Corporate Services - Approved Panel Minutes - 30 May 2014

Present

Deputy J.G. Reed, Vice-Chairman Deputy R.J. Rondel

Apologies

Senator S.C. Ferguson, Chairman Connétable D.W. Mezbourian

Absent

In attendance

Mr. J. Shilliday, Project Director – Treasury and Resources [Item 2] Mr. J. Hamon, Finance Director – Housing [Item 2]

Mr. K. Hemmings, Head of Decision Support [Item 2]

Miss S. McKee , Scrutiny Officer [Item 1] Mr. W. Millow , Scrutiny Officer [Item 2]

Ref Back

Agenda matter

Action

28/05/30 Item 5

513/43

1. Draft Charities Law

The  Panel  received  the  Chairman  of  the  Jersey  Voluntary  and Community Sector for a Public Hearing in respect of its review of the Draft Charities (Jersey) Law 201-. The proceedings were recorded in order that a transcript could be made.

28/05/14 Item 1

513/35

2. Medium Term Financial Plan

The Panel received a briefing from Mr. J. Shilliday, Project Director – Treasury and Resources, Mr. J. Hamon, Finance Director – Housing, and  Mr.  K.  Hemmings,  Head  of  Decision  Support  on  Housing Transformation Programme: Amendment to the Medium Term Financial Plan 2013 – 2015 (P.59/2014). It was noted that P.59/2014 had been lodged to ensure that the Medium Term Financial Plan (MTFP) reflected the incorporation of the Department of Housing as Andium Homes. In that regard, the Department's current inclusion within departmental net revenue expenditure would be removed, thereby leading to an increase in  overall  net  revenue  expenditure,  whilst  the  return  from  Andium Homes  would  be  included  amongst  other  States  income,  thereby increasing overall income by a similar amount.

It was noted that the MTFP, and any amendments to it, would ordinarily need to be lodged for twelve weeks but that, in this instance, the States Assembly had acceded to a request from the Minister for Treasury and Resources to reduce the lodging period for P.59/2014 in order that it could  be  debated  alongside  other  propositions  implementing  the Housing Transformation Programme. The Panel questioned why it was necessary to reduce the lodging period. The Panel was advised that it would  be  beneficial  for  the  Assembly  to  take  all  four  propositions together and that, for that to be possible, either the lodging period for P.59/2014 needed to be reduced, or the other propositions would need to have been lodged earlier, which would not have been practical. The Panel was informed that the test for reducing the lodging period for the

MTFP (or an Amendment to it) differed under Standing Orders from the test which would apply to the proposal to reduce the lodging period for another proposition. The Panel was further advised that the MTFP, when lodged and debated in 2012, had signaled that an amendment to it would be required were the Housing Transformation Programme to be pursued.

The Panel was advised that Andium Homes was due to commence operations on 1st July 2014. The Panel was further advised that the bond of £250 million, which the Assembly had previously agreed to take out, was due to be issued during the week beginning 9th June 2014, after which sums could be loaned by the States to Andium Homes. It was noted that the MTFP had indicated £22 million would be spent in 2014 on capital projects for housing. The Panel was advised, however, that the Department or latterly Andium Homes would need to secure the funding for those projects. Securing the bond would provide certainty to Andium Homes for the funding required. Without that certainty, Andium Homes would not proceed with tendering for the remaining projects. The Panel requested that certainty be provided, both for it and for all States  Members generally,  as  the  securing  of  the funding to  allow Andium Homes to deliver its capital projects. The Panel asked what would happen if the bond were not secured and was advised that Andium Homes would need to look at other means by which it could fund the capital projects.

The Panel questioned whether it was necessary for P.59/2014 to be debated at the same time as the other three propositions which had been lodged in relation to the Housing Transformation Programme. It further questioned what the impact would be of delaying the debate on P.59/2014. There was an undertaking to provide the Panel with the necessary information although it was noted that deferring the debate on P.59/2014 would mean that the MTFP did not reflect the realities of the Housing Transformation Programme (which would be achieved with the adoption of the three other propositions).

Consideration was given to the allocation of capital expenditure and whether,  once  capital  programmes  and  their  allocations  had  been approved by the Assembly, all such allocations were spent in a timely fashion. There was an undertaking to provide the Panel with the results of research undertaken by the Department of Treasury and Resources into this matter.

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