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WQ.67/2020
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY J.M. MAÇON OF ST. SAVIOUR
ANSWER TO BE TABLED ON TUESDAY 25th FEBRUARY 2020
Question
Given the issues relating to States wholly-owned bodies that were highlighted in Paragraphs 13.4 and 13.5 of Jersey Appointments Commission: Annual Report 2018' (R.23/2019) including a "continued resistance" by some to the "regulatory processes determined by the States Employment Board" and a lack of transparency, will the Minister, as shareholder representative, explain what (if anything) has been done to address the issues highlighted in these two paragraphs; and, if nothing, will she explain why that is the case?
Answer
The question covers two areas:-
Paragraph 13.4 of the 2018 Report – Appointment processes
It is important to set some context to the issues that the Deputy refers to in the Jersey Appointments Commission ("JAC") 2018 report:-
• This was an issue that had occurred prior to the JAC's 2017 Report.
• Action was already being taken before the 2018 Report was issued - Section 10.3 of which notes that the JAC had worked with the Shareholder Executive on ensuring that States wholly owned bodies were compliant with the requirement for appointments to be overseen by the JAC. It further noted that they were pleased that they had been contacted by the Ports of Jersey to oversee the recruitment of the CEO and noted productive discussions with Jersey Post and JT Group Ltd and during the early part of the year.
The Assistant Minister regularly meets with the Chairs of States owned entities and reinforces the need to comply with JAC requirements as part of this ongoing engagement. The Minister is not aware of any areas of specific concerns raised since the 2018 Report, in this regard.
Paragraph 13.5 of the 2018 Report – Remuneration issues.
To increase transparency, the Assistant Minister wrote to all States wholly-owned entities in January 2019, requiring them to make extensive disclosure in their Annual Report and Accounts on the remuneration of each executive director including:-
• total remuneration for the year split by basic salary, bonus, pension contributions and benefits in kind.
• total remuneration for the previous year.
• Remuneration as a non-executive director of an external body.
This issue was also the subject of a recent review by the Comptroller and Auditor General – R.132/2019: "Remuneration of Board Members: 24th October 2019."
The response from the Chief Executive and Treasurer of the States/Director General of Treasury and Exchequer setting out the actions taken and planned is included in" R.132/2019 (Res): Remuneration of Board Members (R.132/2019): Executive Response with Comments of the Public Accounts Committee."
A key action contained in this is that a One Government approach will be adopted in establishing a strategic oversight board, chaired by the Chief Executive Officer. Its work will include the development and oversight of a policy for Board remuneration.