Corporate Services - Approved Sub-Panel Minutes - 25 March 2008

Present

Deputy P J D Ryan, Chairman Connétable D Murphy Connétable P Hanning

Apologies

Deputy R Le Hérissier

In attendance

R. Mann, Adviser

M. Haden, Scrutiny officer

Ref Back

Agenda matter

Action

Record of meeting on 7th March 2008 - approved as true record

Sub Panel priorities

Financial forecasting: It was agreed that the Sub Panel's role was not to check the accuracy of the figures in the financial forecasts but to assure themselves firstly that confidence could be placed in the process and secondly that there were provisions in place to mitigate potential risks highlighted in the forecasts.

It  was  acknowledged  that  the  purpose  of  the  forecasts  was  to enable States members to take long term strategic decisions about sustainable levels of public spending. Therefore it was important to ensure that the forecasting process was not susceptible to any short term political agendas.

Further consideration was given to the suggestion that the Sub Panel engage independent expert advice to assist in auditing the process. It was recognised that this could be expensive and that it would be necessary to give careful consideration to the added value obtained  in  comparison  to  the  Sub  Panel  itself  acting  as  an independent  monitoring  body  and  being  seen  to  ask  pertinent questions in a public context. It was suggested that a suitable local expert might be engaged for between 5 - 8 days at a possible cost between £3,000 and £5,000.

It was agreed to defer further consideration of this question pending a meeting to be arranged with the Treasury and Resources Minister following his meeting with the forecasting group.

Pay policy: de-coupling the impact of GST from pay awards

The Sub Panel considered ways in which further research could be carried  out  into  the  impact  on  pay  awards  of  introducing  new taxation. It was decided however that this would be duplicating the proper role of the Minister himself to justify the States policy. The

Sub Panel's role was to ensure that a communication was in place and to pose questions about its effectiveness.

Mitigating risks

The Sub Panel noted the draft risk register prepared by its adviser based on the Sub Panel's own scope and information presented to date. It was intended that as work progressed the form would be used to record concerns and areas where members were satisfied that controls/mitigations were in place where they related to risks.

It was suggested that this task which had been identified as an area for development at the meeting with the Minister on 7th March might  properly  belong  to  the  PAC  rather  than  Scrutiny.  It  was recognised  then  that  while  Scrutiny  would  initiate  the  work responsibility might be transferred in time.

2009 Business Plan presentation

The Sub Panel noted the Council of Minister's request for Scrutiny to consider and report by the end of April on the following issues:

• Whether as a principle that States spending limits from the 2008 Business Plan should be increased in the light of new pressures and priorities

And as a result of this conclusion

• If the principle of a contingency provision would be appropriate

• Which, if any, of the additional spending initiatives and pressures identified  would  be  considered  of  sufficient  priority  to  merit increasing spending levels.

It was agreed to seek clarity from the Chairmen's Committee about responsibility for co-ordinating a response from Scrutiny on the first two issues.

It was also agreed that the Sub Panel's priority issues identified above were long term matters on which the Sub Panel would report later in the year rather than as part of a Scrutiny submission at the end of April.

PR