Economic Affairs - Approved Panel Minutes - 22 March 2006

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Agenda matter

Action

1.

Minutes of the Meetings of 8th March 2006.

Minutes were approved subject to a minor amendment.

2.

The  Panel  received  a  fulfilment  operator  on  a  confidential basis  and  notes  of  that  meeting  have  been  recorded separately.

3.

Draft Postal Services (Transfer) (Jersey) Regulations 200-

The  Chairman  informed  the  Panel  that  the  above  was  to  be debated by the States at its next meeting on the 28th March 2006. He advised that the draft Regulations were intrinsically linked with the  Fulfilment  Review  currently  underway.  Given  the  evidence already  received  in  relation  to  the  Fulfilment  Review  it  was considered  essential  that  the  Panel  requested  that  the  Draft Regulations be referred to it for review.

The  Panel  agreed  that  it  would  review  the  proposals  for  the incorporation and that the Chairman should advise the Ministers involved at the earliest opportunity. The Panel finalised its draft terms of reference and requested that these be forwarded to the Chairmen's Committee for ratification, subsequent to which they be forwarded to the Ministers concerned and that all States members be advised of the Panels decision.

It was agreed that the Hearing date of 5th April would now be used for the Draft Postal Services (Transfer) (Jersey) Regulations 200- review and a timetable of witnesses was agreed. Letters would be forwarded to the invitees at the earliest opportunity as would outline areas of questioning.

The  Panel  requested  that  a  copy  of  the  Universal  Service Obligations be obtained from Jersey Post.

4.

Correspondence received and matters for information

essential that Scrutiny was provided access to Part B minutes as a matter of course. It was also agreed that the Council of Ministers Part B agenda should be monitored to identify any issues that were relevant to the Panel.

5.

Fulfilment Review

The  Panel  received  a  number  of  documents  and  decided  as follows-

1. First Evidence Submission from a Fulfilment Employee; The Panel noted the key points identified in the submission.
2. Draft timetable for the review;

The Panel agreed that the timetable for the review should stand despite its undertaking of a review of the Draft Postal Services (Transfer) (Jersey) Regulations 200-.

3. Additional  Act  requested  in  respect  of  the  Fulfilment Industry  including  the  report  to  accompany  the Postal Services Law, the Report from Andium Limited, explanatory note and draft Law;

The Panel noted the content of the report by Mr. Syvret and agreed that  it  would  require  an  opportunity  to  discuss  the  proposed incorporation  of  Jersey  Post  with  him.  It  was  decided  that agreement should be sought from the Ministers and Jersey Post to ensure that this could occur.

4. Proposed  areas  of  Questioning  for  the  5th  April  2006 included in the notes from the 16th March 2006;

The Panel noted the areas of questioning for the Fulfilment Review.

5. A  copy  of  the  UK  Import  VAT  Accounting  Schemefrom Customs.

The  Panel  noted  the  application  form.  It  requested  that  further information be obtained on the requirements for joining the scheme with regard to the volumes of packages sent out required to allow participation. It also requested that a definition on adding value' to enable participation be sought from Customs and Immigration.

6.

Topic Proposal Form and meeting confirmation.

The Panel recalled that it had received a scrutiny topic proposal form from Mr. B. Curtis and that it had requested that a meeting be arranged between him and the Chairman.

It was noted that Mr. Curtis had confirmed that he could attend a meeting  at  3.30  pm  on  the  29th  March  2006  in  the  first  floor meeting  room,  Morier  House.  The  Chairman  of  the  Corporate Affairs Panel would also be in attendance with his officer.

7.

Access To Legal Advice

The Panel received a response dated 16th March 2006 from H.M.

Attorney General in answer to its questions relating to the new fulfilment policy which were forwarded to him on the 9th March 2006.

The  Panel  noted  that  the  Attorney  General  required  further clarification and more specific questions in order that he could fully address the questions raised. It was agreed that the Chairman would draft further questions for the Attorney General.

8.

Mr. T. Lidget - DelBoysEmporium

The Panel welcomed Mr. Lidget to the meeting and invited him to explain the structure of his fulfilment enterprise together with any challenges or obstacles that he faced.

The Panel was advised of the history of Mr. Lidgets business and the type of products with which he deals. Postal charges.

The meeting discussed the implications of VAT exemptions, service provision  and  adding  value,  the  use  of  employees  through  the therapeutic  employment  scheme,  the  growth  of  the  industry, competition and overheads in other jurisdictions, the potential to enlist  the  help  of  Fulfilment  Companies  to  market  Jersey  as  a holiday destination.

The concerns of the UK Treasury were discussed in addition to the negative perception of the CD/DVD side of the industry. The Panel was advised that Mr. Lidget did not consider that the Policy would adversely  affect  his  business.  He  did  suggest  that  companies starting up or with a low number of outgoing items would benefit from a lower postal charge allocated to larger customers as they were not in a position to benefit from economies of scale.

The Panel thanked Mr. Lidget for his time.

9.

Date of next meeting

The Panel, in a change to the previously scheduled arrangements, decided that it would be appropriate to hold an additional meeting on the 27th March 2006 to discuss the planning of a forthcoming hearing to be held on 5th April 2006, at a location to be arranged. The next previously notified meeting remained scheduled for 5th April which had been allocated as a hearing date.

Officers were directed to make the necessary arrangements.

CLQ