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WQ.353/2021
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY SENATOR S.Y. MÉZEC
QUESTION SUBMITTED ON MONDAY 19th JULY 2021
ANSWER TO BE TABLED ON MONDAY 26th JULY 2021
Question
Will the Minister provide members with –
- an annual breakdown of the dividends received from the States of Jersey Development Company (S.O.J.D.C.) over the last 5 years;
- a breakdown of projects or areas on which this return has been spent;
- any existing projections for anticipated annual dividends from S.O.J.D.C. in coming years?
Answer
The dividends received from SoJDC are disclosed within their annual financial statements. The Government of Jersey has benefited from SoJDC's activities as follows:
Year | Cash Dividend £,000s | Asset Transfers to GoJ £,000s | Public Infrastructure Investment £,000s | Funds committed for Public Infrastructure £,000s | Total £,000s |
2020 | 326 (for Public Infrastructure) | - | - | 4,674 | 5,000 |
2019 | 2,000 | 2,993 | - | - | 4,993 |
2018 | - | 497 | 2,177 | - | 2,674 |
2017 | - | - | - | - | - |
2016 | - | - | 1,000 | - | 1,000 |
Total | 2,326 | 3,490 | 3,177 | 4,674 | 13,667 |
Cash dividends received by Government from all States-owned entities are regarded as general revenue and incorporated within the income and expenditure budgets within an approved Government Plan.
Of the £5 million of funds committed for Public Infrastructure these monies are treated as retained profits held by SoJDC for investment in regeneration projects as guided by the Regeneration Steering Group. Of these monies £326,000 was spent in 2020. A further c.£705,000 is being spent on Midvale Road improvements, c.£425,000 on the Skateboard parks and the balance will be allocated by the Regeneration Steering Group.
In terms of how future dividends are allocated, Article 50 of SoJDC's Articles of Association provides that "Subject to the provisions of the Law, the Directors may pay interim dividends if it appears to them that they are justified. Profits will typically be expended wholly and exclusively to improve and extend public infrastructure and works for the good of the Public of the Island of Jersey."
The Regeneration Steering Group will continue to provide ongoing direction to SoJDC as to how retained profits are utilised. However, SoJDC's current forecasts indicate that they will need to retain future profits to fund their significant regeneration plans within future projects, in accordance with the Articles.