States Minutes 4th December 1990

STATES MINUTES 4 t h D ecember, 1990 P r ic e : # 1 .0 0

 THE STATES assembled on Tuesday,  4th December, 1990 at 10.00 a.m. under  t he Presidency of the Bailiff ,

S i r Peter Crill, C.B.E.

_ _ _ _ _ _______

 His Excellency the Lieutenant Governor,   Air Marshal Sir John Sutton, K.C.B.,

w a s p r esent.

_ _ _ _ _ _______

All Members were present with the exception of -

P ercy John Le Masurier, Deputy of St. O uen - out of the Island.

_ _ _ _ _ _______

P r a y e rs  

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Deputy H.L. Dubras of St. Martin - welcome

The Bailiff , on behalf of the

States, welcomed Deputy Henri Leon Dubras of St. Martin on his return to the States

after his recent illness.

Subordinate legislation tabled

The following enactments were laid before the States, namely -

 1 .  Post Office (General Provisions)

( A m endment No. 31) (Jersey) Order 1 9 9 0. R & O 8134

 2 .  Health Insurance (Pharmaceutical B e n efit List) (Amendment No. 7) ( J er sey) Order 1990. R & O 8135

3 .  Health Insurance (Pharmaceutical

B e n efit) (General Provisions)

( A m endment No. 34) (Jersey) Order 1 9 9 0. R & O 8136

 4 .  Road Traffic (Public Parking

P l a ces (Amendment No. 18) (Jersey) O  rd er 1990. R & O 8137

 5 .  Road Traffic (St. Lawrence)

( A m endment) (Jersey) Order 1990. R & O 8138

 6 .  Road Traffic ( St. Saviour )

( A m endment No. 9) (Jersey) Order 1 9 9 0. R & O 8139

 7 .  Road Traffic ( St. Brelade )

( J er sey) Order 1990. R & O 8140

 8 .  Fire Service (General Provisions)

( A m endment No. 14) (Jersey) Order 1 9 9 0. R & O 8141

Contingencies vote of credit: Public Services Committee

THE STATES noted that an Act of the Finance and Economics Committee dated 26th November 1990, informing the States that it had made available to the Public Services Committee the sum of #150,000 from the contingencies vote of credit for the

purchase of a prefabricated building as temporary accommodation for the Immigration Department.

Matters noted - land transactions

THE STATES noted an Act of the

Finance and Economics Committee dated 26th November 1990, showing that in pursuance of Standing Orders relating to certain transactions in land, the Committee had approved -

 ( a) as recommended by the

H  o using Committee, the lease to J e rs ey Women's Refuge of No. 6, P l a isance Terrace, La Route du

F o r t, St. Saviour, for a period of

f iv e years from 3rd October 1990, a t a n annual rent of #1, with the

t o ta l sum of #5 being paid in one s u m in advance;

 ( b) as recommended by the

H o using Committee, the purchase f ro m Mr. Henry Francis Pezet of

t h e fonds of the private road at

F i e ld 1311, Mont au Prêtre, St.

H  el ier, for a consideration of

# 5 8 ,000, with the Committee being

r e sp onsible for the payment of all

l e ga l fees;

 ( c) as recommended by the Public

H  ea lth Committee, the assignment

o f t he lease from A.C. Mauger

L i m ited of the two-bedroomed

p r o perty, La Cachette, Route de

C a t illon, Grouville , owned by Mrs. A  n ne Dorothy Taylor , nee

B r o oksbank, for the period from

2 6 t h November 1990 until 21st

D  ec ember 1991, at an annual rent

o f # 8,000, required for occupation

b y essential employees;

 ( d) as recommended by the Public

S e r vices Committee, the purchase f ro m Mr. William John Morvan of 9 5 0 square feet of land forming

p a r t of the site of the Norfolk

L o d ge Hotel at the junction of

Q  u een's Road and Rouge Bouillon, S t . Helier, required for road

i m p rovement purposes, for a

c o n sideration of #23,000, with the C o m mittee being responsible for

a c c ommodation works and the

p a y ment of all legal fees, subject

t o t he work being completed by

1 5 t h March, 1991.

Matters lodged

The following subject was lodged au Greffe'' -

D raft Amendment (No. 13) of the

S tanding Orders of the States of

J ersey (P.176/90): amendment. P.190/90 D eputy R.E.R. Rumboll of St.

H elier.

The following subjects were lodged

au Greffe'' on 27th November 1990 -  1 .  Committee Presidents: election p r o cedure. P.187/90

P r e sented by the House

C o m mittee

 2 .  Draft Road Traffic (No. 38) ( J er sey) Regulations 199 .

P . 1 88/90

P r e sented by the Defence

C o m mittee

 3 .  Draft Milk (Sale to Special

C l a sses) (Amendment) (Jersey) R e g ulations 199 . P.189/90

P r e sented by the Social

S e c urity Committee

Draft Amendment (No. 13) of the Standing Orders of the States of Jersey. P.176/90. Deferred.

THE STATES agreed to defer

consideration of the draft Amendment

(No. 13) of the Standing Orders of the

States of Jersey (lodged on 6th November 1990) from the present Sitting to a later

date as Deputy Robin Ernest Richard Rumboll of St. Helier had lodged an amendment (P.190/90).

Draft Terms of Employment (Jersey) Law 199 . P.116/90. Deferred

THE STATES acceded to the request of the President of the Industrial Relations Committee that consideration of the draft Terms of Employment (Jersey) Law 199 (lodged on 7th August 1990) be deferred from 11th December 1990 to a later date.

Queen's Road/Rouge Bouillon roundabout: purchase of land. P.165/90. Withdrawn

THE STATES noted that the President

of the Public Services Committee had withdrawn the proposition relating to the purchase of land in connexion with the Queen's Road/Rouge Bouillon roundabout (lodged on 23rd October 1990).

Arrangement of Public Business for the present Sitting

THE STATES confirmed that the following further subjects lodged au Greffe should be considered at the present

Sitting -

D raft Amendment (No. 12) to the Tariff

o f Harbour and Light Dues. P.179/90

L odged: 20th November 1990.

H arbours and Airport Committee

D raft Boats and Surf-Riding

( Control) (Amendment No. 7) (Jersey) R egulations 199 . P.180/90

L odged: 20th November 1990.

H arbours and Airport Committee

D raft Harbours

( Amendment No. 19) (Jersey)

R egulations 199 . P.181/90

L odged: 20th November 1990. H arbours and Airport Committee

D raft Health Insurance (Medical

B enefit) (Amendment No. 37) (Jersey) R egulations 199 . P.182/90

L odged: 20th November 1990.

S ocial Security Committee

D raft Family

A llowances (Amendment No. 4) (Jersey) L aw 199 . P.185/90

L odged: 20th November 1990.

S ocial Security Committee

Arrangement of Public Business for next Sitting on 11th December 1990

THE STATES confirmed that the following further subjects lodged au Greffe should be considered at the next Sitting on 11th December 1990 -

C ommittee Presidents: election p rocedure. P.187/90

L odged: 27th November 1990. H ouse Committee

D raft Road Traffic

( No. 38) (Jersey) Regulations 199 . P .188/90

L odged: 27th November 1990

D efence Committee

D raft Milk (Sale to

S pecial Classes) (Amendment) (Jersey) R egulations 199 . P.189/90

L odged: 27th November 1990

S ocial Security

C ommittee

Shephard Hill and Company Limited - Queen's Valley reservoir. Statement

Senator John William Ellis, States

Director and Deputy Chairman of the Jersey New Waterworks Company Limited made a statement in the following terms -

  On Monday, 26th November the Jersey  N ew Waterworks Company was informed  t hat Barclays Bank Plc., in England

 h ad appointed an administrative

 r eceiver of Shephard Hill and Company

 L imited, on that day. Press reports

 s uggest that the financial

 d ifficulties of Shephard Hill were

 t riggered by the insolvency of a

 S wedish Bank.

T he directors immediately put in hand t wo plans of action which were pursued h our by hour with the utmost urgency.

F irstly the Company sought a meeting w ith the receiver. The Company's

p referred option was that Shephard

H ill would complete the contract that i t had concluded with the Company.

S econdly the Company sought

o ther contractors who would continue t he work in the event of the receiver a bandoning the contract.

T he Chairman, the managing director

a nd I together with other directors

a nd our professional advisers met the

r eceiver at 3.15 p.m. on Thursday,

2 9th November and he informed us that S hephard Hill had served redundancy

n otices on the employees and that they w ould not continue the contract. As

r equired by the contract the Company g ave immediate notice to Shephard Hill t hat they would after seven days enter u pon the site and expel Shephard Hill.

T he Company immediately put into

e ffect its contingency plan. Two

s enior executives of M.J. Gleeson

G roup Plc., flew to Jersey during the

e vening of Thursday, 29th November to i mplement the contingency plan

p reviously agreed at a meeting which I h ad attended with other directors and

o ur professional advisers.

A part from Shephard Hill, M.J. Gleeson h ad submitted the lowest tender for

t he original contract and have

t herefore detailed knowledge of the

w ork. They are a large firm of civil

e ngineering contractors and the

c ompany and it advisers are confident

t hat they can complete the work on the r eservoir. The work will be carried

o ut on a cost plus basis until 31st

D ecember and a new contract will be

n egotiated during December with M.J. G leeson.

T he results of these arrangements will b e that the momentum will not be lost a nd any delay should be limited. In

a ccordance with normal practice the C ompany has taken out a performance b ond for #1.245 million being 10 per c ent of the contract price. The

C ompany hopes and believes that this b ond, and the value of the work in

p rogress, will contain, or

s ubstantially contain, the additional

c osts that will inevitably be

i ncurred.

M uch was achieved last week.

U nfortunately I have another

d evelopment to report. On Saturday,

1 st December a small number of

p rincipal suppliers who are creditors

o f Shephard Hill informed the Company t hat one or possibly more of them

w ould not supply Gleesons unless

J ersey Waterworks paid the amounts due t o them by Shephard Hill. The Company h opes that this attitude is limited to

o ne or two or a very small number of

t he principal creditors.

T he creditors of Shephard Hill are

n ot entitled to be paid anything by

J ersey Waterworks in law or in equity. T hey have a claim against the

r eceiver. If the directors made these

p ayments they would have to pay all

t he creditors and they would be in

b reach of their fiduciary

r esponsibilities. These substantial

a dditional costs would have to be

p rovided by the water consumers and t his also is an arrangement which

c annot be contemplated.

T he Company deplores this initiative

o f a small number of creditors of

S hephard Hill who are able to put in

j eopardy the difficult and delicate

n egotiations so successfully concluded b y the Company. The continuing

e mployment of some 150 men is at risk a s is the continuing development of

t he project. We hope when the Boards

o f the companies concerned have

c onsidered the issue wiser counsel

w ill prevail.

T he Company continues to be active h our by hour in dealing with the

m atters that this statement brings to y our notice.

BUDGET 1991

THE STATES commenced the

consideration of the Budget for the

financial year commencing 1st January 1991, which in accordance with Article 16 of the Public Finances (Administration) (Jersey) Law 1967, as amended, had been presented to the Assembly on 13th November 1990, by the Finance and Economics Committee and comprised -

 ( i) the estimate of the revenue

e x penditure and of the income of t h e committees of the States;

 ( ii)  the estimate of the

t ra n s a ctions of the capital f u n d ; and

 ( iii) the Report of the Finance and E c o n o mics Committee thereon.

THE STATES, having considered the estimates of the revenue expenditure and of the income of the various committees, decided to allow the said estimates as detailed in the undermentioned pages of the Budget as follows -

P olicy and Resources Committee - Pages 2 and 3.

F inance and Economics Committee - P ages 2, 3, 4, 5, 6, 7, 8, 9, 10 and

1 1.

D efence Committee - Pages 12, 13, 14 a nd 15.

P ublic Services Committee - Pages 16, 1 7, 18, 19, 20 and 21.

E ducation Committee - Pages 22, 23, 2 4, 25, 26, 27, 28, 29, 30, and 31.

P ublic Health Committee - Pages 32, 3 3, 34 and 35.

A griculture and Fisheries Committee - P ages 36 and 37.

T ourism Committee - Pages 38 and 39.

S ocial Security Committee - Pages 40 a nd 41.

I sland Development Committee - Pages 4 0 and 41.

H ousing Committee - Pages 42 and 43.

E stablishment Committee - Pages 44 and 4 5.

P rison Board - Pages 46 and 47.

F ort Regent Development Committee - P ages 46 and 47.

E tat Civil Committee - Pages 48 and 4 9.

C ottage Homes Committee - Pages 48 and 4 9.

G ambling Control Committee - Pages 48 a nd 49.

L egislation Committee - Pages 50 and 51.

O verseas Aid Committee - Pages 50 and 5 1.

B roadcasting Committee - Pages 50 and 5 1.

I ndustrial Relations Committee - Pages 5 0 and 51.

O ccupation and Liberation Committee - P ages 52 and 53.

H ouse Committee - Pages 52 and 53.

H arbours and Airport Committee - La

C ollette Reclamation Scheme - Pages 52 a nd 53.

T RADING COMMITTEES

H arbours and Airport Committee - Pages 5 4 and 55.

T elecommunications Board - Page 56.

Committee for Postal Administration - P age 57.

THE STATES, referring to the summary of income and revenue expenditure appearing on page 65 agreed the total revenue

expenditure in the sum of #291,480,200; the total income from committees in the sum of #154,263,900 and having allowed for a balance in hand at 31st December, 1990 of #7,602,600 agreed the amounts to be transferred to the strategic reserve, accumulated reserve and general reserve in the sums of #10,000,000, #2,000,000 and #28,650,000 respectively.

THE STATES noted that on the basis of levels of taxation proposed by the Finance and Economics Committee the surplus on the revenue account to be transferred to the capital fund amounted to #42,772,300.

Having allowed for a balance of #39,938,800 to be brought forward at 1st January, 1991, and taking into account the capital repayments of #13,600,000 the States noted that there would be available in the

capital fund the sum of #96,311,100. The States then proceeded to consider the estimates of capital expenditure recommended by the Finance and Economics Committee on pages 58, 59 and 60 of the Budget and -

N ON-TRADING COMMITTEES

T he estimate of the capital

e xpenditure of the Finance and

E conomics Committee appearing on page 5 8 of the Budget was allowed.

T he estimate of the capital

e xpenditure of the Defence Committee a ppearing on page 58 of the Budget was a llowed.

T he estimate of the capital

e xpenditure of the Public Services

C ommittee appearing on page 58 of the B udget was allowed.

T he estimate of the capital

e xpenditure of the Education Committee a ppearing on page 58 of the Budget was a llowed.

T he estimate of the capital

e xpenditure of the Public Health

C ommittee appearing on page 59 of the B udget was allowed.

T he estimate of the capital

e xpenditure of the Island Development C ommittee appearing on page 59 of the B udget was allowed.

T he estimate of the capital

e xpenditure of the Housing Committee a ppearing on page 59 of the Budget was a llowed.

T he estimate of the capital

e xpenditure of the Establishment

C ommittee on page 59 was allowed.

T he estimate of the capital

e xpenditure of the Fort Regent

D evelopment Committee appearing on p age 59 of the Budget was allowed.

T RADING COMMITTEES

T he estimate of the capital

e xpenditure of the Harbours and

A irport Committee appearing on page 60

o f the Budget was allowed.

T he estimate of the capital

e xpenditure of the Telecommunications B oard appearing on page 60 of the

B udget was allowed.

THE STATES having terminated the discussion on the capital estimates noted that the

amount to be voted from the Capital Fund

was #65,479,000.

THE STATES considered the estimates of income to be produced from taxation appearing on page 63 of the Budget and agreed the estimate as follows -

# #

Impôts on spirits  4,908,000

Impôts on wines 2 ,717,000 Impôts on tobacco  4,168,000 Impôts on beer 1 , 829,000

Impôts on motor fuel 1,627,000

Goods imported into the Island 337,000 15,586,000

Income tax 1 9 6 , 2 0 0 ,0   00

Motor tax 1 ,2 5 0 , 0 0 0  

THE STATES adopted in second reading a Bill to continue certain expiring fiscal Laws;

to prescribe the standard rate of income

tax for the year nineteen hundred and ninety-one; to amend further the law

relating to income tax to increase personal allowances and reliefs, and with respect to contracts of private medical insurance, and approved annuity contracts; and to increase wines and spirits duty, beer duty and

tobacco duty.

The said Bill was lodged au Greffe''.

THE STATES, in pursuance of Article 25 of the Public Finances (Administration) (Jersey) Law 1967, as amended, have declared that the Bill to continue expiring fiscal Laws; to prescribe the standard rate of income tax for the year nineteen hundred and ninety-one; to amend further the law relating to income tax to increase personal allowances and reliefs, and with respect to contracts of private medical insurance and approved annuity contracts; and to increase wines and spirits duty, beer duty, and tobacco duty (which Bill has this day been lodged au Greffe''), shall immediately have effect as if it were a law passed by

the States and sanctioned by Her Majesty in Council.

THE STATES having terminated the discussion on the Budget agreed the summary of the estimated income and revenue expenditure

for 1991 appearing on page 65 of the Budget

as follows -

INCOME

# # #

  Committees   1 5 4 , 2 6 3 ,9   00

  Taxation 2 1 3 , 0 3 6 ,0

  00

  3 6 7 , 2 9 9 ,9     00

DEDUCT

  Revenue expenditure 2 9 1 ,4 8 0,2  00

  7 5 , 8 1 9 ,7 0     0

ADD

  Estimated balance in hand at

 1st January 1991. 7 , 6 0 2 ,6 0

  0

  8 3 ,4 2 2 , 3 0     0

APPROPRIATION TO RESERVES

  Strategic reserve 1 0 , 000,000

  Accumulated reserve 2 , 000,000

  General reserve 35,750,000

  less estimated balance in

  hand at 31st December 1990  7,100,000 28

  ,650,000 4 0 ,650,000

  Balance to be transferred to capital fund

# 4 2 ,7 7 2,300

THE STATES further agreed the estimated transactions of the capital fund for 1991

as follows -

# #

  Balance brought forward 39,938,800  Capital repayments 1 3 ,600,000

  Estimated balance on revenue account 42,77   2,300

  (as above) 9 6 ,3 1 1 , 100

  Capital expenditure 6 5 ,4 7 9 ,00  0

  Estimated balance in hand at

 31st December 1991 # 3 0 , 8 32,   100

Act establishing a scheme to provide compensation for victims of crimes of violence. P.172/90

THE STATES, having rejected an amendment of Senator Dereck André Carter that paragraph 10(b) be deleted, adopted a proposition of the Defence Committee and approved an Act establishing a Scheme to provide compensation for victims of violence to replace the Scheme set out in the Act of the States dated the 12th day of May 1970.

Draft Census (Jersey) Regulations 199 . P.174/90

THE STATES commenced consideration of the draft Census (Jersey) Regulations 199 (lodged on 6th November 1990). After discussion, Senator Reginald Robert Jeune proposed that the States move to the consideration of the next item on the Order Paper, which proposition was carried, more than twenty Members voting in support

thereof.

THE STATES agreed to give further consideration to the draft Regulations at the Sitting on 11th December 1990.

Fourth report: States Sittings and planning of public business. P.177/90

THE STATES, adopting a proposition of the House Committee, agreed -

 ( a) that for the year 1991 and

b e g inning on 15th January the

S t a tes should sit, as far as is

p r a cticable, on alternate

T u e sdays, save for the months of J u ly , August and September when t h ey should continue sitting

m  o nthly;

 ( b) that sittings of the States should n o r mally commence at 9.30 a.m.;

 ( c) to suspend Standing Order No. 4(1) a n d 4(4) until further notice to

g i v e effect to the foregoing

d e c ision;

 ( d) that the Greffier of the States

s h o uld be requested, in

c o n junction with the Bailiff ,

P r e sidents and other Members

c o n cerned, to plan the Public

B u s iness of the States in an

e f fe ctive and efficient manner in

o r d er to provide for only

s u f ficient items likely to produce a r e asonably full day's work on

e a c h sitting.

Draft Amendment (No. 12) to the

Tariff of Harbour and Light Dues. P.179/90

THE STATES, in pursuance of the

Harbour and Light Dues (Jersey) Law 1947, as amended, approved the draft Amendment (No. 12) to the Tariff of Harbour and Light Dues.

Boats and Surf-Riding (Control) (Amendment No. 7) (Jersey) Regulations

1990. P.180/90

THE STATES, in exercise of the

powers conferred on them by Article 4 of the Harbours (Administration) (Jersey) Law 1961, as amended, made Regulations entitled the Boats and Surf-Riding (Control) (Amendment No. 7) (Jersey) Regulations 1990.

Harbours (Amendment No. 19) (Jersey) Regulations 1990. P.181/90

THE STATES, in pursuance of Article

4 of the Harbours Administration (Jersey) Law 1961, as amended, made Regulations entitled the Harbours (Amendment No. 19) (Jersey) Regulations 1990.

Health Insurance (Medical Benefit) (Amendment No. 37) (Jersey) Regulations 1990. P.182/90

THE STATES, in pursuance of Article

18 and 46 of the Health Insurance (Jersey) Law 1967, as amended, made Regulations entitled the Health Insurance (Medical Benefit) (Amendment No. 37) (Jersey) Regulations 1990.

Family Allowances (Amendment No. 4) (Jersey) Law 1990. P.185/90

THE STATES, subject to the sanction

of Her Most Excellent Majesty in Council, adopted a Law entitled the Family Allowances (Amendment No. 4) (Jersey) Law 1990.

THE STATES rose at 5.32 p.m.

R . S . G R A Y D eputy Greffier of the States.