Treasury and Resources
Ministerial Decision Report
Grant to Community Savings Ltd
- Purpose of Report
To enable the Minister to authorise a grant of £30,000 from the Treasury and Resources Department to Community Savings Ltd.
- Background
Community Savings Ltd is a Jersey incorporated company established along the lines of a UK Credit Union, and specifically exempted as a deposit taking business as defined under the Banking Business (Jersey) Law 1991. The enterprise is a not for profit organisation, funded by charitable donations.
The principal objectives are:
i) To provide self-help opportunities to those in need of financial support
ii) To educate individuals, within common interest groups, on how to budget for their everyday requirements and manage their resources, both generally and specifically
iii) To provide a mentoring and support service to its members
iv) To provide a means of saving modest amounts on a regular basis for a particular purpose or as a general discipline
v) Once a suitable savings record has been established, to consider the provision of personal loans for necessities, on a secured or unsecured basis and at reasonable rates of interest
vi) To provide emergency funding, from central funds, by way of loans on a low or no interest rate basis or grants.
The concept of establishing Community Savings Ltd in Jersey started in 1996 following the UN Eradication of Poverty initiative. A great deal of hard work has already been undertaken, leading to the concept being finally approved by the Jersey Financial Services Commission in 2001. Since then but particularly since 2007, following being allowed to operate at the Parish of St. Helier’s premises at Seale Street, business has expanded by around 100% year on year.
3. Expansion Plans – Parish Hall satellite operations
Community Savings Ltd is now ready to expand operations into the other Parishes but is restricted by lack of finance. Their current projections indicate that objectives would take some years to roll out in their entirety, not allowing the undoubted benefits to become available as quickly as desirable to those suffering social or financial deprivation.
It is anticipated, however, that expansion would result in a marked reduction in poverty in the Island by the ready availability of self-help initiatives - particularly important in the present economic climate. It is hoped this would also increase the pride and community spirit of those participating and ultimately reduce the drain on the public purse.
The Comité des Connétables have been consulted and are supportive of the plans; indeed they believe it will fulfil a need they now find difficult to address. Community Savings Ltd have therefore commenced discussions within a number of Parishes in order to develop the initiative.
4. Recommendation
The Minister is recommended to approve a grant of £30,000 from the Treasury and Resources Department to Community Savings Ltd.
5. Reason for Decision
To enable the Treasurer of the States, as Accounting Officer for the Treasury and Resources Department, to award a grant of £30,000 to Community Savings Ltd from the Treasury and Resources revenue head of expenditure.
6. Resource Implications
This decision authorises a grant of £30,000 to be made from the Treasury and Resources revenue head of expenditure payable to Community Savings Ltd. This decision does not change the total amount of expenditure approved by the States.
Report author : Decision Support Officer | Document date : 25th May 2012 |
Quality Assurance / Review : Head of Financial Management, Accounting and Reporting | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2012-0050 - Grant to Community Savings Ltd - LJR\WR - Grant to Community Savings Ltd - LJR.doc |
MD Sponsor: Treasurer of the States |