Medium Term Financial Plan 2016 - 2019 (P.72/2015) - annex as adopted as amended

STATES OF JERSEY

ANNEX TO THE

MEDIUM TERM FINANCIAL PLAN 2016 – 2019

(as amended following debate at the States sitting of

5th-8th October 2015)

For Information Only Council of Ministers

I.J. Gorst

A.J.H. Maclean

L.J. Farnham

R.G. Bryans

Sir P.M. Bailhache A.K.F. Green M.B.E.

K.L. Moore A.E. Pryke S.G. Luce S.J. Pinel E.J. Noel

P.F.C. Ozouf

P.F. Routier M.B.E.

Senator Chief Minister

Senator Treasury and Resources

Senator Economic Development

Deputy Education, Sport and Culture Senator External Relations

Senator Health and Social Services and

Deputy Chief Minister

Deputy Home Affairs

Deputy Housing

Deputy Planning and Environment Deputy Social Security

Deputy  Transport and Technical Services

Senator Assistant Chief Minister Senator Assistant Chief Minister

J.D. Richardson Chief Executive

R.W. Bell Treasurer of the States

CONTENTS Page Addendum 5

Introduction 7 Department Cash Limits for 2016 17 Summary of States Revenue Expenditure Allocations 2016 19 Consolidated Statement of Comprehensive Net Expenditure 21

Estimates of States Funded Bodies 2016

Chief Minister's Department (as amended) 23 Jersey Overseas Aid Commission 33 Community and Constitutional Affairs 41 Economic Development 51 Education, Sport and Culture (as amended) 61 Department of the Environment  71 Health and Social Services 79 Social Security (as amended) 93 Transport and Technical Services 109 Treasury and Resources (as amended) 119 Non Ministerial States Funded Bodies 129 States Assembly and its services (as amended) 147 Central Contingency Allocations (as amended) 155

States Trading Operations 2016

Summary of States Trading Operations 2016 (as amended) 165 Summary of States Trading Funds 2016 (as amended) 167 Jersey Car Parking 169 Jersey Fleet Management 177

Addendum - Medium Term Financial Plan 2016-2019

At the conclusion of the States debate of the Draft Medium Term Financial Plan 2016-2019 on 8th October 2015 the States had considered fifteen amendments to the original proposition from

the Council of Ministers.

The States approved  five amendments.   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 (P.72/2015) and Medium Term Financial Plan Department Annex for 2016 (P.72/2015(Add)(2)) have also been amended to reflect the agreed changes and are available on the States Assembly website.

Amendments Agreed

First Amendment (proposed by the Council of Ministers) – re-phasing of Redundancy Provision The Council of Ministers proposed this Amendment to reflect the outcomes of the first tranche of the Voluntary Release Programme and to allow the funding to be accelerated in line with the latest programme of reform.

The effect of the first Amendment is to increase the Total States Net Expenditure in 2016 by £6 million and to reduce the proposed Total States Net Expenditure in 2017 by £10 million. The Amendment increases the intended transfer from the Strategic Reserve to the Consolidated Fund in 2016 by £6 million and reduces the intended transfer from the Strategic Reserve to the Consolidated Fund in 2017 by £10 million.

A separate proposition P75/2015 agreed an increase in Total States Net Expenditure for 2015 and P76/2015 agreed the required Strategic Reserve transfers, including £4 million in 2015 for the Redundancy Provision.

Third Amendment (proposed by the Council of Ministers) – removal of Ports of Jersey following Incorporation

The Incorporation of Ports of Jersey (P.80/2015) was approved by the States Assembly on 8th September 2015, and this Amendment was proposed by the Council of Ministers to reflect that decision and remove the revenue expenditure and income and capital expenditure proposals of Jersey Airport and Jersey Harbours from the Draft Medium Term Financial Plan 2016-2019. The revised Summary Tables G and H for the remaining States Trading operations were presented and approved by the States. Appendix 9 – Ports Incorporation, is also amended.

Sixth Amendment (proposed by Deputy Martin) – retain means-tested TV licence benefit for over-75s

The effect of the sixth Amendment is to increase the proposed net revenue expenditure limit for the Social Security Department by £157,000 in 2016 by re-instating the provision for means- tested TV licence benefit for over 75's, and to reduce the proposed net revenue expenditure limits for the Chief Minister's and Treasury and Resources Departments by £90,000 and £67,000 respectively in 2016.

Seventh Amendment (proposed by the Council of Ministers) – deferral of funding for States Members' pension scheme

A request for additional funding for the introduction of a pension scheme for States Members was submitted to the Council of Ministers as part of the Medium Term Financial Plan process for 2016 – 2019 by the Privileges and Procedures Committee. This followed a recommendation from the States Members' Remuneration Review Body (SMRRB) in 2014.

Under Article 24B of the Public Finances (Jersey) Law 2005, the Council of Ministers was required to submit the proposed estimates of the States Assembly to be determined by the States.

The Council of Ministers' seventh Amendment proposed that the decision on States Members' pensions be taken as part of a wider debate on the remuneration of States Members ahead of the new Assembly in May 2018, and that the additional funding for the States Assembly be deferred until at least May 2018.

The effect of the seventh Amendment is to reduce the proposed total States net expenditure by £100,000 in 2016 and 2017 and by £41,700 in 2018, and the proposed net revenue expenditure limit for the States Assembly by £100,000 in 2016.

Eleventh Amendment (as proposed by the Education and Home Affairs Scrutiny Panel) – to increase Education, Sport and Culture's net revenue expenditure limit and reduce Central Contingency in 2016

The effect of the eleventh Amendment is to increase the proposed net revenue expenditure limit for Education, Sport and Culture by £263,200 in 2016, and to reduce the proposed net revenue expenditure limit for Central Contingencies by £263,200 in 2016.

Overall Impact of Amendments

The overall impact of the five approved Amendments to the total net expenditure limits of the States of Jersey is minimal as the majority of the agreed Amendments are cost neutral in total and only affect the net revenue expenditure limits of individual Departments and the Central Contingency Allocations in 2016.

The only change to total States net expenditure, resulting from the seventh Amendment, is a reduction of £100,000 in 2016 and 2017 and £41,700 in 2018.

Introduction

Introduction

Our Purpose

The Council of Ministers, as the government of Jersey, serves and represents the best interests of the Island and its citizens. In order to do this, it must:

• Provide strong, fair and trusted leadership for the Island and its people
• Deliver positive, sustainable economic, social and environmental outcomes for Jersey
• Ensure effective, efficient and sustainable management and use of public funds
• Ensure the provision of modern and highly valued services for the public

Our Strategic Goals

The Council has a collective responsibility to deliver better lives for Islanders and a better future for Jersey by working to deliver a range of social, environmental and economic Strategic Goals:1

1 Reference numbers for the Strategic Goals are to assist with cross-referencing change projects listed in this Annex

Government's performance in delivering against these Strategic Goals helps determine quality of life in Jersey. The community therefore expects the Council of Ministers to ensure the provision of quality services and infrastructure in support of the Goals.

The Strategic Plan

Each new Council publishes a Strategic Plan for its term of office which:

• identifies the Council's key priorities for its term of office, focusing on the key areas where significant change will make the biggest difference to Jersey's future; and
• sets the strategic direction for detailed delivery plans.

This process requires the Council to review Jersey's progress against the Strategic Goals and identify where priority focus is required in response to key pressures or opportunities. The 2015 Strategic Plan identified five Priorities where the Council believes such focus is required:

• Sustainable Public Finances
• Improve Health and Wellbeing
• Improve Education
• Optimise Economic Growth
• Improve St Helier

Prioritisation does not automatically mean additional funding. Focussing people on what is expected helps create the incentive to innovate, collaborate and find new ways of working with existing resources.

Measuring Performance

Governments must show that they make a difference in the lives of those they serve, not just that they are busy providing services which cannot be demonstrated to deliver proven results.

If we are to assess whether the Council is using public funds effectively to deliver tangible improvements against its Strategic Goals – and whether a focus on selected Priorities has the intended results - we need relevant and reliable information on what is being achieved. Sound management of public finances must be supported by effective performance management.

Performance against a Strategic Plan can be measured in three ways:

• Progress in delivering the specific strategy and policy changes (Projects) set out in the Plan
• Delivery of services (Outputs) designed to help achieve our Strategic Goals
• The impact on people's lives (Outcomes).

Measuring Projects

Projects have clear end products – a new strategy is developed, for example. A clearly defined result can be delivered and people can be held to account for timescales, quality and cost. This Annex lists, by department, key projects that will be delivered in 2016 to support the five Priorities in the Strategic Plan and government's broader Strategic Goals2.

These projects will be collated into a new Corporate Delivery Plan, which will become the single point of reference for all major change projects undertaken by the Council during its term of office. The Corporate Delivery Plan will provide the accountability mechanism by which the Council will monitor delivery of its Strategic Plan and report to the community on progress made.

2Delivery projects cannot be neatly categorised by department. Many initiatives, such as the 1,001 Days project, require cross-cutting contributions from different departments.

Measuring Outcomes

The Council's ultimate purpose in developing new strategies, services or infrastructure is to deliver economic, social or environmental change that Islanders value. Such change, however, takes time. A single term of office is invariably too short a period in which to design and deliver strategic interventions such as the proposed regeneration of St Helier and demonstrate their true impact on people's lives.

Developing our capacity to measure progress against outcomes – the economic, social or environmental changes we are looking to achieve - will feature as a key element of the new long term plan proposed in the Strategic Plan 2015-18. Internationally, much effort has been focussed on organising select sets of indicators into Comprehensive Key Indicator Systems' that benchmark progress over time and help guide strategy development.

The Council intends to draw on this international experience in bringing together a select set of Island Indicators' that provide information conveniently in one place on a broad range of outcomes. These indicators will measure progress in areas such as health, housing, jobs, community safety, education and our environment. Where possible, the Island Indicators will:

• come from existing datasets to allow us to understand progress and trends over time, and
• mirror indicators used internationally and/or in other key indicator systems.

Measuring Outputs

The Island Indicators' are not intended to provide comprehensive measurement of every activity undertaken. They will be underpinned by a range of qualitative and quantitative evidence that provides a more complete picture of progress. This detailed information is essential to managing operational delivery and understanding what works and why.

Much good work is already done at departmental level to measure performance and work is underway to improve linkages to financial reporting and performance appraisal. The development of better integrated performance management as a key component of the reform agenda will also aim to collect, organise, and present this information in more comprehensive, balanced way.

The Medium Term Financial Plan 2016-2019

The Medium Term Financial Plan (MTFP) sets out the States' overall tax and spending envelope for the next four years and departmental expenditure limits for 2016.

In developing the MTFP, the Council has taken decisive action to place Jersey on a path to fiscal balance and address any structural deficit by 2019 in line with the Sustainable Public Finances' priority. This has required tough decisions to balance funding for the services and infrastructure that underpin government's broader Strategic Goals with the investment required to progress its key Priorities.

Additional funding for existing services or new growth amounts to nearly £22 million for 2016. This investment has been achieved whilst containing departmental revenue expenditure to an increase of just 1.9% compared to 2015, by challenging existing expenditure in the context of the strategic priorities.

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 maintain a balance on the Consolidated Fund, proposals to actively manage the balance sheet over the next four years and deliver balanced budget by 2019.

- In this MTFP , the proposals will be presented in two stages with the total States income targets and expenditure limits, together with the detailed allocations for 2016 proposed in this report for debate in October 2015; and

- an MTFP Addition will be presented by the end of June 2016, which will propose the detailed allocations for 2017-2019 within the total expenditure limits agreed.

A detailed Annex which provides summary information for each department, describing the department's purpose and responsibilities and the major change initiatives planned in 2016 to support the Council's Priorities and government's broader Strategic Goals. The Annex also provides detailed financial information at a department level to support the proposals in the formal report, including:

- detail of how the proposed department expenditure limits will be allocated to services for 2016;

- a summary service analysis for the department for 2016, including manpower levels;

- a Statement of Comprehensive Net Expenditure for each department for 2016; and

- a reconciliation of the changes in expenditure allocations since 2015.

Presentation of the Medium Term Financial Plan 2016-2019

The Council of Ministers is extremely conscious that there still remains significant uncertainty in the economic outlook for the Island and income forecasts for 2016–2019 and, therefore, cannot commit to additional funding for service pressures, the uprating of benefits or additional funding for priority services beyond 2016 until detailed plans for savings and other measures to balance the budget have been established.

The Council of Ministers is therefore only proposing detailed department revenue spending limits for 2016. However, it is setting total expenditure limits for each of the years 2017-2019 such that the budget is balanced by 2019.

Public Finances (Jersey) Law Amendment

The Minister for Treasury and Resources consulted with the Council of Ministers and Scrutiny and has proposed changes to the Finance Law which have been agreed by the States (P42/2015 – June 2015) and will afford the Council, and the States, time as well as flexibility to consider how the current financial challenges should be addressed.

The Minister for Treasury and Resources also acknowledged the intention of the Amendment from the Corporate Services Scrutiny Panel and the States has agreed proposals to accelerate the timescales proposed by the Panel to allow all the required MTFP proposals for 2017-2019 to be brought forward by the end of June 2016. This will be in the form of an MTFP Addition for 2017-2019.

The Council of Ministers is also considering whether further legislative amendments are required in due course to improve the current arrangements for the allocation of funding to capital projects, in particular other capital projects which will require alternative sources of funding. If such amendments are to be proposed they will be brought forward for debate before the MTFP Addition is proposed in June 2016.

As a result of the agreed changes, in this draft MTFP for 2016-2019 the Council of Ministers is proposing:

• total States income targets for each year 2016 - 2019;
• total maximum expenditure allocation limits for each year 2016 - 2019;
• total capital expenditure allocation limits for each year 2016 - 2019;
• minimum department spending limits and central contingencies for 2016 only; and
• proposals for States Trading Operations for 2016 only.

The MTFP Addition for 2017-2019, to be lodged by the end of June 2016, will propose:

• minimum department spending limits for 2017-2019;
• central growth and central contingencies for 2017-2019,
• proposals for States Trading Operations for 2017-2019.

Alongside the MTFP Addition the Council of Ministers will also present a further MTFP Department Annex providing the details of each department's spending proposals that have been developed for 2017 to 2019.

Summary Tables

Note 1: In April 2015, it was announced that the social, justice and constitutional policy responsibilities of the Chief Minister, the policy responsibilities of the Ministers for Housing and Home Affairs, and the public services of the Home Affairs Department, would be supported by a newly-merged department. This will deliver greater efficiency, flexibility, and alignment between complementary policy areas. The newly-merged Department is named "Community and Constitutional Affairs" , reflecting the broad range of its responsibilities outlined in more detail in the Annex to the Medium Term Financial Plan

Note 2. Where possible the Amendments agreed in the MTFP debate have been shown as they affect Department's growth, savings, benefit changes and the remaining items are shown in the MTFP Amendments Agreed Column.

17

18

Note on Depreciation: A central provision to uprate depreciation has been made which has resulted in a total of £44,800,000 being proposed in the Main MTFP report

19

[1]Consolidated Statement of Comprehensive Net Expenditure

2015 Revised  2016 Net

Net Revenue  Revenue Expendture[2] Expendture

£ £ Income

(7,556,800)  Duties, Fees, Fines & Penalties  (8,252,800) (68,225,200)  Sales of Goods and Services  (73,463,400) (2,000)  Investment Income  (2,100) (13,077,300)  Other Income  (2,986,300) (88,861,300)  Total Income (84,704,600)

Expenditure

186,263,500  Social Benefit Payments  183,733,700 367,999,800  Staff Costs  363,469,900 133,353,200  Supplies and Services  135,703,100 6,039,800  Administrative Expenses  5,603,200 41,355,900  Premises and Maintenance  42,777,600 1,583,000  Other Operating Expenses  1,529,300 43,249,100  Grants and Subsidies Payments  40,989,300 118,900  Impairment of Receivables  63,100 7,370,900  Finance Costs  7,375,900

- Foreign Exchange (Gain)/Loss  -

22,156,800  Contingency Expenses  43,776,800 809,490,900  Total Expenditure 825,021,900

720,629,600  Net Revenue Near Cash Expenditure 740,317,300 44,684,700  Depreciation  43,613,000

Chief Minister's Department (as amended)

Chief Minister's Department (as amended)

Purpose

The Chief Minister's Department provides direction and leadership to the public service by developing and coordinating strategy and policy; delivering corporate services to support the provision of an efficient, effective and fit for purpose public sector; and promoting Jersey's international identity and reputation.

Responsibilities

Corporate Policy and Affairs

• Support to the Chief Minister, Council of Ministers and Corporate Management Board
• Strategic and business planning, strategy and policy coordination, performance reporting and corporate governance
• Development, analysis and advice across all aspects of economic policy
• Effective communication and consultation on government policy

Corporate Services

• Programme management support and governance for Public Sector Reform
• Corporate IT services and infrastructure
• Deliver the organisation's people strategy and transactional services
• Draft legislation on behalf of the States and maintain the revised edition of the Laws of Jersey
• Produce official statistics
• Administer and develop the Freedom of Information (Jersey) Law 2011.

External Relations and Financial Services

• Manage external relations to develop and strengthen Jersey's international standing, and ensure international obligations are fulfilled
• Promote Jersey as a responsible and well regulated jurisdiction for international financial services and develop appropriate legislation and policy for the Island's finance industry

2016 Change Projects

In 2016, the Department will undertake a number of significant projects in support of the Priorities and Strategic Goals set out in the Strategic Plan. Unless otherwise stated, these projects will be delivered from within existing resources.

Financial Narrative

2015 Recurring Savings

The Chief Minister's Department (CMD) will continue to deliver recurring savings of £486,000 agreed for 2015. The savings have been allocated between individual service areas and include the following initiatives:

2016 Savings

In 2016 the Department is required to deliver further savings of £302,100 in addition to maintaining those savings implemented in 2015. In order to meet this target in 2016 there may be the need to reallocate budgets within and between service areas during 2016.

2016 Growth

Growth funding has been approved in 2016 to support a number of initiatives and pressures within CMD:

• Financial Services – implementation of the Jersey Financial Services Industry Policy Framework;
• Central Freedom of Information Unit (CFU) – support departments in the administration and execution of the Freedom of Information Law;
• Safeguarding Partnership Board – permanent funding for the Vulnerable Adults Policy Group and Vulnerable Adults safeguarding function; and
• Information Services – support for a range of initiatives including mobile data management, increased WAN bandwidth and software support costs.

Service Transfers

In 2015 the following recurring Departmental transfers were made:

• Transfer of the Taxes Information Services (IS) team to CMD in order to further align and consolidate IS teams and spend across the States of Jersey. This provides the opportunity to take advantage of synergies and economies of scale and also helps in reducing the risks associated with maintaining a small IS team that needs to keep abreast of a wide skill set in ever expanding technology trends;

• Transfer of the services and manpower of the Population Office to the Social Security Department (SSD) in order to minimise the administrative requirements and make it more convenient for both Islanders and employers by providing a number of services in one place. This also fits with the wider States drive to improve efficiency and customer service;
• Transfer of the Emergency Planning function to the Home Affairs Department, in order to minimise the administrative requirements and enable a more efficient service delivery to the Fire and Rescue Service;
• Transfer to Transport and Technical Services (TTS) to fund Corporate Health and Safety following a decision that the additional costs of Corporate Health and Safety should be allocated across departments; and
• As part of the ongoing Public Sector Reform programme the Home Affairs (HAD) and the Chief Minister's (CMD) departments are being restructured to improve efficiency and increase flexibility. The retirement of the Chief Officer for Home Affairs in 2015 has prompted a review of how to facilitate closer working between relevant teams from the HAD and CMD, resulting in some responsibilities within CMD being transferred to the re-named Community and Constitutional Affairs' department. A service transfer of £844,900 reflects the full effect of the transfer of responsibilities from 1st January 2016.

A review is also being undertaken to look at the synergies that may exist between the Economic Development Department, Financial Services and External Relations in order to make recommendations in relation to future organisation structures and the potential for greater operational efficiencies.

In addition, the Chief Minister has lodged a proposition (P.46/2015) that proposes to transfer certain functions between some existing ministerial portfolios which are intended to:

• underpin the Strategic Plan;
• deliver positive, sustainable economic, social and environmental outcomes for Jersey;
• ensure effective, efficient and sustainable management and use of public funds; and
• enable the provision of modern and highly valued services for the public.

For CMD this includes the transfer of functions in respect of the digital sector of the economy, competition and innovation from the Economic Development Department. The proposition is due to be debated on 15th December 2015.

MTFP Amendments

As a result of the States Assembly decision to approve MTFP 2016 -2019 P.72/2015: Sixth Amendment (to fund the continued provision of means-tested free television licences for the over 75's) the Chief Minister's Departmental cash limit has been reduced by £90,000.

Manpower

From 2015 to 2016 CMD had a net increase of 5.5 FTE from 237.5 FTE to 243.0 FTE. During the FTE reconciliation exercise undertaken in 2015 a decision was made to include all temporary posts that previously had not been published. These temporary FTEs are all due to expire within the life of the Medium Term Financial Plan.

A full breakdown of FTE movements is given in the table below: 2015 FTE per 2015 Annex Update 237.5

Temporary posts - Committee of Inquiry into

2.0 Historical Child Abuse

Temporary posts - eGov 12.0 Temporary posts - Workforce Modernisation 8.0 Project Management posts (contract) 5.0

Taxes IS transfer from Treasury and

Resources 8.5 Resource transfer from Treasury and

Resources 1.0

Transfer of Constitutional Affairs, Safeguarding Partnership Board and Policy to Community  -9.5 and Constitutional Affairs

Population Officer transfer to Social Security -17.0

Emergency Planning transfer to Community

and Constitutional Affairs -1.5 People Savings within Human Resources -3.0

2016 FTE 243.0 Overview for 2017 – 2019

CMD will continue to support the Public Sector Reform programme and will explore a number of initiatives over the period 2017-2019 which will provide the opportunity for structure and service redesign in order to continue to deliver efficient and effective services alongside reduced budgets and workforce numbers.

Chief Minister's Department

30

Statement of Comprehensive Net Expenditure

2015 Revised Net Revenue Expendture[1]

£

Income

(311,700)  Duties, Fees, Fines & Penalties (1,451,900)  Sales of Goods and Services

- Investment Income

(131,000)  Other Income

(1,894,600)  Total Income

Expenditure

- Social Benefit Payments

14,756,300  Staff Costs

6,256,400  Supplies and Services

519,500  Administrative Expenses 533,700  Premises and Maintenance

800  Other Operating Expenses 1,367,000  Grants and Subsidies Payments

- Impairment of Receivables

- Finance Costs

- Foreign Exchange (Gain)/Loss

- Contingency Expenses

23,433,700  Total Expenditure

2016 Net Revenue Expendture

£

- (885,400)

- (131,000) (1,016,400)

- 14,806,600 6,342,500 621,200 595,600 1,500 1,199,800

-

-

-

- 23,567,200

21,539,100  Net Revenue Near Cash Expenditure 22,550,800 455,400  Depreciation  1,387,100 21,994,500  Total Net Revenue Expenditure 23,937,900

Reconciliation of Net Revenue Expenditure

2016

£

Base Department Budget 21,539,100

Price Inflation - Dept Income (37,900) Price Inflation - Dept Expenditure 173,500 Price Inflation - Provision for Pay Award -

Commitments from Existing Policies - MTFP Amendments

- Amd.(6): Reduction to net revenue expenditure to fund the continued

provision of means-tested free television licences for the over-75s (90,000)

Departmental Transfers

- Transfer of Emergency Planning Function to Home Affairs (150,000)

- Transfer of Population Office to Social Security (124,100)

- Transfer of budget for Corporate Health and Safety to Transport and

Technical Services (2,000)

- Transfer of Taxes Information Services Team from Treasury and

Resources 1,421,800

- Transfer of Constitutional Affairs, Safeguarding Partnership Board and

Policy to Home Affairs (844,900)

300,800

Savings

- Department Savings Programme (302,100)

- Benefit Changes -

- Restraint on Non-Staff Inflation for 2016 (135,600) (437,700)

Additional Funding

- Funding Pressures

- Commitments

Financial Services / McKinsey Implementation 523,000 FOI (Central Unit) 100,000 Joint Safeguarding 125,000

- Demographics -

- New Funding - ISD - increased revenue budget required 355,000

- Revenue implications of Capital Projects - 1,103,000

Other Variations - Net Revenue Near Cash Expenditure 22,550,800 Depreciation 1,387,100 Total Net Revenue Expenditure  23,937,900

Jersey Overseas Aid Commission

Jersey Overseas Aid Commission

Purpose

To implement fully the Jersey Overseas Aid Commission (Jersey) Law 2005.

Responsibilities

To manage and administer the monies voted by the States of Jersey for overseas aid, so as to enable humanitarian aid to be provided to developing countries for the purpose of:

• grant aid of development projects implemented through UK registered relief agencies and other recognised specialist aid agencies covering basic health care, medical care, effective education, safe drinking water and sanitation, projects to assist self sufficiency and food security and ensuring environmental sustainability
• emergency and disaster relief through internationally recognised UK registered relief agencies
• community work projects, where teams of Jersey volunteers undertake specific development projects overseas;
• supporting Jersey Charities in their work in overseas countries generally on a £ for £ basis
• assisting with corporate philanthropic projects
• providing sponsorship and bursaries to Jersey professionals and technicians offering specific services and training overseas

Financial Narrative

The Jersey Overseas Aid Commission's (JOAC) grant from the States of Jersey was reviewed in 2015 when it was proposed that an increase of 0.5% be awarded on the existing grant per annum for the period of the next Medium Term Financial Plan (2016-2019).

The largest part of the Commission's budget is allocated to grant aid with approximately 80% allocated to the Commission's approved aid agencies submitting proposals for projects covering basic health care, medical care, effective education, safe drinking water and sanitation, projects to assist self sufficiency and food security whilst ensuring environmental sustainability.

£1,500,000 of its grant is available for disaster and emergency relief due to ever increasing demands for both natural disasters and the emergencies arising through human conflict. Grants to local charities working overseas, community work projects and bursaries for voluntary services overseas are also funded. JOAC will give preference to projects and multi- year programmes located in counties which are within the bottom 50 countries ranked on HDI (Human Development Index www.hdr.undp.org/en/statistics).

2016 Savings

The Commission has been excluded from delivering the 2015 and 2016-2019 savings. Manpower

From 2015 to 2016 FTE manpower increased by 0.5 FTE from 1.0 FTE to 1.5 FTE. This change is as a result of the MTFP/HRIS reconciliation exercise and not an actual increase in staffing levels.

Jersey Overseas Aid Commission

37

Statement of Comprehensive Net Expenditure

2015 Revised Net Revenue Expendture

£

Income

- Duties, Fees, Fines & Penalties

- Sales of Goods and Services

- Investment Income

- Other Income

- Total Income

Expenditure

- Social Benefit Payments

78,600  Staff Costs

13,000  Supplies and Services

2,300  Administrative Expenses

- Premises and Maintenance

- Other Operating Expenses

10,189,800  Grants and Subsidies Payments

- Impairment of Receivables

- Finance Costs

- Foreign Exchange (Gain)/Loss

- Contingency Expenses

10,283,700  Total Expenditure

2016 Net Revenue Expendture

£

-

-

-

-

-

- 78,600 13,000 2,300

-

- 10,243,800

-

-

-

- 10,337,700

10,283,700  Net Revenue Near Cash Expenditure 10,337,700

- Depreciation  -

10,283,700  Total Net Revenue Expenditure 10,337,700

Reconciliation of Net Revenue Expenditure

2016

£

Base Department Budget 10,283,700

Price Inflation - Dept Income - Price Inflation - Dept Expenditure - Price Inflation - Provision for Pay Award - Price Inflation - Overseas Aid Grant 54,000

Commitments from Existing Policies - Departmental Transfers -

Savings

- Department Savings Programme -

- Benefit Changes -

- Restraint on Non-Staff Inflation for 2016 -

-

Additional Funding

- Funding Pressures -

- Commitments -

- Demographics -

- New Funding -

- Revenue implications of Capital Projects -

-

Other Variations - Net Revenue Near Cash Expenditure 10,337,700 Depreciation - Total Net Revenue Expenditure  10,337,700

Community and Constitutional Affairs

Community and Constitutional Affairs

Purpose

Community and Constitutional Affairs aims to improve the quality of life of everyone living in Jersey by helping create a safe, just and fairer society.

Responsibilities

• Responsibility for the following services:
  • States of Jersey Police
  • States of Jersey Fire and Rescue Service
  • Jersey Prison Service (HMP Prison La Moye)
  • Jersey Customs and Immigration Service
  • Jersey Field Squadron (Jersey's Army Reserves Unit)
  • Office of the Superintendent Registrar
  • Emergency Planning
  • Safeguarding Partnership Boards
• Criminal Justice Policy
• Constitutional and Justice Policy, including:
  • Policy and resources relating to the overall justice system, e.g. the overall criminal, civil, family and administrative justice system; the courts, tribunals, access to justice and legal aid
  • Safeguarding of human rights, data protection, legal services, constitutional reform
• Housing Policy
• Social Policy
• Building a Safer Society Strategy
• Registered authority for the Jersey Vetting Bureau
• Legislation Advisory Panel

2016 Change Projects

In 2016, the Department will undertake a number of significant projects in support of the Priorities and/or Strategic Goals set out in the Strategic Plan. Unless otherwise stated, these projects will be delivered from within existing resources.

Financial Narrative

2015 Recurring Savings

The new Department will continue to deliver recurring savings of £1,033,200 agreed for the Home Affairs Department (HAD) in 2015. The savings have been allocated between individual service areas and include the following initiatives:

2016 Savings

In 2016 the Department is required to deliver further savings of £372,700, attributed to the HAD, in addition to maintaining the savings implemented in 2015. In order to meet this target in 2016 these savings may be non-recurring in the first instance and, as a result, there may be the need to reallocate budgets between service areas during 2016.

In addition, the Department has found compensating savings of around £300,000 in order to fund the cost of staff incremental increases within the States of Jersey Police, Prison and Fire and Rescue Service.

2016 Growth

Funding is required in 2016 to support the additional revenue costs of maintaining the new Police Headquarters. It is anticipated that the building will be completed at the end of 2016 and fully operational in early 2017. The full impact of the additional revenue costs will be evaluated during the MTFP period.

Service Transfers

As part of the ongoing Public Sector Reform programme the Home Affairs (HAD) and the Chief Minister's (CMD) departments are being restructured to improve efficiency and increase flexibility. The retirement of the Chief Officer for Home Affairs in 2015 has prompted a review of how to facilitate closer working between relevant teams from the HAD and CMD. A service transfer of £844,900 reflects the full effect of the transfer of responsibilities from 1st January 2016 to the new Department for Community and Constitutional Affairs.

Manpower

Staff numbers increased by 1.6 FTE from 692.5 FTE to 694.1 FTE during 2015 as a result of an additional 1.6 FTE approved for the Jersey Customs and Immigration Service.

Staff numbers will increase by 6.0 FTE to 700.1 FTE in 2016 as a net result of the transfer of functions from the Chief Minister's Department (+11.0 FTE) and recurring staff savings in the States of Jersey Police, Prison and Fire and Rescue Service (-5.0 FTE).

Overview for 2017 – 2019

The Department for Community and Constitutional Affairs is exploring a number of initiatives over the period 2017-2019 which will provide the opportunity for changes in structure and service redesign which will be essential if the department is to continue to deliver efficient and effective front line emergency services with a reduced budget.

The Ministerial Team, Chief Officers and Service Heads will continue to support the Public Sector Reform Programme in order to deliver balanced budgets by 2019 and are fully aware of the challenges ahead if the department is to continue to deliver its core functions and provide essential services to islanders.

Community and Constitutional Affairs

48

Statement of Comprehensive Net Expenditure

2015 Revised Net Revenue

Expendture[1] £

Income

(1,376,800)  Duties, Fees, Fines & Penalties (736,500)  Sales of Goods and Services

- Investment Income

(27,000)  Other Income

(2,140,300)  Total Income

Expenditure

- Social Benefit Payments

41,004,300  Staff Costs

5,185,600  Supplies and Services 1,475,900  Administrative Expenses 2,547,000  Premises and Maintenance

308,800  Other Operating Expenses 164,000  Grants and Subsidies Payments

- Impairment of Receivables

12,000  Finance Costs

- Foreign Exchange (Gain)/Loss

- Contingency Expenses

50,697,600  Total Expenditure

2016 Net Revenue Expendture

£

(1,353,600) (722,700)

- (40,900) (2,117,200)

- 41,871,300 5,482,300 922,200 2,630,100 305,800 164,000

- 12,000

-

- 51,387,700

48,557,300  Net Revenue Near Cash Expenditure 49,270,500 709,800  Depreciation  735,000 49,267,100  Total Net Revenue Expenditure 50,005,500

Reconciliation of Net Revenue Expenditure

2016

£

Base Department Budget 48,557,300

Non-Staff Inflation - Dept Income (42,500) Non-Staff Inflation - Dept Expenditure 193,600 Staff Inflation - Provision for Pay Award -

Commitments from Existing Policies -

Departmental Transfers

- Transfer of Emergency Planning Function from Chief

Minister's Department 150,000

- Transfer of budget for Corporate Health and Safety to

Transport and Technical Services (4,000)

- Transfer of Constitutional Affairs, Safeguarding Partnership

Board and Policy from Chief Minister's Department 844,900 990,900

Savings

- Department Savings Programme (372,700)

- Benefit Changes -

- Restraint on Non-Staff Inflation for 2016 (151,100) (523,800)

Additional Funding

- Funding Pressures -

- Commitments -

- Demographics -

- New Funding -

- Revenue implications of Capital Projects

New Police Station 95,000 95,000

Other Variations - Net Revenue Near Cash Expenditure 49,270,500 Depreciation 735,000 Total Net Revenue Expenditure  50,005,500

Economic Development

Economic Development

Purpose

Deliver economic growth, improve competitiveness, diversify the local economy and create new employment for local job seekers.

Responsibilities

• Working closely with partners across all sectors of Jersey's economy to support their development and diversification
• Supporting new and established businesses through Jersey Business
• Encouraging inward investment and developing international trade through Locate Jersey
• Promoting work-related skills training through Skills Jersey
• The promotion of Jersey as a visitor destination through Visit Jersey
• The operation and management of Jersey's commercial ports, airport and harbours, including provision of a coastguard service and other professional services through the Ports of Jersey
• The registration of pleasure boats and commercial vessels through the British Registrar of Ships in Jersey and the registration of planes at the Jersey Aircraft Registry
• Encouraging high-wealth individuals who will contribute economically and socially to take up residency in Jersey
• The enforcement of consumer protection laws and the provision of a comprehensive consumer and business advisory service
• A range of regulatory functions across different sectors of the economy including retail, intellectual property and gambling
• Supporting the rural economy to grow and diversify

2016 Change Projects

In 2016, the Department will undertake a number of significant projects in support of the Priorities and/or Strategic Goals set out in the Strategic Plan. Unless otherwise stated, these projects will be delivered from within existing resources.

Financial Narrative

2015 Recurring Savings and 2016 Savings

Recurring savings of £0.4 million were identified in 2015 as part of the 2% savings targets for all departments. There was a reduction in grants for Jersey Finance and Skills Development, together with a reduction in expenditure for Renewable Energy, Intellectual Property and E- Commerce.

In 2016 the Department will deliver further savings of £0.6 million and this will mainly be met by general efficiency savings and a reduction in funding for the Rural Sector and Route Development.

Further savings will be made in 2016 by removing funding to the Tourism Development Fund for 2016 as part of a reprioritisation process to help increase funding towards securing Economic Growth and employment opportunities.

Service Transfers

A permanent transfer of £0.6 million skills funding to the Education, Sports and Culture Department (ESC) will be made on 1st January 2016 to fund and increase numbers involved

on the Trackers programme in 2016.

Subject to the agreement of the States Assembly, a proposal (P.46/2015) has been lodged for the transfer of the following from 1 January 2016:

• Sport (£3.5 million) from ESC to EDD
• Culture (£4.7 million) from ESC to EDD
• Jersey Finance, Digital Jersey, Broadcasting, Competition, Intellectual Property (£6.0 million) and the Jersey Innovation Fund from EDD to CMD

Manpower

Staff employed by the department – prior to inbound transfers - will decrease by 20.1 FTE to 38.2 FTE from 1st January 2016. This is mainly due to the creation of Visit Jersey in 2015 and the reduction of Tourism staff.

It is anticipated that approximately 108 FTE would transfer into the department on 1st January 2016 as part of the transfer of Sport & Culture from ESC, if approved by the States.

Overview for 2017-2019

In the period 2017-19, the Department will continue to prioritise activity towards securing greater productivity and economic growth within the Island economy, in moving towards delivery of the Strategic Plan Economic Growth' Priority.

New strategies for Tourism, Enterprise, Retail and the Rural Economy are likely to flag up the need for continued Government investment in initiatives designed to boost productivity, exports, skills development and innovation as part sustaining and developing local businesses and seeking to attract further inward investment.

If approved, the incorporation of Sport & Culture into the department will bring opportunities to more fully develop the economic potential of both areas and secure greater integration with Tourism, as plans develop to maximise the potential for in-bound sport and events-led tourism.

Looking forward, there will continue to be challenges to match limited budget with the priorities set out in the Strategic Plan to deliver economic growth through increased productivity, improved competitiveness, diversification of the local economy, and creation of new employment for local job seekers.

Economic Development

58

Statement of Comprehensive Net Expenditure

2015 Revised Net Revenue

Expendture[1]

£

Income

(667,800)  Duties, Fees, Fines & Penalties (981,100)  Sales of Goods and Services

- Investment Income

(75,000)  Other Income

(1,723,900)  Total Income

Expenditure

- Social Benefit Payments

3,493,300  Staff Costs

5,953,200  Supplies and Services

251,500  Administrative Expenses

354,000  Premises and Maintenance

700,500  Other Operating Expenses 9,400,900  Grants and Subsidies Payments

- Impairment of Receivables

- Finance Costs

- Foreign Exchange (Gain)/Loss

- Contingency Expenses

20,153,400  Total Expenditure

2016 Net Revenue Expendture

£

(821,900) (341,000)

-

-

(1,162,900)

- 2,706,100 1,774,800 37,800 351,100 15,000 13,474,600

-

-

-

- 18,359,400

18,429,500  Net Revenue Near Cash Expenditure 17,196,500 3,200  Depreciation  800 18,432,700  Total Net Revenue Expenditure 17,197,300

Reconciliation of Net Revenue Expenditure

2016

£

Base Department Budget 18,429,500

Price Inflation - Dept Income (34,500) Price Inflation - Dept Expenditure 333,200 Price Inflation - Provision for Pay Award -

Commitments from Existing Policies - Departmental Transfers

- Transfer of budget for Corporate Health and Safety to

Transport and Technical Services (2,000)

- Transfer of Trackers Apprentice Programme to Education,

Sport and Culture (600,000) (602,000)

Savings

- Department Savings Programme (631,000)

- Benefit Changes -

- Restraint on Non-Staff Inflation for 2016 (298,700) (929,700)

Additional Funding

- Funding Pressures -

- Commitments -

- Demographics -

- New Funding -

- Revenue implications of Capital Projects -

-

Other Variations - Net Revenue Near Cash Expenditure 17,196,500 Depreciation 800 Total Net Revenue Expenditure  17,197,300

Education, Sport and Culture

(as amended)

Education, Sport & Culture (as amended)

Purpose

Education, Sport and Culture provides educational, sporting and cultural opportunities which begin at nursery and continue into retirement. This supports our commitment to encourage lifelong learning to enable everyone to realise their potential.

Responsibilities

• The provision of an effective curriculum for 3 to 19 year olds including the monitoring of the curriculum and teaching and learning
• Professional development and training of all teaching staff
• Supporting and providing advice to head teachers
• Making educational provisions for the special needs of all children
• The provision of specialist and general careers advice
• Providing financial assistance for higher education courses
• The development of sport and leisure strategies and the management of sport and leisure facilities
• The delivery of the island's youth service
• The registration of out-of-home childcare settings
• The delivery of library services across the island
• Liaison with and financial support for trusts and voluntary organisations for the promotion of arts, heritage and childcare

2016 Change Projects

In 2016, the Department will undertake a number of significant projects in support of the Priorities and/or Strategic Goals set out in the Strategic Plan. Unless otherwise stated, these projects will be delivered from within existing resources.

The department's day-to-day business activity will also support and deliver the Priorities set out in the Council of Ministers' Strategic Plan (Improve Education).

In addition to the initiatives already highlighted the department will undertake a change programme centering on the four key priority areas for change: raising standards; reshaping the curriculum; effective working with families; and providing autonomy to schools. This will support the Council of Ministers' Strategic Goal SG5 (Provide a first class education service, supporting the development of skills, creativity and lifelong learning).

With regard to Sport the department will continue to develop sport in the island by delivering the ESC sports strategy' and we will ensure our schools and other ESC facilities are built and maintained to excellent standards and enjoyed by their users'. This will support the Council of Ministers' Strategic Goal SG2 (Promote health and social wellbeing for the whole community, providing prompt services for all and protecting the interests of the frail and the vulnerable) and SG7 (Promote sporting, leisure and cultural activities that enrich Islanders' lives).

Financial Narrative

Education

As detailed in the Education Business Plan, and highlighted above, the department will focus on four key priority areas in 2016: standards, curriculum, families and autonomy.

Additional funding of £4.8 million will target the following areas:

£2.1 million for growth in pupil numbers forecast for primary and secondary education including a notable increase in the number of pupils staying on to A-Level;

£1.2 million to raise standards through the introduction of a UK equivalent Pupil Premium' to address low performance across all vulnerable to lower attainment pupil groups. This will include an extension to the professional partnering programme to ensure high quality school self- evaluation and an enhanced data insight team to provide additional and more accurate data;

£0.8 million for the ICT Skills Strategy launched in 2012 to provide the optimum IT infrastructure and education possible within schools and to support the continued delivery of school business cases;

£0.7 million for early years including additional support for children with identified needs covering pre-birth to five to ensure children get the best possible start to their education and additional funding for the forecast increase in the number of children entitled to Nursery Education Fund (NEF) providing parents with the opportunity to access 20 hours of early years education for children aged four. In recognition of the growing importance of Early Year Services separate disclosure for this area has been introduced covering nursery school education, NEF, early years, parenting programme, the Bridge, childcare registration and the Jersey Child Care Trust.

Recurring efficiency savings of £0.2 million have been identified as part of the 2015 2% savings targets for all departments.

Further Education and Culture

The introduction of the Trackers Apprentice Scheme as part of the MTFP 2013-2015 has been a victim of its own success. The numbers are growing above predictions and these will be funded through a permanent transfer of skills funding from the Economic Development Department (EDD) of £0.6 million.

There has been a small decline in the number of students accessing UK higher education with an increase in on Island provision. This is reflected in recurring savings in 2015 of £2.1 million on higher education and further savings of £25,000 in 2016.

Currently there is much public debate over the financing options for students in higher education and a review of options will be considered going forward.

Subject to the agreement of the States Assembly, a proposal has been lodged for the transfer of Culture (£4.7 million) from ESC to EDD from 1 January 2016.

Sports

The decrease in Sports is due to a reduction in the AquaSplash grant negotiated as part of the new contract with Serco contributing to the 2015 2% savings, removal of the one-off NatWest Island Games grant in 2016 and CSR savings on sports income and a reduction in grants to clubs and associations.

Subject to the agreement of the States Assembly, a proposal has been lodged for the transfer of Sports (£3.5 million) from ESC to EDD from 1 January 2016.

CSR Savings

The department remains committed to the delivery of the final year of the CSR savings. These include the phasing out of grants for independent preparatory schools, the final increase to reach the full occupancy charges for fee paying provided schools, the introduction of a new model of vocational education for pupils with special educational needs (SEN) and efficiency savings in primary and secondary education.

Manpower

Staff employed by the department increased by 114.4 FTE to 1,789.9 FTE during 2015. This represented an adjustment of 114.4 FTE to introduce FTE budget for all permanent posts currently covered by employees on zero hour contracts.

FTE will increase by a further 44.4 FTE from 1st January 2016 to 1834.3 FTE. This represents an increase of 2.0 FTE for the Trackers Apprentice Scheme, and an increase of 42.4 FTE as a result of additional funding provided for Education to fund demographic growth (24.4 FTE), early years (7.0 FTE) and to raise standards including the expansion of professional partnering and the data insight team (11.0 FTE).

MTFP Amendments

As a result of MTFP Amendment P.72/2015 Amd.(11) the 2016 net revenue budget for the department was increased by £263,200. This additional funding was proposed by the Education and Home Affairs Scrutiny Panel in order for new growth to match savings in 2016 and for the department not to be disadvantaged to the detriment of children's education. There are no manpower implications arising from this amendment.

Overview for 2017-2019

The proposed transfer of Sports and Culture to EDD will enable the department to focus on improvements in educational and vocational standards and in equipping the local workforce with the skills they need.

The Education Business Plan identifies four key priorities to improve education and these have all secured additional funding for the period of the MTFP 2016-2019. Challenging States circumstances however mean savings also need to be achieved and the department has tried to minimize the impact of planned savings on front line services.

Future savings proposals being considered by the department include a review of the educational system, in particular secondary education to ensure optimal both in terms of costs and pedagogy, and the review of service delivery models for SEN and Highlands College to ensure optimal delivery for minimal cost.

Looking forward, there will continue to be challenges to match limited budget with a first class education service and we will continue to review the whole structure of education to ensure best value is achieved from every pound spent.

Education, Sport and Culture

67

Statement of Comprehensive Net Expenditure

2015 Revised Net Revenue Expendture[1]

£

Income

(21,600)  Duties, Fees, Fines & Penalties (18,795,300)  Sales of Goods and Services

- Investment Income

(341,800)  Other Income

(19,158,700)  Total Income

Expenditure

9,368,500  Social Benefit Payments 87,828,600  Staff Costs

10,038,100  Supplies and Services

917,700  Administrative Expenses 6,917,800  Premises and Maintenance 26,000  Other Operating Expenses 12,628,800  Grants and Subsidies Payments

- Impairment of Receivables

24,300  Finance Costs

- Foreign Exchange (Gain)/Loss

- Contingency Expenses

127,749,800  Total Expenditure

2016 Net Revenue Expendture

£

(21,200) (19,245,800)

- (319,100) (19,586,100)

9,343,500 90,240,900 11,324,000 1,034,500 7,406,100 30,400 11,839,600

- 25,100

-

- 131,244,100

108,591,100  Net Revenue Near Cash Expenditure 111,658,000 293,200  Depreciation  421,300 108,884,300  Total Net Revenue Expenditure 112,079,300

Reconciliation of Net Revenue Expenditure

2016

£

Base Department Budget 108,591,100

Non-Staff Inflation - Dept Income (383,200) Non-Staff Inflation - Dept Expenditure 653,200 Staff Inflation - Provision for Pay Award -

Commitments from Existing Policies

- Remaining CSR savings (1,068,000)

MTFP Amendments

- Amd.(11): Increase to net revenue expenditure 263,200

Departmental Transfers

- Transfer of budget and service for Les Creux Country Park to

Treasury and Resources (Jersey Property Holdings) (8,100)

- Transfer of budget for Corporate Health and Safety to

Transport and Technical Services (11,000)

- Transfer of Trackers Apprentice Programme from Economic

Development 600,000 580,900

Savings

- Department Savings Programme (1,516,200)

- Benefit Changes -

- Restraint on Non-Staff Inflation for 2016 (270,000) (1,786,200)

Additional Funding

- Funding Pressures -

- Commitments -

- Demographics

Primary School Demographics 745,000 Secondary School Demographics 1,313,000 Nursery Education Fund 376,000

- New Funding

Raising Achievement Funding - (UK Pupil Premium

Equivalent) 837,000 Provision of a Data Team 120,000 Extending Professional Partnering 288,000 Early Years 278,000

- Revenue implications of Capital Projects

ICT skills strategy 750,000 New schools 100,000 4,807,000

Other Variations - Net Revenue Near Cash Expenditure 111,658,000 Depreciation 421,300 Total Net Revenue Expenditure  112,079,300

Department of the Environment

Department of the Environment

Purpose

Protect and enhance the natural and built environment, including our sea, water, air, land and buildings, recognising the impact on our community and economy.

Responsibilities

• Developing and implementing legislation, policies, plans and guidance to protect and enhance the natural and built environment
• Regulation of the natural and built environment
• Promoting and encouraging the sustainable use of natural resources
• Ensuring secure, affordable and sustainable energy
• Promoting awareness and understanding of environmental issues
• Making sure development is designed and constructed to safe and environmentally appropriate standards
• Monitoring plant health risks and providing a protective framework
• Monitoring and enforcement of animal health and welfare and exercising controls to prevent or eradicate animal diseases
• Management of the countryside, access network and biodiversity
• Management and regulation of the marine environment and associated industries
• Provision of meteorological and climate recording services

2016 Change Projects

In 2016, the Department will undertake a number of significant projects in support of the Priorities and/or Strategic Goals set out in the Strategic Plan. Unless otherwise stated, these projects will be delivered from within existing resources.