Medium Term Financial Plan 2013 - 2015 Annex as amended following debate

ANNEX TO MEDIUM TERM FINANCIAL PLAN

2013 2015

(FOR INFORMATION ONLY)

ANNEX TO MEDIUM TERM FINANCIAL PLAN 2013–2015

(For Information Only)

Council of Ministers

I.J. Gorst

B.I. Le Marquand

P.F.C. Ozouf

A.J.H. Maclean

P.J.D. Ryan

A.E. Pryke

A.K.F.Green M.B.E.

R.C. Duhamel

F. du H. Le Gresley M.B.E. K.C. Lewis

J.D. Richardson L.J. Rowley

Senator  Chief Minister

Senator  Home Affairs and Deputy Chief Minister Senator  Treasury and Resources

Senator  Economic Development

Deputy  Education, Sport and Culture

Deputy  Health and Social Services

Deputy  Housing

Deputy  Planning and Environment

Senator  Social Security

Deputy  Transport and Technical Services

Chief Executive Treasurer of the States

ANNEX TO MEDIUM TERM FINANCIAL PLAN 2013 2015 (FOR INFORMATION ONLY)  PAGE 1

CONTENTS

PAGE

Addendum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Introduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9    Annex: Summary Table A Revenue Expenditure Allocations 2013 2015 (as amended)   .  .  .  .  .  .  11    Consolidated Statement of Comprehensive Net Expenditure .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  12    Summary Table B1 Total States Departmental Net Expenditure 2013 2015 (as amended) . . . . . 13    Major Policies / Strategies to be Debated by the States 2013 2015 . . . . . . . . . . . . . . . . . . 14

Estimates of States Funded Bodies

   Chief Minister (as amended)   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  15    Grant to Overseas Aid   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  29   Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37    Education, Sport and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49    Department of the Environment   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  61    Health and Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73    Home Affairs (as amended)   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  87   Housing .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  99    Social Security (as amended)   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .109    Transport and Technical Services (as amended)   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .123    Treasury and Resources (including Jersey Property Holdings)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .137    Non-Ministerial States Funded Bodies .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .153    States Assembly and its services   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .171    Central Contingency Allocations  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .181    Central Growth Allocations (as amended)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .189

Capital Programme .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .195    Summary Table D Capital Expenditure Programme 2013 2015 Funding   .  .  .  .  .  .  .  .  .  .  .  .  .  .197    Summary Table E Capital Programme 2013 2015 . . . . . . . . . . . . . . . . . . . . . . . . . .198

States Trading Operations   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .205    Summary Table F Summary of States Trading Operations 2013 2015 . . . . . . . . . . . . . . . .207    Annex: Summary Table B Summary of States Trading Operations 2013 2015   .  .  .  .  .  .  .  .  .  .  .208    Summary Table G Proposed Capital Allocation to States Trading Operations   .  .  .  .  .  .  .  .  .  .  .209   Economic Development

  Jersey Airport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215   Jersey Harbours   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .225   Transport and Technical Services

   Jersey Car Parking .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .237    Jersey Fleet Management   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .247

Comprehensive Spending Review 2011 16 Proposals   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .257

ANNEX TO MEDIUM TERM FINANCIAL PLAN2013 2015(FOR INFORMATION ONLY)  PAGE 3

Addendum

At the States debate of the Medium Term Financial Plan on 6 November 2012 the States considered ten amendments to the original proposition from the Council of Ministers.

The States approved three Amendments including the ninth amendment, as amended by the

Chief Minister. The changes required as a result of these agreed amendments are outlined in this Addendum. The relevant sections of the Medium Term Financial Plan Report and Department Annex have also been amended.

The Council of Ministers also agreed some alternative measures to accommodate the proposals made in the second, third and tenth amendment and these measures are also documented in this Addendum. The relevant sections of the Medium Term Financial Plan Report and Department Annex make reference to these measures.

Amendments Agreed

Ninth Amendment (as amended by the Chief Minister)

The Corporate Services Scrutiny Panel proposed an amendment to create a central growth allocation for 2014 and 2015 by removing growth that had been allocated directly to departments in the original proposals from the Council of Ministers.

The Council of Ministers asked Ministers to review the proposed amendment and comment on the impact to their department and identify any growth schemes that could be managed in this way. As a result of this review and the feedback from departments the Chief Minister lodged an amendment to the Corporate Services Scrutiny Panel amendment to provide an alternative central growth allocation for 2014 and 2015. This was agreed by the States.

The impact is to remove the following growth amounts from department budgets in 2014 and 2015 and create a central growth allocation of £2.210 million in 2014 and £1.460 million in 2015 which will be allocated in the annual Budgets for 2014 and 2015.

GROWTH BIDS TRANSFERRED TO CENTRAL GROWTH ALLOCATION

2013 2014 2015 Dept

£ 000 £ 000 £ 000

External Relations: International meetings, monitoring and

33 * CMD 160 160

visitors dignitaries

34 * External Relations: External specialist advice CMD 100 100 52 * CSR: Fund permanent members of the CSR delivery team CMD 150 150

410 410 43 * Maritime Incident Response Group HA 50 50 18 * Private Sector Rental Support SSD 750 1,000 49 * Treatment and disposal of ash TTS 1,000

Total 2,210 1,460

The Corporate Services Scrutiny Panel also proposed that the Minister for Treasury and Resources develops a defined performance monitoring and reporting framework which produces a high level

of transparency on the tracking of actual performance against the Medium Term Financial Plan and to report to the Assembly on the development of such a framework by July 2013. The Council of Ministers accepted this amendment which was also agreed by the States. The Council of Ministers proposed that the existing well developed and well understood performance monitoring and reporting framework will be extended to report actual performance against the different aspects of the Medium Term Financial Plan.

Sixth Amendment

This amendment proposed that further to the provision contained within the Medium Term Financial Plan to increase the Public Employees Contributory Retirement Scheme (PECRS) Pre-1987 debt repayments by £1 million in 2013, £2 million in 2014 and £3 million in 2015 in order to reduce the long-term costs to the States of the repayment, the Minister for Treasury and Resources be requested to present to the States no later than 31st July 2013 further options for the early repayment of the PECRS Pre-1987 debt and the Jersey Teachers Superannuation Fund (JTSF) Pre-2007 debt to provide significant additional long-term cost reductions.

The Council of Ministers welcomed this amendment which was agreed by the States and will require the development of further options for effective management of the balance sheet via early repayment of PECRS Pre-1987 debt and JTSF Pre-2007 debt. The proposed timescale is to consider and evaluate possible options and then to present to the States by no later than 31st July 2013.

Alternative measures proposed by the Council of Ministers

Second Amendment

In response to a proposal to increase States total expenditure limits to provide three schemes for the Environment department that had not been prioritised for growth funding the Council of Ministers has proposed alternative funding measures. The schemes for countryside infrastructure, Island Plan implementation and strengthening the protection and regulation of the Island s environment will be delivered through a combination of funding routes including the central planning vote, allocations for back to work and employment initiatives and the opportunity to carry forward 2012 underspends.

Third Amendment

In response to a proposal to increase the States total expenditure limit to provide additional funding for Language Assistants the Council of Ministers has agreed that the Education, Sport and Culture department will provide the necessary funding from within its original spending limit from 2013.

Tenth Amendment

In response to proposals to increase States total expenditure limits in relation to additional funding for the Band of Jersey, the post of Military Liaison Officer and new Sea Cadets Headquarters the Council of Ministers has agreed alternative funding measures.

2012 underspends will be earmarked to be carried forward to provide annual contributions to the Band of Jersey and a contribution to the new post of Cadet and Military Support Officer within the Lieutenant Governor s staff. This new post will also be supported by existing funding to be transferred from the Home Affairs Department.

There is the potential to deliver facilities for the Sea Cadets without the need for further funds to be drawn from the Consolidated Fund. Jersey Property Holdings has held preliminary discussions with a third party about the possibility of a joint venture at the Le Galots site to provide Sea Cadet facilities as well as some community facilities and commercial development. Should this approach not be successful, the Council of Ministers will support the inclusion of the £800,000 in the 2014 capital programme as part of the 2014 annual Budget process.

Introduction

The Council of Ministers Strategic Plan, which was approved by the States in May 2012, has set out the priorities for Jersey over the next three years. There are seven key priorities:

1. Getting people into work;
2. Housing our community;
3. Promoting family and community values;
4. Reforming government and public services;
5. Managing population growth/immigration;
6. Reforming health and social services; and
7. Introducing sustainable long-term planning.

To achieve these aims an important change has to be put in place, namely the move to a 3-year planning framework, or Medium Term Financial Planning. For the first time the States of Jersey will be setting minimum budgets for all departments 3 years in advance and moving away from short-term decision making. This change is intended to provide flexibility, deliver efficiencies and move to longer- term thinking within a more certain financial framework that will ultimately benefit the Island.

The Medium Term Financial Plan is split into two parts:

   The formal lodged report providing the background to the financial and economic position, the

revenue and capital expenditure proposals and details of the measures that are proposed to balance budgets and actively manage the balance sheet over the next three years. The report is accompanied by comprehensive appendices which include: an explanation of States income, long term capital plans, the States investment strategy and a long term tax policy.

   This department annex to the Medium Term Financial Plan provides information to support the

main report including a summary of each department s key objectives towards delivering the seven strategic priorities and the detail of how the proposed department expenditure limits would be allocated to services.

The Medium Term Financial Plan Annex provides for the first time a three-year plan for each department including:

   an introduction from the Minister including the main priorities and growth requirements for the

next three years;

   departments key objectives and success criteria;

   a summary service analysis for the department for each of the years 2013 2015, including

manpower levels and a split of gross expenditure and income across DEL (Departmental Expenditure Limits) and AME (Annually Managed Expenditure);

   a reconciliation of the changes in expenditure allocations for 2013 2015, identifying growth

funding, Comprehensive Spending Review savings and further budget reductions; and

   an operating cost statement for each of the years 2013 2015.

The Medium Term Financial Plan Annex also provides:

   a summary of the major policies that will be brought to the States over the next three years;    a summary of the States net revenue expenditure for each of the years 2013 2015; and

   a summary of the States proposed capital programme for each of the years 2013 2015.

The Chief Minister and Minister for Treasury and Resources are indebted to all departments for their co-operation in providing this information.

Annex: Summary table A

TOTAL STATES NET EXPENDITURE ALLOCATIONS 2013–2015 (AS AMENDED)

Consolidated Statement of Comprehensive Net Expenditure

NET EXPENDITURE – STATEMENT OF COMPREHENSIVE NET EXPENDITURE1

40,075,000  Depreciation  41,657,000  44,136,900  46,138,500

Impairment of Fixed Assets

100  Asset Disposal (Gain)/Loss

655,920,000  Net Revenue Expenditure  675,427,800  713,736,300  737,295,600

1. The States Financial Report and Accounts for 2012 will be prepared under International Financial Reporting Standards (IFRS), and the format of this statement has been updated to be consistent with the formats required under these standards. Under IFRS the Operating Cost Statement (OCS) and Statement of Total Recognised Gains and Losses (STRGL) have been replaced by a single Statement of Comprehensive Net Expenditure (SoCNE). This statement includes gains and losses that have not yet been realised, such as revaluation gains on property Assets, but these items do not form part of Departmental Expenditure Limits, and so are not included in the MTFP. As a result the SoCNE above is equivalent to the Operating Cost Statement previously included.

MAJOR POLICIES / STRATEGIES TO BE BROUGHT FORWARD FOR DEBATE BY THE STATES 2013 TO 2015*

Department Policy/Strategy

Housing Strategy

Chief Minister  Population/Migration Policy

Alcohol and Licensing Strategy

Energy Policy

Planning Appeals Policy

Department of the Environment

Island Plan Policy H3: Affordable Housing

Consolidated environmentally based policies across the States Economic Development  Incorporation of Harbours & Airport

Sports Strategy

Education Sport & Culture  Strategy on the Future of Education

Proposals for the future of Fort Regent

Strategies relevant to health and social care reform underpinning the White Paper (to

be debated in Autumn 2012) but yet to be identified for States debate

Health & Social Services

Channel Island Pandemic Strategy

Regulation of Care Law Primary Legislation and associated Regulations

Vetting and Barring policy and legislation Alternative to Wheel Clamping

Home Affairs  E-Borders

Sexual Offences Law

Custodial arrangements for children

Incorporation of the Housing Department & Establishment of a Regulator for the Social Housing

Housing Sector

Discrimination Law

Social Security  Employment Law Family friendly policies

Long Term Care Benefit Law

Import/processing waste from Guernsey Transport & Technical Services  Liquid Waste Strategy

Streetworks Law

Strategy for PECRS & JTSF

Treasury & Resources  2014, 2015, 2016 Budgets

MTFP 2016 to 2018

* Note: These are the major policy areas that are currently planned to be brought forward to the States Assembly for debate in the period 2013 to 2015. They may be subject to change/addition depending on priority changes.

Detailed Estimates of States Funded Bodies Chief Minister (as amended)

Chief Minister

The Chief Minister s Department is structured into two main service areas, with separate Accounting Officers:

1. Chief Executive

   Policy Unit (policy support and research for the Council of Ministers and Chief Executive,

economic advice, communications, statistics, the Population Office, Emergency Planning);    Comprehensive Spending Review Team;

   Law Draftsman s Office;

   Information Services;

   Human Resources.

2. Director of International Affairs

   All areas of external and international relations, including managing the Island s close

relationship with the UK.

The prime focus of the Department during the three years from 2013 to 2015 will be to support and co- ordinate the Council of Ministers to deliver the priorities approved by the States in the Strategic Plan, to develop policy and prepare for further Public Sector Reform over the longer term.

The appointment of an Assistant Chief Minister with responsibility for External Relations will foster increased recognition of Jersey s international identity and development of the Island s beneficial relations with other countries.

The Department will continue to deliver and develop its services to the public and other States Departments in line with its twin objectives of improving quality and efficiency.

The Department critically reviewed its activities as part of the Comprehensive Spending Review (CSR). The review process identified the areas where money has been saved to meet the 10% CSR target. It also demonstrated that the Department s approved base budget has not been sufficient to undertake its core functions over the past five years. The budget has been supplemented each year by substantial non-recurring monies for specific purposes. These include activities which are or have become core functions such as staff training and responding to external threats and opportunities. Human Resources and External Relations in particular have demonstrated that they need increased recurring funding to continue basic operations and to meet the challenges which arise each year.

The Department s financial priorities for the MTFP are therefore:

   to deliver the final tranche of its overall 10% CSR savings target in 2013;

   to secure sufficient recurring resources for the Human Resources function to improve the

operational support it provides to Departments and to make it ready to support the organisation through a programme of Public Sector Reform;

   to place External Relations on a sound financial footing following its development over the last 4

years from Fiscal Stimulus and other non-recurring funding. This will allow the Chief Minister and Assistant Chief Minister to plan ahead and build long term international relationships with secure funding for its programmed activities.

The bids submitted by the Department reflect these priorities. The majority of bids seek to establish recurring funding for existing costs which have been met from non-recurring sources in the past. The three growth items are:

   the creation of the London Representative Office to attract new business and foster the

environment needed to protect the economy;

   Corporate Health and Safety a new post to support Departments with Health and Safety

matters;

   HR Fit for Purpose 8 new posts are required to strengthen the HR function in support of the

future programme of Public Sector Reform.

The table below shows the growth funding proposed by the Department during this MTFP period to address these priorities, together with the proposed funding source:

CMD BIDS AND PROPOSED FUNDING SOLUTION

2013 2014 2015

CMD BIDS AND PROPOSED FUNDING SOLUTION FTEs Funding

£ 000 £ 000 £ 000

Get People Into Work

External Relations Establish a London Representative  Contingency in 2014. Growth

0 0 600 600

Office from 2015

Reform Health and Social Services

HR HSS 2 additional posts arising from Verita report 2 180 200 200 Growth from 2013

Other Growth

IS: Data Security Officer 1 72 80 80 Growth from 2013

Corporate Health & Safety 1 54 60 60 Growth from 2013

External Relations: International Adviser to the Council of  Carry forwards or income in

1 0 50 50

Ministers 2013. Growth from 2014 External Relations: Shortfall in Grant to Channel Islands  Carry forwards or income in

0 0 50 50

Brussels Office 2013. Growth from 2014 External Relations: OECD Global Forum/Peer Review Group/ Carry forwards or income in

0 0 60 60

British Irish Council Secretariat annual contribution 2013. Growth from 2014

Carry forwards or income External Relations: International meetings, monitoring and

0 0 160 160 in 2013. Central Growth visiting dignitaries

Allocation from 2014

Carry forwards or income External Relations: External specialist advice 0 0 100 100 in 2013. Central Growth

Allocation from 2014

Carry forwards or income in Law Draftsman: 1 additional permanent Law Draftsman 1 0 130 130

2013. Growth from 2014

HR Learning and Development MMP and other  Carry forwards or income in

0 0 170 170

programmes 2013. Growth from 2014

HR Fit for Purpose strengthening HR team for workforce  Restructuring provision

8 522 580 580

planning/OD and Systems

2013 2014 2015

CMD BIDS AND PROPOSED FUNDING SOLUTION FTEs Funding

£ 000 £ 000 £ 000

HR Base Budget Shortfall on Staff 2 0 230 200 Restructuring provision

Central Growth Allocation CSR: Fund permanent members of the CSR delivery team  2 0 150 150

from 2014

TOTAL PROPOSED GROWTH BIDS

18 828 2,620 2,590

FOR WHICH RESOURCES ARE IDENTIFIED

In 2013, the Department is planning to use under-spends carried forward from 2012 and additional income from fees arising from the Control of Housing and Work Law to fund £420,000 of existing commitments in External Relations plus £92,000 in respect of the 10% reduction in the first year of the MTFP which Ministers agreed to find from their existing resources.

CSR Restructuring funding has been allocated to fund resources required to be in place for the next three years to support the reform agenda, including continuing funding for 2 HR staff and 2 CSR staff. The additional HR team is needed to support the organisational development work associated with the reform agenda.

The Corporate Services Scrutiny Panel proposed an amendment to create a central growth allocation for 2014 and 2015 by removing growth that had been allocated directly to departments in the original proposals from the Council of Ministers. The impact is to remove a sum of £410,000 in 2014 and 2015 from Chief Minister s Department originally earmarked for External Relations: International meetings, monitoring and visiting dignitaries, External Relations: External specialist advice and CSR: Fund permanent members of the CSR delivery team and place it into a central growth allocation which will then be re-allocated on an annual basis, as part of the annual Budget debates for 2014 and 2015.

Looking forward, the core projects and issues for each area of the Department over the next three years are:

1. Chief Executive

Policy

The Strategic Plan approved in 2012 will drive the Department s policy programme. In support of this, the way policy is developed and monitored will be reviewed and enhanced to ensure appropriate co-ordination and sound performance management. The results of the 2011 census are being used to inform policy development.

In this period, the Department will lead a programme of Public Sector Reform and develop wide- ranging policy and plans to modernise and prepare the organisation to meet the challenges of the future.

Migration policy and the level of net migration, once approved by the States, will be monitored with the appropriate review mechanisms. The Control of Housing and Work Law and the draft Register of Names and Addresses Law will provide the mechanism for regulating inward migration therefore systems need to be developed for their implementation.

A significant priority will be to continue to progress policy initiatives designed to address the effects of the ageing population. This will require cross-department planning and working.

An important part of our work will be to improve the transparency of government decisions and continue to increase public engagement in the development of policy. This includes co-ordinating the development of an implementation plan for the Freedom of Information legislation approved by the States in 2011 subject to resources being made available.

The provision of quality economic advice will continue to support effective management of the economy, as will the production of relevant statistics and statistical bulletins.

The Emergencies Council will continue to lead a programme of improvements to the emergency planning and management structures and processes supported by the Emergency Planning Board.

Comprehensive Spending Review

The Department will continue to lead the implementation of the Comprehensive Spending Review to deliver £65 million of savings by 2013. The overall scale of savings to be delivered will require complete commitment in achieving targets, with continuing consideration of the strategic options for reducing costs whilst maintaining high-quality core services.

The small CSR team will work closely with departments to support them to achieve their savings targets. In addition, a States-wide organisational development programme will support the drive for greater efficiency through the review of departmental structures and services to modernise the way in which the public sector delivers services to the public.

Law Drafting

The Law Draftsman s department is a vital service providing the legislative framework within which the States operates and services are provided. In 2012 and 2013, the Law Draftsman s department has taken on temporary additional resource to address urgent legislation required to deliver the CSR and support initiatives to grow the economy and protect jobs. It proposes to make one of these additional draftsmen permanent from 2014 to be able to meet the underlying demand for law drafting.

Information Services

The Information Services Department (ISD) manages corporate IT services such as the network infrastructure, PC management, data centres, and provides the framework for managing IS projects and business projects with an IS element. Core business applications are managed by ISD at a Departmental level through embedded Business Support Groups (BSGs).

The IS strategy for the period 2011 to 2013 is to streamline corporate service models in conjunction with third party suppliers. This will enable cost savings without reducing, and in some cases improving, the level of service provided. The priority for the MTFP period is to support the delivery of CSR savings and the new Strategic Plan objectives across the States where these are dependent on technology solutions.

Key activities in the MTFP period will be:

   upgrade of PC office information systems;

   consolidating existing data centres;

   streamlining the support model for corporate systems and services;

   supporting projects to improve finance and HR systems and processes;

   continuing the development of web services and more citizen services online.

Human Resources

Human Resources (HR) core purpose is to provide strategic and transactional people management support to States Departments to deliver their departmental and CSR objectives.

In order to fulfil this accountability, the function has a number of key activities to deliver in the MTFP period:

   completion and implementation of the Terms and Conditions Review;

   provide Organisational Development and Performance Management improvements;

   upgrade or replace the Human Resources Information Systems (HRIS);

   reshape HR to support the future structure of the States organisation;

   provide a Workforce Plan and Talent management process focussing on supplying successful

local candidates for key roles.

In financial terms, much of HR s funding for training and organisational development has come in previous years from non-recurring sources. This MTFP seeks to provide the appropriate balance of substantive and project funding for the function by 2015.

2. External Relations

During 2011, the importance of UK and international affairs was recognised by the appointment of an Assistant Chief Minister to take the lead for External Relations.

Under these new arrangements, the Department will seek to continue to protect Jersey s unique constitution and autonomy, to promote Jersey s international identity and good reputation as a responsible country committed to the rule of law, international standards and respect for internationally recognised human and labour rights, develop Jersey s competitive position in the global economy and promote Jersey s cultural identity abroad.

Senator Ian Gorst

Chief Minister

Chief Minister

AIM:

   Support and advise the Chief Minister and Council of Ministers in establishing, co-ordinating,

communicating and implementing States approved policies and objectives.

   Provide direction and leadership to the public service to ensure that policies and programmes

are delivered in accordance with agreed priorities.

   Conduct external relations to further develop Jersey s international standing and strengthen

business and cultural links which benefit Islanders.

SUMMARY OF KEY OBJECTIVES AND SUCCESS CRITERIA

Chief Executive

Key Objective 1: The co-ordinated development and implementation of States policies.

Success criteria:

1. A robust framework in place with clear processes defined for developing, co-ordinating and communicating policy to deliver the Strategic Plan and to achieve a balance of economic, social and environmental objectives;
2. Housing Strategy developed and agreed;
3. Co-ordinated long term (15+ years) socio/economic/environmental policy plan produced as a blueprint for the future.

Strategic Plan References:

   Vision: A safe and caring community; A strong and sustainable economy; Preparing for the

future; Protecting the environment; A highly skilled workforce

   Priorities: Get people into work; Manage population growth and migration; House our

community; Promote family and community values; Reform Health & Social Services; Reform government & the public sector; Sustainable long-term planning

Key Objective 2: An efficient and effective public sector fit for the purpose of delivering

the Council of Ministers' strategic vision and priorities.

Success criteria:

1. Continued focus on delivering essential services through the prioritisation of budgets and manpower in accordance with strategic priorities;
2. Agreed model for reformed public sector based on service redesign, workforce modernisation and cultural change;
3. Public services matched to affordability and public expectation.

Strategic Plan References:

   Vision: Preparing for the future; A highly skilled workforce

   Priorities: Reform government & the public sector; Develop sustainable long-term planning

Key Objective 3: Decision-making improved and debate better informed through the

provision of accurate and timely professional advice and information.

Success criteria:

1. States assisted to meet its objectives through the provision of sound advice;
2. Ministerial decisions supported by robust evidence;
3. AllStatistics Unit releases produced independently to pre-announced release dates and statistical information made available on an impartial basis;
4. Structures in place to ensure proper governance processes and information management;
5. Successful implementation of Freedom of Information arrangements.

Strategic Plan Reference(s):

   Vision: A safe and caring community; A strong and sustainable economy; Preparing for the

future

   Priorities: Get people into work; Manage population growth and migration; Promote family

and community values; Develop sustainable long-term planning

Key Objective 4: Population levels that achieve a balance between economic growth

and the additional demand migration places on accommodation, infrastructure and resources.

Success criteria:

1. Revised migration/population policy agreed by the States;
2. Improved mechanisms in place to control population.

Strategic Plan Reference(s):

   Vision: A safe and caring community; A strong and sustainable economy; Preparing for the

future; Protecting the environment; A highly skilled workforce

   Priorities: Get people into work; Manage population growth and migration; House our

community; Develop sustainable long-term planning

Key Objective 5: Deliver £65 million Comprehensive Spending Review (CSR) savings

target by the end of 2013.

Success criteria:

1. Agreed overall savings package delivered by the end of 2013;
2. Agreed Chief Minister s DepartmentCSR savings delivered by the end of 2013.

Strategic Plan Reference(s):

   Vision: A strong and sustainable economy; Preparing for the future

   Priorities: Reform government and the public sector; Develop sustainable long-term planning

External Relations

Key Objective 6: Jersey's international responsibilities fulfilled and beneficial relations

advanced with the United Kingdom, other countries and International organisations.

Success criteria:

1. International obligations met;
2. Relevant international conventions and bi-lateral agreements are ratified/extended, recognising Jersey s autonomy and commitment to international standards;
3. Close relationship with the UK maintained and our unique constitution and autonomy protected;
4. Strengthened international relations and partnerships,supporting new and existing business and cultural links which benefit Islanders.

Strategic Plan Reference(s):

   Vision: A safe and caring community; A strong and sustainable economy; Preparing for the

future

   Priorities: Get people into work; Manage population growth and migration; Develop

sustainable long-term planning

Chief Minister (as amended)

NET REVENUE EXPENDITURE – SERVICE ANALYSIS

2012 2013 2014 2015

Net Revenue

Net Revenue  Net Revenue  Net Revenue

Expenditure Increase/  Increase/  Increase/

Expenditure Expenditure Expenditure

+ Depreciation (Decrease) (Decrease) (Decrease)

£ £ £

£

2,762,300 Policy Unit 2,771,500  9,200  2,175,500  (596,000) 2,179,500  4,000 940,800 External Relations 920,700  (20,100) 1,690,000  769,300  1,699,600  9,600

Law Drafting

848,400 843,000  (5,400) 976,500  133,500  980,000  3,500

Department

Information

10,194,500 10,101,300  (93,200) 10,169,000  67,700  10,230,500  61,500

Services

4,395,500 Human Resources 4,655,000  259,500  5,152,000  497,000  5,135,500  (16,500) 3,810,100 Pensions (3,810,100)

CSR 78,900  78,900  78,900  78,900

Net Revenue

22,951,600  19,370,400  (3,581,200) 20,241,900  871,500  20,304,000  62,100

Expenditure

(168,100) Less: Depreciation (514,900) (485,300) (455,400)

Net Revenue

22,783,500  18,855,500  19,756,600  19,848,600

Expenditure

Chief Minister (as amended)

NET EXPENDITURE – STATEMENT OF COMPREHENSIVE NET EXPENDITURE 1

1. The States Financial Report and Accounts for 2012 will be prepared under International Financial Reporting Standards (IFRS), and the format of this statement has been updated to be consistent with the formats required under these standards. Under IFRS the Operating Cost Statement (OCS) and Statement of Total Recognised Gains and Losses (STRGL) have been replaced by a single Statement of Comprehensive Net Expenditure (SoCNE). This statement includes gains and losses that have not yet been realised, such as revaluation gains on property Assets, but these items do not form part of Departmental Expenditure Limits, and so are not included in the MTFP. As a result the SoCNE above is equivalent to the Operating Cost Statement previously included.

Chief Minister (as amended)

RECONCILIATION OF NET REVENUE EXPENDITURE

2013 2014 2015

£ £ £

Base Department Budget 22,783,500 18,855,500 19,756,600 Price Inflation Dept Income (30,300) (31,600) (32,400) Price Inflation Dept Expenditure 276,900 150,700 154,400

Price Inflation Provision for Pay Award

Commitments from Existing Policies

Department Savings (776,000) Department User Pays (23,000)

Departmental Transfers

Transfer of PECRS Pre 1987 Debt to Treasury (4,436,900) Regulation of Undertakings and Developments from Economic

368,800 Development

Transfer of budget for Ceasar GST collection system

13,300 maintenance from Treasury

Capital to Revenue Transfers

Proposed MTFP Growth 828,000 1,382,000 (30,000) Proposed Procurement Savings (148,800)