Economic Affairs - Approved Panel Minutes - 22 July 2015

Present

Deputy S.M. Brée, Chairman Deputy D. Johnson Connétable J.E. Le Maistre Connétable M.J. Paddock

Apologies

Absent

In attendance

Mr. M. Orbell, Scrutiny Officer

Ref Back

Agenda matter

Action

1. Records of meetings

The Minutes of the meeting held on 10th July were approved and signed.

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Item 3 10.07.15

515/32

2. Ports of Jersey Limited: Approval of First Board and Terms of Office (P.68/2015)

Members agreed that a formal letter should be sent to the Minister for Treasury and Resources highlighting the Panel's concerns about the intention to use a holding company (States of Jersey Investments Ltd.) instead of the Minister and the Treasurer to act as Shareholder for the States' interest in Ports of Jersey Limited, unless this was specifically addressed  in  amendments  to  the  Memorandum  of  Understanding. These should make it clear that the Minister retained full responsibility under  the  law.  The  letter  should  also  point  out  certain  other inconsistencies  identified  in  the  draft  Memorandum  and  Articles  of Association. It was agreed that Deputy Johnson would liaise with the Scrutiny Officer concerning comments for inclusion in the letter.

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DJ/MO

Item 4 10.07.15

515/1/1(3)

3. Rural Economy Strategy (RES)

Although  no  formal  public  consultation  had  taken  place,  following somewhat  conflicting  announcements  at  different  times  from  the Ministers for Environment and Economic Development it was believed that the industry was anticipating cuts to current levels of government support.  Members  noted  that  potential  competitors  in  the  UK  and Europe still enjoyed a high level of agricultural subsidies, and with the exception  of  New  Zealand  virtually  every  other  modern  jurisdiction continued to provide support for its own farming industry.

Members  were  particularly  concerned  at  the  delay  in  progress,  as current RES arrangements were due to expire at the end of 2015. It was agreed to ask for an early update following a meeting of Senior Officers on 23rd July. This should be followed as soon as possible by a meeting with the Minister to obtain further information, after which the

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Panel would be in a position to engage with the industry.

The Panel agreed that in view of his knowledge and experience of the RES the Connétable of Grouville should attend Panel meetings and discussions  about  the  strategy  wherever  possible,  but  should  not participate  in  decision-making  on  associated  matters,  to  avoid  any perceived conflict of interest.

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Item 4 10.07.15

513/45

4. Medium Term Financial Plan 2016 – 2019 (P.72/2015)

The departmental annex to the MTFP was expected to be lodged on Friday 24th July. It was noted that the main body of the MTFP lodged on 14th July contained very little detail relevant to the activities of the Economic Development Department. The Panel decided to invite the Minister to a public hearing on 12th August, following a preparatory Panel meeting, to question him both on the MTFP and on progress with the Rural Economy Strategy.

Members agreed that in view of the tight timescales resulting from delayed publication of the MTFP there would be no time to consult an adviser on its contents. It was felt that as details for 2017-2019 would apparently  not  be  forthcoming  until  mid-2016,  this  was  unlikely  to present significant problems at this stage. However, members noted that the presentation of the MTFP in two parts, with a year's gap in between meant that there was a risk of States Members giving in- principle' approval to a range of proposals for cost savings and new charges in 2015, without sufficient information to gauge their combined impact when eventually enacted. This was viewed as a matter of some concern,  particularly  in  the  light  of  a  recent  announcement  by  the Minister for Treasury and Resources of forthcoming proposals for new property taxes.

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5. Forthcoming meetings

 Next scheduled Panel meeting: 9.30am on 12th August 2015, Blampied Room, States Building

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