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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY T.A. VALLOIS OF ST. SAVIOUR
ANSWER TO BE TABLED ON TUESDAY 30th APRIL 2013
Question
Could the Minister advise how many States Departments make a return to the Treasury from income derived through their services to the public, how much each department returns and on what basis these returns are made?
Answer
It is not exactly clear what is meant by return, so this answer addresses it in the wider context in the interest of being as helpful as possible.
States Departments fall into two categories – States Funded Bodies and States Trading Operations.
States Funded Bodies
The Housing Department is the only States Funded Department whose income exceeds expenditure. This net income is effectively its "return" for the year.
In 2012 this net income "return" was £24 million. This "return" began when the Rent Abatement and Rebate Schemes, which were funded by the Housing Department, were replaced by Income Support. This change meant the Housing Department's rental income exceeded its expenditure, thereby creating an annual net income. The "Annual Return" is how the original funding for the Rent Abatement and Rebate Schemes is transferred (via Treasury) to Social Security to help towards the Income Support Budget.
Other States Funded Departments do get income from the services they provide to the public. They use this income to help pay for the cost of their services so do not make a return to the Treasury. The MTFP contains information relating to the income of each department and details are also reported in the States Accounts.
States Trading Operations
The States currently has four Trading Operations; Jersey Airport, Jersey Harbours, Jersey Car Parking and Jersey Fleet Management. Two of these Trading Operations currently make a return to States General Revenues.
The financial return from each States Trading Operation is negotiated with the Treasurer of the States on behalf of the Minister for Treasury and Resources. The proposed financial return is then presented to the States as part of the Medium Term Financial Plan for approval.
In 2012 Jersey Harbours made a financial return of £118,683 and Jersey Car Parking made a return of £1,552,300.
In recent years, the requirement for a financial return from Jersey Airport and Jersey Harbours (above the £118,000) has been removed to reflect the fact that these departments will fund their own capital programme and also to provide for the costs of the proposed Ports Incorporation.
Jersey Fleet Management Trading Operation does not make a return on the basis that any surplus of income over expenditure will be used to offset future vehicle costs.