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Economic Affairs - Approved Panel Minutes - 25 January 2006

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Economic Affairs Scrutiny Panel

25th January 2006 St. Saviour 's Parish Hall

Present Deputy G. P. Southern , Chairman

Deputy A. Breckon, Vice-Chairman Connétable M. K. Jackson

Deputy J. A. Martin

Deputy K. C. Lewis

Apologies

Absent

In attendance Carol Le Quesne, Scrutiny Officer

Nathan Fox, Scrutiny Officer

 

Ref. back.

Agenda matter

Action

1.

Minutes of the Meeting of 11th January 2006. These minutes were approved.

 

2.

Chairman's  Committee  meeting  with  the  Chief  Minister  and H.M. Attorney General.

The Panel received a briefing from the Chairman in respect of this meeting.  Of  particular  interest  was  the  arrangement  for  the provision of legal advice to the Scrutiny Panel.

The outcome was that a draft protocol in respect of that advice would be prepared by the Scrutiny office by way of summary of the discussion at the meeting, and that this would be circulated to the Chief Minister and H.M. Attorney General.

It had been agreed that the Chief Minister would take the matter to the Council of Ministers at the earliest opportunity. Once the matter had been agreed, it would be incorporated into the Scrutiny Code of Practice for lodging "au Greffe". This would necessitate a delay in taking the Code of Practice to the States.

 

3.

Presentation from the Economic Development Department

The  Panel  received  a  presentation  from  Mr.  M.  King,  Chief Executive  Officer,  detailing  the  function  of  the  Department  and outlining the current economic situation.

The Panel was informed that the primary goal of the Department was  to  provide  two  per  cent  annual  economic  growth,  while maintaining the current low level of inflation.

This  growth,  in  conjunction  with  the  proposed  revised  tax measures, would recoup the estimated tax deficit incurred from the move  to zero  ten' company  tax.  Although  the  Department recognised that this deficit was significant, it considered the change necessary to keep the Island internationally competitive.

 

4.

Questions to the Minister from the Panel and Public

 

The Chairman, after welcoming the public to the meeting, and with the  Minister's  permission,  stated  that  he would  allow interested parties as well as the Panel to question the Minister and his officers about  the  matters  for  which  they  were  responsible.  Initially,  he invited  the  minister  to  outline  his  intentions  with  regard  to agriculture.

The  Minister  explained  that  the  Department's  wide  range  of responsibilities  necessitated  the  delegation  of  certain  powers to Assistant Ministers and officers, as detailed in the projet Delegation of  Functions - Economic  Development' and  the  Department's paper, (attached).

The Minister noted that while he had no personal pecuniary interest in the agricultural sector, he did not intend to make decisions that might affect his family's holdings, and would therefore work with the Planning  and  Environment  Department  to  delegate  powers  in regard to the Rural Economy Strategy.

Members of the public expressed concern that the financial sector should comprise over 50 per cent of the economy, and that tax evasion was a feature of the economy. The Minister replied that while he had a high regard for tourism and other sectors, Jersey was fortunate to have such a large financial services industry, and that a serious debate on a possible future for the Island in its absence should be undertaken. The Minister firmly denied that tax evasion was an element of the local economy and detailed the difference between tax evasion and avoidance.

The Minister also  noted  that  the  skills  base  of  the  island  was currently not at a sufficiently high level to service the full needs of the finance industry.

The public also questioned the Minister over his response to the current sea transport situation. He replied that Jersey's harbour dues were not currently compliant with European Union regulations, and that Assistant Minister Maclean intended to bring forward a revised schedule of dues in the near future. He was of the opinion that  it  was  for  the  Jersey  Competition  Regulatory  Authority  to determine the proper framework for competition and that it would be short-sighted to consider competition on the routes as the only relevant factor, and to ignore reliability and sustainability.

The  Minister  confirmed  that  he  intended  to  revise  the  current strategy for tourism, but made no commitment in respect of the Rural Economy Strategy, which he considered was a significant improvement over the earlier strategy.

The Minister also stated his intention to reduce bureaucracy  in company formation, revisit the current gambling legislation, and to foster better connections between the airport authorities and the tourism industry.

The Minister was aware of the forthcoming challenges relating to the  United  Kingdom  decision  to  cease  provision  of  analogue television services.

The Minister and the Chairman agreed that a productive working relationship  could  be  achieved,  and  decided  to  exchange

 

information about future plans as soon as possible.

Documents: Delegation of Functions - Economic Development (attached)

Department delegation paper re Assistant Ministers (attached)

 

5.

Work Programme for 2006

The Panel discussed its priorities for the coming year, and the allocation of time and resources.

The  fulfilment  industry,  the  operation  of  the  harbour  (possibly connected to the sea routes situation), and the operation of the airport were considered as the leading  topics for consideration, although no form decision was made. Officers were directed to compile member's comments into topic scoping documents, and to provide  suitable  background  information  for  the  reviews  to  be further considered at the next meeting.

CleQ and NJF

6.

Chairman's meeting with Condor Ferries

The Panel was informed that the meeting, held on 16th January 2006, with Mr. S. Bailey and Mr. J. Milner of Condor Ferries, had been of great value and that Condor appeared confident in its ability to service the route as a sole operator, although it was somewhat concerned over the level of harbour dues.

The situation in respect of the imposition and regulation of service level agreements (SLAs) was discussed, and officers were directed to obtain a copy of all current sea route operator SLAs from the Department.

CleQ and NJF

7.

Date of next meeting

The  Panel  noted  that  its  next  meeting  was  to  be  held  on  8th February 2006 at St. Mary 's Parish Hall .

Officers were directed to take the appropriate action.

CleQ and NJF

 

 

 

Signed Chairman: Deputy G. P. Southern

[KTF1]Can we find an alternative word to "feature"?? [KTF2]Do you mean Minister?

[KTF3]Sorry - can't follow this last bit - "the only factor?"