Christians Together in Jersey (CTJ) Housing Trust: Approval of Borrowing to acquire 20 homes at Les Freres, Chemins des Maltieres, Grouville

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 3 July 2013:

Decision Reference: MD-TR-2013-0053
Decision Summary Title:	Approve CTJ Housing Trust to Borrow for acquisition at Les Frères		Date of Decision Summary:	28th June 2013
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Proposed borrowing to facilitate acquisition of homes at Les Frères, Chemins des Maltieres, Grouville by the CTJ Housing Trust		Date of Written Report:	28th June 2013
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt 3.2.1 (x)
Subject: Approval for Christians Together in Jersey (CTJ) Housing Trust to borrow money to acquire 20 homes at Les Frères, Chemins des Maltieres, Grouville, in accordance with clause 4(c) of the Constitution of the CTJ Housing Trust.
Decision(s): The Minister approved CTJ Housing Trust’s proposed borrowing with HSBC Bank Plc as follows:- CTJ Housing Trust to borrow the sum of £3,000,000 for a period of 25 years to purchase 1 - 20 Les Frères, Chemins des Maltieres, Grouville from the Gouray Lodge Charitable Trust for the total consideration of £4,050,250. Requested that the Minister for Housing to similarly endorse the borrowing. The Treasury and Resources (T&R) Minister supports the signing, by the Housing Minister, of a tri-partite agreement on behalf of the public, as set out in Appendix A, which allows the public to step in if the CTJ Housing Trust is declared ‘en desastre.’
Reason(s) for decision: Under clause 4(c) of the Constitution of the CTJ Housing Trust, approval is required from both the Minister for Housing and the Minister for Treasury and Resources in order to borrow or raise money whilst the Trust is in receipt of subsidies or has loans guaranteed by the States of Jersey. In the event of a default and to allow HSBC to recoup the mortgage it is proposed that a tri-partite agreement be entered into between the CTJ Housing Trust, HSBC and the Public. This agreement sets out that in the event that the CTJ Housing Trust is declared ‘en desastre’ the Lender could take possession of the properties and would then offer the Public the opportunity to acquire them for the balance of the outstanding borrowing, within a defined period. Advice has been sought from the Law Officers and it is understood that the agreement does not create a financial risk for the Public or compel the public to acquire the properties.
Resource Implications: There are no financial implications other than those indicated in the attached report.
Action required: The Head of Shareholder Relations to send a signed copy of this decision to the Minister for Housing
Signature:		Position: Senator B I Le Marquand, Acting Minister for Treasury and Resources
Date Signed:		Date of Decision: