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2.15 The Deputy of St. John of the Minister for Transport and Technical Services regarding the servicing of non-States owned vehicles by the Transport and Technical Services Engineering Section:
Would the Minister confirm whether the Transport and Technical Services Engineering Section is servicing non-States owned vehicles, using States equipment and tools at a charge-out price of £34 per hour and no G.S.T. (Goods and Services Tax)? If so, can he advise whether this fee is at the bottom, middle or top end of garage servicing charges across the Island? How is offering this subsidised service fair to the private sector garages and businesses?
The Connétable of St. Brelade (The Minister for Transport and Technical
Services):
I can confirm that the Jersey fleet management section of T.T.S. only services the vehicle fleets of governmental organisations. These include other States departments and some Parishes, specifically the Parish of St. Ouen and the Parish of St. Saviour on a regular basis and the Parish of St. Brelade and the Parish of St. Mary on an occasional basis. This work is charged at the cost recovery labour rate of £33.85. G.S.T. is not applicable to invoices sent between States departments nor for the work carried out by States departments on behalf of Parishes. This rate covers full direct labour payroll costs and workshop and management overheads. With regard to equivalent hourly rates in the private sector, it would be fair to say that the T.T.S. charge-out rate is at the bottom compared with garage servicing charges within the Island, which is as expected as it is set to recover operating costs rather than make a profit. States departments carry out various rechargeable works on behalf of Parishes at cost recovery rates which all helps keep the governmental and thereby the public cost through Parish rates as low as possible.
2.15.1 The Deputy of St. John :
Is the Minister aware that the private sector also services Parish vehicles and where this happens, is it right to have a competitive rate or, at the very bottom end of the sector when charging out because this appears to be double-standards?
The Connétable of St. Brelade :
I am sure we can arrange to charge more if the Deputy wishes. The Bailiff :
We will move next to a question which Deputy Southern will ask of the Minister for Housing.