Economic Affairs - Approved Panel Minutes - 13 June 2007

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Agenda matter

Action

1.

Forthcoming propositions

The  Panel  noted  that  P.76/2007  –  Draft   Price  and  Charge Indicators (Jersey) Law 200- had been lodged au Greffe' by the Economic Development Minister.

The Panel recalled that this law would regulate the addition of Goods  and  Services  Tax  (GST)  to  the  price  of  goods.  It  was intended to ensure that price indications in shops would include GST,  and  although  it  did  not  stipulate  details of  pricing  it  was intended that subordinate Regulations to do so would follow.

This law would introduce a presumption in favour of including GST in retail prices on the shelf', rather than permitting vendors to add it as a percentage at the point of sale.

The Panel considered that the inclusion of GST in prices was not advantageous to consumer protection, and that this was a measure by the Executive to obfuscate the effects of GST on retail prices.

2.

Retail Strategy Review

The Panel recalled that Scrutiny's firm of accountancy advisors, Alex  Picot  Chartered  Accountants  (Alex  Picot),  had  agreed  in principle to assist the Panel in consideration of the accounts of the Co-Operative Society (the Co-Op).

The Panel directed officers to arrange a meeting with the advisers at  an  appropriate  time  to  discuss  how  the  subject  should  be approached.   Connétable   Jackson  and   Deputy  Martin  were delegated to attend the meeting and to take any appropriate further action.

The Panel noted that it was currently in the evidence gathering stage for the full Retail Strategy Review, and was advised that a

NJF

study of the effects of large multiples (especially Tesco) on smaller retailers had been published in book format. Officers were directed to liaise with Connétable Jackson to determine the best resources available and obtain them as necessary.

The Panel was informed that Mr. J Scally of C. Le Masurier Limited was willing to give evidence to the Panel in respect of the EDAW report, and that Mr. B. Ludlum, a chartered surveyor, had also been approached to give evidence on this subject. The Panel decided that it would be appropriate to hold a Public Hearing to interview these witnesses. Officers were directed to take the appropriate action to prepare for a Public Hearing to be held before or after the Panel's next meeting on 27th June 2007.

EKW & NJF

EKW & NJF

3.

Finance Industry Briefing

The Panel did not consider that it should formally attend a briefing regarding the finance industry to be held by the Chief Minister on 19th June 2007, although members were free to do so if they wished.

4.

Jersey Telecom Privatisation

The Panel noted that the steering group carrying out a cost/benefit analysis  on  the  sale  of  Jersey  Telecom  had  agreed  terms  of reference and that its work was underway.

The Panel further noted that this work was to be presented on 19th July  2007.  It  was  agreed  that  the  Economic  Affairs  sub-Panel (Telecoms Privatisation) would attend and would pose questions as appropriate.

The Panel was informed that Jersey Telecom would be holding its Annual General Meeting on 3rd July 2007.

JTSPAN

5.

Other Business

The Chairman made a statement to the effect that any action that he had taken in respect of the resignation of the Chairman of the Education and Home Affairs Scrutiny Panel was solely as a back- bench member and that at no point had he acted as the Chairman of the Economic Affairs Scrutiny Panel in relation to this matter.