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Economic Affairs - Approved Panel Minutes - 25 July 2007

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Economic Affairs Scrutiny Panel Meeting No.48

25th July 2007 Blampied Room

Present Deputy G. P. Southern , Chairman

Connétable M. K. Jackson Deputy A. Breckon

Deputy J. A. Martin

Apologies Deputy K. C. Lewis

Absent

In attendance Nathan Fox, Scrutiny Officer

Elizabeth Kingston-Walsh, Scrutiny Officer

 

Ref Back

Agenda matter

Action

1.

Minutes of previous meetings

The Minutes of the meetings held on 27th June 2007 and 11th July 2007 were approved.

 

2.

Action Updates

  1. The Panel recalled that during the Public Hearing held

on 13th June 2007, the Economic Development Minister had  agreed  to  provide  the  Panel  with  a  number  of

documents  and  briefings  which  were  currently outstanding.  Officers  informed  the  Panel  that  the Economic  Development  Department  was  unable  to provide the briefings before September 2007. The Panel noted  that  the  documents  and  the  Enterprise  and Business Development briefing requested were urgently required for the Business Plan review and that further delay would be detrimental to the scrutiny of the 2008 Business Plan.

Officers were directed to take the appropriate action.

  1. The Panel noted that there were still outstanding issues regarding the Dairy industry to be resolved and that the largest producer in the Island was intending to leave the industry, although his cows would in all likelihood be sold to another producer.

The current understanding was that the new dairy was to be constructed to process liquid milk only, with limited facilities available to produce the export products that the Promar report had identified as essential to the industry's future.

The industry and the Executive had agreed to keep the Panel informed on this matter.

NJF

 

c) The Panel noted receipt of the following documents:

  1. Draft Harbours (Administration) (Amendment No. 7) (Jersey) Law 200-
  2. Draft Pilotage (Jersey) Law 200-
  3. Draft  Inshore  Safety  (Jersey)  Regulations 200-
  1. Draft Ship and Port Facility- Security (Amendment) 200-

Connétable   Jackson  agreed  to  consider  the  draft legislation  and  report  back  to  the  Panel  at  its  next meeting.

MKJ

3.

Executive Actions on Recommendations of Previous Reviews

The Panel considered a report presented to the Council of Ministers on  28th  June  2007  entitled Proposals  for  Ministers  to  formally respond to Scrutiny reports'.

It noted that several responses from Ministers to Scrutiny reports had been unsatisfactory, but that the response of the Planning and Environment Minister to the Environment Panel's Design of Homes' report had been very positive and should serve as a model for the future.

The Panel recalled that a working group was to be formed by the Chairmen's Committee to discuss the Code of Practice for Scrutiny Panels and the Public Accounts Committee. The Panel was minded to put either Deputy Southern or Breckon forward for inclusion in that  group.   Deputy   Southern  agreed  to  review  the  Chairmen's Committee minutes for references to the working group.

On a related mater, the Panel noted that all Scrutiny meetings with Ministers should be recorded.

GPS

4.

Finance Industry

The  Panel  noted  correspondence  from  the  Jersey  Financial Services  Commission  and  Jersey  Finance  Limited  received  in response to the Panels call for topics to review.

It further noted that no topics had been suggested.

 

5.

Draft Price and Charge Indicators (Jersey) Law

The Panel considered the evidence presented by the Economic Development Minister at the public hearing on the 24th July 2007.

The Minister had informed that Panel at this hearing that there might be legal difficulties in introducing mandatory exclusive pricing in  relation  to  GST.  The  difficulties  centred  on  an  EU  directive 98/6/EC  of  16  February  1998 on  consumer  protection  in  the indication  of  the  prices  of  products  offered  to  consumers'. The Panel  decided  that  the  Chairman  should  seek  advice  from  the Attorney General on the matter.

Officers were directed to take the appropriate action.

NJF

 

The Panel noted that one of the main arguments against inclusive GST pricing had been that the need to re-label pre-priced goods from the UK would adversely affect retailers. It therefore directed officers to seek the opinions of several business that re-labelled goods originally priced in the UK with VAT included, in order to determine the actual difficulty of re-labelling.

The Chairman was delegated to finalise any correspondence in this regard.

The Panel considered that the report on the draft Price and Charge Indicators (Jersey) Law 200- should contain the following element-

  • An examination of the differences between Goods and Services Tax and Retail Sales Tax
  • Clarification of the situation of non-registered companies regarding importation and sales to registered companies

NJF

6.

Business Plan

The Panel noted that the 2008 Business Plan was to be debated on 18th  September  2007,  and  accordingly  that  amendments  would

have to be lodged au Greffe' by 4th September 2007. The Panel was  informed  that  the  States  Greffe  had  requested  that

amendments be received by 31st August if at all possible.

The Panel agreed to write to the Economic Development Minister with questions arising from the Business Plan.

The Panel noted a discrepancy of £4.341 million in the Harbours section  of  the  2008  Business  Plan.  Capital  Expenditure  was estimated at £8.119 million and the total of Capital expenditure under the Capital programme was stated as £3.778 million.

Connétable Jackson agreed to investigate possible reasons for the discrepancy and report back to the Panel.

The  Panel  considered  the  possible  need  for  a  review  into  the Harbours management structure.

MKJ

7.

Telecoms

The  Panel  noted  that Treasury  and  Resources  Department intended to publish the report and conclusions of the Oxera/Jersey

Telecom Steering Group on 27th July 2007. It further noted that the Sub-Panel was working on a joint statement and press release.

The Panel noted the record of a meeting between the Telecom Privatisation Sub-Panel  and  the Jersey  Telecom  Privatisation Steering Group.

 

8.

Future Meetings

The Panel noted the date for the next meeting was 8th August 2007.

 

Signed

. Chairman Deputy G. P. Southern Economic Affairs Panel


Date .