Television Licences for persons over 75.

STATES OF JERSEY

TELEVISION LICENCES FOR PERSONS OVER 75

Lodged au Greffe on 16th June 2009 by Deputy M. Tadier of St. Brelade

STATES GREFFE

2009   Price code: A  P.100

PROPOSITION

THE STATES are asked to decide whether they are of opinion

1. to agree that all persons aged 75 years and over living in domestic accommodation should be eligible for free television licences from 1st January 2010 and to request the Minister for Social Security to take the  necessary  steps  to  amend  the  current  means-tested  scheme  to implement this proposal; and
2. to request the Chief Minister, in consultation with the Minister for Treasury  and  Resources,  to  make  adequate  provision  in  the  Draft Annual Business Plan 2010, and to then make appropriate provision in future Annual Business Plans, to meet the cost of the scheme.

DEPUTY M. TADIER OF ST. BRELADE

REPORT

The question of whether or not over-75s in Jersey should receive free TV licences is not a new one. The arguments for and against are well-rehearsed, and it is not my intention to repeat them all here.

It has been said in the past that it is not fair' that a millionaire should receive a free TV licence when they can well afford to pay for one, with this ethos being applied more generally as an argument in favour of means-testing. Whilst this argument does hold a superficial attraction, it should be pointed out that the States have already set other precedents against means-testing, of which two readily spring to mind –

• Child Care Provision

Last year, the States voted to support free child care for all 3–4 year-olds, for up to 20 hours per week. This was not means-tested, and quite rightly so.

• States Members' Pay

From 1st January 2004, means-testing was rejected in favour of equal pay for all, with all elected Members being paid what was judged to be a living salary to carry out their official duties. Again, I believe this was the correct decision.

However, this is not simply a matter of equality or consistency. For me, this is about how we value and treat OAPs and acknowledge the contribution they have made and continue to make in to our Island community. It also acknowledges that the needs and sensibilities  of  our  elderly  residents  are  often  different  from  that  of  the  working population. Many over-75s will live alone and the TV and radio, whilst, of course providing information and entertainment, can be a vital link to the outside world; for others it is a friend and comforting presence in the midst of their homes.

Speaking to the local representative of AGE CONCERN, she voiced her concern that the elderly were being attacked from all sides.'

As pensioners come under increasing financial pressure, due to a combination of increasing fuel and energy costs, low interest returns on savings and the added burden of GST, one has to ask the question: what kind of message we are sending to these people, asking them to pay for a service which, if living in the U.K., would be given to them for free?

Already, this year, the States has shown that it has a social conscience when it comes to looking after the most vulnerable in our society. I am confident that once again, we will send a strong message of support out to the elderly in Jersey that they are valued.

This proposition is a way of acknowledging the contribution that these members of our society  have  made,  and  aims  to  give  something  back,  without  discriminating  on financial grounds or using the tiresome excuse of the current economic climate, as a convenient way of avoiding of our moral responsibilities.

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P.100/2009

I invite  members to consider the following factors in their deliberations  and ask members to support this proposition.

• U.K. Residents over 75 years old currently benefit from free TV licences.

• A TV licence costs £142.50* for colour and £48.00* for black and white (*excl. GST).

• All 75 year-olds have contributed and continue to contribute to our Island on many different levels.

• Child Care for 3–4 year-olds in Jersey is not means-tested.

• Means-testing can lead to arbitrary outcomes, with those falling just outside the threshold feeling somehow cheated'.

• Wealthy residents will have contributed more, in terms of actual taxation, whilst some low-earners may never have paid tax. It seems strange, therefore, that the latter should get a free licence and not the former.

Financial and manpower implications

Advice from the relevant officer at the Social Security Department suggests that the total  fee  for  implementing  this  would  be  an  additional  £559,450.  I  attach  the breakdown of the estimate for members' attention below. I would point out, however, that the actual figure would be significantly less than the stated amount, as many eligible to claim are unlikely to do so.

"The table below summarises the costs of an extended/universal scheme. Two assumptions have been made in these calculations. Firstly, that we do not pay for second homes and secondly, that we do not pay for part years.

*Current budget for 2009 is £204,900".