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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY SENATOR A. BRECKON
ANSWER TO BE TABLED ON MONDAY 22nd SEPTEMBER 2014
Question
On what dates were the presentations made to potential investors regarding the issue of a £250 million bond?
What advice had the Minister received on these dates and was he fully aware of the Island's financial position at that time?
Answer
The presentations were made to potential investors on 27th May 2014 to 30th May 2014 in Jersey, Edinburgh and London, based on the public prospectus published on 27th May 2014.
The presentations were organised by the appointed joint book runners. They arranged the bond issuance, which included the presentations, from start to finish and provided advice throughout the process. The Treasury was also supported by its appointed legal advisers and financial adviser throughout the process.
The Minister acts upon the advice of officials and takes no part in the formal income forecasting process.
The independent Income Tax Forecasting Group (ITFG) meets each year and agrees the income tax forecast which then informs that year's annual Budget. A report is issued by the Economics Unit to assist in formalising the forecast position as decided by the ITFG.
The report written to inform the Budget 2014 was issued in September 2013 and included a projected downgrade in income tax forecasts for 2014 of £13 million and £26 million for 2015 compared to the MTFP figure.
A copy of this report was issued to States Members prior to the debate on the draft Budget 2014.
As explained, whilst the discussions of the ITFG continued, the Minister was aware of the income forecasts now included in the Draft Budget 2015 at the time of the roadshows, although they had not been finalised at the end of May and were still subject to dissenting opinion and requests for more work, because of the previous year's outturn. Those forecasts were formally agreed at the ITFG meeting of 30th June 2014, which was chaired by the Chief Executive at the request of the Minister for Treasury and Resources.
The Ministerial team, of course, takes a personal and active interest in the whole range of available statistics, constantly published locally and internationally, which inform them, their advisors, the public and commentators on the broad trends of economic activity, which can affect growth, jobs and income.
The Minister has included numerous statements throughout his term of office that the Government and States continue to need to focus and deliver on reforms to make further savings and boost income, which limits the need for tax increases.