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Channel Islands Lottery: allocation of profits for 2009–2010.

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STATES OF JERSEY

CHANNEL ISLANDS LOTTERY: ALLOCATION OF PROFITS FOR 2009–2010

Lodged au Greffe on 24th September 2009 by the Minister for Economic Development

STATES GREFFE

2009   Price code: A  P.155

PROPOSITION

THE STATES are asked to decide whether they are of opinion

to  agree,  in  accordance  with  the  provisions  of  Regulation  4(5)  of  the Gambling  (Channel  Islands  Lottery)  (Jersey)  Regulations  1975,  that  all monies standing to the credit of the Channel Islands Lottery (Jersey) Fund which have not already been set aside by the Minister (representing 90% of the total Jersey portion of the profits of the Channel Islands Lottery from 2009 and 2010) should be paid to the Association of Jersey Charities for the benefit of the community and the charitable needs of the Island.

MINISTER FOR ECONOMIC DEVELOPMENT

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P.155 /2009

REPORT

The decision making process for allocating funds from the Channel Islands Lottery is that  the  Minister  has  responsibility  for  establishing  a  reserve,  but  the  States  is responsible for the distribution of remaining funds that constitute the lottery's profit'. Accordingly the Minister for Economic Development, pursuant to his powers under Regulation 4(5) of the Gambling (Channel Islands Lottery) (Jersey) Regulations 1975 and in consultation with the Association of Jersey Charities, has agreed to set aside as a reserve, 10% of the Jersey surplus for 2009 and 2010.

The remaining 90% profit, according to the provisions of that Regulation shall be applied in such manner and for such purposes of public benefit as the States shall from time to time by Act direct. It is the Minister's recommendation to the States that these funds be granted to the Association of Jersey Charities. This recommendation follows that agreed by the States in 2008 when £445,414 (80% of the total) was granted to the Association, albeit that the Association has requested the Minister to now retain a 10% reserve rather than the previous 20%.

The Association now represents over 200 member charities and undertakes a valuable function  by  considering  and  allocating  funding  to  the  best  prepared  and  worthy projects put forward by its members. In doing so, the Association continues to fulfil a vital social need.

The  proposed  transfer  of  10%  of  the  Jersey  profits  from  2009  and  2010  to  the Accumulated Fund is to maintain a contingency for the Association of Jersey Charities should sales of the Channel Islands Lottery decline. Scratch cards sales for 2008 showed a modest decline over the previous year, with Jersey sales showing a 1.37% downward turn. The Christmas Draw however, continues to attract significant public interest and support and 2008 saw the best result in the Lottery's history, with the top prize breaking the half million pound barrier for the second time. This represented an increase of 160,000 tickets (18%) on Jersey sales over the previous year.

Despite the scratch card jackpot of £20,000, there remains little doubt that offering larger cash prizes needs to be considered to raise the profitability of the C.I. Lottery.

The  Minister  has,  therefore,  consulted  with  and  gained  the  agreement  of  the Association  to  use  his  powers  under  Regulation  4(5)  to  retain  a  reserve  for  the exclusive future benefit of the Association of Jersey Charities.

Financial and manpower implications

There are no other financial or manpower implications for the States arising from this proposition.

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P.155/2009

Related Publications

Votes

Vote: Carried 18 November 2009

Minutes

Hansard