Corporate Services MTFP - Approved Sub-Panel Minutes - 9 July 2012

Present

Senator S.C. Ferguson, Chairman Deputy J.M. Maçon, Vice-Chairman Deputy J.G. Reed

Deputy J.H. Young

Deputy S.G. Luce

Apologies

Absent

In attendance

Mr. W. Millow , Scrutiny Officer Mrs. J. Hales , Scrutiny Officer

Ref Back

Agenda matter

Action

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1. Review Timetable

The Sub-Panel considered a proposed timetable for the review of the Medium Term Financial Plan (MTFP). It was noted that the timetable currently allowed for presentation of the Scrutiny Report to the States on 16th October 2012 in order to ensure its availability before the deadline for amendments to the MTFP had passed on 23rd October 2012. The Sub-Panel agreed that, upon presentation of the report, a briefing for all States Members should be held (at which briefing the advisors would need to be present).

The Sub-Panel noted that Scrutiny Panels would be asked to complete their reports for the Sub-Panel by 14th September 2012 and that the Sub-Panel would need to have completed its own evidence-gathering by 21st September 2012. The Sub-Panel was advised that, nevertheless, the timetable for undertaking the review remained tight and that the Sub- Panel would need to consider which matters it would focus upon during the review.

Consideration was given to whether amendments to the MTFP would be required and, if so, whether they would be lodged by Scrutiny Panels or the Sub-Panel itself. The Sub-Panel was advised that amendments relating to a specific Department could feasibly be lodged by the relevant Scrutiny Panel whilst amendments relevant to the MTFP generally could be lodged by the Sub-Panel. It was noted that good communication between the Sub-Panel and the Panels would be required.

The Sub-Panel agreed that a copy of the review timetable should be shared with the Executive.

WM

WM

2. Lines of Enquiry

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The Sub-Panel considered lines of enquiry to pursue during its review. The following matters were identified:

1. The prioritisation process followed by the Council of Ministers;
2. Contingency  funding  (including  the  question  of  departmental contingencies);
3. The manner in which carry forwards would be dealt with under the MTFP;
4. The  timetable  for development  of  the  Long  Term  Capital  Plan (LTCP).

The Sub-Panel considered the provisions of Article 8(1) of the Public Finances (Jersey) Law 2005 and noted that the draft MTFP had to be lodged by the Council of Ministers in sufficient time for it to be debated and approved by the States at least two months before the start of the first financial year to which the MTFP would relate. The Sub-Panel was advised  that  if  the  draft  MTFP  were  lodged  on  23rd  July  2012,  the requirements of Article 8(1) would be met, notwithstanding that the MTFP would not be debated until 6th November 2012. The Sub-Panel agreed not to enquire further into this area although it was noted that the expert advisors would consider the requirements of the Law in undertaking their research and tendering their advice to the Sub-Panel.

The Sub-Panel was further advised of the current anticipation that the 2013 Budget would also be debated on 6th November 2012. It was agreed to request clarification as to when the Budget would become available.

WM

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3. Expert Advisor

The  Sub-Panel  was  advised  that  contractual  arrangements  with Professor M. Oliver of MJO Consulting had been confirmed and that arrangements  with  Mr.  S.  Fair  of  the  Chartered  Institute  of  Public Finance and Accountancy (CIPFA) were in hand. In relation to the latter appointment, the Sub-Panel was advised that the Corporate Services Scrutiny Panel had agreed to increase the budget as it was anticipated that more work would be required than had originally been envisaged. It was noted that Deputy J.H. Young was a member of CIPFA.

Further consideration was given to the engagement of expert advisors. This part of the meeting was held in private session under Paragraphs 3.2.1(a)(i) and 3.2.1(b) of the  Code of Practice on Public Access to Official Information and a private record was therefore taken.

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4. Panel Reports

The Panel considered a proposed structure for the reports which the Scrutiny  Panels  would  be  asked  to  prepare  for  the  Sub-Panel's consideration. It was agreed that provision should be made within the structure  for  user  pays  charges;  outsourcing;  and  increases  in  staff numbers. The  Sub-Panel  approved  the  structure  with  those amendments and requested that it be circulated for the Panels' attention.

WM

5. Future Meetings

The Sub-Panel agreed to meet at 2:00pm on 30th August 2012 and subsequently at 9:30am on 3rd, 17th and 24th September 2012. The Sub-Panel was advised that Senator P.F.C. Ozouf , Minister for Treasury

and Resources, was due to appear before the Sub-Panel at a Public Hearing on 17th September 2012 and the Scrutiny Officer was therefore requested to ascertain whether Senator I.J. Gorst , Chief Minister, could attend on the same day.

The Sub-Panel noted that it would next meet on 23rd July 2012, at which meeting the expert advisors would be present. The Sub-Panel was advised that it had not been feasible to arrange a briefing on forecasting for the morning of the 23rd and it was therefore agreed that the briefing would be provided in the afternoon of that day to the expert advisors.