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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.C.L. BAUDAINS OF ST. CLEMENT
ANSWER TO BE TABLED ON TUESDAY 16th APRIL 2013
Question
Would the Minister explain what criteria and processes, if any, he employs when evaluating projects for stimulus purposes and how he avoids such stimulus simply disappearing straight out of the Island via supplies of commodity or technical expertise?
Answer
In assessing any projects for stimulus purposes, projects are measured against the 3T's criteria, and assessed in terms of the overall economic impact and ability to obtain value for money. These criteria and processes were developed to deliver the Economic Stimulus Plan (known as Fiscal Stimulus) as approved by the States in P55/2009 and were advised for use by the Fiscal Policy Panel.
The 3T's are summarised as:
- Timely: Action should start immediately, and spent while the economy is in recession.
- Targeted: Policy should hit the intended target whether it is to support activity and employment in the Island, support those adversely affected by the downturn or implement projects which have intrinsic benefit.
- Temporary: There should be no negative long term implications for public finances.
The criteria for approving fiscal stimulus projects clearly required the targeting of spending on Island as far as could be achieved. In assessing any stimulus projects priority was given to those projects which had the highest content of local labour. Tender opportunities were restricted to on Island companies and suppliers had to demonstrate that they were employing locally qualified people.
It is useful to refer to R.67/201, Fiscal Stimulus: Financial and Performance Review which provides details of the processes, projects and achievements of the previous Stimulus Programme.
In addition to the £44 million original Fiscal Stimulus project the States approved £27.1 million of funding for Housing schemes under P.40/2012, Social Housing Schemes: Funding. As the international economic downturn has lasted longer than hoped the Council of Ministers has continued with a number of economic stimulus and job creation initiatives. The criteria and processes of the 3T's are being applied to these projects to ensure support to the local economy is maximised. Moreover during the course of all original Fiscal Stimulus projects there companies were required as part of the tender process to demonstrate the use of on Island Labour. This was assessed as part of awarding the contract and was monitored during the project to ensure it was being complied with.
The policy initiative developed by Corporate Procurement and approved by the Corporate Management Board in January 2013 – "Community Benefits in Public Sector Procurement, Getting people back to work". This is aimed at changing the way that the States procures Goods and Services to ensure that States policy aims of "local jobs" and getting people back to work are supported. Under this scheme those tendering for States of Jersey contracts will be rewarded based on their commitment to offer work, training opportunities and voluntary work placements to unemployed Islanders who are locally qualified to work. This initiative is particularly focussed on the Housing schemes funded under P.40/2012 and the creation of the "Getting people back to work taskforce" which brings together Ministers and officers from four key departments (Social Security, Education Sport & Culture, Treasury and EDD) to deliver a range of initiatives to ensure that there is a targeted, co-ordinated and collaborative approach to getting people back to work.