States Minutes 24th July 2002

THE STATES assembled on Wednesday, 24th July 2002 at 9.30 a.m. under

the Presidency of the Greffier of the States, Miss Catherine Mary Newcombe.

All members were present with the exception of -

K e nneth Priaulx Vibert , Connétable of St. Ouen - out of the Island D a vid Leon Crespel, Deputy of Trinity - out of the Island

T e rence John Le Main, Deputy of St.  Helier - out of the Island

M ichael Edward Vibert , Deputy of St. Brelade - out of the Island L y ndon John Farnham , Deputy of St. Saviour - out of the Island

J e nnifer-Anne Bridge, Deputy of St.  Helier - out of the Island

Prayers

Dairy Industry - statement

Senator Frank Harris on Walker , President of the Finance and Economics Committee made a statement in the following terms -

" I n March 2002 the Finance and Economics Committee granted £500,000 to the Agriculture and Fisheries Committee to fund a Dairy Industry restructuring scheme.

T hese funds were made available on the clear understanding that the request was based on a one-off'

restructuring of the Industry and that there would be no further requests.

D  espite this understanding the Finance and Economics Committee, at its meeting yesterday, considered a

second request from the Agriculture and Fisheries Committee for £350,000 from the General Reserve to facilitate the removal of further surplus productive capacity from the Jersey Dairy Industry.

T h e Committee was informed that should the Dairy Industry not receive the £350,000 to reduce the amount

of milk produced from 16.5 to 14.5 million litres then the dairy farmers will sustain substantial losses, which would put many out of business. This was confirmed by the Chairman of Jersey Milk who stated that should the second restructuring scheme not be supported it would result in a loss of earnings to conventional producers of an average of £22,000 per holding. The Committee decided to agree the request.

I n making this decision, the Committee expressed its disappointment with being asked to agree funding on a

piecemeal basis and also stated that it wishes the Agriculture and Fisheries Committee to confirm that this will be the last such request.

T h e Committee's decision was based on the understating that a full review of the Dairy Industry is underway

and the Committee further requests that the Agriculture and Fisheries Committee provide it with an update of that review.

T h e Committee also expressed a strong view that rather than these funds resulting in the culling of herds,

every effort would be made to ensure that cattle were exported.

T h e Committee is surprised and disappointed that the need for funding on this scale - being a pre-requisite of

the initiatives proposed in the Agriculture and Fisheries Policy Report - is not made explicit in the report and proposition due to be considered by States members this week.

Machinery of Government: proposed departmental structure and transitional arrangements - P.70/2002, Amendments (1)-(3), (5)-(6) and comments

THE STATES resumed consideration of the proposition of the Policy and Resources Committee concerning the Machinery of Government: proposed departmental structure and transitional arrangements and granted leave to the President of the Agriculture and Fisheries Committee to withdraw an amendment that -

1. In paragraph(a) after the words "dated 25th April2002," there be inserted thewords - "except that in thesaid Appendix 2 -

1. at the beginningofSection1.5 the following newparagraphshallbe inserted -

1.5.1 T he principle of separating regulatory and operational functions, as in paragraph 2.4 of the

Report of the Policy and Resources Committee dated 25th April 2002, should apply with regard to responsibilities for the protection and enhancement of the natural environment of the Island.

2. in the said Section 1.5, after thenewparagraph1.5.1 referred to in (i) above, the following new paragraphs shall be inserted -

1.5.2 T he Policy and Resources Committee should be requested to bring forward, as soon as

possible during the transitional period, proposals to establish an Environmental Commission, outside the departmental structure, to undertake the necessary regulatory functions in these areas - in order to ensure that the proposals concerning future departmental structure clearly separate regulatory from operational functions with regard to responsibilities for the protection and enhancement of the natural environment of the Island,

T h e f u nctions of the Environmental Commission will include the necessary regulation of all

aspects of the natural environment, including (referring to paragraphs 4.5.3 of the Report of the Policy and Resources Committee dated 25th April 2002) -

e nvironmental regulation;

r egulation of environmental aspects of energy and transport policy;

l and use regulation;

w ater resource regulation;

w aste management regulation.

T h e fu nctions of the Environmental Commission will also include the development of an

over-arching strategy with regard to the natural environment of the Island, with which operational departments would be expected to comply.'

3. in Section 1.5 for the wordEnvironment' there be substituted thewordPlanning';
4. in the original paragraph 1.5.1 -

( a ) for the words Environment Department' there be substituted the words Planning Department';

( b ) the following words be deleted -

e nvironmental policy and regulation;

e nvironmental aspects of energy and transport policy;

w ater resources regulation;

w aste management regulation.

( c ) for the word regulation' after the words land use policy and' there be substituted the word

control'; and

( d ) paragraph 1.5.1 be renumbered as 1.5.3;

5. in  paragraph 1.3.1,  after the words Agriculture  and Fisheries' the  words (save  for  marine environmentalresponsibilities)' be deleted.

2. i n paragraph (a)(iv) of the proposition for the wordEnvironment' there be substituted the word Planning' and consequential changes to the name of the Department be made as appropriate in Appendices 2 and3.

THE STATES adopted an amendment of Senator Stuart Syvret to the proposition of the Policy and Resources Committee regarding Machinery of Government: proposed departmental structure and transitional arrangements: (P.70/2002) that -

(1) In paragraph (a) after the words "dated 25th April 2002," there be inserted the words - "except that in the said Appendix 2 -

1. at the endofSection 1.6.1, after the wordcare.' the following sentence be inserted "The Department shall continue to have responsibility fortheEnvironmental Health Department,whichshallbere- named the Health Protection Department";
2. in Section 1.5.1, afterthewords"environmental policy andregulation" there be inserted the words "except those functions presently undertakenby the Environmental Health Department""

THE STATES rejected an amendment of Deputy Gerard Clifford Lemmens Baudains of St. Clement that in paragraph (b) of the proposition, after the words"dated 25th April 2002" there be inserted the words -

"except that the Planning and Environment and Public Services Committees shall not be amalgamated in the manner set out in section 1.3 of the said Appendix 3 but shall remain as two separate Committees of the States during the transitional period,".

Members present voted as follows -

"Pour" (16) Senators

Le Maistre, Syvret.

Connétable s

St. Martin , Trinity , St. Mary , St. Peter.

Deputies

H.  Baudains(C), Duhamel(S), Breckon(S), Huet(H), St. Martin, St. John, St. Ouen, G. Baudains(C Martin(H), Southern (H).

"Contre" (31)

Senators

Horsfall, Stein, Quérée, Bailhache , Norman, Walker , Kinnard, Le Sueur, Le Claire, Lakeman. Connétable s

Grouville , St.  Saviour, St.  Brelade, St. Lawrence, St.  John, St.  Clement, St.  Helier. Deputies

St.  Mary, S.  Baudains(H), Routier(H), Layzell(B), Grouville , St.  Peter, Dubras(L), Dorey(H), Troy (B Voisin(L), Scott   Warr en(S), Le  Hérissier(S), Ozouf (H), Fox(H).

THE STATES adopting the proposition as amended, referred to their Act dated 28th September 2001, in which they approved reforms to the machinery of government and agreed that not more than ten departments of government should be established, each headed by a minister, and -

( a ) agreed that there should be ten departments of government in the ministerial system, with the

responsibilities as described in Appendix 2 of the report of the Policy and Resources Committee, dated 25th April 2002, except that in the said Appendix 2 -

1. in Section 1.2.2thewords"OverseasAid(withan Advisory Board tobeestablishedunder the political responsibility of the Chief Minister andtheCouncil of Ministers)" be deleted;
2. in Section 1.5.1, after thewords"environmental policy and regulation" there be inserted the words "except those functions presently undertakenby the Environmental Health Department";
3. at the endofSection 1.6.1, after the word care.' the following sentencebe inserted "The Department shall continue to have responsibility for the Environmental Health Department, whichshall be re-named the Health Protection Department";
4. in Section 1.7.2 thewords"Health and Safety Inspectorate (currently with the Employmentand Social Security Department)" be deleted;
5. for Section 1.10 the revised Section 1.10 set out in the Appendix to the reportof the Policy and ResourcesCommitteedated 8th July 2002 be substituted;
6. in Section 1.11.1 for the words "the tax/benefit interface, and overall policy on the Social Security Funds" there besubstituted the words "mutual responsibility with the Social Security Departmentfor the tax/benefit interface"
7. after Section 1.12 there beinsertedthefollowingSection-

" 1 .1 3 . O verseas Aid

1 . 13.1 A n Overseas Aid Commission, reporting directly to the States, will be established outside the executive structure of government to manage the overseas aid function.

The Chairman of the Commission will be a member of the States appointed by the

States. There will be six other members appointed by the States, three of whom shall be members of the States

and three of whom shall be non-States members.

 1 . 13.2  F unding for Overseas Aid will be agreed by the States and reviewed every 5  years to

ensure that appropriate funding is provided for the Commission.

 1 . 13.3  D  etailed proposals and terms of reference for the Commission will be brought forward

by  the  Overseas  Aid  Committee  during  the  transitional  period.  (Draft  terms  of reference are set out in the Appendix to the report of the Overseas Aid Committee dated 23rd July 2002.)"

as fo l lows -

( i) C h i e f M  in ister's Department, ( ii ) E c o n o m  ic Development,

( i i i ) Education, Sport, and Culture, ( iv ) E n v i ro n  m ent,

( v ) H e a l th a n d Social Services,

( v i) H o m  e A  f fairs,

( v ii ) H  o u si n g ,

(v i ii ) P u b li c S ervices,

( ix ) S o c i al S e curity,

( x ) T r e a su r y and Resources;

(b ) agreed that in the transitional period, from the appointment of Committees in December 2002 until

the introduction of the ministerial system, the number of committees of the States should be reduced and appointed in the order as described in Appendix  3 of the report of the Policy and Resources Committee dated 25th April 2002, except that -

( i)  in Section  1.3 of the said Appendix, the wordsCommittee for Postal Administration' be deleted

in item  5 of the Table;

( ii ) after item  11 in the Table there be inserted the following item-

12. Committee for Postal (No change) Will become an Administration incorporated body

(iii) items 12 and 13 be renumbered as 13 and 14 respectively

a n d requested the Privileges and Procedures Committee to bring forward for approval the necessary

Transfer of Functions Acts and amendments to the Standing Orders of the States of Jersey to give effect to this decision.

Members present voted as follows -

"Pour" (38)

Senators

Horsfall, Le  Maistre, Stein, Quérée, Bailhache , Norman, Walker , Le Sueur. Connétable s

Grouville , St. Martin, Trinity , St. Saviour, St. Brelade, St. Lawrence, St. Mary, St. John, St. Pe St. Clement, St. Helier.

Deputies

H.  Baudains(C), St. Mary, S. Baudains(H), Duhamel(S), Routier(H), Layzell(B), Grouville , Huet(H St. Martin, St. Peter, Dubras(L), St. Ouen, Dorey(H), Troy (B), Voisin(L), Scott Warr en(S), Le Hériss (S), Ozouf (H), Fox(H).

"Contre" (7)

Senators

Syvret, Le Claire.

Deputies

Breckon(S), St.  John, G.  Baudains(C), Martin(H), Southern (H).

[As an aide-mémoire, the decisions of the States on the Machinery of Government: proposed departmental structure and transitional arrangements are consolidated together immediately after this set of Minutes.]

Changes in Presidency

The Deputy Bailiff assumed the Presidency in place of the Greffier of the States during consideration of the amendment of Deputy G.C.L. Baudains to the Machinery of Government: proposed departmental structure (P.70/2002). The Greffier of the States resumed the Presidency following the lunch adjournment during consideration of the proposition as amended.

Agriculture and Fisheries: policy report 2001 -  P.115/2002, comments, amendment

THE STATES commenced consideration of paragraph (a) of the proposition of the Agriculture and Fisheries Committee -

( a ) to endorse the future strategy for the agriculture and fisheries industries, as set out in the Policy Report

2001 of the Agriculture and Fisheries Committee, dated 9th August 2001 and, in particular, to approve -

(1 ) p o l icies to safeguard and enhance the environment;

(2 ) t h e policy to improve the marketing of produce;

(3 ) p o l icies to provide direct financial support;

(4 ) p o l icies to provide infrastructure and support services;

(5 ) t h e continued provision of a legal framework and related statutory services; (6 ) p o l icies to support the fisheries industry;

Adjournment

THE STATES agreed to adjourn and resume consideration on 25th July 2002. THE STATES rose at 5.30 p.m.

    M  .N  . D E L A   H  A Y  E  

Deputy Greffier of the States.

Machinery of Government: proposed departmental structure and transitional arrangements - P.70/2002, Amendments (1)-(4) and (6)

THE STATES, adopting a proposition of the Policy and Resources Committee, as amended, referred to their Act dated 28th September 2001, in which they approved reforms to the machinery of government and agreed that not more than ten departments of government should be established, each headed by a minister, and -

( a ) agreed that there should be ten departments of government in the ministerial system, with the

responsibilities as described in Appendix  2, as amended, of the report of the Policy and Resources Committee, dated 25th April 2002, as follows -

( i) C h i e f Minister's Department,

( ii ) E c o n omic Development,

( ii i) Education, Sport, and Culture, ( iv ) E n v i ronment,

( v ) H e a l th and Social Services,

( v i) H o m  e Affairs,

( v ii ) H o u sing,

(v i ii ) P u blic Services,

( ix ) S o c i al Security,

( x ) T r e a sury and Resources

(b ) agreed that in the transitional period, from the appointment of Committees in December 2002 until

the introduction of the ministerial system, the number of committees of the States should be reduced and appointed in the order as described in Appendix  3, as amended, of the report of the Policy and Resources Committee dated 25th April 2002,

requested the Privileges and Procedures Committee to bring forward for approval the necessary Transfer of Functions Acts and amendments to the Standing Orders of the States of Jersey to give effect to this decision.

THE PROPOSED DEPARTMENTAL STRUCTURE: SUMMARY

1.1.1 T he Committee's proposals for a ten department structure are as follows (in alphabetical order) -

• C hief Minister's Department;

• E conomic Development;

• E ducation, Sport and Culture;

• E nvironment;

• H ealth and Social Services;

• H ome Affairs;

• H ousing;

• P ublic Services;

• S ocial Security;

• T reasury and Resources.

1.1.2 T he proposed division of responsibilities is set out below.

2. C h ief Minister'sDepartment

1. T heChiefMinister'sDepartment will provide support and advice to the Chief Minister and Council of Ministers, enabling them to fulfil theirdutiesand responsibilities forthe executive governmentof the Island.
2. T hewider responsibilities of the Departmentwill consist of the following -

• co rporate strategy and policy co-ordination;

• co rporate E-Government and ICT strategy;

• co rporate human resources policy and casework, and senior staff management;

• p ensions policy, and overall relations with the PECRS Committee of Management;

• re sponsibility for the Law Draftsman's Office and the Law Commission;

• Je rsey's Statistics (including responsibility for the Census);

• in ternational relations, as well as relations with Her Majesty's Government;

• th e Emergencies Council and emergency planning;

• li aison and consultation with the Connétable s and the Parishes;

• re levant procedural and ceremonial functions, in consultation as appropriate with the Bailiff .

3. E c onomicDevelopment

1.3.1  T he Department for Economic Development will retain the current responsibilities of the Department for Economic and Commercial Development. To these responsibilities will be added the following -

• A griculture and Fisheries (save marine environmental responsibilities);

• T ourism;

• p olicy oversight of the Harbours and Airport;

• p olicy towards the finance industry and relations with the Jersey Financial Services Commission;

• p olicy responsibility under the Telecommunications (Jersey) Law 2002 and the draft Postal Services Law 200-;

• tr ansport policy (save for environmental issues) and the functions of the Jersey Transport Authority;

• e mployment policy, legislation, and training (including responsibility for the Training and Employment Partnership).

4. E d ucation, Sport, and Culture

1.4.1 T he department for Education, Sport, and Culture will have the following responsibilities -

• th e present responsibilities of the Education Committee;

• th e present responsibilities of the Sport, Leisure and Recreation Committee;

• li aison with the Jersey Arts Trust and the Jersey Heritage Trust.

1.4.2 B oth the Jersey Arts Trust and Jersey Heritage Trust will maintain their independent status, under the sponsorship of the department of Education, Sport, and Culture. The Trusts will continue to have lead responsibilities for the delivery of services in their respective areas, save that on public records management policy the Jersey Heritage Trust will report direct to the Chief Executive as this is a corporate responsibility.

5. E n vironment

1.5.1  T he Environment Department will have responsibility for the following areas -

• environmental policy and regulation except those functions presently undertaken by the Environmental Health Department;

• en vironmental aspects of energy and transport policy;

• en vironmental services and habitat management;

• la nd use policy and regulation;

• p lanning and development control;

• b uilding control;

• h istoric buildings;

• w ater resources regulation;

• w aste management regulation.

6. H  ealth andSocialServices

1.6.1  T he Health and Social Services Department will continue to exercise the current department's important main responsibilities for delivering health and social services. The department will have a specific responsibility to develop strategies for primary, secondary, and tertiary care. The Department shall continue to have responsibility for the Environmental Health Department, which shall be re-named the Health Protection Department'.

7. H  ome Affairs

1. T heHome Affairs Department will continue to beresponsible for the services that currently reportto the Home Affairs Committee, including the States of Jersey Police, CustomsandExcise,the Fire Service, Driver and Vehicle Standards,thePrison Service, and the Immigration and NationalityDepartment.
2. T heHome Affairs Department will also havethefollowing responsibilities -

• cr iminal justice policy;

• R egistration Services (encompassing the present responsibilities of the Etat Civil Committee, save for the Census, which will come under the Statistics Unit in the Chief Minister's Department).

8. H  ousing

1. T hisdepartment will continue to fulfil all the main responsibilities of the existing Housing Department, i.e. SocialHousing, Estates Management;Finance;andLawandLoans.
2. R esponsibility for the housingbenefitsfunction will be transferred induecourse to the SocialSecurity Department.

9. P u blic Services

1.9.1  T he Public Services Department will have responsibility for the following functions -

• w aste management operations (including sewage disposal, drainage etc.);

• w ater resources operations;

• ci vil engineering design services;

• m unicipal operations, e.g. parks, gardens, open spaces;

• st reet cleaning;

• b each cleaning;

• m aintenance of sea defences;

• fo otpath and land management;

• m anagement of public transport contracts;

• m ain roads maintenance and management.

10. S ocial Security

1. The keyroles of the Department would beto enhance social developmentand,in particular, social cohesion, within its field of operation, byminimising social andmaterialdeprivation. Responsibilities would include -

• id entifying and commenting on social/labour issues at a macro' level;

• d eveloping strategies and polices for presentation to the Council of Ministers, and thereafter;

• b eing responsible for their implementation (in conjunction with other Departments or Agencies where appropriate);

• m onitoring, evaluating and reporting on their outcomes, and

being accountable for their implementation.

The Department would have a service wing which would operate as a one-stop-shop' and initially encompass -

• E mployment: enhancing work opportunities and self-sufficiency, and protecting individuals in the workplace;

• B enefits: e n suring full and adequate coverage across all aspects of the benefit system, ultimately including Housing benefit (to be subsumed into a new low income support scheme);

• P ensions: a g rowing area of activity especially in relation to links with pensions derived in, or payable in, other countries.

2. This department will beresponsible for the benefits andcontributions' side of the current Employment and Social Security Department,together with the SocialSecurityFund and the SocialSecurityReserve Fund. There will be a clear liaison with the newTreasury and ResourcesDepartment with which it will have mutual responsibility for managingthe tax andbenefits interface.
3. The department will alsoberesponsible, once the proposed LowIncomeSupport System is in place, for the housing benefits function currently within the Housing Department, i.e. in orderto provide a single line ofaccountabilityfor all benefits policy and payments.
4. Although the policylead at a macro' level onemploymentmatters,and on training and skills (including the Training andEmployment Partnership), will movetotheDepartment for Economic Development delivery ofemploymentservices,and legislation, related to individuals, will remain with SocialSecurity.
5. The department will retain responsibility for the Health and Safety Inspectorate for the present,to retain the linkages between accidentpreventionand benefit savings.

11. T reasury andResources

1.11.1 The Treasury and Resources Department will have responsibility for the following areas -

• th e present responsibilities of the States Treasury, including resource allocation and fiscal policy, payroll matters, pensions administration, currency management, and management of the capital programme;

• al l taxes and receipts (although the office of Comptroller of Income Tax will remain unchanged under the Income Tax laws);

• co rporate property (the client' role), including policy responsibility for property procurement, design and maintenance;

• al location and monitoring of States manpower numbers;

• m utual responsibility with the Social Security Department for the tax/benefit interface;

• o w n ership responsibilities for States-owned companies.

12. N on-ExecutiveGovernmentalOrganisations

1.12.1 It is proposed that the following services should lie outside the structure of the ministerial departments -

• S tates Greffe;

• A ttorney General's Chambers;

• O fficial Analyst's Laboratory;

• P robation and After-Care Service;

• Ju dicial Greffe;

• V iscount's Department.

1.12.2 In the case of the States Greffe and the Attorney General's Chambers, it will be necessary to draw up an appropriate mechanism to establish their budgets and ensure that they are identified and dealt with separately from those of the departments of the executive. It is proposed that this matter will be addressed during the transitional period leading up to the introduction of a ministerial system.

1.12.3 With regard to the Official Analyst's Laboratory, it is proposed that responsibility for its budget requirements should be transferred from the Finance and Economics Committee to the Chief Minister's Department.

1.12.4 It is acknowledged that the Probation and After-Care Service should be recognised as a department of the Royal Court, and it is accordingly proposed that budgetary responsibility for this service should be transferred from Home Affairs to the Royal Court.

1.12.5 The Committee proposes no change to the Judicial Greffe and Viscount's Department, which will continue to report to the Court.

1.12.6 With regard to the issue of the funding of the courts, it is proposed that the budget process should be initiated by conversations between the Bailiff and the Chief Minister. The Chief Minister will then put budget bids to the Council of Ministers for collective decision in the context of resource allocation as a whole.

1.13.  O  verseas Aid

1. AnOverseasAidCommission, reporting directly to the States, will be established outside the executive structure ofgovernmenttomanage the overseas aid function. The Chairman of the Commission will be a member of the States appointed bythe States. There will be six othermembers appointed by the States, three of whomshallbemembers of the States and three ofwhom shall be non-Statesmembers.
2. Funding for Overseas Aid will be agreed by the States and reviewed every 5 years to ensure that appropriate funding is provided for the Commission.
3. Detailed proposals and termsof reference for the Commission will be brought forward by the Overseas Aid Committeeduring the transitional period. (Drafttermsof reference are set out in the Appendix to the report of the OverseasAidCommitteedated 23rd July 2002.

TRANSITIONAL ARRANGEMENTS: SUMMARY

1. T h e Committee is proposing that steps shouldbe taken to rationalise the present Committee structure after the elections inorderto aid the transition to the ministerial system. Itisrecommended that thereshouldbe a smaller numberofCommitteesfor the period of transition, basedon a renaming andamalgamationof the present25 Committee structure.
2. A list of the proposedamalgamations is giveninthechartbelow,and this hasbeendesigned to produce a sensible divisionof responsibilities that will facilitate the subsequentmoveto a ministerial system.Itis proposed that committeesshouldbeappointed in the ordershown in the chart.
3. T r ansition of Committees towards Ministerial System

Proposed Committee structure after Present Committees amalgamated Nearest equivalent Department December 2002 to create new Committee in proposed ministerial system

The Committee believes that the important role of the Privileges and Procedure Committee should be recognised in any transitional structure and is therefore proposing that it should figure as the second Committee in the proposed hierarchy, and its President would thus be elected immediately after the President of the Policy and Resources Committee. The remaining order proposed above, having taken account of the amalgamations, follows the existing order of appointment set out in Standing Orders.