Properties leased by the Committee

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WRITTEN QUESTION TO THE PRESIDENT OF THE HEALTH AND SOCIAL SERVICES COMMITTEE BY DEPUTY M.F. DUBRAS OF ST. LAWRENCE

ANSWER TO BE TABLED ON TUESDAY, 13th SEPTEMBER 2005 Question

"Will the President provide today for perusal a complete list of properties leased by the Committee in each of the last five years, showing the annual cost to the taxpayer for rental and maintenance and the percentage utilization factor' of each (for continuing staff and/or locums to be accommodated) to demonstrate how well the department has utilised such accommodation? Where utilisation is below 80 per cent, will the President please give an explanation?"

Answer

"The  Health  and  Social  Services  Committee  presently  leases  27  flats  and  houses  for  the  purpose  of accommodating its essential staff who are either on short term contracts, have just arrived in the Island and yet to find somewhere in the private sector, have less than a year of their contract to run, or are providing a locum service for a consultant who is on leave or is absent due to illness.

The types of staff accommodated in these leased properties include Locums, Registrar's, Staff Grades, Associated Specialists, Staff Nurses, Senior Social Worker, Radiographer, Occupational Therapist, Child Care Officer, Head of Governance and a Chaplain.

The terms and conditions of employment for the above in some cases require the Committee to provide rent free accommodation while others pay a maximum of 25 per cent of their taxable income up to a maximum subsidy of £6,000 per annum.

Due to the high cost of leasing property in Jersey, the Health and Social Services Committee constantly reviews the number of properties it leases. However, it has proven essential to maintain between eight or ten family houses to accommodate the locum consultants required to maintain essential services throughout the year. As a result of these reviews, since the beginning of 2005, the Committee has terminated the leases of seven properties and taken on the lease of one property.

Alternative  arrangements  to  housing  locum  consultants  has  been  considered;  however,  it  has  been  found impossible to acquire family accommodation, often at short notice, in the height of the summer season and during the school holidays which is when the majority of locum covers are required.

Of the seven properties used for accommodation locums this year, the total cost has been –

A n nual Rental cost   £ 1 2 2 ,0 5 6 . 0 0

E s timated Maintenance Cost  £ 1 ,3 8 8 . 0 0  

E s timated Income   -£ 1 9 , 3 5 7 .0 0

£ 1 0 4 , 0 8 7 .0 0  

The income is achieved by using the houses for short term use by contract staff between locum visits. As a result, the seven locum houses will cost the Committee £104,087.00 or an average of £14,870.00 per property per year. To house locums in a hotel, (assuming two adults and two children), would cost approximately £190.00 per night or £1,330 per week. Using this benchmark it is cheaper to lease a house at an average cost of £14,870.00 per year than pay for hotel accommodation if the house is used more than 11 weeks per year which equates to occupancy of 21 per cent or more.

Enclosed with the response are tables listing all the properties leased by Health and Social Services over the last five years along with a summary sheet providing rental costs, maintenance costs and income received. It is

anticipated the out turn cost in 2005 will be £253,373.00.

When the occupancy rates are low for the properties normally used for permanent staff, the reasons are caused by a number of factors such as –

1. r e si gnation from post;
2. p u rchaseofownproperty;
3. m  oveto a propertyleasedinown name;
4. n o ticegivenon termination oflease.

When a member of staff moves out of a Committee leased property earlier than expected, the property would be offered to any new member of staff coming to the Island to take up a post. If no further use of a leased property is required the Committee will seek the help of Property Services to negotiate an early termination of the lease.

Other factors affecting the occupancy levels have been the relaxation of the housing laws allowing single people to lease two-bedroomed accommodation, falling rental in the private sector and more affordable accommodation coming on the market.

It is anticipated that a further eight to ten leases will be terminated in 2006."

Summary of Leased Properties 2000 - 2005 July YTD

Net Cost £128,646 £174,386 £233,482 £240,697 £311,759 £253,373

* 2005 Maintenance figures estimate based on July YTD amounts

* 2005 Income figures forecasted to year end