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Economic Affairs - Approved Panel Minutes - 5 September 2007

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Economic Affairs Scrutiny Panel Meeting No. 49

5th September 2007

Present   Deputy G. P. Southern , Chairman

Connétable M. K. Jackson Deputy A. Breckon

Deputy K. C. Lewis

Apologies   Deputy J. A. Martin

Absent

In attendance  Nathan Fox, Scrutiny Officer

 

Ref Back

Agenda matter

Action

 

1.  Minutes of previous meetings

The  Minutes  of  the  meetings  held  on  25th  July  2007  were approved and signed.

 

Item 2a 25.07.07

Item 2b 25.07.07

2.  Matters Arising

  1. Agricultural  loans:  The  Panel  noted  that  the information on Agricultural loans requested from the Economic  Development  Department  was  still outstanding and that this had delayed the Business Plan review process. It further noted that the proposed Business Plan indicated that a total of three full-time employees were allocated to the administration of the Single  Area  Payments,  Agricultural  Loans  and miscellaneous support.

Officers were directed to take the appropriate action.

  1. Enterprise  and  Business  Development  Briefing: The Panel noted that the format of the meeting differed from its expectations.

Officers were directed to clarify the intended format for future briefings from the Economic Development.

The  Panel  considered  the  topics  discussed  at  the briefing in private session.

  1. Dairy  Industry:  The  Panel  noted  that  no  further developments had occurred over the summer period although  it  understood that  the  Council  of  Ministers intended to lodge a proposition to allow the importation of bovine semen at some point in the future.

Officers  were  directed  to  obtain  a  copy  of  the proposition.

NJF

NJF

 

d)  Telecoms:  The  Panel  noted  that  the  Treasury Department had agreed to allow the Sub-Panel early sight of their proposed plans for the privatisation of Jersey Telecom.

The Panel considered the recent instability in capital markets and the possible implications on the proposed sale of Jersey Telecom.

 

Item 3 25.07.07

3.  Executive Actions on Recommendations of Previous Reviews  

The Panel considered the officer position paper dated 11th July 2007  listing  review  recommendations  and  the  corresponding executive responses to date.

Incorporation  of  Jersey  Post:  The  Panel  recalled  that  the Jersey Competition Regulatory Authority had been obliged to wait until  Jersey  Post  was  incorporated  before  it  could  become involved.

It further recalled that separate cost centres were to be set up to demonstrate that potential anti-competitive cross funding did not occur.

Officers  were  directed  to  obtain  a  6  month  post-incorporation report from the JCRA.

Officers  were  directed  to  draft  questions  pertaining  to recommendation 2 regarding cross-subsidies.

Jersey Telecom: The Panel noted that work was ongoing and that recommendations 3 and 5 had now been partially accepted by the Treasury and Resources Department.

Jersey Dairy: The Panel noted that most of the recommendations had been acted upon to some extent and that work was ongoing (as  detailed  in  section  2c  of  these  minutes).  The  Panel  was updated on the actions of the Chief Minister's Department by the Dairy Review Sub-Panel.

Retail Strategy: The Panel noted that work was still ongoing.

The Panel noted that the treatment of Scrutiny reports by the Executive was to be discussed at the next meeting of the Council of Ministers to be held on 6th September 2007.

The Panel considered responses from Ministers to a selection of Scrutiny reviews.

The  Panel  considered  issues  related  to  hearing  evidence  in confidence and noted the potential of confidential evidence to compromise the scrutiny process.

NJF NJF

 

4.  Draft Supply of Goods and Services (Jersey) Law 200- consultation.

 

 

The Panel considered a consultation document regarding the Draft Supply of Goods and Services (Jersey) Law 200-. It noted that the States had agreed in principle to introduce a Fair Trading' Law approximately 15 years ago. It further noted that the Consumer Council was studying this document in detail. The Panel agreed to await feedback from the Council.

The Panel noted the deadline of 24th October 2007 for response to the consultation process.

 

 

5.  Scrutiny Best Practice

The Panel considered a booklet entitled On the Money', produced by The Centre for Public Scrutiny. It was of the opinion that some areas  of  public'  spending  were  difficult  to  identify,  including accommodation costs, specific marketing and branding projects. The  Panel  noted  the  need  for  ongoing  monitoring  of  public spending.

Officers  were  directed  to  obtain  a  Shadow  Scrutiny  report  on States accommodation arrangements.

Officers were further directed to provide the Panel with a summary document of the relevant information from the On the Money' booklet.

EKW

EKW

 

6.  Panel Achievements

The  Panel  considered  two  documents,  the  first  outlining  the actions of the Scrutiny Panels in the first half of 2007 and the second  detailing  reviews  which  had  been  carried  out  on  the Executive Departments by the Scrutiny Panels to date.

The Panel noted that no review had been undertaken into any aspect of the Finance Industry to date.

 

 

7.  Draft Financial Services (Amendment of Law) (No. 2) (Jersey) Regulations 200-

The Panel considered the Draft Financial Services (Amendment of Law) (No. 2) (Jersey) Regulations 200-.

It noted that this amendment had been prepared in preparation for the forthcoming International Monetary Fund inspection in 2008 and that it was due for debate on 9th October 2007.

 

 

8.  Draft Financial Services (Amendment of Law) (No. 3) (Jersey) Regulations 200-

The Panel considered the Draft Financial Services (Amendment of Law) (No. 2) (Jersey) Regulations 200-.

It noted that this amendment had been prepared in preparation for the forthcoming International Monetary Fund inspection in 2008 and that it was due for debate on 9th October 2007. The Panel had no objection to this amendment.

 

 

Officers  were  directed  to  prepare  notes  on  the  proposed amendment.

EKW

 

9.  Jersey Finance Limited

The Panel considered an officer briefing paper on the financing of Jersey Finance Limited.

The Panel recalled that initially the States had intended only to assist with the set up financing of Jersey Finance Limited and had expected that further funding would come from the industry. The Panel noted that States funding for Jersey Finance Limited was £1 million in 2007 and that the proposed grant for 2008 was increased by £25,000 to account for inflation. It further noted that States  contributions  were  more  than  double  the  industry contributions/subscriptions.

The Panel noted that the rational for increased States funding had generally been to provide resources for the overseas marketing of Jersey financial services.

The  Panel  discussed  whether  privatisation  of  Jersey  Finance Limited could be of public benefit.

The Panel agreed further information was required. Officers were directed to obtain relevant documentation.

The  Panel  recalled  the  supervisory  visit  by  the  International Monetary Fund (the IMF) was due in 2008. The Panel considered that a review into the funding of Jersey Finance Limited and the associated value to the public would have no impact on the IMF's assessment of Jersey's Finance Industry. The Panel agreed to undertake a review into the Funding of Jersey Finance Limited.

Officers were directed to take the appropriate action

EKW

EKW

 

10.  Open Skies

The Panel considered the Draft Air Transport Permits (Repeal) (Jersey)  Law  200-.  The  Panel  agreed  that  a  more  detailed analysis was required. It considered the commitments of officers and  members  and  agreed  that  the  Chairman  would  consider exercising  powers  under  Standing  Order  72  (2)  to  delay  the debate of this law in order to allow a review to be undertaken.

GPS

 

11.  Waterfront Scheme

The Panel understood that a former Managing  Director of the Waterfront Enterprise Board had been re-employed as a Project Manager.

Officers were directed to request a copy of agenda item B11 of the  Council  of  Ministers  meeting  dated  6th  September  2007 entitled Waterfront Development Consultation Programme'.

NJF

 

 

 

Item 6 25.07.07

12.  Economic  Development  Department  2008  Business Plan

The Panel considered the Economic Development Department's 2008 Business Plan.

The  Panel  noted  that  historically  the  Economic  Development Department has not spent its budget allocation.

It further noted that the Department had stated that it was not possible to determine in advance the contents of Business Plans for 2009 and 2010.

The Panel noted the amendment to the 2008 Annual Business Plan  designated  P.93/2007/Amd(9),  lodged  by  the  Public Accounts  Committee  and  further  noted  that  this  was  to  be discussed  at  the  Chairmen's  Committee  meeting  on  7th September 2007.

The Panel noted an amendment to the 2008 Annual Business Plan  designated  P.93/2007/Amd(3),  lodged  by  Senator  B. Shenton,  concerning  the  funding  of  the  Jersey  Competition Regulatory Authority.

 

 

13.  Small Firms Loan Guarantee Scheme

The  Panel  noted  the  record  of  a  meeting  between  Economic Development Department Officers and Scrutiny Officers in relation to the Small Firms Loan Guarantee Scheme.

 

 

14.  Draft Price and Charge Indicators (Jersey) Law

The Panel recalled that it had previously considered presenting comments  on  P.99/2007  -  Goods  and  Services  Tax:  price marking legislation' lodged by Senator L. Norman. It was agreed that these would be held pending the outcome of discussions on the subject with Senator Norman.

 

Item 5 25.07.07

15.  Draft Price and Charge Indicators (Jersey) Law Report

The Panel noted that the completion date for this review was the 25th September 2007. It further noted that the draft report was due for stakeholder review by 18th September 2007.

The Panel noted that the transcripts from the Public Hearings held on 4th September were expected within a week.

The Panel considered the draft report and agreed a meeting on 17th September 2007 for finalisation of the draft report.

Officers were directed to take the appropriate action

NJF

 

16.  Newsletter

The  Panel  noted  that  the  Scrutiny  Newsletter  required

 

 

submissions from all Panels and that a member of each Panel would be profiled. The Panel agreed to defer consideration of this item to the next Panel meeting.

 

 

17.  Future Meetings

Due to the Business Plan debate scheduled for 18th September 2007, the Panel meeting of 19th September 2007 was postponed.

A Panel meeting was arranged for 17th September 2007 at 9.30am to discuss the draft Price and Charge Indicators (Jersey) Law 200- Report, at a venue to be confirmed.

Officers were directed to take the appropriate action.

NJF/EKW

Signed

. Chairman Deputy G. P. Southern Economic Affairs Panel


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