States Minutes 28th September 2004

THE STATES assembled on Tuesday, 28th September 2004 at 9.30 a.m. under the Presidency of the Bailiff ,

Sir Philip Bailhache .

His Excellency the Lieutenant Governor,

Air Chief Marshal Sir John Cheshire, K.B.E., C.B., was present.

All members were present with the exception of –

S e nator Terence Augustine Le  Sueur – out of the Island

J o hn Baudains Germain, Connétable of St. Martin – out of the Island T h omas John du Feu, Connétable of St. Peter – ill

D a niel Joseph Murphy, Connétable of Grouville – out of the Island J a cqueline Jeannette Huet, Deputy of St.  Helier – out of the Island

Prayers read by the Greffier of the States.

Senator Jean Amy Le Maistre – Appointment as Vice-Chairman, Commonwealth Parliamentary Association Executive Committee

The Bailiff , on behalf of all members, congratulated Senator Jean Amy Le  Maistre on his appointment as Vice- Chairman of the Commonwealth Parliamentary Association Executive Committee.

Cayman Islands – message of support following devastation by Hurricane Ivan

The Bailiff informed the States that, in accordance with their request of 14th September 2004, he had forwarded to the communities of Bermuda, Jamaica and the Cayman Islands the wishes of the Assembly to express the Island's support following devastation caused by Hurricane Ivan, which had been made in the following terms –

" I write as President of the States of Jersey and on behalf of the people of Jersey to convey to you the sympathy of the Assembly following the destruction wrought in your Island by hurricane Ivan earlier this week.

I n the States Assembly yesterday Senator Frank Walker , president of the Policy and Resources Committee,

registered on behalf of all members the universal sense of shock which has been felt as news has emerged of the loss of life and the widespread damage to property and possessions.

W  e express the sincere hope that operations to restore normal life in the Island will proceed apace and that the personal suffering of Islanders will be relieved as swiftly as is possible in these very difficult times."

Request for media presence

THE STATES agreed to allow the media access to the Chamber later that day for the purpose of filming in order to update their picture library.

Bailiff 's ruling – closure motion

The Bailiff made a ruling in relation to a decision of the States on 26th May 2004, concerning the trialling of the closure motion, which was made in the following terms –

" S enator Syvret has asked me to rule on the question whether the trial procedure for the closure of debates, approved by the Assembly on 26th May 2004, is ultra vires; that is, did the Assembly have no power to adopt the resolution having regard to the provisions of the States of Jersey Law 1966.

T h e relevant part of Article 1(2) of the 1966 Law provides that –

A l l m  embers  of  the  States  have  the  right  to  speak  in  the  Assembly,  but only  the  Senators, Connétable s and Deputies (in this Law referred to as the elected members of the States') have the right to vote.'

T h e question is therefore whether, having regard to that provision, the States had no power to limit the right

of members to speak by adopting the resolution enabling a closure or guillotine' motion to be put.

T h ere are two possible constructions of Article 1(2). The first is that it confers upon all members of the States

an unfettered right to speak on all matters at all times. The second possible construction is that the paragraph is drawing a distinction between elected members and other members (Lieutenant Governor, Bailiff , Law Officers and Dean); whereas all members have the right to speak, only the elected members have the right to vote. The difficulty with the first possible construction is that it would mean that all the restrictions on members' rights to address the Assembly which are contained in Standing Orders would be equally ultra vires. Thus the provision in, for example, Standing Order 24(1) which requires that every member shall restrict his observations to the subject under discussion' would be invalid as restricting members' right to speak. The provision in Standing Order 24(4) prohibiting the use of offensive and insulting language about members of the States would be equally invalid, as would the other provisions of Standing Order 24 dealing with the contents of speeches.

A  lthough it is subject to the other provisions of the 1966 Law, Article 27 empowers the States to make

standing orders for the regulation of their proceedings and business' which in itself seems to be inconsistent with an interpretation of Article 1(2) conferring an unfettered right to speak. I reach the conclusion that the second construction of Article 1(2) is the correct one, namely that it is drawing a distinction between the rights in the Assembly of the elected members and other members.

T h at is not to say that the right of members to speak in the States Assembly is not an important and indeed

fundamental right. The right is, however, not unfettered and can be limited, either by Standing Orders, or by any other reasonable resolution of the Assembly. I therefore rule that it was within the powers of the Assembly to adopt the resolution relating to closure motions."

Subordinate legislation tabled

The following enactments were laid before the States, namely –

Banking Business (General Provisions) (Amendment) (Jersey) Order 2004. R&O 100/2004. Road Racing (Motor Vehicle Rally) (Jersey) Order 2004. R&O 101/2004. Education (Removal of Governing Body) (Jersey) Order 2004. R&O 104/2004. Extradition (Time Limits) (Jersey) Order 2004. R&O 105/2004. Extradition Rules 2004. R&O 106/2004. Criminal Proceedings (Computation of Sentences) (Amendment No.  2) (Jersey) R&O 107/2004.

Rules 2004.

Employment (Minimum Wage) (Jersey) Order 2004. R&O 108/2004. Social Security (Medical Certification) (Amendment No.  2) (Jersey) Order 2004. R&O 109/2004. Social Security (Earnings Limit) (Jersey) Order 2004. R&O 110/2004.

Environment and Public Services Committee – election of President

THE STATES commenced consideration of a proposition of Deputy Roy George Le  Hérissier of St.  Saviou concerning the election of the President of the Environment and Public Services Committee: question period, which proposition was subsequently lodged by Senator Edward Philip   Vibert , (P.168/2004), and deemed to have been withdrawn pending the immediate election and appointment of a President of the Environment and Public Services Committee.

Environment and Public Services Committee – appointment of President Senator Philip Francis Cyril Ozouf was nominated by Senator Paul Francis Routier. The Deputy of St.  Peter was nominated by Senator Jean Amy Le  Maistre.

THE STATES, having proceeded to a secret ballot, were informed of the following results by the Bailiff –

S e nator Philip Francis Cyril Ozouf  2 6

T h e Deputy of St.  Peter   2 1 .  

The Bailiff accordingly declared that Senator Philip Francis Cyril Ozouf had been duly appointed as the President of the Environment and Public Services Committee.

Matters presented

The following matters were presented to the States –

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning permit P.74/2004. (P.74/2004) – comments. Com. Presented by the Health and Social Services Committee.

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning permit P.74/2004. (P.74/2004) – comments. Com.(2) Presented by the Finance and Economics Committee.

Draft States of Jersey Law 200- (P.124/2004): comments. P.124/2004. Presented by the Finance and Economics Committee. Com.

Channel Islands Lottery: allocation of profits (P.136/2004) – comments. P.136/2004. Presented by the Finance and Economics Committee. Com.

Court and Case Costs: investigation (P.138/2004) – comments. P.138/2004. Presented by the Finance and Economics Committee. Com.

Le  Marais,  St.  Clement:  redevelopment  of  low  rise  Phase  I  (P.145/2004)–  P.145/2004. comments. Com.

Presented by the Finance and Economics Committee.

Car Parking Charges: allocation of additional income to the funding of transport P.147/2004. initiatives (P.147/2004) – comments. Com. Presented by the Finance and Economics Committee.

Area of land, St.  Brelade, adjacent to L53, L53A and L65 Garage site, L'Avenue P.149/2004. de la Commune, St.  Peter: transfer of administration (P.149/2004) – comments. Com. Presented by the Finance and Economics Committee.

States Members' parking: withdrawal of provision (P.152/2004) – comments. P.152/2004. Presented by the Privileges and Procedures Committee. Com.

Fields 519, 520, 521, 524, 527 and 528, Trinity : Committee of Inquiry P.156/2004. (P.156/2004) – comments. Com. Presented by the Finance and Economics Committee.

Draft The Law Society of Jersey Law 200- (P.162/2004): comments. P.162/2004. Presented by the Finance and Economics Committee. Com.

THE STATES ordered that the said reports be printed and distributed. Matters noted – land transactions

THE STATES noted Acts of the Finance and Economics Committee dated 16th September 2004, showing that, in pursuance of Standing Orders relating to certain transactions in land, the Committee had approved –

( a ) as recommended by the Harbours and Airport Committee, the renewal of the lease to George Troy and

Sons Limited of Vehicle Workshop accommodation (Letting No.  A43B – measuring 1,380  square feet), Albert Pier, St.  Helier, for a period of 3  years from 1st July 2004, at an annual rent of£8,280, subject to annual review in line with the Jersey Retail Price Index;

 ( b ) as recommended by the Harbours and Airport Committee, the renewal of the lease to Blue Water

Supplies Limited of the Old Lifeboat Station (Letting No.  A30A – measuring 140  square feet), Albert Pier, St.  Helier, for a period of 3  years from 1st June 2004, at an annual rent of£2,044, subject to annual review in line with the Jersey Retail Price Index;

 ( c ) as recommended by the Harbours and Airport Committee, the renewal of lease and/or lease to the

undermentioned of the specified marine workshops situated at La Folie, St.  Helier for a period of 9  year from 1st March 2004 –

(i ) C ompass Marine Services (Letting No.  LF9A – measuring 1,266 square feet) at an annual rent of

£7,659.30;

(i i) D ave Warn Marine Limited (Letting No.  LF9B – measuring 1,156  square feet) at an annual rent of

£6,993.80;

( ii i) B  ill Keating Marine Engineering Limited (Letting No.  LF9C – measuring 898  square feet) at an

annual rent of £5,432.90; and

(i v )  F ox Marine Services Limited (Letting No.  LF9D – measuring 1,524  square feet) at an annual rent of

£9,220.20;

( d ) as recommended by the Environment and Public Services Committee, the lease to Mrs.  Alison Claire

Crabtree, née Rogers, of the one-bedroom flat with garage and garden forming part of the Maison St.  Louis

Observatory, Highlands Lane, St.  Saviour, for an initial period of 12  months at an annual rent of£7,200, to be subject thereafter to annual review in line with the Jersey Retail Price Index, with the agreement to be terminable by either party upon one month's notice, on the basis that the tenant would be responsible for occupiers rates, an appropriate share of the water and heating costs, together with electricity and telephone charges, both of which were separately metered at the flat;

( e ) as recommended by the Health and Social Services Committee, the lease to Jersey Telecom Limited of a

Services Distribution (or CAB) Room at Sandybrook Hospital, St. Lawrence (in order to formalise the lease agreement following the incorporatisation of the Telecommunications Board), for a period of 99 years, deemed to have commenced from 3rd April 2000, for an initial capital sum of£9,000 and nominal annual rent of £10 without review thereafter, on the basis of the Heads of Terms outlined in the original report, dated 2nd December 1999, and as approved by the Director of Property Services (the Committee accordingly rescinded its Act No. A2(a) of 12th November 2003);

( f) as recommended by the Education, Sport and Culture Committee, the formalisation of a ground lease to

Jersey Telecom Limited (following the incorporatisation of the Telecommunications Board) for the siting of a Services Distribution Room at Snow Hill, St. Helier for a period of 99 years from 25th March 2002, (the date when occupation of the site had been taken under an original agreement between the then Sport, Leisure and Recreation Committee and the Telecommunications Board), for an initial capital sum of £17,500 and a nominal annual rent of £10 without review thereafter, on the basis of the original heads of terms (the Committee accordingly rescinded its Act No. A2(b) of 8th January 2004);

(g ) as recommended by the Economic Development Committee, the lease to Bel Val Farm Limited

(Mr. Colin de la Haye) of Fields Nos. 445, 447 and 448, St. Martin (measuring 6.02, 2.13 an 3.07  vergées respectively), for a period of 3½ years from 1st August 2004, at an annual rent of £550 without rent review, on the basis that the Landlord retained the right to give 6 months' written notice at any time during the lease to terminate the agreement in respect of Field No. 445 only, and with each party to be responsible for its own legal costs arising from the transaction;

( h ) as recommended by the Housing Committee, the grant of a ground lease to Jersey Telecom Limited in

respect of a Service Distribution Room at the Hue Court basement car park, Hue Street, St. Helier, for a period of 99 years from 2nd July 2001, for an initial capital payment of£10,000 and a nominal annual rent thereafter of £10 without rent review, on the basis of terms and conditions approved by the Director of Property Services;

( i)  as recommended by the Health and Social Services Committee, the renewal of the lease from Mrs.  Joan

Annie Perrée, née Swift, of the two-bedroom "(j)" category property (including one parking space) known as Flat 2, Hazelgrove, 73 Rouge Bouillon, St. Helier, for a period of 2 years from 1st July 2004 with an option to extend for a further one year, at an annual rent of £10,400 (representing a rate of £200 a week) fixed for the 2-year period, after which – if the option to extend the agreement is taken – the rent would be increased in line with the Jersey Retail Price Index. All other terms and conditions were to remain the same as the existing lease and each party was to be responsible for its own legal costs arising from the transaction;

( j)  as recommended by the Housing Committee, the lease to the Jersey New Waterworks Company Limited

of an area of land at Le Clos Orange Estate, La Rue de la Moye, St. Brelade (required to facilitate th provision of a Network Monitoring Cubicle – as shown on Drawing No. 11/1730 (01)), for a period o 9 years from the date of passing of the contract, for a one-off initial payment of £450 for the 9-year period, with the Company also to be granted rights to lay a buried pipe from its water main to the Cubicle and rights to access the Cubicle for monitoring purposes, on the basis that each party was to be responsible for its own legal costs arising from the transaction;

( k ) as recommended by the Education, Sport and Culture Committee, the lease to The National Society for

the Prevention of Cruelty to Children, NSPCC Trading Company Limited of a bungalow known as Le  Squez Bungalow, Le  Squez School, St.  Clement (required for use solely and exclusively in relatio

to the NSPCC Pathways Initiative), for a period of 9  years from a date to be agreed, with an option to renew the

lease on the same terms and conditions save as to the option to renew, to be rent-free, on the basis that the Lessee was to be responsible for undertaking all refurbishment works on the premises in accordance with an approved plan and, thereafter, to be responsible for interior repair, maintenance and decoration, and also for all costs and charges in relation to utilities and all other costs associated with the occupancy of the premises. Each party was to be responsible for its own legal and professional costs arising from this transaction;

 ( l )  as recommended by the Environment and Public Services Committee, the lease to the Jersey New

Waterworks Company Limited of an area of land at La Route des Genets, St.  Brelade (required to facilitate the provision of a Network Monitoring Cubicle – as shown on Drawing No.  15/621  (01)), fo period of 9  years from the date of passing of the contract, for a one-off initial payment of £450 for the 9- year period, with the Company also to be granted rights to lay a buried pipe from its water main to the Cubicle and rights to access the Cubicle for monitoring purposes, on the basis that each party was to be responsible for its own legal costs arising from the transaction;

( m )  as recommended by the Environment and Public Services Committee, the assignment of lease by Hargay

Limited to Miss Gayna Flanagan in respect of Unit 63-65 Central Market, St.  Helier (following a partnership restructuring), with effect from the date of passing the contract;

(n ) as recommended by the Environment and Public Services Committee, the assignment of lease by

Coleman and Watts to Mr.  Shane Kennedy in respect of Unit 17-19 and 91 Central Market, St.  Helier (following a partnership restructuring), with effect from the date of passing the contract; and

( o ) as recommended by the Environment and Public Services Committee, the sale to the National Trust for

Jersey of an area of woodland at the rear of the properties known as Les Burons and La Cache, Le  Chemin des Maltières, Grouville (as shown on Planning Department Drawing No.  15/388/1), for nominal consideration of £10, on the basis that each party would be responsible for its own legal costs arising from the transaction.

Matters lodged

The following matters were lodged "au Greffe" –

Sunday Trading (P.107/2004): second amendments. P.107/2004. Presented by the Connétable of St.  Helier. Amd.(2)

Car parking charges: allocation of additional income to the funding of transport P.147/2004. initiatives (P.147/2004) – amendments. Amd. Presented by Deputy J.B. Fox of St.  Helier.

Machinery  of  Government  Reform:  composition  and  election  of  the  States P.151/2004. Assembly (P.151/2004) – amendments. Amd. Presented by the Deputy of St.  Martin.

Education (Revocation of Provided School) (Jersey) Regulations 200-. P.161/2004. Presented by the Education, Sport and Culture Committee.

Draft The Law Society of Jersey Law 200-. P.162/2004. Presented by the Legislation Committee.

Draft The Law Society of Jersey Law 200- (P.162/2004): amendments. P.162/2004. Deputy R.G. Le  Hérissier of St.  Saviour. Amd.

Shadow Public Accounts Committee: appointment of member. P.163/2004. Presented by Deputy S.C. Ferguson of St.  Brelade.

Attendance Allowance Board: appointment of member. P.164/2004. Presented by the Employment and Social Security Committee.

Bus Service Tendering Process: Committee of Inquiry – membership. P.165/2004. Presented by the Policy and Resources Committee.

Sites of Special Interest and Buildings of Local Interest: financial implications. P.166/2004. Presented by the Deputy of St.  John.

Jersey Telecom Limited: special tariffs for senior citizens. P.167/2004. Presented by the Deputy of Grouville , and referred to the Finance and Economics

and the Economic Development Committees.

Draft The Law Society of Jersey Law 200- P .154/2003 – withdrawn

THE STATES noted that, in accordance with Standing Order 22(3), the President of the Legislation Committee had instructed the Greffier of the States to withdraw the draft The Law Society of Jersey Law 200-, (P.154/2003 lodged "au Greffe" on 11th November 2003), the Committee having lodged "au Greffe" a revised proposition at the present meeting (P.162/2004).

Composition and Election of the States Assembly – P.115/2004 – withdrawn

THE STATES noted that, in accordance with Standing Order 22(3), the Deputy of St.  Martin had instructed the Greffier of the States to withdraw the proposition regarding the Composition and Election of the States Assembly, (P.115/2004 lodged "au Greffe" on 15th June 2004).

Arrangement of public business for the present meeting

THE STATES granted leave to Deputy Alan Breckon of St.  Saviour to defer consideration of the following matter set down for consideration at the present meeting to a later date –

Court and Case Costs: investigation. P.138/2004. Lodged: 20th July 2004.

Deputy A. Breckon of St.  Saviour.

THE STATES adopted a proposition of Senator Philip Francis Cyril Ozouf that the following matter set down for consideration at the present meeting be deferred to a later date –

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning permit. P.74/2004. Lodged: 20th April 2004. (re-issue) Senator P.V.F. Le  Claire.

Members present voted as follows –

POUR: 24 CONTRE: 20 ABSTAIN: 1 Senator L. Norman Senator J.A. Le  Maistre Connétable of Trinity

Senator F.H. Walker Senator S. Syvret

Senator P.F. Routier Senator W. Kinnard

Senator M.E.   Vibert Senator P.V.F. Le  Claire

Senator P.F.C. Ozouf Senator E.P.   Vibert

Connétable of St. Ouen Senator R.J. Shenton

Connétable of St. Saviour Connétable of St. Brelade Connétable of St. Clement Connétable of St. Helier Connétable of St. Lawrence Deputy of Trinity

Deputy of St.  Martin Deputy T.J. Le  Main (H) Deputy M.F. Dubras (L) Deputy F.G. Voisin (L) Deputy L.J. Farnham (S) Deputy J.A. Bernstein (B) Deputy of St.  Mary Deputy of St.  Ouen Deputy P.J.D. Ryan (H) Deputy M.A. Taylor (C) Deputy J.A. Hilton (H) Deputy G.W.J. de Faye (H)

Connétable of St. Mary Deputy R.C. Duhamel (S) Deputy A. Breckon (S)

Deputy of St.  John

Deputy G.C.L. Baudains (C) Deputy P.N. Troy (B)

Deputy  C.J.   Scott   Warr en (S)

Deputy R.G. Le  Hérissier (S) Deputy J.B. Fox (H)

Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy S.C. Ferguson (B) Deputy of Grouville

Deputy of St.  Peter

Arrangement of public business for the next meeting on 12th October 2004

THE STATES confirmed that the following matters lodged "au Greffe" would be considered at the next meeting on 12th October 2004, in the following order –

Jersey Telecom Limited: special tariffs for senior citizens. P.167/2004. Lodged: 28th September 2004.

Presented by the Deputy of Grouville .

Draft Public Holidays and Bank Holidays (Jersey) Act 200-. P.56/2004. Lodged: 20th April 2004.

Legislation Committee.

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning P.74/2004. permit. (re-issue) Lodged: 20th April 2004.

Senator P.V.F. Le  Claire.

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning P.74/2004. permit (P.74/2004) – comments. Com. Presented 28th September 2004.

Health and Social Services Committee.

Fields 519, 520, 521, 524, 527 and 528, Trinity – rescindment of planning P.74/2004. Com.(2) permit (P.74/2004) – comments.

Presented: 28th September 2004.

Finance and Economics Committee.

Court and Case Costs: investigation. P.138/2004. Lodged: 20th July 2004.

Deputy A. Breckon of St.  Saviour.

Court and Case Costs: investigation (P.138/2004) – comments. P.138/2004. Presented: 28th September 2004. Com. Finance and Economics Committee.

Area  of  land,  St.  Brelade,  adjacent  to  L53,  L53A  and  L65  Garage  site, P.149/2004. L'Avenue de la Commune, St.  Peter: transfer of administration.

Lodged: 7th September 2004.

Harbours and Airport Committee.

Area  of  land,  St.  Brelade,  adjacent  to  L53,  L53A  and  L65  Garage  site, P.149/2004. L'Avenue de la Commune, St.  Peter: transfer of administration (P.149/2004) – Com. comments.

Presented: 28th September 2004.

Finance and Economics Committee.

Bus Service: rescindment of decisions relating to concessionary fares and adult P.150/2004. fares after 8.00 p.m.

Lodged: 14th September 2004.

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

Field 812A, Bagot Manor Farm, St.  Saviour: rezoning. P.155/2004. Lodged: 14th September 2004.

Environment and Public Services Committee.

Draft The Law Society of Jersey Law 200-. P.162/2004. Lodged: 28th September 2004.

Legislation Committee.

Draft The Law Society of Jersey Law 200- (P.162/2004): comments. P.162/2004. Presented: 28th September 2004. Com. Finance and Economics Committee.

Draft The Law Society of Jersey Law 200- (P.162/2004): amendments. P.162/2004. Lodged: 28th September 2004. Amd. Deputy R.G. Le  Hérissier of St.  Saviour.

Shadow Public Accounts Committee: appointment of member. P.163/2004. Lodged: 28th September 2004.

Deputy S.C. Ferguson of St.  Brelade.

Attendance Allowance Board: appointment of member. P.164/2004. Lodged: 28th September 2004.

Employment and Social Security Committee.

Bus Service Tendering Process: Committee of Inquiry – membership. P.165/2004. Lodged: 12th October 2004.

Policy and Resources Committee.

Income Tax: introduction of higher rate (P.131/2003) – withdrawn

THE STATES noted that, in pursuance of Standing Order 17(6), the following matter lodged "au Greffe" had been withdrawn –

Income Tax: introduction of higher rate. P.131/2003. Lodged: 9th September 2003.

Deputy G.P. Southern of St. Helier.

The potato industry – question and answer (Tape No. 950)

Deputy Terence John Le  Main of St.  Helier tabled the following written question of Deputy Francis Gerald Voisin of St.  Lawrence, President of the Economic Development Committee –

" W ould the President inform members –

( a ) of the total amount of expenditure that has so far been granted to the proposed vodka manufacturing

project, both in the form of direct payment and indirect support via the Jersey Potato Export Marketing Board?

( b ) whether the vodka manufacturing project has received the support of the potato growing industry, and, if

so, whether a contract for potato supply has been arranged; if not, how feasible is the project in the absence of such a contract for the supply of potatoes?

( c ) of the total amount of expenditure so far on the creation and maintenance of both the Jersey Potato

Export Marketing Board and the Jersey Potato Export Marketing Scheme together with the cost, to date, of defending the scheme in Court, if any?

( d ) of the current status with regard to the Jersey Royal Potato Export Scheme, and the level of acceptance

of it by the industry, and what, if any, the effects will be both on the industry and the tax-payer in the event that the States wins the forthcoming Court case, or loses it? and,

( e ) whether the majority of potato exports will be classed illegal in the event that the States win the Court

case, and what the likely legal bill will be in the event that the State loses it, and what steps are being taken to minimise any further expenditure relating to this matter?"

The President of the Economic Development Committee tabled the following written answer –

" ( a) £105,000 in total was granted to the vodka project. The Jersey Potato Export Marketing Board (JPEMB) has provided administrative support to the project estimated at £15,000.

( b ) Individual potato growers have not been asked if they support the vodka manufacturing project, but the

Jersey Potato Export Marketing Board is of the opinion that it does have the required support. No contracts for potato supply have been arranged at this time. The project would not be feasible in the absence of such contracts but the JPEMB will be writing to growers to establish contracts when the project has gained planning permission and private-sector funding arrangements agreed.

( c ) The Scheme was drafted by a local legal practice in 2001 at a cost of £15,000. The JPEMB has been

awarded a total £337,700 in operating costs for the years 2002, 2003 and 2004. The costs to date in preparation for, and defending the Scheme by a local legal practice on behalf of the JPEMB is £105,533. The cost to the States as a result of an unsuccessful application to the Royal Court in July 2002 to lift the stay on the Scheme was £50,000. Additional costs of £120,957 plus EUR 220 have been incurred by the Law Officers' Department. It is known that the two marketing groups involved in the case have spent a considerable amount in legal costs.

( d ) The Scheme remains Stayed at this time. In February 2002, the Jersey Potato Marketing Organisation

Limited (JPMO) sought leave to apply for a judicial review of the Scheme, which was granted by the Royal Court. The case was referred to the European Court of Justice for a preliminary ruling on whether the Scheme is contrary to the European Community Law. (This case was heard in the European Court on 14th September, but it will be some months before the outcome is known.) Subsequent to the application by JPMO, two further companies, Top Produce Limited and Fairview Farm Limited were granted leave to intervene on the grounds that the Scheme is contrary to the European Convention on Human Rights. This case will be heard in the Royal Court in due course. In July 2002, the States and the Board applied to the Royal Court for a lifting of the stay on the Scheme. The application was refused by the Royal Court.

 T h e current level of acceptance of the Scheme can only be determined by either writing to producers or

taking an official Poll to determine whether it is their wish that the Scheme should continue. However it would be impractical to take a Poll until the outcome of the EU case is known and it is not in the power of the Committee to ask for a Poll to be taken. The effect on the taxpayer of winning the case is that the States should be able to recover much of the costs which they have incurred. The effect on the taxpayer of losing is dealt with in the answer to (e).

( e ) If the case is won, the Scheme can be introduced at a time when growers have been given sufficient

opportunity to register and comply with the Scheme. The part of the question relating to the likely legal bill has been dealt with in the previous question.

I f t h e court case is lost, it is likely that an order for costs would be made against the States. It is

impossible at this stage to indicate what the likely extent of those costs might be, because the figure would depend on whether the case is lost at the European Court of Justice level, or on the remaining human rights arguments, and if on human rights grounds, whether such loss occurs in the Royal Court. The Committee is of course anxious to ensure that public money is spent wisely, and has been committed to this litigation in support of the States decision to adopt the scheme. However, it is expecting to review the scheme with the relevant interested parties in preparation for the announcement of the ECJ decision."

Jersey Fishing Fleet – question and answer (Tape No. 950)

The Deputy of St.  John tabled the following written question of Deputy Francis Gerald Voisin of St.  Lawrence, President of the Economic Development Committee –

" W ould the President inform members –

( a ) whether the ongoing matter of the Jersey Fishing fleet, who have applied to fish in Guernsey waters, has

been resolved, thereby enabling Jersey fishermen to fish in Guernsey waters, and, if not, would he advise what actions the Committee is taking to progress matters, and, in particular, to pursue the legal action if necessary? and,

( b ) whether the fishing industry is to receive any aid to cover losses of earnings?"

The President of the Economic Development Committee tabled the following written answer –

" ( a) The Guernsey Fishing Vessel licensing scheme was found to be ultra vires in the 3 – 12 mile zone around Guernsey but is active in the 0 – 3 mile limit. Any Jersey fishing vessel may again fish in the 3 – 12 mile band while 11 successful applicants may also fish in the 0 – 3 mile limit.

T h e i ssue is not resolved and the Committee is actively involved in discussions with the relevant

Committee in Guernsey. The Committee is not taking legal action concerning this matter.

( b ) The Industry is not in the process of receiving States aid to cover loss of earnings, however, it is for

individuals to decide whether to take action in the Guernsey courts."

Certain transactions under Article 134A of the Income Tax Law – question and answer (Tape No. 950)

Deputy Geoffrey Peter Southern of St.  Helier tabled the following written question of Senator Philip Francis Cyril Ozouf , Vice-President of the Finance and Economics Committee –

" F urther to questions asked on 11th May 2004, regarding the ability of the Comptroller of Income Tax to rule on cases of tax avoidance under Article 134A of the Income Tax Law for the full year to April 2004, would

the President inform members –

( a ) what types of transaction were wholly or partly counteracted under the Article?

( b ) if all the transactions had been wholly counteracted, how much extra tax would have been collected, and

how much extra tax was actually collected?

( c ) why the distinction is made between total value and profits?

( d ) what proportion, if any, involved roll-up funds or similar revenue-to-capital transfers?

( e ) what proportion of these transactions and of their value involved financial service companies, private

individuals and single director/shareholder companies? and,

( f) what factors distinguish those which were counteracted from those allowed?"

The Vice-President of the Finance and Economics Committee tabled the following written answer –

" ( a) All the transactions, apart from one relating to a potential charge on property development, related to taxpayers either attempting to switch out of income producing assets such as bank accounts, the interest on which is taxed, into roll-up funds or similar structures or, to taxpayers who had acquired a capital sum, for example, from an inheritance, a property sale, a matured life assurance policy or a lump sum paid upon retirement, and which the taxpayer wanted to place wholly or partly into a roll-up fund or similar structure.

( b ) The total tax that would have been collected if all the transactions had been wholly counteracted is

estimated at some £300,000 and the extra tax collected due to the transactions being counteracted is estimated at some £140,000. The one transaction involving a potential charge on property development is currently under appeal and has not been settled. The tax charged in that case is currently £1 million.

( c ) Value is used when assessing the total monetary amount to be switched from an income producing

source into roll-up funds or similar instruments and profit is used when it is a trading transaction.

( d ) All the transactions, apart from the one relating to a potential charge on property development, related to

switches from income or potential income producing assets to roll-up funds or similar instruments.

 ( e ) All were private individuals. None were financial service companies. No records were kept of the

particular status of the private individuals involved and it would entail a great deal of time and effort to go through all these files again to answer this question at what is a particularly busy time for the Income Tax Office.

( f ) Each case is looked at individually as to the size of the transaction and the value of the transaction as

compared to the individual's other income bearing capital worth and a judgement made accordingly as to whether or not to counteract under Article 134A."

Class size across the school curriculum for years 10 to 13 – question and answer (Tape No. 950)

Deputy Geoffrey Peter Southern of St. Helier tabled the following written question of Senator Michael Edward Vibert , President of the Education, Sport and Culture Committee –

" W ill the President provide members with figures relating to current class size across the curriculum for years 10 to 13 for Hautlieu School, Victoria College and JCG and confirm that the Department's commitment to maintaining front-line services' continues to be met in the face of the rise in the number of students at Hautlieu?"

The President of the Education, Sport and Culture Committee tabled the following written answer –

" T ables 1 to 4 illustrate the number of students in each teaching group across the three schools in years 10 to

13. As this information has been collated early in the term it may be subject to change as some students may choose to modify their subject choices.

F u nding for secondary schools has been formula based since 1995. The formula, based on age weighted pupil

units (AWPU) has 2 elements – fixed and variable costs. The fixed cost element provides a basic structure for the management and maintenance of the school and is not affected by variations in pupil numbers. The variable cost element is governed by a notional Pupil Teacher Ratio (PTR) and determined by pupil numbers. Each pupil on the school roll attracts funding which varies according to the pupil's age.

I n years 10 and 11 the notional PTR is 1:15. In years 12 and 13 the notional PTR is 1:11.2. This formula is

used to fund Hautlieu, Victoria College and JCG. However, Victoria College and JCG now derive more than 50% of their funding through fees.

T  he Committee's determination to maintain frontline services', was reflected in its bid for demographic

growth in the 2005 Fundamental Spending Review. This bid for additional funding was based on the maintenance of existing pupil teacher ratios. However, the allocation that was made through the Review was less than requested and is currently inadequate to meet the actual growth in pupil numbers at Post 16 for 2005. The Committee has, to date, protected school budgets from the impact of savings that have been required through the Review."

Table 1

German 16

Graphics 20

History 22 17 8 History 23 17 15 History 14

History 20

Home Economics 6 Information Technology 16 17 8 Information Technology 21 17 Information Technology 17 18 Information Technology 19 19

Italian 8 Mathematics 28 24 26 Mathematics 29 24 22 Mathematics 23 21 19 Mathematics 23 19 17 Mathematics 22 13 11 Music 16 12 12 Music 8 Personal and Social Ed 21 21 Personal and Social Ed 25 24 Personal and Social Ed 25 5 Personal and Social Ed 26 15 Personal and Social Ed 28 16 Personal and Social Ed 14 Physical Education 22 25 17 Physical Education 26 25 12 Physical Education 28 25 19 Physical Education 25 25 18 Physical Education 24 20 Physical Education 21 19 Physical Education 25 20 Religious Education 25 25 8 Religious Education 26 12

Religious Education 27 20

Religious Education 22 23

Religious Education 25 21

Sciences 23 18 12 Sciences 22 23 14 Sciences 22 23 18 Sciences 22 23 19 Sciences 21 16 19 Sciences 15 26 Sciences 13 Spanish 23 13 15 Spanish 25

Sports Studies 19

Sports Studies 19

Textiles 14

Average 22.34 19.02 15.85 Largest 29.00 25.00 26.00 Smallest 13 11 5

Table 2