Telecoms Privatisation - Economic Affairs - Approved Sub-Panel Minutes - 19 October 2007

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Agenda matter

Action

1.

Minutes

It was decided to defer consideration of the minutes until the next meeting.

2.

Update from the Chairman

• Hanson Renouf had been contacted to see if they had the time and expertise to advise the Sub-Panel. It noted that they had previously advised on employee protection and pension issues.

• David  Parker  (the  Sub-Panel's  previous  advisor)  had been contacted. Although he indicated some reluctance to have further involvement in this review due to the work he had undertaken on the Telecoms Steering Group, he did agree to review P. 153/2007, if it contained significant deviation  from  his  agreed  position  with  the  Steering Group then he would consider advising further.
• Tim  Langlois,  representative  for  Amicua/Unite  trade union had been contacted. He informed the Chairman that the union are planning to approach States Members to discuss concerns over the sale of Jersey Telecom.
• Further funding for the Sub-Panel had been agreed by the Economic Affairs Scrutiny Panel. A sum of £10,000 had been allocated to the Sub-Panel to enable further investigations to be undertaken.

3.

Statement

The Sub-Panel recalled its decision to make a Statement to the

States on 23rd October 2007 to ask Members to defer the debate on P. 153/2007. It was agreed that Deputy Martin would make a

Statement and ask Members to defer the debate on P. 153/2007 until the first or second session in January 2008. Amendments to the Statement were suggested and the officer was directed to take the appropriate action.

JM EKW

4.

Letter form Senator Shenton

The Sub-Panel recalled that Senator Shenton had been invited to

present his thoughts on P.153/2007 to the Sub-Panel. The Sub- Panel considered the letter from Senator Shenton detailing his views. The Sub-Panel noted that the Senator believed that a minority sale was in the best interests of the States. It further noted that it was understood that the Senator intended to bring an amendment to P. 153/2007 for a partial sale.

The Sub-Panel considered that this would change the order of the  debate  and  that  a  debate  on  the  partial  sale  of  Jersey Telecom  should  be  based  on  separate,  properly  constructed proposition. It further considered that such a proposition should come from the Minister for Treasury and Resources.

The  Sub-Panel  agreed  to  arrange  a  meeting  with  Senator Shenton to express its concerns.

The officer was directed to take the appropriate action.

EKW

5.

Jersey Competition Regulatory Authority review

The Sub-Panel considered the draft terms of reference for a review of the JCRA as given on page 292 of P. 153/2007. It noted that the terms of reference did not included mention of the amount  of  resources  required  by  the  JCRA  nor  was  there mention  of  the  effectiveness  of  the  JCRA  to  act  as  a Telecommunications regulator.

Additionally, there was no mention of immediate sanctions as recommended by the Steering Group.

The officer was directed to draft a letter detailing the concerns of the  Sub-Panel  regarding  the  draft  terms  of  reference  and  to request assurance that the issues will be resolved prior to the debate of P.153/2007.

The Sub-Panel noted inconsistency in the arguments regarding structural  separation.  The  advice  from  Oxera  was  not  to structurally separate JT, yet the Proposition indicated that if the buyer of JT was a current operator, the JCRA would require them to separate.

The  Sub-Panel  considered  requesting  advice  on  competition issues and noted that David Parker may be able to assist.

EKW

6.

Legal advice

The Sub-Panel  discussed the  areas  of concern that required legal advice.

7.

Letter to Massimo Florio

The Sub-Panel considered and agreed a draft letter to Massimo Florio pending minor amendments.

The officer was directed to take the appropriate action.

EKW