a grade7/0post for 37 hours per week.

15. DEPUTY M. TADIER OF ST. BRELADE OF THE MINISTER FOR EDUCATION REGARDING GCSE RESULTS IN JERSEY'S NON-FEE-PAYING 11-16 SCHOOLS: [9585]

Question

Will the Minister provide a breakdown of GCSE results per school for the 4 non-fee-paying 11-16 schools in Jersey and state how they compare with the results in such schools in the UK?

Answer

The breakdown of entries into full course GCSE examinations by grade by achieved in 2015/2016 is presented below. These results are only provisional at this stage and reflect data submitted by schools on exam day.

The Education Department Insight team is currently validating the provisional GCSE results and conducting analyses. Later this term, indicators such as the percentage of pupils achieving 5+ GSCE examinations at grades A* to C including English and Maths and progress measures such as Best 8 Value Added will be available by school and by pupil group.

A full analysis of KS4 data will be conducted subsequently, once resits and appeals have taken place. A statistical publication on GCSE performance in Jersey will be published in March 2017.

Results data for schools in England is not available at this stage. UK secondary school performance tables for 2015/2016 will not be released until January 2017.

16. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND  RESOURCES  REGARDING  A  STATISTICAL  BREAK-DOWN  OF TAXPAYERS: [9586]

Question

Will the Minister, by way of a table and graph, advise Members in respect of income tax for each year between 2008 and 2015 (or the last year for which full figures are available):

(a)

1. The total number of taxpayers in each year;
2. The number of taxpayers who paid tax at the marginal rate;
3. The number of taxpayers who paid tax at the 20% rate.

(b)

1. The percentage of the total personal income tax take paid by taxpayers in the marginal band;
2. The percentage of the total personal income tax take paid by taxpayers on the 20% rate.

(c)

1. The average rate of tax paid by those in the marginal band;
2. The average rate of tax paid by those on the 20% tax rate.

(d) The number of taxpayers in each year who paid no tax.

Answer (a)

NUMBER OF PERSONAL TAX PAYERS 2008 - 2014

45,000 40,000 35,000 30,000 25,000 20,000 15,000

Marginal Standard

10,000 5,000 0

2008 2009 2010 2011 2012 2013 2014

Notes:

1. A Personal Taxpayer is defined as an individual/married couple/civil partnership that pays tax,basedon their own liability, in Jersey, for the year. Personal Taxpayers whose liability was less than £50 are counted as Personal Non-Taxpayers. This is consistent with the Taxes Office historical position on gathering tax data.
2. Over the period covered by this question the number of standard rate taxpayers has decreased and the number of marginal rate taxpayers has broadly increased by the same number, this transfer between categories is due to a combination of factors which include:-
   1. The  effects  of  the  "20-means-20"  policy  implemented  between  2007  and  2011  where allowances were gradually withdrawn from standard rate taxpayers (meaning that some of those taxpayers whose income was just sufficient to make them standard rate taxpayers in 2006 (when full allowances were available) will have become marginal rate taxpayers as the allowances were withdrawn from standard rate taxpayers
   2. The reduction in the marginal rate of tax in 2014 from 27% to 26%
   3. The increases in the exemption thresholds over the relevant period
   4. The increase in higher child allowances available to marginal rate taxpayers with children attending higher education introduced in Budget 2014
3. Despite this transfer between categories, the proportion of income tax paid by the top quintile of taxpayers has remained consistent over the period.

(b)

Percentage of total Income Tax Paid By Marginal and Standard Tax payers

65

60

55

50

45

40

35 Marginal 30

25 Standard 20

15

10

5

0

2008 2009 2010 2011 2012 2013 2014

Notes (continued):

4. The gradual increase in marginal rate taxpayers over the period (see (a) above) will have a corresponding effect on the percentage oftotal personal income tax paid by marginal rate taxpayers.

(c)

AVERAGE RATE OF TAX PAID 2008 - 2014

20.0

15.0

0. Marginal Standard

5.0

0.0

2008 2009 2010 2011 2012 2013 2014

Notes (continued):

5. The average rateoftax paid for each specific taxpayer is calculated by reference to the total income (including taxed at source income) and the tax payable (the amount the taxpayer is required topay after all tax credits have been deducted).
6. The average rateoftaxpaidbymarginalrate taxpayers has gradually increased over the period, this has been predominantly causedby some taxpayers with higher incomes transferring from being a standard rate taxpayer to a marginal rate taxpayers (see the explanation for whythishas occurred in (a) above).

(d)

NUMBER OF NON-TAXPAYERS 2008 - 2014

20,000 15,000 10,000 5,000 0

No tax

2008 2009 2010 2011 2012 2013 2014

Notes (continued):

7. A Personal Non-Taxpayer is defined by the Taxes Office as an individual/married couple/civil partnership who has completed an income tax return and does not have a positive income tax liability for the tax year, based on the income, allowances, reliefs and deductions for the year. The data above does not therefore include individuals/married couples/civil partnerships that do not receive a tax return (such as students that register  for holiday job purposes only and therefore have annual income well below the exemption threshold and other members ofthe population where their income has consistently been below the exemption threshold and their specific circumstances dictate that it is unlikely they will pay tax in the future).
8. The number of "non-taxpayers" (in accordance with the current Taxes Office definition set out above) will vary for a number of reasons which include:

• Annual changes to the income tax thresholds approved by the States in the annual Budget process
• Targeted use of resources by the Taxes Office to reduce the number of taxpayers that receive a tax return each year. When resource is available the Taxes Office will review cases  where  the  taxpayer's  income  has  been  consistently  below  the  tax  exemption thresholds and is likely to remain that way. The last such review will have impacted on the 2014 figure shown above.

Additional Notes:

1. The data provided is by reference to each year of assessment.
2. Data based on the 2015 year of assessment will not be available until 2017
3. Personal Taxpayers and Personal Non Taxpayers include

• Single individuals.
• Married couples / civil partnerships that have not opted for separate assessments (counted as one Personal Taxpayer or one Personal Non- Taxpayer).
• Married couples / civil partners that have opted for separate assessments (counted as two Personal Taxpayers or two Personal Non-Taxpayers).

4. Non resident personal taxpayers and non-taxpayers are excluded.

17. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE CHIEF MINISTER REGARDING FUND MANAGEMENT COMPANIES IN JERSEY: [9587]

Question

Will the Minister advise Members for each year between 2008 and 2015 of:

1. the number of Fund Management Companies established in the Island, breaking them down between those directly operating in the Island and those operating indirectly through Jersey- based sub-contractors;
2. the total amount of funds managed by those operating directly and those operating indirectly through sub-contractors; and
3. the amount oftax received from those operating directly and those operating through sub- contractors.

Answer

The Chief Minister's Department and the Jersey Financial Services Commission (JFSC) are working together in order to provide accurate information in relation to question (a) above. However, in the short time available and due to the complexity of the question (which you will note below), it has not been possible to extract the necessary data. As and when the information becomes available, and to the extent it is available, this will be provided to States Members.

It should also be noted that answers to questions (b) and (c) rely on question (a) being answered first. Again, as and when the information becomes available for these questions, and to the extent it is available, this will be provided to States Members.

The reason for the delay in responding to you is because the JFSC do not report on the data referred to in the question. The JFSC have the information in their systems, but need to extract it and manually write the reports which we can use to respond.

Technical background and assumptions to the response to the question

A person shall not carry on financial service business in or from within Jersey and, a person being a company incorporated in Jersey shall not carry on such business in any part of the world, unless the person is for the time being a registered person under Financial Services (Jersey) Law 1998 (FS(J)L), and acting in accordance with the terms of his or her registration. Accordingly, the test is not whether or not a person is "established" and "operating" in Jersey, but whether or not a person carries on one or more classes of financial service business in or from within Jersey or, in the case of a Jersey company, carrying on such a business in any part of the world (noting that a Jersey company is required to have a registered office in Jersey and would therefore be conducting such business in or from within Jersey).

A person carries on financial service business if by way of business the person carries on investment business, trust company business, general insurance mediation business, money service business, fund services business or AIF services business. These six main categories of financial services business are broken down into various activities, which if carried on by a person in or from within Jersey, would amount to that person undertaking one or more of the main categories of financial service business. For example, Article 2(10) of the FS(J)L provides that a person carries on fund services business if by way of business the person is:

1. a manager, managerof a managed entity, administrator, registrar, investment manager or investment adviser;
2. a distributor, subscription agent, redemption agent, premium receiving agent, policy proceeds paying agent, purchase agent or repurchase agent;
3. a trustee, custodian or depositary; or

4. a member (except a limited partner)of a partnership, including a partnership constituted under the law of a country or territory outside Jersey,
5. in relation to an unclassified fund or an unregulated fund.

As can be noted from the above, there are many technical terms set out in the FS(J)L. However, "Fund Management Company" is not one of them. Jersey does recognise terms such as Manager, Investment Manager, Investment Adviser, AIFM and GP which we traditionally think of as acting in "a Manager like" capacity and they could be established in any form (for example, not only companies but also partnerships). Therefore, in preparing for a response to part (a) of this question, we are likely to assume that the reference to "Fund Management Company" means any person that is authorised to carry on fund services business as a "manager" as per Article 2(10)(a) of the FS(J)L (see above). In addition, we are likely to also assume that the reference to "operating indirectly through a sub-contractor" means a managed entity that relies on a person who is registered to carry on fund services business as a manager of a managed entity (see Article 2(10)(a) above).

Finally, the FS(J)L has a number of exemptions to the requirements of the Law. The Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014 is one such exemption and enables Jersey-regulated fund managers to service qualifying segregated managed accounts ("QSMAs") without the need for further regulation in Jersey. As QSMAs are not unclassified funds or unregulated funds (ie there is no collective investment of capital), these accounts will not be included in our response to question (b). In any case, data on the value of QSMAs can be found on the JFSC's website:

http://www.jerseyfsc.org/investment_business/statistics/totalfundsunderinvestmentmanagement.asp

18. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING FINANCIAL SERVICES BUSINESSES WHICH DO NOT PAY TAX: [9588]

Question

Will the Minister provide Members with the number and type of financial services businesses who pay no tax on their business profits and explain the reasons why they do not do so?

Answer

In order to answer the Deputy 's question I have assumed that when referring to financial services businesses he is referring to those businesses that come under the regulation and supervision of the Jersey Financial Services Commission.

These are listed on their website as follows:-

• Banking
• Collective Investment Funds
• Fund Services Businesses
• Insurance Business
• General Insurance Mediation Business
• Investment Business
• Money Services Business
• Trust and Company Service Providers

Where any of these businesses are run through a company, the Jersey Income Tax Law is very specific in what is subject to tax at 10% and, therefore, very specific about what is subject to tax at 0%. This is determined by the specific registrations or permits held in respect of the Financial Services (Jersey) Law 1998, the Banking Business (Jersey) Law 1991 and the Collective Investment Fund (Jersey) Law 1988 and whether or not the company has a permanent establishment in Jersey.

Those businesses listed above that would pay at 0% (assuming in corporate form) would include:-

• Fund Service Businesses (including fund management) where their business does not require them to be registered as an administrator or custodian in relation to an unclassified fund or an unregulated fund
• Insurance Business (where this does not include any registered investment business) – typically general insurance business
• General Insurance Mediation Business
• Money Services Business
• Any financial services business that does not have a permanent establishment in Jersey

It is not possible to provide numbers in respect of each type of financial services business that pays tax at 0%. This would need intricate comparison and analysis of Jersey Financial Services Commission and Taxes Office data which would require significant resource.

With regard to the Deputy 's final question he will recall that at the time that zero-ten was introduced it was essential, in order to avoid being in conflict with the EU Code Group's criteria for harmful taxation, that zero had to be the standard rate of corporate income tax applied in the Island, meaning that the majority of companies and the majority of profits had therefore to be taxed at zero percent. Jersey's approach was to ensure that these criteria were met, whilst raising revenue from the financial services industry by applying an internationally competitive 10% rate to specified sectors of that industry.

The Deputy may find the statement reproduced from P168/2006 Draft Income Tax (Amendment No 28)(Jersey) Law- of interest:-

"3.2 Special rate of corporate tax of 10%

3.2.1 A certain and very restricted sector of the Jersey resident corporate sector will be charged at a special corporate tax rate of 10%. They will be specified financial services companies such as banks and trust companies which will be defined as any company licensed, registered or authorised under specified sections of the Financial Services (Jersey) Law 1998, the Collective Investments Fund (Jersey) Law 1988 or the Banking Business (Jersey) Law 1991. The 10% rate will ensure that the financial services industry continues to pay substantial amounts of tax revenues. This is considered acceptable in meeting the criteria of the EU Code of Conduct on Business Taxation, as it is a feature of the way that the EU interprets its approach on harmful tax practices that assessing one – limited – sector at a higher rate of corporate tax (10%) than the general rate (0%) is acceptable."

19. DEPUTY M.R. HIGGINS OF ST. HELIER OF THE MINISTER FOR TREASURY AND RESOURCES REGARDING THE TAXATION OF FINANCIAL SERVICES BUISNESSES: [9589]

Question

Will the Minister advise Members for each year between 2008 and 2015 (or the last year for which full figures are available) of the number of financial services businesses that are paying tax at the 10% rate and of the amount of tax they generated, and explain why there have been changes during that period in the number of firms paying at the 10% rate and in the tax take?

Answer