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States Minutes 27th September 2016

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THE STATES assembled on Tuesday 27th September 2016, at 09.30 a.m. under the Presidency of the Deputy Bailiff , Timothy John Le Cocq , Esquire.

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His Excellency the Lieutenant Governor, General Sir John McColl, K.C.B., C.B.E., D.S.O. was present.

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All members were present at roll call with the exception of –

Senator Philip Francis Cyril Ozouf – absent on States business

Senator Lyndon John Farnham – en défaut (défaut raised at 10.04 a.m.)

Connétable  Leonard  Norman  of   St. Clement  excused  attendance  (arrived  in  the  Chamber  at 11.29 a.m.) Deputy  Kristina  Louise   Moore  of   St. Peter  excused  attendance  (arrived  in  the  Chamber  at 10.30 a.m.) Deputy Murray Julian Norton of St. Brelade – en défaut (défaut raised at 10.04 a.m.)

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Prayers read by the Greffier of the States __________________

Documents presented or laid

Draft Medium Term Financial Plan Addition for 2017 – 2019 (P.68/2016) –  P.68/2016. comments. Com.(4) Presented: 27th September 2016.

Education and Home Affairs Scrutiny Panel.

Draft Medium Term Financial Plan Addition for 2017 – 2019 (P.68/2016) – seventh  P.68/2016. amendment (P.68/2016 Amd.(7)) – comments (P.68/2016 Amd.(7)Com.) – addendum.  Amd.(7) Presented: 27th September 2016.  Com.Add. Council of Ministers.

Notification of lodged propositions

Draft Criminal Justice (Young Offenders) (Jersey) Law 2014 (Appointed Day) Act  P.98/2016. 201-.

Lodged: 27th September 2016.

Minister for Home Affairs.

Draft Criminal Justice (Young Offenders) (Consequential Provisions) (Jersey)  P.99/2016. Regulations 201-.

Lodged: 27th September 2016.

Minister for Home Affairs.

Draft Criminal Justice (Young Offenders) (Placement Panel) (Jersey) Regulations  P.100/2016. 201-.

Lodged: 27th September 2016.

Minister for Home Affairs.

STATES MINUTES

Draft Financial Services Ombudsman (Case-fee and Levy) (Amendment) (Jersey) Regulations 201-.

Lodged: 27th September 2016.

Minister for Economic Development, Tourism, Sport and Culture.


27th September 2016

P.101/2016.

Draft Medium Term Financial Plan Addition for 2017 – 2019 P.68/2016

THE STATES commenced consideration of the proposition of the Council of Ministers entitled Draft Medium Term Financial Plan Addition for 2017 – 2019' (P.68/2016).

THE  STATES commenced  consideration of an  amendment of Deputy Geoffrey Peter Southern of St. Helier (P.68/2016) (Amendment 2) that: (1) after the words "in Summary Table B," there should be inserted the words "except that the net revenue expenditure of the Chief Minister's Department shall be increased in 2019 by £84,000 to fund the continued provision of 2 posts within the Statistics Unit."; and (2) after the words "as set out in Summary Table C", there should be inserted the words "except that the total proposed central contingency allocation for 2019 be decreased by £84,000".

THE STATES acceded to a request by Deputy Geoffrey Peter Southern of St. Helier , in accordance with Standing Order 69(4), that his amendment (P.68/2016 Amd.(2)) be withdrawn.

THE STATES, adopting the request of Deputy Geoffrey Peter Southern of St. Helier , in accordance with Standing Order 26(7), agreed to reduce the minimum lodging period in respect of his amendment to paragraph (1) of the amendment of Senator Sarah Craig Ferguson (P.68/2016 Amd.(9)), that after paragraph (ii) there should be inserted the following new paragraph and the remaining paragraphs be renumbered accordingly –

"(iii) assessing the potential additional tax revenue which could be generated from the

introduction of progressive rates of tax for those households which fall into the top decile (10%) of equivalised household income;"

THE STATES commenced consideration of the amendment of Senator Sarah Craig Ferguson (P.68/2016 Amd.(9)) (as amended) that –

  1. after the words "Summary Table B", there should be inserted the words –

"except that the net revenue expenditure of the Chief Minister's Department shall be increased by £30,000 in 2017 in order for that Department to commission an independent review of the tax system, including a quantification and explanation of changes in the profile of the taxpaying public since 2008 –

  1. reconciling and explaining the changes in the number of taxpayers in the main bands defined as non-taxpayers, marginal band taxpayers and 20% taxpayers;
  2. assessing the income generated from companies trading in Jersey or owned by residents of Jersey;
  3. assessing the potential additional tax revenue which could be generated from the introduction of progressive rates of tax for those households which fall into the top decile (10%) of equivalised household income;
  4. assessing the overall effects on the economy resulting from high levels of immigration;
  1. including an economic impact assessment of how each income quintile would be affected by proposed user pays' charges, and from the changes already imposed since the implementation of zero/10, which will be financed from the Contingency Fund and from other funds and reserves including the Strategic Reserve, and to consider the appropriateness of routing income from the proposed health charge directly to the Consolidated Fund; and
  2. reviewing the change in accounting treatment of income tax to assess the robustness of the tax estimate process and reviewing the model used for estimating tax,

precise terms of reference for the review to be agreed with the Corporate Services Scrutiny Panel, and the revenue head of expenditure of the Department for Infrastructure shall be increased by £3,000,000 in 2018".

  1. after the words "Summary Table C", there should be inserted the words –

"except that there shall be a reduction of £30,000 in 2017 in respect of the independent review of the tax system and a reduction of £10.5 million in 2018 in respect of a delay to the implementation of the health charge and commercial waste charges during such time as the review of the tax system is completed, considered and implemented";

  1. in paragraph (c) the words "£7,500,000 in 2018 and" should be deleted.

THE STATES rejected paragraph (1) of an amendment of Senator Sarah Craig Ferguson (P.68/2016 Amd.(9)) (as amended) that after the words "Summary Table B", there should be inserted the words –

"except that the net revenue expenditure of the Chief Minister's Department shall be increased by £30,000 in 2017 in order for that Department to commission an independent review of the tax system, including a quantification and explanation of changes in the profile of the taxpaying public since 2008 –

  1. reconciling and explaining the changes in the number of taxpayers in the main bands defined as non-taxpayers, marginal band taxpayers and 20% taxpayers;
  2. assessing the income generated from companies trading in Jersey or owned by residents of Jersey;
  3. assessing the potential additional tax revenue which could be generated from the introduction of progressive rates of tax for those households which fall into the top decile (10%) of equivalised household income;
  4. assessing the overall effects on the economy resulting from high levels of immigration;
  5. including an economic impact assessment of how each income quintile would be affected by proposed user pays' charges, and from the changes already imposed since the implementation of zero/10, which will be financed from the Contingency Fund and from other funds and reserves including the Strategic Reserve, and to consider the appropriateness of routing income from the proposed health charge directly to the Consolidated Fund; and
  1. reviewing the change in accounting treatment of income tax to assess the robustness of the tax estimate process and reviewing the model used for estimating tax,

precise terms of reference for the review to be agreed with the Corporate Services Scrutiny panel, and the revenue head of expenditure of the Department for Infrastructure shall be increased by £3,000,000 in 2018".

Members present voted as follows –

POUR: 18 CONTRE: 30 ABSTAIN: 0

Senator S.C. Ferguson Connétable of St. Saviour Connétable of St. John Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy of Grouville

Deputy J.A. Hilton (H) Deputy J.A.N. Le Fondré (L) Deputy K.C. Lewis (S) Deputy M. Tadier (B) Deputy of St. John

Deputy M.R. Higgins (H) Deputy J.M. Maçon (S) Deputy S.Y. Mézec (H) Deputy L.M.C. Doublet (S) Deputy R. Labey (H) Deputy S.M. Bree (C) Deputy T.A. McDonald (S)


Senator P.F. Routier

Senator A.J.H. Maclean

Senator I.J. Gorst

Senator L.J. Farnham

Senator P.M. Bailhache

Senator A.K.F. Green

Connétable of St. Helier

Connétable of St. Clement

Connétable of St. Peter

Connétable of St. Lawrence Connétable of St. Mary

Connétable of St. Ouen

Connétable of St. Brelade

Connétable of St. Martin

Connétable of Grouville

Connétable of Trinity

Deputy of Trinity

Deputy E.J. Noel (L)

Deputy S.J. Pinel (C)

Deputy of St. Martin

Deputy R.G. Bryans (H)

Deputy of St. Peter

Deputy R.J. Rondel (H)

Deputy A.D. Lewis (H)

Deputy of St. Ouen

Deputy S.M. Wickenden (H) Deputy M.J. Norton (B)

Deputy of St. Mary

Deputy G.J. Truscott (B)

Deputy P.D. McLinton (S)

Following the rejection of paragraph (1) of the amendment of Senator Sarah Craig Ferguson (P.68/2016 Amd.(9)) (as amended), the Deputy Bailiff informed the Assembly that paragraphs (2) and (3) of the same amendment were deemed to have been withdrawn.

THE STATES, adopting an amendment of Deputy Montfort Tadier of St. Brelade (P.68/2016 Amd.(7)), agreed that after the words "Summary Table B," there should be inserted the words "except that the revenue head of expenditure of the Department of Economic Development, Tourism, Sport and Culture shall be increased by £30,000 in 2017, 2018 and 2019 to support Jèrriais and the revenue head of expenditure of the Department of Education shall be reduced in each of those years by the same amount".

Members present voted as follows –

POUR: 42 CONTRE: 0 ABSTAIN: 0

Senator P.F. Routier

Senator I.J. Gorst

Senator L.J. Farnham Senator P.M. Bailhache Senator A.K.F. Green Senator S.C. Ferguson Connétable of St. Helier Connétable of St. Peter Connétable of St. Lawrence Connétable of St. Mary Connétable of St. Ouen Connétable of St. Brelade Connétable of St. Martin Connétable of St. Saviour Connétable of Grouville Connétable of St. John Connétable of Trinity Deputy J.A. Martin (H) Deputy G.P. Southern (H) Deputy of Grouville

Deputy J.A. Hilton (H) Deputy J.A.N. Le Fondré (L) Deputy of Trinity

Deputy K.C. Lewis (S) Deputy M. Tadier (B) Deputy M.R. Higgins (H) Deputy J.M. Maçon (S) Deputy S.J. Pinel (C) Deputy R.G. Bryans (H) Deputy of St. Peter

Deputy R.J. Rondel (H) Deputy S.Y. Mézec (H) Deputy A.D. Lewis (H) Deputy of St. Ouen

Deputy R. Labey (H) Deputy S.M. Wickenden (H) Deputy S.M. Bree (C) Deputy M.J. Norton (B) Deputy T.A. McDonald (S) Deputy of St. Mary

Deputy G.J. Truscott (B) Deputy P.D. McLinton (S)

THE STATES commenced consideration of an amendment of Deputy Geoffrey Peter Southern of St. Helier (P.68/2016 Amd.) that: (1) after the words "in Summary Table B," there should be inserted the words "except that the net revenue expenditure of the Education Department shall be increased for 2018 and 2019 by £240,000 and £480,000 respectively by not pre-empting through a States' decision the proposed review of terms and conditions for teachers" and that after the words "as set out in Summary Table C" there should be inserted the words "except that the total proposed central contingency allocation for 2018 be decreased by £240,000 and by £480,000 in 2019"; and (2) after the words "Summary Table C", there should be inserted the words: " except that there shall be a reduction of £30,000 in 2017 in respect of the independent review of the tax system and a reduction of £10.5 million in 2018 in respect of a delay to the implementation of the health charge and commercial waste charges during such time as the review of the tax system is completed, considered and implemented";  and (3) in paragraph (c), the words "£7,500,000 in 2018 and" should be deleted.

Senator Lyndon John Farnham , in accordance with the provisions of Standing Order 106(b), declared an interest not being of a direct financial nature, and remained in the Chamber for the duration of the debate on the amendment of Deputy Geoffrey Peter Southern of St. Helier (P.68/2016 Amd.).

Adjournment

THE STATES adjourned, having agreed to reconvene on Wednesday 28th September 2016 to continue consideration of the proposition of the Council of Ministers entitled Draft Medium Term Financial Plan Addition for 2017 – 2019' (P.68/2016) and associated amendments, and the outstanding items of public business.

THE STATES rose at 5.33 p.m.

DR. M. EGAN Greffier of the States