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Advise of the findings and recommendations of the Economic Affairs Scrutiny Panel's Report regarding the sale of Jersey Telecoms

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 12th FEBRUARY 2008

Question

  1. Will the Minister advise members,now that he has had time to studytheEconomic Affairs Scrutiny Panel's Report SR3/2008, whichofthekey findings andrecommendationshe accepts?

Answer

I will respond formally to SR3/2008, which was published on 29 January 2008, within the six week period allotted under scrutiny protocol, at which time a detailed indication of my views will be given.

Question

  1. Notwithstanding his commitmentto a 3-yearmoratorium, will the Minister assure members that he will not bring a new proposition for the saleof Jersey Telecom (JT) to theAssembly unless and until revised powersfor the JCRA have been putinplace, and the issue of separation has been resolved?

Answer

The powers of the Regulator are currently the subject of an independent review, and I do not intent to prejudge the outcomes of that process. I reiterate my previous commitment that I will only propose the sale of Jersey Telecom if it is in the Island's best interests. In taking that decision I will consider whether the structure of the company and regulatory framework are such that they will ensure the provision of high quality resilient telecommunications services at the lowest cost to the consumer.

Question

  1. Will the Minister givemembers a breakdownof the £500,000 costs incurred in relation to the proposal to sellJT?

Answer

Advisory  fees  totalling £393,500  have  been  paid  to  a  consortium  of  financial,  legal  and  technical consultants  appointed  following  a  competitive  tendering  and  commercial  negotiation  exercise. In addition there are unquantified costs of Treasury staff time and those of the scrutiny panel and its advisor.

Question

  1. Will the Minister extend his commitment to a 3-year moratorium on the sale of JT togovernment holdings inother utilities?

Answer

The Treasury department has no current plans for the sale of any of the States utility companies and no plans to develop any such proposals within a period of three years.