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Economic Affairs - Approved Panel Minutes - 27 February 2006

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Economic Affairs Scrutiny Panel Meeting No. 6

27th February 2006 Blampied Room, States Building

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 M. de la Haye, Greffier of the States

C. Le Quesne, Scrutiny Officer

N. Fox, Scrutiny Officer

 

Ref Back

Agenda matter

Action

1.

Future Powers of Scrutiny Panels

The  Panel  considered  the  Draft  States  of  Jersey  (Powers, Privileges  and  Immunities)  (Scrutiny  panels,  PAC  and  PPC) (Jersey) Regulations 200-.

The Panel welcomed the Greffier of the States to the meeting who explained several provisions of the Regulations.

It was noted that the Regulations contained provisions that would allow witnesses summoned to a hearing by the Panel to challenge that summons on the grounds that the matter on which they were asked to comment was not relevant to the review that the Panel was undertaking. A similar provision existed in respect of questions to  be  asked  of  witnesses.  The  Privileges  and  Procedures Committee  was  to  have  powers  of  arbitration  should  such  a challenge be issued.

The Panel was concerned that the power to challenge on these grounds  could  be  misused  by  a  witness  who  was  unwilling  to answer questions from the Panel, and that this might, at least, cause a delay in the Scrutiny process.

Although the Panel recognised that these were only grounds for challenge, not reasons for automatic avoidance of the summons, it was considered that as a matter of principle the Scrutiny function should determine its own remit, and that appeals to the Privileges and  Procedures  Committee  on  these  grounds  might  not  be appropriate.

The Panel also queried the exact legal definition of the term as soon as practicable', but concluded that this was preferable to a maximum  time  limit,  which  it  was  suggested  would  become  a standard response time. As the term was understood to bind the Privileges and Procedures Committee to respond to any challenge as  soon  as  it  was  practically  able  to  do  so,  it  was  deemed

GS, MJ, and NJF

 

satisfactory.

After discussion of the issue, it was decided that concerns about the content of some elements of the Regulations would be raised at the  Chairman's  Committee,  and  that  the  Chairman,   Connétable Jackson and officers were to undertake research to determine the effects of the Regulations once implemented.

Documents:

Draft  States  of  Jersey  (Powers,  Privileges  and  Immunities) (Scrutiny panels, PAC and PPC) (Jersey) Regulations 200-

 

2.

Meeting No. 5, 22nd February 2006, Item 2

Proposed Fulfilment Review

The  Panel  discussed  the  fulfilment  industry  and  its  prospective review into the topic in light of the Chairman's recent meeting with a representative of that industry (the Panel received notes of that meeting).

Concern was expressed as to the reliance of the industry on the provision  in  the  United  Kingdom's  Value  Added  Tax  (VAT) regulations of a de minimis level of £18.00 for the impositions of VAT  on  goods  from  non-European  Union  sources.  Were  this provision to be significantly modified, the Panel considered that the industry could be in a position of no-longer being viable and the Island could suffer an increase in unemployment.

The  Panel  noted  that  the  Chairman  was  to  develop  terms  of reference for the review into the industry in the near future, for its approval.

Documents:

Explanation of VAT arrangements for fulfilment from Customs Oxera Report on Fulfilment

The Panel requested that it be provided with details of the fulfilment companies currently operating in the Island together with details of its staffing numbers. In addition a copy of the United Kingdoms regulations on Low Value Goods was requested.

GS and CLQ

3.

The Future Incorporation of Jersey Post

The Panel discussed the articles of the Postal Services (Jersey) Law 2004 and the Competition (Jersey) Law 2005 connected with the intervention of the Jersey Competition Regulatory Authority in the operation of Jersey Post once that body had been incorporated.

The Panel noted the powers of the Jersey Competition Regulatory Authority in this regard, and commented that this oversight would be  welcome  in  the  absence  of  the  now-defunct Postwatch' scheme.

It was noted that the regulatory system in Guernsey appeared to be maintaining low prices for consumers, and that lower bulk rates for some weight classes of mail might be providing Guernsey with a competitive advantage in respect of fulfilment business.

The Panel also noted that the planned separation between the domestic  post  service  and  the  fulfilment  provider  elements  of

 

Jersey post after incorporation was not as complete had previously been suggested.

The Panel recalled that it was to receive a presentation and guided

tour of Jersey Post's operations on 2nd March 2006 officers were directed to complete the necessary arrangements. CLQ

Documents:

Competition (Jersey) Law 2005

Competition Regulatory Authority (Jersey) Law 2001 Postal Services (Jersey) Law 2004

  1. Proposal Form Received

The Panel considered a Scrutiny Topic Proposal Form received from  Mr.  J.  Heys,  in  respect  of  a  proposed  review  into "the excessively high cost of travel and its effect on tourism, business, and residents of Jersey".

The Panel noted Mr. Heys' concerns about the cost of travel to the Island, but referred to its earlier decision to delay any review into this matter until the Executive Director published its anticipated air and sea transport strategy.

NJF The Panel therefore directed officers to respond to Mr. Heys and

inform him that his comments would be taken into consideration at

such time as the review was undertaken.

  1. Confirmation of Mr. K. Keen's attendance

The Panel noted an e-mail from Mr. K. Keen, Managing Director of

the  Jersey  Milk  Marketing  Board  confirming  his  willingness  to CLQ attend the next meeting.

  1. Date of Next Meeting

The Panel noted that its next meeting was to be held on 8th March 2006, at a location to be arranged.

CleQ and NJF Officers were directed to take the appropriate action.

Signed Date

. . Chairman Deputy G. P. Southern

Economic Affairs Panel