Skip to main content

Economic Affairs - Approved Panel Minutes - 10 Janaury 2007

This content has been automatically generated from the original PDF and some formatting may have been lost. Let us know if you find any major problems.

Text in this format is not official and should not be relied upon to extract citations or propose amendments. Please see the PDF for the official version of the document.

Economic Affairs Scrutiny Panel Meeting No. 32

10th January 2007

1st Floor Meeting Room, States Greffe

Present   Deputy G. P. Southern , Chairman

Deputy A. Breckon

Deputy J. A. Martin

Deputy K. C. Lewis

Apologies   Connétable M. K. Jackson

In attendance  Nathan Fox, Scrutiny Officer

 

Ref Back

Agenda matter

Action

1.

Minutes

The Minutes of the meeting held on 29th November 2006 were considered and approved.

NJF

2.

Work Programme for 2007  

The  Panel  considered  several  options  for  the  next  topic  to  be undertaken-

Ferry services

It was noted that no service level agreement had been put in place by the Economic Development Minister, and that it was likely that a short-term arrangement would be reached in order to allow Jersey to enter into a joint service level agreement with Guernsey at the time of the termination of Guernsey's existing contact in 2007.

The Panel decided to maintain its watching brief. Finance

The Panel considered it essential to undertake a finance topic at some point in 2007 it was agreed that the matter would be decided after a briefing had been received from officers of the Economic Development Department in respect of current developments in the industry. (Item 3 refers).

The population register

The Panel noted that the essential drivers for population growth were economic factors, and that any influx of migration as a result of the new migration strategy would result in significant economic effects.

 

 

 

There were also concerns that the system was open to widespread abuse that could affect local businesses.

The  Panel  therefore  decided  to  recommend  to  the  Chairmen's Committee that a Sub-Panel should be created to investigate the subject,  with  membership  drawn  from  all  Panels,  chaired  by  a member of the Economic Affairs Scrutiny Panel, who would fund the Sub-Panel and provide the officer support.

Economic  Development  Department  business  plans  and achievements in 2006

The  Panel  noted  that  the  targets  developed  by  the  Economic Development Department regarding projects to be completed in 2006 had in some cases not been achieved. In order to gauge how well  the  Economic  Development  Department  had  achieved  its strategic aims for 2006, and to discuss a review into the subject, the Panel agreed to hold an extended meeting on 21st February 2007.

Officers were directed to take the appropriate action. Other matters

The Panel discussed the retail strategy and a possible reprisal of the Postal Incorporation report. It was agreed to revisit the future airport plans in March 2007.

Officers were directed to bring the subject before the Panel at that time.

NJF

NJF

3.

Item 5 4th Oct 2006

Letter to the Economic Development Minister in respect of a proposed finance briefing

The  Panel  recalled  that  it  had  been  offered  the  opportunity  to receive  a  briefing  from  officers  of  the  Economic  Development Department  in  respect  of  current  developments  in  the  finance industry,  but  that  this  had  not  been  possible  in  2006  due  to conflicting schedules.

It  was  agreed  that  a  letter  should  be  sent  to  the  Economic Development Minister requesting that such a briefing should be provided at regular Panel meeting as early as possible in 2007. A draft letter was approved.

Officers  were  directed  to  send  the  approved  letter  with  the Chairman's e-signature.

NJF

4.

Item 3 26th Nov 2006

Dairy Review – draft report

The Panel considered a draft report from the Economic Affairs sub- Panel (Dairy Review).

The Panel was broadly supportive of the content of the report but it was  noted  that  the  Sub-Panel  would  have  to  decide  upon  a coherent set of recommendations at its next meeting, even if this

 

 

 

was by means of a contested vote.

The Panel commented that the report lacked in-depth analysis of the speculative nature of the export market that the jointly-engaged consultants suggested could revive the industry.

Having broadly endorsed the report, the Panel delegated authority to Deputy Breckon as the Chairman of the Economic Affairs sub- Panel (Dairy Review) to finalise the report and bring it to the States in the name of the Panel. Deputy Breckon was also to act as rapporteur in any debate on the subject.

Officers were directed to take the appropriate action.

NJF

5.

Jersey Telecom review briefing

The  Chairman  informed  the  Panel  that  the  review  was  nearly completed,  but  that  the  Sub-Panel  had  encountered  some difficulties  as  it  was  not  in  agreement  with  the  Economic Development Department over the timing of its report.

Both the Sub-Panel and the economic advisor to the Economic Development  Department  considered  that  their  function  was  to produce a report based on the other reports available, including the report  from  Citigroup  (the  executive's  consultants)  which  was expected in the near future. Therefore neither the economic advisor nor the Sub-Panel wished to complete their report before having sight of the other.

The Panel had been unable to determine if Citigroup was being reimbursed with a percentage of the sale value of Jersey Telecom, but it suspected that this was the case.

This would result in the consultants holding an identical position to the Treasury and Resources Minister, inasmuch as it would be incentivised to achieve the maximum sale value for Jersey Telecom regardless of the future economic or social costs. This did not fit with the understanding of the Sub-Panel that consideration of social costs was an element of the instructions to Citigroup.

The Panel noted that the legal advisor to the Sub-Panel, Advocate Hanson, had been instructed to inform officers if his fees were to exceed  £4,000.  He  had  not  done  so,  and  the  Sub-Panel  had received an invoice for £5,500.

The Chairman proposed to pay the average of the two figures, £4,750, as a goodwill gesture and to reflect the assistance that Advocate Hanson had provided in the past.

The Panel agreed with this course of action and made an additional £750 available to the Sub-Panel should it become necessary.

Officers were directed to take the appropriate action.

The report was to be presented to the States on 23rd January 2006.

IC

 

6.

Chamber of Commerce luncheon invitation

The Panel considered a luncheon invitation to attend a presentation by the Chamber of Commerce on 31st January 2006.

It was agreed that Deputy Martin would attend, with another Panel member to be agreed at a later date. This would cost £18.00 per person.

Officers were directed to take the appropriate action.

NJF

Signed

. Chairman Deputy G. P. Southern Economic Affairs Panel


Date .