Car parking revenue received by the States of Jersey Development Company.

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY M.R. HIGGINS OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 12th MAY 2015

Question

Will the Minister as the shareholder representative for the States of Jersey Development Company Ltd. explain to Members -

1. how much money has been collected by the company from car parking on the Esplanade for each year since parking administration was devolved to them;
2. what happens to the income derived from this car parking and how this differs, if at all, to what happened to this income when it was administered by the Transport and Technical Services Department?

Answer

1. The 150 year leasehold interest in the Esplanade Car Park was transferred from the States of Jersey to the States of Jersey Development Company Limited ("SoJDC") (formerly known as the Waterfront Enterprise Board) in July 2004.

The Esplanade car park continues to be operated by the Transport and Technical Services Department ("TTS").

Between 2004 and 2011, TTS directly received and accounted for all revenue generated from the Esplanade surface car park.

Since 1 January 2012, SoJDC has received the following amounts from TTS corresponding to the pre-agreed net revenues from the Esplanade surface car park:-

2012: £759,000

2013: £759,000

2014: £759,000

Because, for the majority of TTS car parks, payment is made via pay cards it is not possible to identify the precise receipts for each car park.

2. SoJDC has repatriated all of the aforementioned revenues arising from the Esplanade surface car park via a quarterly dividend payment to the States of Jersey Treasury Department. R.7/2012 (attached) details the arrangements for income from the Esplanade car park. There is no difference in the net effect upon the income of the States, TTS or the Jersey Car Parking Trading Fund (which receives all car parking income and either retains it or makes a financial return to States' general revenues).

STATES OF JERSEY

JERSEY CAR PARKING FINANCIAL RETURN TO THE STATES FOR 2012: REPORT TO THE STATES UNDER ARTICLE 27(4) OF THE PUBLIC FINANCES (JERSEY) LAW 2005

Presented to the States on 25th January 2012 by the Minister for Treasury and Resources

STATES GREFFE

2012   Price code: A  R.7

2 REPORT

A 150 year lease of the Esplanade Car Park site was transferred to the former Waterfront Enterprise Board Limited ("WEB") in 2004. As part of the Esplanade Quarter Masterplan approved by the States Assembly in 2008, a new composite 150 year lease was passed to WEB. Since 2004, the revenue from the public car park at the Esplanade has been retained by Jersey Car Parking ("JCP").

In recognition of the impending redevelopment of the site and the fact that legal title to the site is held by the States of Jersey Development Company Limited ("SoJDC"), on 9th December 2011, the Minister for Treasury and Resources signed Ministerial Decision MD- TR-2011-0142. This decision reduced the financial return from JCP in 2012 by £759,000. Whilst the site is still being used as a car park SoJDC will pay the income received over to the States (as a dividend), so there will be no effect on States finances in 2012.

During the development of the Esplanade site, the public car parking will be temporarily relocated to an adjacent waterfront site (matching the number of spaces currently provided).

The financial return to the States from the Jersey Car Parking States trading operation will therefore reduce by £759,000 from £2,311,300 to £1,552,300 in 2012. However, Other Income of the States for 2012 will remain unchanged, as the £759,000 will be received from SoJDC.

Article 27(5) of the Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to advise the States of any decision taken under Article 27(4) of that Law to waive or delay the contribution receivable from a States trading operation.