Economic Affairs - Approved PAnel Minutes - 27 June 2007

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Agenda matter

Action

1.

Minutes of previous meetings

The Minutes of the meeting held on 23rd May 2007 were approved following a minor alteration.

The Minutes of the meetings held on 6th June 2007 and 13th June 2007 were approved.

2.

Matters arising

The Panel noted that it had previously agreed dates for future meetings. It was decided that in addition the Panel would also meet on 25th July 2007.

Officers were directed to take the appropriate action.

NJF

3.

Deputy Breckon informed the Panel that a meeting had been held on 21st June 2007 between members of the Dairy Review Sub- Panel and the Chief Minister. A mediator had been appointed to assist all parties currently involved in the dispute over the future of the dairy industry to reach an amicable conclusion.

Deputy Breckon was of the opinion that the Chief Minister should announce the progress of the negotiations to the States in order to clarify the position following various media reports.

The key areas Deputy Breckon identified for future progress were a viable export market and an orderly exit strategy.

Officers  were  directed  to  draft  a  letter  to  the  Chief  Minister

requesting clarification of which of the recommendations within the Dairy Review Sub-Panel's report the he intended to accept, and as to any further developments within the industry.

NJF

4.

Resignation of Orchid Communication

The  Panel  noted  a  letter  dated  15th  June  2006  from  Orchid Communication  to   Deputy  Ferguson,  indicating  that  company's intention to resign as public relation consultant to Scrutiny.

The company stated that its position was consistently hampered by internal disagreement' within Scrutiny and accordingly intended to withdraw from its contract.

The Panel expressed regret that Orchid communications had been unable to continue in its role, and discussed various means by which they could increase the public profile of Scrutiny.

The Panel noted that the Communications Unit supplied the press with the answers from the Ministers ahead of reply given to the States.

The Panel agreed to schedule press release preparation meetings for Wednesday lunchtimes on States weeks.

5.

Forthcoming Propositions P.76/2007 - Price Charge Indicators

The  Panel  delegated  the  Chairman  to  suspend  debate  of  the second reading of this proposition by exercising the Panel's powers under Standing Order 72.

The Panel noted that this proposition was under its remit as it had been lodged by the Economic Development Minister. Furthermore, the Greffier of the States was of the opinion that it was within the purview  of  Economic  Affairs  as  it  was  consumer  protection legislation.

The Panel noted that the terms of reference would be considered at its next meeting.

Deputy Breckon declared that he would take no part in this review as he was conflicted by virtue of his links with the Jersey Consumer Council, which had expressed strong views on the subject.

P.84/2007 – Retail Strategy – Impact Assessment

The Panel recalled that this proposition had been lodged on 18th June  2007.  It  noted  that  the  final  retail  strategy  review  was dependant  on  the  outcome  of  the  work  being  carried  out  by consultants for the Economic Development Department.

The Panel questioned the future role of the JCRA in a review of retail space in the Island, in light of the statement of the Minister to the States to the effect that such a review has been planned for

some time.

The Panel also questioned the appropriateness of appointing the  Economic  Adviser  to  the  Economic  Development Department  to  take  part  in  the  survey,  given  his  prior involvement with the Retail Framework document. The Panel did not consider the Economic Adviser sufficiently independent.

P.85/2007 – Environment Scrutiny Panel - Vote of No Confidence

The Panel noted this proposition.

6.

Questions to Ministers

The Panel considered questions for the Home Affairs Minister and Treasury and Resources Minister.

7.

Current Reviews: Business Plan

The Panel was informed that officers had attended a briefing from the  Treasury  and  Resources  Department  intended  to  aid  the Panel's understanding of the Economic Development Department's 2007 Business Plan. It was further informed that the Treasury had stated  that  the  budgetary  format  had  changed  from  sectoral' headings, which indicated to what section funds were allocated, to a functional' system, under which the central criteria was on what objective funds had been spent.

The Panel questioned whether sufficient funds had been allocated to  the  Enterprise  and  Business  Development  to  balance  the apparent reduction in direct funding of the Tourism Industry and the Rural Economy.

The  Panel  noted  that  a  presentation  from  the  Economic Development  Department  on  the  Enterprise  and  Business Development Strategy (EBDS) was overdue. It further noted that assurances had been made by the Department that briefings on the EBDS, the role up of the glasshouse industry, and the review of retail space by the Jersey Competition Regulatory Authority would follow in due course.

The  Panel  considered  the  need  to  review  the  Enterprise  and Business Development Strategy. It noted that future workload could not currently be assessed, and that this issue would be revisited at the next meeting.

8.

Current Reviews: Retail Strategy

The Panel considered the future of this review, and It was minded that that the work was dependant on the Economic Development Department  response  to  the  Scrutiny  Review,  the  associated proposition  P.84/2007  (see  item  5),  and  the  proposed  impact assessment detailed therein.

The Panel noted that the debate of the proposition was currently scheduled for 25th September 2007.

9.

Future Reviews: Anti-Money Laundering

The Panel was of the opinion that there was a pressing need to conduct a review into an aspect of the Finance Services Industry, which  it  noted  was  by  far  the  largest  constituter  to  the  local economy.

The Panel noted a letter from Deputy Ryan regarding the formation of a Sub-Panel for a review into Money Laundering.

The Panel was informed by Deputy Breckon that he would need to consider his other responsibilities before committing time to this review.

The Panel considered suggestions for suitable Sub-Panel members and  noted  that  the  Chairman  would  investigate  the  possible candidates.

The Panel considered the draft terms of reference.

The Panel noted that the pressure group Tax Justice Network' had raised  concerns  relating  to  the  regulation  of  Jersey  Financial Services industry. It further noted that concerns relating to the risk based approach to client due diligence had been raised by industry representatives  during  the  JFSC  Prevention  and  Detection  of Money  Laundering  and  the  Financing  of  Terrorism  Handbook consultation  period  in  2006.  Additionally,  the  Panel  noted  that concerns had been raised by the IMF at the level of resources available for enforcement and that the 2006 Police report stated that although extra posts had been granted the budget had not been increased accordingly.

The Panel agreed in principle to proceed.

The Panel noted that a scoping document would be prepared for the next meeting. The Panel delegated authority to the Chairman to make a statement to the States to the effect that the review was to go ahead.

Officers were directed to take the appropriate action

GPS

EKW

10.

Part B Agenda Papers - Council Of Ministers

The Panel noted that the following items were relevant to the Panel's remit-

• B1 - Annual Business Plan 2008;
• B3 – School Milk;
• B5 – Winter Fuel Payment; and
• B6 – States Debates: Autumn 2007

Officers were directed to take the appropriate action to obtain these.

NJF

11.

Future Meetings

The Panel noted that the next meeting was to take place on 11th July 2007 at 9.30am in the 1st Floor Meeting Room, States Greffe.