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Economic Affairs - Telecoms Privatisation - Approved Sub-Panel Minutes - 29 Novemeber 2006

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Economic Affairs Sub Panel (Telecoms Privatisation) Meeting No. 9

29th November 2006

First floor meeting room, Scrutiny Office

Present Deputy G. P. Southern , Chairman

Deputy J. A. Martin

Senator B. Shenton

Apologies Deputy G. Baudains

Deputy J. Reed

In attendance I. Clarkson, Scrutiny Officer

 

Ref Back

Agenda matter

Action

1.

Minutes

The Sub Panel approved the minutes of the meeting held on 16th November 2006.

 

2.

Matters arising

The Sub-Panel noted that its adviser, Mr. D. Parker, was due to provide the Scrutiny Office with an update on his research later in the week.

The  Sub-Panel noted receipt of a  legal opinion  from  Amicus concerning  matters  raised  at  the  public  hearing  on  17th November 2006.

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3.

Public Hearings

The Sub-Panel received draft transcripts of the hearings held on 17th November 2006.

Arrangements  for  public  hearings  on  18th 19th  December 2006 were in hand, although neither Jersey Airtel nor Cable and Wireless had yet indicated that they would attend. In the event that either or both telecoms companies agreed to attend, the Sub-Panel agreed that it would wish to ask a series of questions concerning –

  1. Economies of scale,
  2. Competition in small jurisdictions,
  3. Voice over Internet Protocol, and
  1. The general state of the telecoms market in Jersey.

The officer was authorized to brief both Cable and Wireless and Jersey Airtel.

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4.

Privatisation Lecture

The Sub Panel was advised that Professor Florio's office had confirmed  his  attendance  and  acceptance  of  the  financial arrangements as proposed. Lecture notes were to be obtained from the Professor in due course.

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Responsibility  for  approving  an  advertisement  in  the  Jersey Evening Post covering up to 5 columns was delegated to Deputy

G.P. Southern . Invitations were to be sent to all States members, GS / IC the Board of Jersey Telecom, representatives of Amicus and

other stakeholders.

The Sub-Panel agreed that it should meet with Professor Florio during the latter part of the morning on 12th December and that a working lunch at a restaurant in St. Helier should be arranged to follow.  The  officer  was  instructed  to  make  the  necessary IC arrangements.

  1. Additional lines of enquiry

The Sub-Panel noted that Deputy Southern had written to HM Attorney General seeking legal advice on a series of TUPE and pensions legislation related matters. It further noted that a copy

of the questions had been sent to law firm Hanson Renouf in

order that, in the event the Law Officers were unable to provide

the necessary legal advice, that firm might be engaged. The Sub-

Panel  ratified  the  decision  to  write  seeking  the  advice  and authorized  the  Chairman  to  obtain  the  advice  from  Hanson

Renouf if necessary, on the understanding that a budget for legal GS / IC advice  of  more  than £4,000  would  cause  the  Sub-Panel  to

require prior authorization from the full Panel for additional funds

over and above its £25,000 allocation.

The Sub-Panel noted that various reports on the implications of privatizing  JT  were  now  being  produced  by  Citigroup  for  the Treasurer of the States, by the Jersey Competition Regulatory Authority and possibly by the States of Jersey Economic Adviser.

It was understood that the JCRA report was to be delivered to the

Minister for economic Development by the end of the year. The Sub-Panel  considered  that  it  was  obligated  to  consider  the

content of the various reports prior to presenting its findings to

the  States;  accordingly  the  timescale  for  production  of  those

reports  might  cause  the  Sub-Panel  to  miss  its  anticipated presentation  date  of  16th  January  2007.  It  agreed  that  the GS / IC Chairman should write to the Minister of Treasury and Resources

advising him of this issue. It further authorized Deputy Southern

to pursue a briefing with Citigroup and officers of the States Treasury concerning work carried out to date. GS / IC

The Sub-Panel instructed its officer to investigate the cost of IC regulation in Jersey and Guernsey in recent years.

  1. Date of next meeting

12.00pm Tuesday 12th December pre-meeting with Professor M. Florio (Le Capelain Room) followed by lunch (Location to be advised)

7.30pm Tuesday 12th December Florio Lecture at Pomme d'Or Hotel, St. Helier .

2.00 pm Wednesday 13th December Blampied Room, States Building.

Signed

_____________ ______________ Chairman Date