Corporate Services - Approved Panel Minutes - 13 July 2015

Present

Deputy J.A.N. Le Fondré, Chairman Deputy S.J. Brée, Vice-Chairman Deputy K.C. Lewis

Apologies

Connétable C.H. Taylor

Absent

In attendance

Mr T. Oldham , Scrutiny Manager Mr W. Millow , Scrutiny Officer

Ref Back

Agenda matter

Action

1. Records of Meetings

The records of the meetings held on 23rd, 24th and 25th June 2015 were approved. The records were signed accordingly.

In respect of the record of the meeting held on 29th June 2015, the Panel  agreed  an  amendment  to  clarify  that  transfers  which  had reportedly taken place within the machinery of government of the Isle of Man had not necessarily occurred recently.

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Item 4 29.06.15

513/45

2. Review of the MTFP – 2016-2019

The Panel received an update in relation to its review of the Medium Term Financial Plan (MTFP) 2016 – 2019. It was noted that public hearings  had  been  arranged  with  the  Minister  for  Treasury  and Resources at 3:30pm on 21st July 2015 and with the Chief Minister at 2:00pm on 5th August 2015. It was agreed that, in order to prepare for the hearings, the Panel would meet at 9:30am on 16th July 2015 and at 2:00pm on 21st July 2015. It was agreed to invite the Panel's expert adviser from MJO Consulting to attend the meeting on 16th July 2015. The Scrutiny Officers were requested to prepare a draft question plan.

The Panel noted that its expert adviser from CIPFA Business Limited would hold meetings in Jersey on 21st and 22nd July 2015, during which time he would meet the Panel at 9:30am on 21st July 2015 and at 3:00pm on 22nd July 2015. It was agreed that the Panel would continue its meeting after its discussions with the adviser on 21st July 2015 in order to consider further the public hearing scheduled for later that day.

The Panel recalled its agreement to circulate a framework of lines of enquiry to other Scrutiny Panels to assist those Panels in their work on the MTFP. The Panel requested that the framework, as it stood, be circulated in order it could subsequently be forwarded for all Panels' consideration by 17th July 2015.

Consideration was given to the timetable for the Panel's review and, in particular, when the Panel would expect to receive guidance from the other Panels on the results of their work. It was agreed to aim for

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presentation of the Panel's report to occur on 15th September 2015. It was subsequently agreed that, ahead of presentation, the Panel would aim to circulate the draft report for comment on 9th September 2015 with the deadline for comments to be 11th September 2015. It was agreed to advise the Executive of this timetable. It was noted that, in order to meet this timetable, Panels would need to provide the guidance on their work by 3rd September 2015.

The Panel recalled that a briefing on the MTFP had been provided to all States  Members  on  10th  July  2015.   The  Scrutiny  Officers  were requested to circulate electronic copies of the slides which had been used during the presentation.

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Item 5 29.06.15

513/37(7)

3. Public Finance (Jersey) Law – Amendment No. 3

The  Panel  noted  receipt  of  a  report  on  Draft  Public  Finances (Amendment of Law No.3) (Jersey) Regulations 201- (P.57/2015) from its expert adviser at CIPFA Business Limited. Consideration was given to the report and to a paper prepared by the Scrutiny Office. The Panel discussed the potential contents of comments it would present on the Draft  Regulations. It  was  noted  that  the  Panel  could  potentially undertake further evidence-gathering for this review but that the Panel's current programme would make this difficult. It was therefore agreed to request that, in light of the report from CIPFA Business Limited and the current work programme, the Minister for Treasury and Resources defer the debate on the Draft Regulations and to advise that, if the debate were not deferred, the Panel would invoke Standing Order 72 were the principles of the Draft Regulations to be adopted. It was agreed to defer further discussion of this review until the Minister's response to the request had been received.

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Item 6 29.06.15

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4. Transfer of Functions

The Panel considered the current status of the Transfer of Functions Review. The Panel recalled that Connétable J.E. Le Maistre had been co-opted to the Panel in his capacity as Chairman of the Economic Affairs Scrutiny Panel. Noting that the Connétable had subsequently resigned as Chairman of that Panel, it was agreed that the Connétable would be asked whether he wished to remain co-opted to the Panel. It was further agreed that, in the event the Connétable no longer wished to  be  co-opted,  the  Panel  would  invite   Deputy  L.M.C.   Doublet , Chairman of the Education and Home Affairs Scrutiny Panel, to be co- opted to the Panel for this review.

The Panel received an update on the visit of its expert advisers from Concerto on 23rd and 24th July 2015. Consideration was given to whether  the  advisers  should  meet  the  Minister  for  Treasury  and Resources. Noting that such a meeting would be procedurally unusual but not unprecedented, it was agreed that the meeting would go ahead but that the Vice-Chairman would also attend. The Panel was advised that, at the Chairman's request, a meeting in respect of the Future Hospital Project would be arranged for the advisers. The Panel was also  advised  that  care would  need  to  be  taken  to  ensure that the Hospital Project was considered within the context of the Transfer of Functions  Review  and  the  scope  of  the  review  did  not  creep inadvertently as a result. The Panel recalled its agreement to research transfers  which  had  reportedly  taken  place  within  the machinery of government  of the Isle  of  Man.   The  Panel was  informed that  the

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Chairman would investigate this matter in the first instance.

The Panel agreed that, subsequent to the advisers' meetings, Concerto would be asked to provide its oral report to the Panel on 7th August 2015. It was agreed to meet at 10:00am on that day and that Concerto would be asked to provide its report at 11:00am. It was noted that the report would be recorded in order that a transcript could be produced.

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Item 7 29.06.15

5. Public Sector Pension Reform (PECRS)

The  Panel  considered  a  draft  Scoping  Document,  draft  Terms  of Reference and a draft Project Plan for its review of proposed changes to  public  sector  pension  provision. The  Panel  was  advised  that amendments had been made to the documentation since its previous circulated  by  e-mail following  comments from the  Chairman  and  to reflect an updated estimate on the expenditure likely to be incurred by engaging an expert adviser. It was noted in that latter regard that advice would need to be sought from the Greffier of the States before contractual arrangements with the expert adviser could be finalized. The Panel approved the scoping material, as amended.

Consideration was given to the timetable for the review. The Panel was advised  that  Draft  Regulations  in  respect  of  the  new  public  sector pension provision had yet to be received. The Panel discussed whether there would be sufficient time for it to undertake a review, given other demands on the Panel's work programme. The Panel was advised that it could request a particular debate date from the States Employment Board in order to allow it sufficient time. Concerns were expressed as to whether it would nevertheless be challenging to complete the review. Notwithstanding these concerns, it was agreed that an adviser would be engaged to consider the Draft Regulations in the first instance and to report back by the end of August 2015.

The  Panel  was  informed  that  the  Chairman's  spouse  was  a  past contributor to the current scheme but that any likely benefit would be minimal and not material. The Panel agreed that there was no conflict of interest to declare in respect of the review.

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6. Population and Migration

The  Panel  noted  receipt  of  draft  scoping  material  in  respect  of  a proposed review in relation to population and migration matters that, if agreed, would allow for a desktop consideration of the economic impact of migration. The Panel was informed of a meeting the Chairman had held with the Chief Statistician which had assisted with preparation of the scoping material. The Panel was advised that undertaking the review in the short term would potentially be challenging in light of current demands of the work programme and it was noted that the review did not need to be begun immediately. Consideration was given to whether to undertake the proposed review. It was ultimately agreed that,  in  the  first  instance,  the  Panel  would  request  from  the  Chief Minister advice on what work, if any, the Executive had undertaken on assessing the economic impact of migration. It was agreed to defer consideration of the proposed review until the Chief Minister's response had been received.

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Item 1 03.07.15

7. Possible JT and Airtel Merger

The Panel recalled the briefing it had received on the potential merger of operations of JT and Airtel. It was agreed to scope a potential review

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of this matter and to include within the scoping material provision for the appointment  of  an  expert  adviser  who  would  assist  the  Panel  in assessing  arrangements  within  the  proposed  merger  in  respect  of governance, due diligence and the shareholders' interests. It was also agreed to request from the Department of Treasury and Resources the timetable for the proposed merger.

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8. Work Programme

The Panel considered the current status of the 2015 work programme. The  Panel  was  advised  that  the  work  programme  was  currently challenging  in  terms  of  delivery. It  was  noted  in  that  regard  that decisions  in  respect  of  the  review  of  P.57/2015  and  the  proposed population and migration review would render the work programme less challenging, albeit that a review in respect of the JT / Airtel merger would now need to be added to the work programme.

Consideration was given to the Panel's remit and the impact on that remit of proposed transfers of Ministerial functions and of departmental transfers  to  the  Chief  Minister's  Department.   It  was  noted  that subsequent consideration would potentially need to be given by the Chairmen's Committee as to whether a restructuring of the Scrutiny Panels' remits would be required in due course.

9. Confidentiality

The Panel noted receipt of a paper from the Chairmen's Committee which outlined an approach for all Panels to take in respect of receiving confidential documents and instances in which the confidential status of documents  might  be  challenged.   The  Panel  agreed  to  adopt  the approach proposed by the Committee and to incorporate it within its own working practices.

Item 9 29.06.15

10. Ministerial Decisions

The Panel noted recent Ministerial Decisions taken by the Ministers within its remit. The Panel recalled its request to receive the report which  accompanied  Overdale  Hospital,  Grant  of  drainage  rights  for Hillcrest  Development,  Westmount  Road  (MD-PH-2015-0056).  The Officers were requested to ascertain the current status of this request.

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11. Future Meetings

The Panel noted that its next scheduled meeting would take place at 9:30am on 27th July 2015. The apologies of the Chairman for the meeting were noted.

Item 2 29.06.15

513/46

12. Jersey International Finance Centre (JIFC)

The Panel noted that its advisers were continuing negotiations with the States of Jersey Development Company to finalise the wording of the Non-Disclosure Agreement to enable them to access the necessary commercially sensitive information to complete their work and report to the Panel. The Panel agreed to re-consider the next steps of its work on the Review once its advisers had secured the required information.