Letter - EIA to MEDTSC re Government Plan Review proposals - 03 November 2023

States Greffe

Deputy Kirsten Morel

Minister for Economic Development, Tourism, Sport and Culture

Cc

Deputy Lucy Stephenson

Assistant Minister for Economic Development, Tourism, Sport and Culture Deputy Alex Curtis

Assistant Minister for Economic Development, Tourism, Sport and Culture

BY EMAIL

3rd November 2023 Dear Minister,

Economic and International Affairs Scrutiny Panel Government Plan 2023 – 2027 Review

Proposals

I am writing as part of the evidence gathering phase of the Economic and International Affairs Scrutiny Panel’s review of the Proposed Government Plan 2024-2027.

We anticipate that provision of some information in written form will be useful in our consideration ahead of our future hearing and we would be grateful if you can provide the following. For your information, the Panel has been provided with the Business Justification Cases for the proposed revenue growth, which have been provided to the Panel on a confidential basis. However, we would be grateful if you could provide the requested information publicly to enable open discourse and understanding of the proposals.

I-DFE-GP24-001 Implementation of Digital, Visitor Economy and Elite Sport Strategies

1. Please identify the short/medium-term highest priority initiatives that will be implemented through this proposed revenue expenditure and explain their specific value to the taxpayer?
2. Please can you provide anticipated expenditure pertaining to each of the three strategies?

a.  Please can you provide cost breakdown pertaining to each element of the priority initiatives that will be implemented through this proposed revenue expenditure and explain how these have been estimated in the absence of the 3 strategies having been published?

3. What alternative means of funding, funding levels, and corresponding outcomes, were identified in consideration for the proposed increase in revenue expenditure and why were they discounted?
4. Please can you provide the tangible benefit outcomes that will be provided through the proposed revenue expenditure and identify how each of these will be tracked over the life of

the Government Plan, for example what performance measures will be in place and how will these produce the objectives outlined in the Common Strategic Policy such as increase in economic productivity?

5. Please explain the extent to which you anticipate the three strategies to overlap and why they are being developed as separate strategies?
6. What value are the three strategies expected to provide for the taxpayer in addition to the value to be obtained from delivering the short-term/medium term initiatives to be identified?

I-DFE-GP24-002 Rural and Marine Economy

1. What alternative means of funding, funding levels, and corresponding outcomes, were identified in consideration for the proposed increase in revenue expenditure?
2. Can you please outline what, should the Government Plan be adopted as proposed, the total monetary support for the Rural and Marine Economy will be for the years 2024 to 2027 and how this compares to the monetary support for the years 2020 to 2023?
3. How is this expenditure anticipated to be split between Rural Economy and Marine Economy and what additional value to the taxpayer and the economy will it produce?
4. Please can you provide the tangible benefit outcomes that will be provided through the proposed revenue expenditure and identify how each of these will be tracked over the life of the Government Plan, for example what performance measures will be in place?

a.  What targets are included in these?

5. What is the anticipate revenue return from investment in the Rural and Marine Economy?

I-DFE-GP24-003 Jersey Business – Core Grant Funding

For your information, the Panel has written directly to Jersey Business to request similar information as listed below. The Panel would ask that you also provide the information used in your consideration of the proposals.

1. What Key Performance Indicators (KPIs) will you be tracking to evidence the benefit of the proposed increase in core grant, in addition to the funding allocated in the previous Government Plan?
2. How will the KPIs demonstrably relate to the objective of increasing productivity in real terms identified in the Common Strategic Policy (CSP) and to GVA as a key indicator identified in the CSP?
3. How has impact on Jersey’s economic growth of funding to Jersey Business provided in previous Government Plans been measured and can this data please be forwarded?
4. What quantitative economic analysis has been undertaken to determine the potential economic impact and return on investment of the proposed increase in core grant, and how will this be tracked in the coming years?
5. What alternative means of funding, funding levels, and corresponding outcomes, were identified in application for the increase in the core grant?
6. Please can you provide details of:

1. potential staff headcount reduction
2. loss or reduction of services to clients;
3. estimated impact on economic productivity in Gross Value Added terms and value of exports; and
4. other economic consequences

should the proposed increase in core grant not be approved?

7. Has any estimated economic return on investment or economic impact assessment been sought by the Department or the Minister in respect of the growth bid and, if so, can this please be provided?
8. Please provide a percentage breakdown of:

1. numbers of businesses advised or supported in different sectors;
2. use of allocated funding to businesses in different sectors; and
3. the tax take of businesses advised by Jersey Business in the last five years or other examples of direct contribution to economic growth? If, in the form of jobs, how specifically are those jobs regarded as of economic value in the tight local labour market?

9. Please provide a breakdown of anticipated apportionment of core and additional funding between:

1. staff salaries and pension contribution payments, split between back office and advisory roles, including finance and HR functions;
2. programmes and specialist expertise or support delivered by external advisers; and
3. board costs.

10. Please provide an estimate of the percentage reach of Jersey Business amongst total local businesses, through mailing lists, broken down into business sectors, size of businesses and export value.
11. Please provide a copy of any analysis undertaken of the risk that the additional funding sought for Jersey Business will not contribute significantly to the Island’s economic growth?

Project – Jersey Opera House

For your information, the Panel has written directly to Jersey Opera House to request similar information as listed below. The Panel would ask that you also provide the information used in your consideration of the proposals.

1. How have the cost estimates for the project been assessed and reviewed to establish they represent best value for money?
2. Please outline any planning undertaken to ensure the costs of future maintenance of the building will be covered in the future?

Project – Elizabeth Castle

For your information, the Panel has written directly to Jersey Heritage to request similar information as listed below. The Panel would ask that you also provide the information used in your consideration of the proposals.

1. How have the cost estimates for the project been assessed and reviewed to establish they represent best value for money?
2. Please outline any planning undertaken to ensure the costs of future maintenance of the castle will be covered in the future?

The Panel is cognisant that a number of bids for funding were not successful, with these identified within Written Question 371/2023 as the following:

• Jersey Heritage Trust Pre -87 Pension Deficit

• Future Economy Programme - Staff Costs

• Events Development Action Plan

• Visitor Economy Infrastructure Fund

• Jersey Competition and Regulatory Authority

• Development of Jersey as a Regional Economic Hub

For each of these, could you please provide a brief outline of the bid and reason for it not being progressed within the proposed Government Plan?

We would be grateful if you could respond to this no later than Friday 10th November 2023 in line with the 5 working days approved for responses between Scrutiny Panels and Ministers.

If you have any questions regarding this or our work in general, please do not hesitate to contact me. Please note that unless otherwise stated, all letters will be uploaded to the Scrutiny website as a matter of course.

Yours sincerely,

Deputy Moz Scott

Chair

Economic and International Affairs Scrutiny Panel

Government Plan 2024 – 2027 Scrutiny Review Terms of Reference

Economic and International Affairs Scrutiny Panel

1.  To review components of the Government Plan 2024-2027 Proposition [P.72/2023] which are relevant to the Economic and International Affairs Scrutiny Panel to determine the following:

1. The impact of the Government Plan proposals on departmental budgets, savings, staffing levels and spending of allocated funds will ensure productive service delivery that meets departmental and Ministerial objectives including those concerning increasing productivity in real terms.
2. The impact of the proposed Administrative Tax Measures and budget measures on the cost of doing business in the Island.
3. Whether the revenue expenditure growth, capital and other projects are appropriate and likely to have a positive impact on Islanders and Island life.
4. How the proposed revenue expenditure growth, capital and other projects align with the Common Strategic Policy to deliver on the priorities, and with the objectives of the Ministerial Plans.
5. Whether the resources allocated to revenue expenditure growth and capital and other projects are sufficient, ensure value for money, demonstrate best use of public funds and include sufficient performance indicators to measure economic growth and progress.