Economic Affairs - Approved Panel Minutes - 28 April 2006

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Agenda matter

Action

1.

Panel 's Financial Position

The Panel received the budget expenditure for the period from 1st January to 31st March 2006, comprising expenditure of £1,210.00 out the total  allocated  budget  of £80,000.00.  The  majority  of  the expenditure was related to advertising the call for evidence for the review on the fulfilment industry and its effects on the local economy in the Jersey Evening Post.

The Panel noted its expenditure for the year to date.

2.

Strategic Plan 2006-2011

The  Committee received work  carried  out  on  the Strategic  Plan, based on input from Deputies Breckon, Martin and Lewis .

The Panel noted the current conclusions, but commented that the main shortcoming of the plan was its lack of any indication as to the cost of the measures proposed.

Although the Plan was presented as a high-level strategy document, and therefore not costed, it was suggested that it was to be funded from within existing cash limits, and that it was based on previous estimates of States revenue. It was described in the introduction as achievable and affordable'.

The Panel was of the opinion that if the plan had not been fully costed, it was not clear how it could be claimed that it would fall within existing cash limits. If it had been costed, then those estimates should be brought forward for debate at the same time as the plan itself, in order to avoid the States voting for policies which would have an unknown impact on its budget.

GS NJF

Authority was delegated to the Chairman to work with the Greffier of the  States  to  develop  an  amendment  to  that  effect.  The  Panel directed officers to return this document to it at its meeting of 28th April 2006 with the aforementioned conclusion included.

3.

Visit to Condor Logistics Site

The Panel, with reference to its previous site visit to Jersey Post operations, had in its supporting documentation been appraised of accusations made in the United Kingdom media of packages being shipped to Jersey pre-addressed to United Kingdom residences in order  to  more  efficiently  facilitate  the  avoidance  of  Low  Value Consignment Relief.

The Panel had also noted that the Condor Logistics element of Jersey Post's fulfilment business was approximately twice as efficient on a unit-per-hour basis as the Jackson 's Garage' site.

This  had  led  Panel  members  to  consider  the  possibility that  the disparity  was  due to  consignments arriving pre-addressed  as aforementioned.

The Panel considered that another site visit would be necessary to properly examine the activity taking place at the Condor Logistics site site.

NJF

4.

Matters for noting re the review of postal incorporation

The Panel noted the follow items-

A timetable for the 5th May Hearing

The letters sent to witnesses for information

An e-mail from Comptroller and Auditor General

Acts of the Economic Development Committee-

Act No. B7 of 3rd September 2003;

Act No. B9 of 1st October 2003;

Act No. B1 of 28th May 2004;

Act No. B6 of 1st December 2004; and

Act No. B8 of 30th June 2005.

Acts of the Committee for Postal Administration-

Act No. B4 of 9th June 2003 (and Committee Paper

CPA/3/03);

Act No. B5 of 7th July 2003;

Act No. B6 of 7th July 2003 (and Committee Paper

CPA/5/03);

Act No. B2 of 28th July 2003;

Act No. B1 of 11th September 2003.

An index of all Acts received to date with the exception of Regulation of Undertakings applications

Information requested following the Panel meeting of 6th April -

an e-mail from Kevin Lemasney with responses; an e-mail from Helier de Veulle Jersey Post; and

confidential reports and information from Jersey Post responding to questions with index.

Notes  from  meeting  with  a  Representative  of  the Communication Worker's Union

5.

Matters for noting re the review of the fulfilment industry The Panel noted the follow items-

A list of fulfilment Company names received to date;

A letter from the Minister dated 6th April 2006 responding to questions

Notes from visit to DMS Fulfilment with Deputy J. Martin A letter dated 31st March 2006 from Guernsey Post

A letter dated 20th March 2006 from Storage Solutions CI

A letter dated 31st March 2006 from Play.com together with press articles

6.

Questions for Witnesses

The Panel was mindful that it was to hold a public hearing on 5th May 2006. It therefore agreed to meet on 3rd May 2006 as previously discussed to finalise questions developed in draft at this meeting.