Annual Business Plan 2008 - 2010 figures and transfer of funding from Rural and Tourism sectors to Enterprise and Business Development.

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WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 9th OCTOBER 2007

Question

In the light of the summary statement below and the draft 2008 -2010 figures presented at the Annual Business Plan briefing for members of 23rd March 2007, does the Chief Minister now accept that the concerns I raised during the Business Plan debate over significant transfers of funding from the Rural and Tourism sectors to Enterprise and Business Development, Finance and Policy areas in the Economic Development budget and the misleading nature of such figures given the eventual budget outcome were fully justified?

SUMMARY OF ISSUES RAISED BY DEPARTMENTS

The attached summary has been prepared following the Council's meeting of 8th March 2007. This summary represents the key issues raised by departments in their returns and also those issues highlighted by Ministers at their meeting of 8th March.

Economic Development

The service changes identified reflect:

The remaining resource allocation savings and gradual winding down of agricultural subsidies are planned

Reductions in Tourism marketing and PR spend

Significant business re-engineering refocusing which will enable funding and subsidies to new areas to promote economic growth including new monies

High value industries

Develop air and sea routes

Further market and develop finance industry

Other pressures in Regulation office, grant funding of JCRA.

Answer

In March 2007 Officers were asked to identify the pressures facings their departments and how the departments would likely address those pressures if funding was not granted.  Given that the 2008 Business Plan does not provide growth funding for EDD, it is entirely appropriate that the Department should reallocate its funding to its highest priorities.

I understand that the Department is currently conducting a zero base review of all its 2008 objectives but does not have any intentions to decrease direct support to the Rural or Tourism sectors. In line with the majority of Jersey's economy both the Rural and Tourism sectors showed improved economic performance in 2006 with real terms growth of 2% and 3% respectively and there is a strong desire to continue to build on this turnaround in performance.

ment 2008

Net Expenditure Service

 Changes

Descri Service

Description of Service 2007

2008 2008

£'000 £'000 FTE

4,542  (500) (2) Business Re-engineerin ement strategies that will 35% reduction in grant a e for the rural economy, and marketing to dairy a ture and fisheries industries.

(230) FSR Cut

Industry support

5% reduction in grant ai marketing to dairy and a

(40) Efficiency savings

 to be prorated inline wit areas

eting 5,928  (500) (3) Business Re-engineerin ourism strategy for revitalising tourism in Jersey. To market 25% reduction in Touris ce in ways which will yield the optimum economic, social marketing and PR

enefit. To raise the profile of the Channel Islands region. (40) Efficiency savings

 to be prorated inline wit

(190) FSR Cut - Tourism Mark

 3% reduction in Tourism marketing and PR

iness Development 2,424  500 5 Business Re-engineerin ment that is more conducive to both business start up and Key Objective is to grow

introduce a customer facing service offering information, More resources are requ d registration as well as working along side existing and diversify high value ks. the Economic Growth Pl

487  500 Business Re-engineerin ent and deliver policies such as Intellectual Property policies, Key objective is to deve me transport policies, along with strategies and plans in air and sea routes.

mic growth strategy.  Route subsidies are ant

s 347 egulations under the Gambling (Jersey) Law (1964), the

esident Traders (Jersey) Law (1965) and also monitor the

Competitions (Jersey) Law (2001) and Postal Services

.

rtakings 331  50 Business Re-engineerin egulation of Undertakings and Development (Jersey) Law Increase in workload fro

lop policies and strategies in relation to the Regulation of numbers of applications

evelopment (Jersey) Law (1973). delays in approval time

(10) Efficiency savings

 to be prorated inline wit areas

Trading Standards 318 egislation controlling the distribution of goods and services.

advice and information service.

ncy 145

d encourage high-wealth individuals, who will contribute

cially, to take up residency in the Island.

 Regulatory Authority 556  (50) Reductions in grant supp he JCRA for the administration of the Competition Law and

sues.

Council Grant 90

t and publicise anomalies and irregularities in consumer

age good trading practice by local business.

upport 1,000  150 Business Re-engineerin otion, diversification and further development of the Key objective is to grow ndustry in the Island. economy. Resources req

 to market and develop t Islands primary and hig

(30) Efficiency savings to be inline with savings area

a Collette (164) (10) FSR Cut

um revenue from the Fuel Farm site at La Collette. Increase efficiency of ad

 of this service

Expenditure 16,004 (400) 0

Consumer Affairs/Trading Standards 318 Enforce a range of legislation controlling the distribution

of goods and services.

Provide a consumer advice and information service.

High Value Residency 145 Actively promote and encourage high-wealth individuals,

who will contribute economically and socially, to take up

residency in the Island.

Jersey Competition Regulatory Authority 506  (50) 0 Reductions in grant support Provide funding to the JCRA for the administration of

the Competition Law and other Competition issues.

Jersey Consumer Council Grant 90 Investigate, highlight and publicise anomalies and

irregularities in consumer affairs and to encourage good

trading practice by local business.

Finance Industry Support 1,120  300 0 Business Re-engineering Supporting the promotion, diversification and further Key objective is to grow the e development of the Financial Services Industry in the Resources required to market Island. the Islands primary and high v

Industry

Jersey Harbours La Collette (174)

To realise the optimum revenue from the Fuel Farm site

at La Collette

Total Net Revenue Expenditure 15,604 (10) 0

Total Net Revenue Expenditure 15,594 (10) 0