Report - Economic and International Affairs Panel - Government Plan 2021 - 24 - 4 December 2020

Scrutiny Review of the Government Plan: 2021 - 2024

Economic and International Affairs Scrutiny Panel Report

4th December 2020 S.R.14/2020

GOVERNMENT PLAN REVIEW  1

1. PANEL MEMBERSHIP  1
2. CHAIR'S FOREWORD  2
3. METHODOLOGY  3
4. FINDINGS AND RECOMMENDATIONS  4
5. DEPARTMENTAL BUDGETS  7 Departmental Budgets  7 Departmental Heads of Expenditure  7
6. PREVIOUSLY REVIEWED ACTIONS, PROGRAMMES AND CAPITAL PROJECTS (GOVERNMENT PLAN 2020 – 2023)  11
7. UPDATE REPORTS ON PREVIOUSLY REVIEWED ACTIONS, PROGRAMMES AND CAPITAL PROJECTS  14

Actions  14 Programmes  16 Capital Projects  46

8. NEW PROGRAMMES AND CAPITAL PROJECTS IDENTIFIED IN THE GOVERNMENT PLAN 2021 – 2024  60

New Programmes Requiring Additional Revenue Expenditure  60 New Capital Expenditure in the Government Plan 2021 - 2024  60

9. REPORTS ON NEW PROGRAMMES REQUIRING ADDITIONAL REVENUE EXPENDITURE  61
10. EFFICIENCIES  70 Rebalancing and Efficiencies  70
11. CONCLUSION  72
12. WITNESSES AND EVIDENCE GATHERED  75 APPENDIX 1  76

Government Plan Review

1. Panel membership

The Panel is comprised of the following States Members:

Deputy Kirsten Morel (Chair) Deputy David Johnson (Vice-Chair)

Senator Kristina Moore Deputy Kevin Pamplin Deputy Inna Gardiner Deputy Steve Luce

2. Chair's Foreword

This year has been particularly challenging in terms of the impact the pandemic has had on public finances. Following our review last year, we could not have known that this Government Plan would need to focus and prioritise economic recovery. Nevertheless, the Panel has reviewed past and present projects within its remit in order to ensure an appropriate level of scrutiny and due diligence over where money is being focussed.

The Panel has found that sports provision has been hit particularly hard  with  the  closure of  many  facilities  during  the  stay  at  home measures in the early phases of the pandemic. The Panel welcomes the funding identified within this Government Plan and will keep a close eye on the sector as we move into the winter period, where tighter restrictions might be necessary going forward.

There are also a number of funding streams related to the future of Fort Regent. The Panel accepts that there will be a need for political priority in determining the future of the building and what it will be used for going forward. In that regard, the Panel intends to take a closer look at Fort Regent in 2021.

I am grateful to my fellow panel members and our officers for enabling this review to take place within a very constrained timeframe. The Government Plan is partly a response to the Covid- 19 crisis and as such, this review links in with our Covid-19 Response Review.

When published, it is well worth reading the comments of our external advisors, which are particularly important, highlighting as they do, the importance of balancing the need for the Government to run a fiscally responsible budget whilst at the same time ensuring the island's economy receives the stimulus it needs not just in 2021 but also further ahead. Doing so is vital to ensure young islanders are not denied the economic benefits that their parents and grandparents have enjoyed.

This Government Plan works for the year ahead, but it will be crucially important to ensure that funding to support key sectors and to improve productivity is continued into 2022 and beyond. Doing so will ensure we provide the bright future that the island's young people, whose world has been enormously disrupted by the pandemic, so thoroughly deserve

Deputy Kirsten Morel

Chair

Economic and International Affairs Scrutiny Panel

3. Methodology

The proposed Government Plan sets out the approach the Government of Jersey has taken in responding to COVID-19 whilst continuing to invest in the Common Strategic Policy priorities:

1. Put children first
2. Improve Islander's wellbeing and mental and physical health
3. Create a sustainable, vibrant economy
4. Reduce income inequality and improve the standard of living
5. Protect and value our environment.

The Plan outlines the investment proposed in each of these five strategic priority areas and also includes a number of proposed efficiencies within the Government.

The Government Plan Financial Annex has also been lodged which contains supporting information for the Government Plan 2021 – 2024.  

The Scrutiny review of the Government Plan has taken a thorough approach, looking at the projects identified for Additional Revenue Expenditure and Capital Expenditure last year, as well as new projects requiring Additional Revenue Expenditure and Capital Expenditure in 2021. The Panel has undertaken this review in as much detail as possible with the information provided by Government.

A summary table of all Actions (identified last year) and Business Cases (past and present) reviewed by this Panel is provided in sections 1.6, 1.7 and 1.8 below. Only those Actions that do not correspond to a Business Case are listed in the summary table.

In line with the methodology used during its review of the Government Plan 2020 – 2023, all Scrutiny Panels have agreed to use a common system to report on the status of each project, as follows:

This status means that the Panel has reviewed the background information on the project and is satisfied with it.

This status means that the Panel has reviewed this and either has concerns or considers that it needs more work, or further detail should be provided. It might also mean that the Panel considers it too early to make an informed decision. This may or may not lead to recommendations and/or amendments.

This status means that the Panel has reviewed this and is not satisfied or does not agree with the proposal. This may or may not lead to an amendment.

4. Findings and Recommendations

FINDING 1

There are significant differences in the figures allocated under the Minister for External Relations' portfolio (£10.8 million) and the External Relations Department (£3 million). This is due to the Minister's responsibility for Financial Services as well as External Relations.

FINDING 2

The project to deliver the Inspiring an Active Jersey Strategy, a long-term framework with the following vision: "Jersey will be a healthier, more productive and fairer society by being one of the most physically active populations in the world", has been severely impacted by the pandemic. Although the project has been reduced, the longer term aims remain.

FINDING 3

The future of professional rugby in Jersey is unclear. Work is due to be undertaken by the Government of Jersey to assess the impact of the pandemic on spectator restrictions and what effect the reduction in funding has had on the Rugby Club's finances. An assessment will also be made on the economic benefit to the Island. If professional rugby is to be maintained in Jersey, funding for 2021 – 2023 may need to be increased and extended.

FINDING 4

The Government Plan does not include investment for Elizabeth Castle. The Minister for Economic Development, Tourism, Sport and Culture plans to submit a Fiscal Stimulus bid for £1.5 million in order to start the project, but there can be no guarantees that fiscal stimulus bids will be accepted.

FINDING 5

An interim Financial Stability Board was established in 2012 but faded away due to a lack of definition and funding. In the previous Government Plan (2020 – 2023) a project to establish a formal Financial Stability Board was approved which was due to be placed on a statutory footing in order to properly define its objectives. Progress in this area and the recruitment of Board members has been impacted by the pandemic and therefore the project still lacks definition.

FINDING 6

The Government Plan identifies that the early phase for redeveloping Fort Regent will be £4.8 million. It is unclear how all the funding arrangements identified for the project fit together, particularly in relation to the £2 million identified in 2019 as part of the Government Plan (2020

– 2023) pre-feasibility vote.

FINDING 7

The project "Island Sports facilities, Inspiring Places" aims to deliver modern sports, leisure and fitness facilities including the development of sport at Fort Regent. The Panel is concerned about the duplicative nature of the projects relating to Fort Regent and the other sport related projects. The Assistant Minister with responsibility for sport had previously sat on the Political Oversight Groups for these projects in order to manage any duplication, but political membership has recently changed.

FINDING 8

The project for the new skate park has made good progress despite a slight delay in the design phase as a consequence of the pandemic. The project is still subject to planning approval and so the Panel maintains the Red-Amber-Green status of amber.

FINDING 9

The Panel is supportive of the project "COVID-19 Co-funded Payroll Scheme Phase III" which provides funding for businesses to enable them to adjust to the withdrawal of the scheme through 2021. If the funding is approved, it will provide businesses with much needed certainty over the scheme.

FINDING 10

The issue of Fort Regent has been an ongoing issue and has been the subject of much political discussion over many years. A capital project provides further central planning reserves for additional pre-feasibility work (£1.8 million) and an amount of £3 million for the early phases of work. To deliver the remaining phases, there is a need for additional funding, which has been identified in the Proposed Schemes with a further requirement of £26 million. This additional funding will require political support and there will need to be a certain level of political priority given to this project and its future.

FINDING 11

The economy element of Growth, Housing and Environment has moved out of the Department (which has since been renamed Infrastructure, Housing and Environment (IHE)). The sports division has remained within IHE and will not be subject to any efficiency savings. The Panel is supportive of this move given the underinvestment in sports facilities in recent years.

RECOMMENDATION 1

The title Minister for External Relations' should be revised to reflect the full ministerial responsibility of the role. This would avoid confusion over ministerial remits and allocated budgets. The Minister should explore the possibility of making this change before Q2 2021.

RECOMMENDATION 2

The future of professional rugby in Jersey is unclear with work due to be undertaken by the Government to assess what impact the pandemic has had on the sport, and its economic benefit to the Island. The Minister for Economic Development, Tourism, Sport and Culture should ensure that the outcome for professional rugby in Jersey is determined before Q2 2021.

RECOMMENDATION 3

Although the Government Plan does not include investment for Elizabeth Castle, the Minister for Economic Development, Tourism, Sport and Culture plans to submit a Fiscal Stimulus bid for £1.5 million. If the bid is not accepted, the Minister should consider whether funding to start the project could be met within existing budgets. The Panel should be kept abreast of these developments throughout 2021.

RECOMMENDATION 4

There are a number of projects within the Government Plan related to sports facilities and Fort Regent. Given the crossover with some workstreams related to Fort Regent, the Minister for Economic  Development,  Tourism,  Sport  and  Culture  should  ensure that  consistency  of political oversight is maintained by ensuring that the Assistant Minister sits on each working group.

5. Departmental Budgets

Departmental Budgets

The Economic and International Affairs Panel scrutinises the work of three Ministers; the Minister for Economic Development, Tourism, Sport and Culture, the Minster for External Relations and the Minister for International Development. Therefore, the project policy work contained in the various actions, programmes and capital projects assigned to the Panel predominantly sit under:

Minister  for  Economic  Development,  Tourism,  Sport  and  Culture Financial Services, Digital Economy and Economy

 Minister for International Development Jersey Overseas Aid

 Minister for External Relations Office of the Chief Executive

Departmental Heads of Expenditure

In the Government Plan 2021 - 2024, the States Assembly has been asked to approve the proposed amount to be appropriated from the Consolidated Fund for 2021, for each head of expenditure. The tables below provide a summary of the proposed "Heads of Expenditure" allocated to the Departments for 2021 and estimates produced for 2022-2024:

The 2021 resources allocated to the Ministers which fall under the Panel's remit are as follows:

Minister for Economic Development, Tourism, Sport and Culture

During the Public Hearing with the Minister for Economic Development, Tourism, Sport and Culture, the Panel asked about the difference in budgets under the Minister's portfolio (£44.6 million) and the Department (Office of the Chief Executive and Financial Services and Digital). The Minister explained that the difference was largely due to the restructuring of Ministerial portfolios which can be spread across a number of departments.

The  Panel  goes  into  further  detail  about  the  restructure  of  the  Growth,  Housing  and Environment Department in the Efficiencies section of this report.

Minister for External Relations

During the Public Hearing with the Minister for External Relations, the Panel asked about the difference in the sums of money allocated under the Minister's portfolio (£10.8 million) and his Department (just under £3 million). The Minister explained:

Minister for External Relations

. if you take the £10.9 million, roughly speaking 70 per cent is Financial Services and the other is External Relations. The reality is I probably should change my name to the Minister for External Relations and Financial Services. We have never quite got around to doing that but certainly there is a lot of confusion from time to time when you look in this document and it is not clear. But that is roughly the split.

The Panel would welcome action on the Minister's suggestion that his name should include the Financial Services remit which would avoid further confusion around Ministerial remits and allocated budgets.

FINDING 1

There are significant differences in the figures allocated under the Minister for External  Relations'  portfolio  (£10.8  million)  and  the  External  Relations Department (£3 million). This is due to the Minister's responsibility for Financial Services as well as External Relations.

RECOMMENDATION 1

The title Minister for External Relations' should be revised to reflect the full ministerial responsibility of the role. This would avoid confusion over ministerial remits and allocated budgets. The Minister should explore the possibility of making this change before Q2 2021.

Minister for International Development

During a Public Hearing with the Minister, the Panel asked about the budget allocated to International Development and Jersey Overseas Aid. The Minister explained:

Minister for International Development:

It might be easier if I just describe how we categorise our overall budget. It is categorised in emergencies, which is £3.39 million; grant aid, which are our projects, our long-term sustainable projects; our local charities. Much of this work can be like our grant aid, because we are now doing a lot of work with Durrell and the R.J.A. and H.S. (Royal Jersey Agricultural and Horticultural Society).

Our  outreach  work,  which  is  about  £57,000  of  our  work,  which  is  our  C.W.P.s (community work projects). Internships, bursaries and education: we are doing more in schools with the S.T.E.M. (Science, Technology, Engineering, Maths) subjects. Yes, so that is how our budget is categorised.

The lion's share of it, the grant aid, is £6.8 million. As I said, we are now working with local charities. Some of the very small local charities we are doing pound for pound matches, what we have always done, but because a couple of the local charities - R.J.A. and H.S. Durrell and indeed the Gurkhas - have larger projects, the monies we give them are more like grant aid. There is £6.8 million in grant aid and local charities is near on £2 million now. That is our large sustainable projects and most of them are 2 or 3 years. Some of it is ongoing. Some of it we decide every year what we are going to allocate, what we are going to fund.

The Minister also explained that the main priority throughout the Government Plan process was to reverse the decline in the Jersey Overseas Aid budget. The Panel comments on this specific project later on in the report.

6. Previously  Reviewed  Actions,  Programmes  and  Capital Projects (Government Plan 2020 – 2023)

The Panel completed its review of the Government Plan 2020 – 2023 and the various actions, projects and capital projects that were assigned to it by the Government Plan Review Panel. This section provides an overview and update on each of the actions, programmes and capital projects reviewed last year.

The tables immediately below identify the programmes included in the Government Plan 2020- 2023, that will continue to be invested in 2021, and indicates whether the projects are Complete', On Track', Reduced', Delayed', Deferred' or subject to Partial Deferral'.

7. Update  Reports  on  Previously  Reviewed  Actions, Programmes and Capital Projects

This section provides an update on the Actions, Programmes and Capital Projects that were previously reviewed by the Panel during its review of the Government Plan 2020 – 2023.

Actions

Summary

The purpose of this action was to identify further investment in sports facilities which will complement interim and future uses of Fort Regent. In the previous Government Plan (2020

– 2023) the Panel was advised that this action was not linked to a project seeking additional revenue expenditure (i.e. a business case) because it was instead linked to a capital project related to Fort Regent.

Six Monthly Report Status - Partial deferral Previous Scrutiny RAG status - Amber Panel analysis  

The 6 month report explains that, as a consequence of the pandemic, there has been partial deferral of some of the funding to 2021. During a Public Hearing held with the Minister for Economic Development, Tourism, Sport and Culture, the Group Director of the Economy explained that the Government of Jersey has underinvested in sports facilities and that efficiencies were not being made within the sport division because Jersey already has a "diminished sports estate". On that basis, the Panel maintains the RAG status of amber.

Summary

The purpose of this action  was to examine how Jersey can be recognised, protected, celebrated, nurtured and used for the benefit of the Island and Islanders. The Chief Minister established an Island Identity Policy Development Board in October 2019 which aims to take forward  this  work.  The  Board  has  produced  an  interim  report  with  findings  and recommendations which will be used to implement short and long term policy projects.

Six Monthly Report Status - On track

Previous Scrutiny RAG Status - Green Panel analysis  

The 6 month report explains that this action is on track. The Panel asked the Minister for International Development for an update on the work and she explained that the Island Identity Policy Development Board was currently engaging with different departments and bodies on the interim report:

Minister for International Development:

I am waiting to see the Comité des Connétable s, for example, and others just to get their take on this interim report. What we intend to do ... because the interim report as it stands at the minute is over 200 pages, which is huge, with 60 recommendations. They have probably got to be finessed, shall I say, but what we have been doing over the last couple of weeks is producing a summary report, which is a much easier read, on what we are trying to achieve. We hope to publish the summary report and then on a website put up the draft interim report while we carry on seeing people, because the draft interim report we hope is changeable. As people come up with different suggestions, different ideas, we can change that on the website. That is where I am at the moment, trying to speak to people, trying to get a website and trying to find someone to build the website and trying to publish this summary report. I would be quite happy to share where I am and the report so far with Scrutiny, but I would prefer to just be given a couple of months to enable me to finish speaking to the departments and A.L.O.s (arm's length organisations) that it might affect.

The Panel welcomes the Minister's suggestion of submitting the report to Scrutiny and looks forward to reviewing it in due course. On the basis that the project is on track, the Panel maintains the RAG status of green.

Summary

The purpose of this action was to provide for the governance and regulation of the charity sector. In 2014 a new Charities Law was implemented which followed the creation of a Charity Commissioner.

Six Monthly Report Status - ?? Previous Scrutiny RAG Status - Green Panel analysis  

The 6 month report does not contain an update on this project and so the Panel wrote to the Chief Minister on 15th October requesting an update. Chief Minister explained:

Chief Minister:

The Charity Commissioner is independent from government and carries out its own work programme. During 2020, the Commissioner and his two full time members of staff have focused on working with various entities and organisations to complete the registration of all applicant charities (where the entity passes the charity test) and to deal with the first round of annual returns, as well as any work association with COVID- 19. It is anticipated that this initial stage will be complete this year. With the impact of COVID-19 on charities in terms of volunteer availability and financial pressure, and indeed on capacity both at the office of the Charity Commissioner and in Government, it has not been possible nor indeed considered appropriate to seek to develop and consult on further regulatory measures which will be the focus of the next stage of the work.

This action was not linked to a project seeking additional revenue expenditure because it could be delivered using the existing departmental budget and via the Dormant Bank Accounts Law. The Chief Minister advised that the costs of the Charity Commissioner are to be paid from the Jersey Reclaim Fund 2020 – 2023 as set out in the Dormant Bank Accounts Law 2017 and associated orders.

In light of the progress made, albeit the delay in developing regulatory measures because of COVID-19, the Panel maintains the RAG status of green.

Programmes

Summary

The purpose of this programme was to obtain additional investment to extend the life of gym equipment and sporting equipment at Fort Regent, Les Quennevais, Springfield, Oakfield and Langford Sports Centres.

Six Monthly Report Status - On track Previous Scrutiny RAG Status – Red

Panel analysis

The 6 month report explains that funds will be used to extend the life of current gym equipment at the five sports centres mentioned above. The investment from 2020 – 2023 will support the protection of the £2 million income received from Active Card membership.

During its review of the previous Government Plan (2020 – 2023) the Panel rated this project as red because it was concerned that not enough funding had been identified to enhance and maintain  the  Island's  sports  provision  which  would  negatively  affect  the  overall  aim  of becoming a more active society. The Panel lodged an amendment to increase the funding in this area. At that time, the Council of Ministers agreed with the amendment in principle and advised that additional funding could be met from within existing resources. This was accepted by the States Assembly and the Panel.

The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture asking a number of questions about this project. The Minister explained that all of the £125,000 identified for 2020 has been spent and that that the 2021 project plans will be a repeat of the activity in 2020. This includes replacing end of life gym and outdoor sports equipment across multiple sites.

Given that the status of the project is on track, and that investment has been made in this area which will increase going forward (States approval dependent) the Panel has rated this project as green.

Summary

The purpose of this programme was to fund the additional services and programme Jersey Sport aimed to deliver as part of its Inspiring an Active Jersey Strategy which is a long-term framework with the following vision: "Jersey will be a healthier, more productive and fairer society by being one of the most physically active populations in the world".

Six Monthly Report Status - Jersey Sport: Reduced

The Active Jersey Strategy: Deferred

Previous Scrutiny RAG Rating – Amber Panel analysis  

The 6 month report explains that the pandemic resulted in the closure of all Island sporting facilities which, at the time, posed a risk to the healthy lifestyles of Islanders. In response, the Government offered online support including a physical and mental wellbeing app.

In spite of this, there has been an impact on the operations of Jersey Sport and the delivery of the Inspiring an Active Jersey strategy. Therefore, the strategy has been deferred and Jersey Sport has been reduced.

The Panel wrote to Jersey Sport asking for their views on this project and the progress made since the previous Plan was approved. Jersey Sport provided a written submission to the Panel and explained:

Jersey Sport

Inspiring and Active Jersey Strategy:

The Government Plan for 2020 to 2023 made a provision for the delivery of the Inspiring an Active Jersey Strategy. The funding provided is detailed in the table below. Growth funding of £509k was awarded to Jersey Sport for 2020 through an extension of the organisation's partnership agreement.

£200k of this was for the provision of sports travel grants and this was not new money but rather a formalisation into the partnership agreement of the travel grants process previously carried out by Jersey Sport through a top up grant.

Therefore, £309k was awarded to Jersey Sport as additional funding to develop and prepare for the delivery of a wide range of new programmes targeted at islanders who are the least active and will require intervention programmes to inspire them to lead more active lives.

The revised delivery for 2020 will still deliver against each of the original strategic ambitions. The way in which this delivery has been executed changed and included a diversion of our resources to support the island's efforts to suppress the rate of infection of COVID-19 cases and to support people back into the community.

Reduction in Jersey Sport:

The core budget of Jersey Sport has also been impacted by the many changes forced on us by the COVID-19 pandemic.

The organisation ceased all activity programmes and with this there has been an impact on our income. Many of our activities have associated expenditure that is of a similar level to the income achieved and therefore the impact of losing our activities has not been significant.

The Panel received a letter from the Minister for Economic Development, Tourism, Sport and Culture and he explained that Jersey Sport had developed programmes and activities and was at the stage of appointing roles to the organisation to take forward the first year of delivery against the strategy when the pandemic took hold. He went on to say that, rather than growing the programmes as intended, Jersey Sport had to reduce or cease activity. The reduction in spend for 2020 is £87,685, though elements of the project have been delivered or altered. The aims of the project in the longer term remain.

Given the deferral of the Inspiring and Active Jersey Strategy and the reduction in Jersey Sport the Panel maintains the RAG rating of amber.

FINDING 2

The  project  to  deliver  the  Inspiring  an  Active  Jersey  Strategy,  a  long-term framework with the following vision: "Jersey will be a healthier, more productive and fairer society by being one of the most physically active populations in the world", has been severely impacted by the pandemic. Although the project has been reduced, the longer term aims remain.

Summary

The purpose of this programme is in relation to the requirement for Jersey to engage with the UK and EU to negotiation the arrangements within the UK/EU Future Economic Partnership. These negotiations will follow the UK's exit from the EU.

Additional funding was required to be used for the Goods and Boarders cluster working group which included work on borders, tariffs and transport. Funding was identified to employ a manager, support staff and a part-time legislative drafting officer. Technical consultancy would also be used when required.

Six Monthly Report Status - Deferred Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that significant economic activity will be covered off in 2020 and into 2021. The work now includes Rest of the World (RotW) considerations which may require further funding for technical consultancy. The work covers the coordination of economic impact analyses and assessments of possible free trade agreements and the UK-EU and RotW future relationships against the broad ambitions and the specific technical details of Jersey's Future Economy programme.

The progress status for this programme is deferred. The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture requesting an update and the reasons for the deferral. The Minister explained:

Minister for Economic Development, Tourism, Sport and Culture:

Much of the necessary 2020 activity in this area has been undertaken in the GHE/IHE Department (hence the funding transfer) in terms of putting in place the necessary domestic legislation and regulatory processes required to be in place at the end of the Transition Period. Lack of clarity on internal and external market requirements required post  transition  period  has  meant  that  consideration  of  the  economic  impact  on businesses of the new processes and regulatory standards has been deferred until the UK-EU negotiations determine the processes required to give assurances against market requirements.

The Minister also provided the Panel with an update on the project to date. It noted that a total of  £83,117  had  been  spent,  which  included  internal  staff  costs  and  contract  services, consultancy and advice associated with Brexit. Of the £450k allocated at the start of 2020, £131,500  had  been  transferred  to  Infrastructure,  Housing  and  Environment  for  costs associated with Brexit.

Although  the  project  has  been  deferred,  some  progress  has  been made  in  relation  to recruitment. The deferral only relates to the lack of clarity on internal and external market requirements which will become clearer once UK-EU negotiations are finalised. On that basis the Panel maintains the RAG rating of green.

Summary

The purpose of this programme was to deliver an Economic Framework to provide structure and direction for sustainable economic growth, productivity improvements and wider economic wellbeing. In terms of Productivity Support, the programme also required investment to target

productivity improvements in order to reverse the decline in productivity.

Six Monthly Report Status - On track Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that PWC ( Price waterhouseCoopers) Jersey were appointed to deliver:

• Gap analysis and gap-fill on evidence and data relating to Jersey's economic progress, including finalisation of supply-use tables

• An outline industrial strategy for Jersey

• Productivity plans for key sectors and advice on appropriate measures Government could take to support productivity growth

• Development of a Skills Expander strategy.

Additional  funding  was  provided  to  Jersey  Business  under  this  Programme  to  support businesses through the pandemic.

The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture requesting an update on this the Programme. The Minister explained:

Minister for Economic Development, Tourism, Sport and Culture:

The contact with PWC covers the delivery of 4 work packages which includes the production of an Economic Framework and runs from 1 June 2020 and 1 June 2022. Subject to States Assembly approval for funding for a Productivity Scheme within the Government Plan the scheme will go live in 2021. Different parts of the Economic Framework will proceed at different paces, but still plan to deliver the Economic Framework as originally scheduled by end 2021. The Productivity Support Scheme is positioned for delivery in 2021 as part of helping businesses build back better and linked to opportunities for improvement as identified through FEP work to date.

The initial funding identified was an early estimate of the programme costs and were made prior to contracting negotiations with the strategic partner PwC. Following negotiations, programme costs were brought down below those initially anticipated, partly due to the greater utilisation of internal staff and partly due to the revised context and scope associated with the Covid outbreak. Funding finally agreed by Ministers and subsequently the States Assembly in 2020 of £500,000 has therefore proven to be adequate and provided a benchmark for assessing future funding requirements as we move from COVID-19 response to the economic recovery phase. Funding for 2021 is increased to capitalise a Productivity Support Scheme, to add to and supplement other recovery measures (e.g. The Recovery Fund).

The progress status of this project is on track and on that basis, the Panel maintains the RAG status green.

Summary

The purpose of this programme was to secure additional investment to fund professional rugby, route marketing and short breaks (undertaken by Visit Jersey).

Funding was secured for professional rugby to maintain its status and to consider options for a more sustainable future for the sport.

In terms of route marketing, funding was secured to introduce increased air route connectivity and to encourage hospitality businesses to open outside of the summer months. Funding was also required for targeted marketing campaigns alongside increased air route connectivity in order to stimulate off-season demand for travel to Jersey.

Six Monthly Report Status - Delayed  Previous Scrutiny RAG Rating – Amber

Panel analysis

In relation to professional rugby, the 6 month report explains that work needs to be undertaken to assess the impact of the pandemic on spectator restrictions and the reduction in funding on the Club's finances, predicted cash flows and economic benefit to the Island. Funding for 2021

– 2023 may need to be increased and extended if professional rugby is to be maintained in Jersey. The progress status of this project is delayed.

The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture who explained that the decision on grant funding for 2021 has been delayed because COVID-19 has created uncertainty over further income. The funding forecast for 2021 is in line with the Government Plan 2020 – 2023 figures, but this may need to be reconsidered pursuant to ongoing negotiations if professional rugby is to be maintained on the Island.

In relation to route marketing and short breaks part of the project, the 6 month report explains that the original intention was to focus on supporting shoulder month travel and new routes. However, the pandemic has changed commercial air travel to Jersey and Ports of Jersey are leading considerations that are focussed on developing commercial deals as to how to re- secure previous air routes for Jersey. The progress status of this project is delayed.

The Panel received a submission[4] from Visit Jersey who explain that the investment in route marketing and short breaks will be vital:

Visit Jersey:

The additional funding proposed in this year's Government Plan (2021-24) for route marketing and short breaks is a vital investment not only for our visitor economy, but also for all elements of Jersey's economy, as well as the quality of life for every Islander.

The challenge to recover from the pandemic and the global economic crisis ahead of us is greater than any experienced before. Competition from within our competitor set will be fierce and it will be critical that Jersey presents a compelling and commercially viable proposition to carriers to persuade them to restart their Jersey programmes as soon as possible.

In his response to the Panel's letter, the Minister for Economic Development, Tourism, Sport and Culture explained that the impact of COVID-19 has forced a rethink on policy on promoting Jersey in this area as activity is entirely dependent on current operational "travel rules" which are variable.

Given the impact of COVID-19 on these projects, the Panel maintains the RAG rating of amber.

FINDING 3

The  future  of  professional  rugby  in  Jersey  is  unclear.  Work  is  due  to  be undertaken by the Government of Jersey to assess the impact of the pandemic on spectator restrictions and what effect the reduction in funding has had on the Rugby Club's finances. An assessment will also be made on the economic benefit to the island. If professional rugby is to be maintained in Jersey, funding for 2021

– 2023 may need to be increased and extended.

RECOMMENDATION 2

The  future  of  professional  rugby  in  Jersey  is unclear  with  work  due to  be undertaken by the Government to assess what impact the pandemic has had on the sport, and its economic benefit to the Island. The Minister for Economic Development, Tourism, Sport and Culture should ensure that the outcome for professional rugby in Jersey is determined before Q2 2021.

Summary

The purpose of this project is to provide top up funding for the remaining years of the Rural Economy Strategy 2017 – 2021.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that the Rural Support Scheme (RSS) forms part of the Rural Economy Strategy and that Jersey farming businesses have access to financial support equivalent to EU farms receiving subsidy payments under the Common Agricultural Policy. Support is paid out to Jersey farming businesses on receipt of applicants meeting the criteria. Around the time the 6 month report was published, applicants processed represented 65% of the total budget. The progress status of this project is reduced.

The Panel received a submission from the Jersey Farmers' Union who commented that engagement with the industry had improved and that work was starting to commence for the next Rural Economy Strategy:

Jersey Farmers' Union

In the last 18 months there has been a sea change in the approach Government has taken when considering amendments to the Rural Economy Strategy. This time last year the whole industry was invited to meetings to engage with Government so that we are now being consulted for the next Rural Strategy. This has resulted in the farmers having input at the beginning of the process rather than halfway through it.

The Panel noted that the 6 month report did not offer much detail about the reasons why the project had been reduced. The Minister for Economic Development, Tourism, Sport and Culture explained that the reduced budget reflects the fact that funds allocated by the Rural Support Scheme amounted to £653,217 thereby creating a budget surplus of £16,783 (2.5% of the RSS value). Furthermore, the Minister advised that, had 3 new entrants managed to qualify in time for 2020, the full budget would have been utilised.

Summary

The purpose of this programme was to secure additional investment for Digital Jersey to help deliver the overarching aim of the Digital Policy Framework which sets out six long-term objectives for the future of digital policy-making. The funding was for Digital Jersey to help Jersey to establish itself as an internationally recognised digital centre of excellence.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that funding was released to Digital Jersey in Q1 2020 which enabled progress to be made hiring additional resources around fintech and operational management before the pandemic.

Since the pandemic, Digital Jersey released resources to help with COVID-19 support which included seconding the CEO to lead the development and first stage delivery of the test and trace capacity. Digital Jersey also set up of the virtual States Assembly and worked with telecom operators and the Government's Digital Policy Unit on the rollout of increased download speeds across Jersey's fibre broadband network. The progress status for this project is reduced.

The Minister for Economic Development, Tourism, Sport and Culture explained that Digital Jersey's planned operations were curtailed during the stay at home measures, but it is due to submit its 2021 Business Plan shortly. It is anticipated that Digital Jersey will be a key delivery partner for economic recovery and growth initiatives.

Given that some progress has been made in recruiting a Head of Fintech, Head of Finance and Operations and a Business Development Manager, the Panel maintains the RAG status of green.

Summary

The purpose of this programme was to secure additional investment to maintain existing funding within the Digital Policy Unit for data protection, emerging technologies and telecoms policy advisers. The funding was also identified to complement an annual project budget for specialist legal, consultancy and academic advice.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that growth funding has supported the retention of headcount within the Digital Policy Unit who have executed the measures set out in the Digital Policy Framework. For example, work to promote fair, reasonable and non-discriminatory access to Jersey Telecom's fibre network. Due to the pandemic, some discretionary work has been delayed as staff from the Digital Policy Unit were engaged in other work areas related to the pandemic. The status of this project is reduced.

The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture and asked a number of questions about this project. The Minister explained that some parts of the project had been delayed which were Artificial Intelligence development, amendments to the electronic communications legislation and data protection policy initiatives. It was advised that the 6 month report had reported that the project was reduced because it had not been able to deliver on some of the workstreams mentioned above, primarily due to COVID-19.

Given that only some workstreams have been delayed due to the pandemic, the Panel maintains the RAG rating of green for this project.

Summary

The purpose of this programme was to secure additional investment to deliver the following initiatives which form part of the Cyber Security Strategy:

• Every other year a cyber risk assessment is to be conducted which will involve the Government, critical infrastructure organisations and a sample of private sector businesses.
• In  alternate  years  to  the  assessments,  run  biannual  cyber  exercises  with involvement from the Government, critical national infrastructure organisations and a sample of private sector businesses.
• The Computer Emergency Response Team (CERT) is due to be established during 2019. In order to ensure the continuation of the CERT, further funding will be required from 2020.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that the programme was originally planned as a pan-Channel Island effort, establishing and operating a Computer Emergency Response Team (CERT). It was  hoped  that  such  a  facility  would  enhance  Jersey's  reputation  as  a  well-regulated jurisdiction and increase the Island's cyber security resilience. The recruitment process of the new team has been delayed and focus has been given to attracting a Director for the role in 2020. The progress status of the project is reduced.

The Panel wrote to the Minister for Economic Development, Tourism, Sport and Culture about this project and asked a number of questions. The Minister explained:

Minister for Economic Development, Tourism, Sport and Culture:

Jersey's Cyber Security Strategy highlighted the importance of creating an island Computer Emergency Response Team and the benefits of creating this jointly.

Throughout 2018 and 2019 Jersey officers led the joint project including commissioning and conducting a joint feasibility study for a CERT which informed the Government Plan. Throughout 2020 officers continued to make every effort to engage with officers in Guernsey on pan-CI cyber security efforts including setting up the joint CERT on the basis established by the joint feasibility study.

Unfortunately, there were significant delays from Guernsey officials in the first half of 2021 which in turn meant the recruitment for the joint CERT director had to be delayed. These delays were then exacerbated by COVID. When Guernsey reengaged in the second half of 2020 it was apparent that Guernsey was pursuing a less aggressive timeframe for the set-up of a CERT and had reconsidered the role of the CERT Director and the CERT.

It was evident that the change in Guernsey's approach and prioritisation of this project would affect the Government of Jersey's ability to meet the commitments of the Government Plan and the corresponding funding requirements allocated to setting up a CERT.

The Minister directed that Jersey officials proceed with setting up a Jersey only CERT at pace. This was communicated to Guernsey officers and it was made clear that Jersey remained open to working jointly on cyber security matters where possible.(Important to note that as a result of moving to a Jersey only' CERT some elements (staffing and overheads) have been adjusted to remain within the budget allocated by the Government Plan while meeting the Island's requirements).

As an example of this Jersey has been engaging closely with Guernsey and the Isle of Man to identify opportunities for alignment and for joint working in developing a Telecoms Security Framework. The Council of Ministers recently approved this workstream and joint working with Guernsey and the Isle of Man where possible with the caveat that joint working aspirations should not delay progress.

The Panel was advised that, since restarting the process as a Jersey only CERT, some progress has been made. The States Employment Board approved the role of the CERT Director, specialist recruiters were appointed via a tender process and the job advert went live on Monday 26th October.

Given that some progress has been made in the CERT recruitment, albeit without Guernsey, the Panel maintains the RAG status of green for this project.

Summary

The purpose of this project was to secure additional investment for a collective programme for Jersey's culture, arts and heritage offering. The investment included stabilisation funding for the four arms-length bodies:

• Jersey Heritage Trust

• Jersey Opera House

• ArtHouse Jersey

• Jersey Arts Centre Association

The programme also reflected support for Deputy Montfort Tadier 's proposal to increase revenue expenditure on arts, heritage and culture so that it reaches a target of 1% of overall revenue expenditure by 2022.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Amber

Panel analysis

The 6 month report explains that the development of a Heritage Strategy is being led by Historic England and that a separate Arts Strategy is also being developed. Progress has been delayed due to the pandemic, but the target is to complete by the end of 2020. The progress status for this project is reduced.

The Panel wrote to each of the arms-length bodies related to this project, asking for their views on its progress. The Panel received a submission from Jersey Heritage who were concerned about the reduction in funding and in particular the impact this would have on the plans for Elizabeth Castle:

Jersey Heritage

Jersey Heritage hugely welcomes funding in the Plan to meet the 1% ambition supported by the Assembly in P40/2019. However, we note that on the face of it a huge amount of money has come out of the allocation if the previous and current Plans are compared in the periods in which they overlap. The main loser here seems to be heritage in general but plans for Elizabeth Castle in particular.

We understand the pressure the Plan is under, but the role heritage has and can continue to play in the government's objectives around welfare, particularly for children, and well-being has been demonstrated by the huge increase in local visits to heritage sites.

Jersey Heritage explains further on in the submission that it remains concerned whether funding would ever be available to take forward the plans for Elizabeth Castle:

Jersey Heritage

To repeat, we understand the pressure on the current Plan. But Government investment in built assets is still very significant in that Plan. Whilst it appears that it has not been possible to fund the Castle in this Plan, our concern remains that consequently, 40 years after the need was recognised by the Assembly, there is no plan or, to put it another way, in effect a plan never to invest in this building, the most significant public heritage asset in St Helier and one of the Island's most important visitor attractions, in support of the obligations placed on Jersey Heritage by the Assembly in the usufruct. Our request therefore is at the earliest possible opportunity to identify not if, but when, investment can be identified to allow us to plan accordingly.

When the Panel held a Public Hearing with the Minister Economic Development, Tourism, Sport and Culture, the Minister explained:

The Minister for Economic Development, Tourism, Sport and Culture: .approximately  £1.3 million  of  additional  funding  has  been  provided  to Jersey Heritage to help them through COVID-19 because there was a significant impact on their revenue because of it. We have the following bids for fiscal stimulus lined up: refurbishment to the Opera House £1.5 million; refurbishment to the Arts Centre £1.5 million; new agriculture museum and learning centre at Hampton £1.6 million; National Trust project, a refurbishment of Morel Farm £2.5 million. That is 2 parts of the £2.5 million, and of course the Elizabeth Castle refurbishment. So outside of the £1.3 million over and above the budget that they have had this year we are planning those fiscal stimulus funding and programmes but we have some more discussions to have around those. This is, of course, subject to the States approving the fiscal stimulus.

Therefore, although the Government Plan does not cover costs for Elizabeth Castle, it is understood that a Fiscal Stimulus bid would be made for £1.5 million to start the project.

The Panel also received a response from ArtHouse Jersey who said:

ArtHouse Jersey:

As indicated in your recent correspondence, funding levels attributed to CSP-3-5-02 in the 6-month progress report have changed significantly from those in the original Government Plan and have been marked with the status "reduced".

From what we can gather, the reductions in 2022 and 2023 are connected with the decision to postpone the redevelopment of Elizabeth Castle and the fact that the costs of these capital works were incorrectly attributed to this revenue budget. Our understanding therefore is that the proposed uplift in funding of £3,197,000 from 2022 will still bring the total revenue budget for the sector in line with the aspiration of equating to 1% of total government expenditure.

That said, we are unclear whether Jèrriais has been included when calculating the total existing spend on Arts, Heritage and Culture. As far as we are aware, Jèrriais was not part of the Arts, Heritage and Culture budget when the proposition was adopted by the States Assembly and should not be included as part of the 1% aspiration. It seems to us that  a full  breakdown  of  what  is  included within  these calculations  would  be helpful.

We understand that the further reduction in the uplift available for 2021 is due to the general financial challenges caused by the pandemic. At present we are not clear as to  how the  figure  of  £963,000  was  arrived  at,  how  it  will  be  distributed  and what framework is being used to make these decisions.

The Minister advised that the Department is in regular contact with the four arm's length organisations who will shortly be submitting their respective 2021 Business Plans. Once the Ministerial Team considers their commitments to the ALOs, they will determine how best to distribute the remaining growth funding.

The Panel also asked the Minister about the reduction in funding. The Strategic Policy Manager explained:

Strategic Policy Manager:

I think the point to make here is that obviously the Council of Ministers want to support Deputy Tadier and the States Assembly in terms of achieving the 1 per cent aim of net spend for the States going forward from 2022. Now, for normal circumstances the sums would have been brilliant for this year and going into 2022. Unfortunately, obviously in order to achieve the 2022 milestone monies have been taken out from this year and put forth for 2022, 2023 and 2024. So, therefore, what was originally proposed for 2021 has been reduced to ensure that we can meet those targets in 2022.

Given the level of uncertainty around this project, particularly the concerns raised by Jersey Heritage and ArtHouse Jersey, the Panel maintains the RAG status of amber.

FINDING 4

The Government Plan does not include investment for Elizabeth Castle. The Minister for Economic Development, Tourism, Sport and Culture plans to submit a Fiscal Stimulus bid for £1.5 million in order to start the project, but there can be no guarantees that fiscal stimulus bids will be accepted.

RECOMMENDATION 3

Although the Government Plan does not include investment for Elizabeth Castle, the Minister for Economic Development, Tourism, Sport and Culture plans to submit a Fiscal Stimulus bid for £1.5 million. If the bid is not accepted, the Minister should consider whether funding to start the project could be met within existing budgets. The Panel should be kept abreast of these developments throughout 2021.

Summary

The purpose of this project was to secure additional investment to fund staff costs to deliver the key trade-related Growth, Housing and Environment function and responsibilities in respect of Brexit.

Six Monthly Report Status - ?? Previous Scrutiny RAG Rating – Amber Panel analysis

The 6 month report did not provide an update on this project. The Panel asked the Minister why this was the case and he explained that:

Minister for Economic Development, Tourism, Sport and Culture:

At the time of the submission of this Government Plan bid, it was anticipated that a new Trade and Export function would be established within the economy team, which at the time sat within GHE. In addition, at that time, it was anticipated that GHE would take the lead on developing Jersey's trade policy.

These decisions were taken at a time of significant uncertainty and when the direction of travel in terms of Brexit and future trade relationships was extremely unclear. Subsequently, it was determined that the development of trade policy should be led by External Relations (ER) and they have now established a structure to deliver this function including dedicated officers and through the establishment of the cross- government Jersey-EU Trade and Partnership Group. The subsequent restructuring of GHE, which has led to the consolidation of an economy team within the OCE, with a  corresponding  re-assessment  of  structural  and  functional  needs,  which  has determined that the funds required for staffing and structural requirements anticipated at the point of submission to the Government Plan are not required, as provision is now made in the new Sector Lead for Growth and Trade within the new Economy team structure.

Given that the funding requirements are now not required, as provision has been made in the new Sector Lead for Growth and Trade within the new Economy Team structure, the Panel RAG rates this project from amber to green.

Summary

The purpose of this Programme was to secure funding to maintain a dedicated policy resource focusing on the ongoing constitutional implications of Brexit.

Six Monthly Report Status – Complete Previous Scrutiny RAG Rating – Green

Panel analysis

This project is complete as one member of staff is in post to support Ministers in assessing and responding to ongoing constitutional impacts of Brexit and future consequential changes for the Island.

Summary

The purpose of this Programme was to secure additional investment in order for the Law Officers' Department to be resourced to provide legal advice post Brexit.

Six Monthly Report Status - On track Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that current funding has provided some capacity for legal advice on Brexit, the Island's constitutional position and International Trade post-Brexit. It also explains that after initial Brexit work is completed, there will still be a considerable amount of international trade and constitutional advice required. This reflects the funding identified going forward. The progress status of this project is on track. On that basis, the Panel maintains the RAG status of green.

Summary

The purpose of this project was to secure additional investment to establish a Financial Stability Board which included funding for the board and secretariat.

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Red Panel analysis

The 6 month report explains that the pandemic arrived just as the Financial Stability Board was formed and this hampered efforts to engage stakeholders and secure the supply of information. A Chair has been recruited and there is ongoing recruitment for other board members, admin support and an Economist. The progress status for this project is reduced.

During its previous review, the Panel questioned why the Government of Jersey should be establishing and funding a Financial Stability Board when the function could have been undertaken by an external body. In that regard, the Panel rated the project as red and lodged an amendment calling for the project to be withdrawn, which was not supported by the States Assembly.

The Panel received a letter from the Chief Minister which provided an update on this project. The Chief Minister explained that the advent of the COVID-19 pandemic had affected the planned progress of the FSB in 2020. In preparing bids for the Government Plan, a decision was made to reduce the funding allocated for 2020-2023 pending a review of how the objectives for the FSB could best be met. The remaining budget covers the salary of the Chair to the shadow FSB and other costs throughout 2020 have been met from funds within the Department.

Given the impact of COVID-19, the Panel asked whether any decisions had been made on placing the FSB on a statutory footing. The Chief Minister advised that a decision was made to continue the development of the shadow FSB including funding and legislation to place it on a statutory footing – ideally in 2021.

The Panel raised concerns during its previous review of the project that the interim FSB was established in 2012 but had faded away due to a lack of definition and funding. As the project has been reduced and impacted by COVID-19, the Panel RAG rates this project as amber.

FINDING 5

An interim Financial Stability Board was established in 2012 but faded away due to a lack of definition and funding. In the previous Government Plan (2020 – 2023) a project to establish a formal Financial Stability Board was approved which was due to be placed on a statutory footing in order to properly define its objectives. Progress in this area and the recruitment of Board members has been impacted by the pandemic and therefore the project still lacks definition.

Summary

The purpose of this programme was to secure additional investment to be paid into the Court and Case Costs Reserve of the States. This would fulfil a recommendation made by Oxera that the JCRA should have greater certainty of funding against the risk that one of its decisions is appealed.

A further sum was sought to improve capacity and capability of the Jersey Competition Regulatory Authority to pursue market studies and investigation in support of States strategies on anti-inflation, the economic framework and affordable living.

Six Monthly Report Status - Partial deferral Previous Scrutiny RAG Rating – Green Panel analysis

The  6  month  report  explains  that,  following  a  decision  by  the  Minister  for  Economic Development, Tourism, Sport and Culture to establish a single JCRA, efforts in 2020 have focussed on the build-out of that insular Authority. The funding originally invested for market reviews have been re-purposed to support the implementation of JCRA resources. The progress update for this project is partial deferral.

The Minister for Economic Development, Tourism, Sport and Culture explained that the JCRA was making good progress on its market studies programme. The Authority has considered around 50 potential markets for a study which has been narrowed down to 20 for more detailed consideration. The Panel understands that the JCRA is now in the process of refining a shortlist of a few candidate markets to be reviewed in the context of a market study.

Given that progress is being made, the Panel maintains the RAG rating for this project as green.

Summary

The purpose of this Programme was to secure additional investment to fund a Programme Manager and Programme Support Officer, shared 50/50 with Guernsey.

Six Monthly Report Status – Deferred Previous Scrutiny RAG Rating – Green

Panel analysis

The 6 month report explains that although the Guernsey-Jersey joint working group continue to meet, new projects are not being discussed due to the pandemic response. The progress status of this project is deferred.

The Panel asked the Chief Minister what matters were being discussed with Guernsey since no new projects were being developed. The Chief Minister explained that during the meetings held in early 2020, the joint working programme was reviewed, with a view to achieving further progress in key areas such as Justice and Home Affairs, Health and Care, and shared Policy and Performance capability. However, the Government's response to the pandemic has meant that the joint-working programme has been paused.

The Chief Minister also advised that, following Guernsey's election, a meeting will be held in due course to discuss the joint-working programme (existing and new opportunities) with Guernsey Ministerial counterparts and Officers. Given that the project has been temporarily paused, the Panel maintains the RAG status of green for this project.

Summary

The purpose of this project was to secure additional investment to consolidate the contingency funding granted to External Relations in 2016, 2017 and 2018 into the Minister for External Relations base budget for 2020 – 2023. Funding was also required to ensure the Government is resourced to achieve "optimum economic, political and constitutional outcomes from its international engagement in future years". In that regard, an additional £1.2-1.4 million per annum was requested in addition to the Minister's base budget (£1.74m)

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that a number of workstreams have been completed or are underway including:

• Recruitment into all key posts have been completed although recruitment into business support administration roles have been paused.

• Funding for the International Trade Unit which provides for the management of extensive cross government work reviewing the opportunities and challenges from the UK's further trade negotiations.

• Increased grant to the Jersey London Office to support the promotion of Jersey's constitutional position and interests through UK political engagement.

• Building on trade and broader cooperation links with markets outside the UK and the EU by delivering the Government's Global Markets Strategy.

• Implementing  legislation  that  ensures  that  UK  human  rights  asset-freeze designations are enforced.

• Actively supporting preparations for the next Moneyval assessment

The progress status for this project is reduced. The Panel met with the Minister for External Relations on 16th October and asked about the reduction:

Minister for External Relations

What you will see is our allocation in 2021 is less than for 2020, and we will go through no doubt some of where that is the case. But we have not spent the money that we had envisaged spending in 2020. If you take the External Relations budget, for example, we have not travelled, we have not filled admin posts and we have not filled those admin posts because we have not been travelling, so we have not had the organisation of travelling. We have not had the organisation of trips that we had expected. We had expected 2020 to be an extremely busy year with C.H.O.G.M. (Commonwealth Heads of Government Meeting), various visits to the Middle East, Africa and the U.S. (United States). None of those have taken place. So we have made savings there in 2020. That money has been handed back and it will be reallocated by Treasury.

The Panel notes that this project includes objectives such as Protect and strengthen Jersey's status as a self-governing nation' and "increased grant to the London Office to support the promotion of Jersey's constitutional position and interests through UK political engagement.'. The Panel would question how effective the Minister and the London Office has been particularly  as  the  recent  fishing  rights  issue  which  has  tested  Jersey's  constitutional relationship with the UK. The Assistant Minister for External Relations explained:

Assistant Minister for External Relations:

You raise a good point but I think in response we saw the incredible value of our London  office  when  we  had  the  registers  issue  and  what  could  have  been  a constitutional crisis because through our contacts in London we were able to get that taken off the Bill as it went through. It avoided what could have been a very large constitutional crisis. It is only due to the contacts that we have in London that that happened. We have people who work incredibly hard going around M.P.s and officials talking to them and making ourselves known that we are here and we cannot be ignored. Until you see it in action you do not realise how valuable and how much work is done on our behalf in London.

Given that the Minister is satisfied with the level of resources allocated to External Relations[5] the Panel maintains the RAG rating of green.

Summary

The purpose of this programme was to secure additional revenue for Jersey Finance growth to include two additional measures:

• Consolidation of the New York Office into its baseline budget (£400,000).

• Maximising  the  ability  to  influence  in  overseas  markets  (£430,000).  This included provision for the Brexit effect on the foreign exchange rate (£180,000) and staff costs (£250,000).

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that additional funding was provided to Jersey Finance for marketing and geographic expansion into new, higher growth markets. The New York office was established in late 2019 and work has continued through 2020 through locally based resource in New York and increased fly-drive support pre-COVID-19. The planned uplift in other marketing efforts have been hampered by the pandemic and, in response, Jersey Finance returned around £600,000 of the 2020 grant for re-deployment within Government. Therefore, the progress status for this project is reduced.

When the Panel met the Minister for External Relations on 16th October, it asked about this project and where the £600,000 was allocated within Government:

Deputy K.F. Morel :

..the £600,000 that has returned from Jersey Finance, does that just go back into the Consolidated Fund and spent wherever in Government or does it stay within the department and the Financial Services area?

Group Director, Economy:

That  would  be  money  that  would  be  taken  back  by  Treasury  ultimately  as  an underspend from the department's perspective, because even in a scenario where the department might have an alternative idea for spending that money, really you want to reprioritise across the whole of government rather than just reprioritise back within a single department or ministerial portfolio. So the Minister has been satisfied that the money is returned for that greater reprioritisation.

The Panel also asked whether Jersey Finance felt comfortable with the reduction in funding:

Group Director, Economy:

They are satisfied and fully supported and obviously going into 2021 they continue to have quite an uncertain outlook in terms of their ability to conduct that outbound travel programme quite as aggressively as they would like. That said, they have adapted very well to it this year and that is providing some really useful learning points about how they deliver their Programme efficiently going forwards as well

The Panel wrote to Jersey Finance asking for their views on this project and the impact the reduction would have on their organisation. Jersey Finance said[6]:

Jersey Finance:

The revised funding in the 2021-2024 government plan (page 195) contains two lines for JFL: Growth £400k pa and New York Office £350k per annum. What this means is that our total growth budget has been reduced by £80k per annum. We totally accept the need for government to reduce costs and, as I understand it, there have been similar cuts applied to other organisations. We have not yet identified the exact impact of this reduction in income although have made some adjustments to our ongoing cost base as a consequence of the pandemic.

Jersey Finance also confirmed that it had adjusted its business model to cope with the challenges  presented  by  the  pandemic,  maintaining  Jersey's  profile  as  a  high-quality International Finance Centre. Given the assurances of the Minister and Jersey Finance, the Panel maintains the RAG rating of green.

Summary

The purpose of this project was to secure additional funding to uplift the core budget in order to:

• Deliver transparency of beneficial ownership policy commitments
• Address international anti-bribery and corruption standards
• Provide for closer engagement with U.K. and international counterparts
• Support Moneyval and Financial Action Task Force engagement on policy and plenary matters
• Develop a holistic view of AML/CFT effectiveness and outcomes through a new Customer Relationship Management (CRM) tool.

To provide additional resource within States of Jersey Police for:

• strategic analysis of AML/CFT risk
• increased training and development budget
• an increase to investigative capacity
• improved engagement with counterparts elsewhere.

To increase the grant for Jersey Financial Services Commission in order to:

• Provide for greater AML/CFT supervision of the financial and professional services sector
• Assessment of AML/CFT related risk data

Six Monthly Report Status – Reduced Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that the recruitment to three permanent posts is complete and the publication of Jersey's first National Risk Assessment for AML/CFT was published in October. This will be implemented along with a new structure for Financial Crime Strategy governance and a strategy for 2021 – 2023. The progress update for this project is reduced.

The Panel asked the Minister for External Relations about his project when it met him on 16th October. Specifically, the Panel asked what impact the reduction in funding would have on the project:

Deputy K.F. Morel :

Anti-money laundering and countering the financing of terrorism: obviously, we have seen the national risk assessment work that has been introduced to us recently. It was hugely interesting, but we have also seen that the budget for this year has been reduced by £50,000, from £1 million to £950,000. That £50,000 reduction, do you think that is going to impact the project in any way?

The Minister for External Relations:

. I am informed that that small reduction will have no effect upon the work that they are carrying out. They are an area which again are now fully staffed and working productively.

Group Director, Economy:

I think the figures for 2020 were in anticipation of hiring a team. We have now hired that team; we know what the running costs are of the team and, therefore, we have reduced that figure down accordingly.

Given that the Minister is satisfied that the reduction in funding would not have any impact on the project, the Panel maintains the RAG status of green.

Summary

The purpose of this programme was to secure additional investment to fund, for a further 12 months, two existing Brexit Officers (until the end of 2020).

Six Monthly Report Status – Complete Previous Scrutiny RAG Rating – Green Panel analysis

This project is complete as two custom officers were recruited to support legislation changes to the new UK immigration plan for 2021. Given that the project is complete, the Panel maintains the RAG status of green.

Summary

The purpose of this programme was to secure funding to arrest the decline in Jersey's aid contributions by returning in 2020 to their level in 2015. Over the subsequent years, it then proposes a phased 0.1% increase from 0.25% of Goods Value Added (GVA) in 2020 to 0.28% in 2023.

Six Monthly Report Status - On track Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report explains that Jersey Overseas Aid (JOA) has diverted funds that were intended for longer-term development projects towards humanitarian interventions where needs are greatest. It also explains that JOA is monitoring the unfolding crisis closely, but before committing the full amount of its 2020 budget increase, it will balance its assessment of the humanitarian needs with domestic public finance requirements.

The Panel held a Public Hearing with the Minister for International Development and asked about the status of this project. The Minister explained:

Minister for International Development:

So we achieved the 0.26 per cent this year and from next year we are going to tie our budget to G.V.A., that is the first step, and also I got the Council of Ministers to agree that we should be heading for the O.E.C.D. (Organisation for Economic Co-operation and Development) average at least, which is 0.01 per cent each year, so by 2024 we will get to 0.29 per cent. That is as far as the Government Plan goes and I am hoping we will continue in that vein so that we can at least hold our heads up and say at least we are heading for the O.E.C.D. average.

In response, the Panel asked for the Minister's views on a scenario where G.V.A significantly reduces and what impact that would have on the project. The Minister said:

Minister for International Development:

..it will not be good at all, but we feel that by linking it, you take the good with the bad. You link it to G.V.A. in the hope that it is proportionate to what the jurisdiction can afford.

The Deputy of St. Martin :

Yes, that is all I need to know. Obviously a percentage or whatever the number is, it is the percentage. If we have a bad year, everybody has a bad year, yes.

The Panel also asked about the decline in the overall budget allocation for this project. The Minister advised that the link to G.V.A will happen in 2021 and that the decline in the budget relates to the forecast by the Fiscal Policy Panel.

Given that the progress status for the project is on track and that the budget will be linked to G.V.A in 2021, the Panel maintains the RAG status of green.

Capital Projects

Summary

The original business case explains that, over the years, Fort Regent has provided valuable facilities for the community but major elements are dated, underutilised and no longer fit for purpose. As the facility has deteriorated due to a lack of investment, there is an immediate requirement to review its short-term uses and long-term future.

As a result of the assessment work undertaken so far on the future use of Fort Regent, the business case explains that three preferred themes/options emerged:

• Jersey Business Hub
• Botanic Gardens
• Sports Village

Last year, the project was at a strategic business case stage of development and therefore a more detailed appraisal process to produce a full outline business case for the project was required. This work would quantify the financial costs and benefits of the options.

The business case was included in pre-feasibility so that the budget was managed by the States Treasury and Exchequer. The States approved a budget of £2 million for the project.

Six Monthly Report Status - Partial deferral Previous Scrutiny RAG Rating – Amber Panel analysis  

The 6 month report explains that a design team needs to be appointed to start the pre- feasibility work and that the majority of the funding has been deferred to 2021. Therefore the progress status for this project is partial deferral.

Since the Government Plan 2020 – 2023 was approved, the proposals for the future of Fort Regent have been divided into phases with the early phase of the development included in the Government Plan 2021 – 2024.

When the Panel asked about this project, the Minister advised:

Minister for Economic Development, Tourism, Sport and Culture:

Last year the States approved a Pre-Feasibility Funding allocation for in the 2020-23 Government Plan. Subsequently a team of leading experts, under the guidance of the Fort  Regent  Steering  Group  chaired  by  the  Chief  Minister,  have  developed  a complimentary mix of uses which are both deliverable and sustainable. Following the initial optioneering exercises a number of complimentary uses were identified as a long term solution to the Fort Regent development challenge. The potential mix of uses for more detailed consideration included:

• Multi-Purpose Venue

• Winter Gardens

• New external green spaces

• Casino

• Cinema/Bowling

• Food & Beverage

• Adventure Play Area

• New improved Access

• Residential

The Minister also advised that £117k from the £2 million pre-feasibility vote will be allocated to project management and quantity surveyor support.

The Panel note that the Government Plan identifies full cost funding of £4,800,000 for the early phase of the project, but it is unclear whether this is in addition to the £2 million identified as part of the pre-feasibility vote. The Panel goes into detail further on in the report, but maintains the RAG status of amber for this project due to the lack of clarity over the funding details.

FINDING 6

The Government Plan identifies that the early phase for redeveloping Fort Regent will be £4.8 million. It is unclear how all the funding arrangements identified for the project fit together, particularly in relation to the £2 million identified in 2019 as part of the Government Plan (2020 – 2023) pre-feasibility vote.

Summary

The original business case explains that this project sought to deliver modern sports, leisure and fitness facilities which included three main workstreams:

1. Island Sport Campus
2. Wider Sporting Estate Improvements and Lifecycle Planning
3. Decampment of Sport from Fort Regent, Skatepark and Netball Facility

It was anticipated that three years of research, design and development would be undertaken as well as the delivery of interim solutions and "quick-wins". Accurate budget costs would be identified following completion of the high-level feasibility and procurement study.

The business case was included in pre-feasibility so that the budget was managed by the States Treasury and Exchequer. The States approved a budget of £700,000 for the project.

Six Monthly Report Status - Partial deferral Previous Scrutiny RAG Rating – Amber Panel analysis  

The 6 month report explains that, as a consequence of the pandemic, some of the funding for this project has been deferred to 2021. Therefore the progress status is partial deferral.

The Panel wrote to Jersey Sport who provided their views on this project. They said:

Jersey Sport:

COVID-19 has resulted in a delay to the publication of the Sports Facilities Strategy. Still, significant progress has been made in the background and Council of Ministers will consider its approval in December 2020. Jersey Sport though the CEO will undertake the Programme Director role and will work in partnership with IHE to drive this work forward.

Despite the loss of time due to COVID-19 the projects relating to new sports facilities and a review of the target operating model for Sports Division are very much on track and if approved the project Governance Structures are in place to ensure this is taken forward as a major project.

The Minister for Economic Development, Tourism, Sport and Culture advised the Panel that Knight Kavanagh & Page have completed a draft Sports Facility Feasibility Study which includes the development of community sports hubs and island stadium options for Jersey. As this was undertaken in 2019 none of the 2020 pre-feasibility funding has been released.

During its previous review, the Panel was concerned about the duplicative nature of this project and the project on Fort Regent. Particularly if Fort Regent was to be used for sport related activities. The Minister advised that the two projects are closely co-ordinated with the Assistant Ministers sitting on both of the projects' Political Oversight Groups. The Panel notes that Ministerial roles of the Assistant Ministers have now changed and therefore recommends that consistency of political oversight is maintained.

The Panel maintains the RAG status of amber for this project due to consistency of ministerial oversight between the sports related projects. The Panel also maintains the project's amber rating due to the limited progress made with the project.

FINDING 7

The project "Island Sports facilities, Inspiring Places" aims to deliver modern sports, leisure and fitness facilities including the development of sport at Fort Regent. The Panel is concerned about the duplicative nature of the projects relating to Fort Regent and the other sport related projects. The Assistant Minister with responsibility for sport had previously sat on the Political Oversight Groups for these projects in order to manage any duplication, but political membership has recently changed.

RECOMMENDATION 4

There are a number of projects within the Government Plan related to sports facilities and Fort Regent. Given the crossover with some workstreams related to Fort Regent, the Minister for Economic Development, Tourism, Sport and Culture should ensure that consistency of political oversight is maintained by ensuring that the Assistant Minister sits on each working group.

Summary

The purpose of this project is to secure funding for a major upgrade in 2022 to the Public Registry Index and Document Enrolment online system within the Judicial Greffe.

Six Monthly Report Status - ?? Previous Scrutiny RAG Rating – Amber Panel analysis  

During its previous review, the Panel wrote to the Judicial Greffier and asked a number of questions. The Judicial Greffier  responded explaining that the bulk of the investment is required for upgrading the functionality of the software, and a further enhancement will be undertaken to permit the registration of lasting powers of attorney created under the Capacity and Self-Determination (Jersey) Law 2016.

In order to receive an update on the project, the Panel wrote to the Judicial Greffier asking a number of questions about the project. The Judicial Greffier responded and provided the following update:

Judicial Greffier:

The PRIDE system is the public facing digital database for the Public Registry and is therefore the research backbone of the conveyancing process in the Island. Were the PRIDE system to lose functionality, it would have a considerable impact on the ability of the practitioners in the Island to convey land, which in turn would result in a sizable downturn in the considerable Stamp Duties received by the Treasury.

The bulk of the investment is required for upgrading the functionality of the software. However, a further enhancement is planned to be undertaken to permit the registration of Lasting Powers of Attorney (as opposed to specific powers of attorney ulitised for the passing of contracts) created under the Capacity and Self-Determination (Jersey) Law 2016. The project is still on track for an upgrade in 2022. This might potentially be capable of being delayed to 2023 but at the risk identified in the paragraph above.

In line with the previous Government Plan, funding for this project, if approved, will not commence until 2022. Therefore, the Panel maintains the RAG status as amber to indicate that it will likely be revisited by the Panel in a future Government Plan when funding is being requested.

Summary

The purpose of this project is to secure funding to modernise the legal system via the courts digital project within the Judicial Greffe. The timetable for this project will result in paperless courts and will include the following functions:

• Case management – the new system will enable better end-to-end management of cases by court administrators (initiation, tracking, scheduling, workflow and reporting)

• Document management – storage and management of all case documents lodged with the court

• Court calendar management (scheduling cases, court room, judges and equipment)

• Digital signatures

• Financial management (fines, fees, collection, distribution, reconciliation)

• E-filing  –  the  ability  for  professionals  and  self-represented  litigants  to  upload documents to the court online

• Public  access  portal  –  a  website  where  parties  can  access  case  information, documents, the court calendar and make payments of fines and fees.

• Case presentation – a website where counsel, judges and Jurats access "bundles" prepared  by  the  parties  which  includes  electronic  documents,  scanned  images, photographic, audio and video evidence.

Six Monthly Report Status - ?? Previous Scrutiny RAG Rating – Green Panel analysis

The 6 month report did not provide an update on this project, however the Panel wrote to the Judicial Greffier for his views on the project. The Judicial Greffier explained that the project is still in its research and procurement phase and that no new systems or processes have been fully integrated into the Court processes yet. The project was expected to begin in January 2020 but the appointment of the expert third party assistance in the project team was not finalised until April 2020. The challenges arising from the pandemic has resulted in the procurement process for new electronic case management systems starting in September 2020 instead of March and this is reflected in the reduced 2020 spending.

The Judicial Greffier also explained that quotes were being obtained to supply and fit new and essential audio-visual equipment in several courtrooms to ensure consistency of functionality between courts and to improve Business Continuity for the Court Services. Given that some progress has been made and is ongoing, the Panel maintains the RAG status of green.