Budget transfer from Central Contingencies to various departments: Manual Workers and Energy Recovery Facility Workers' Pay Award 2018/19

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A decision made 25 January 2019:

Decision Reference: MD-TR-2019-0008
Decision Summary Title:	Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award		Date of Decision Summary:	21st January 2019
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award		Date of Written Report:	21st January 2019
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: The allocation of £1,892,500 from Central Contingencies to various departments as detailed in the attached report, to cover the 2019 costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers.
Decision(s): The Minister approved an allocation of £1,892,500 from Central Contingencies to the Departments listed in the written report to fund the 2019 impact of the Manual Workers’ and Energy Recovery Facility Workers’ Pay Award for 2018/19.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.112/2018) sets the requirement for all allocations from contingency over £50,000 to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. The Board has recommended these requests for approval. The requests have also been recommended for approval by the Principal Accountable Officer and States Treasurer.
Resource Implications: Central Contingencies to decrease by £1,892,500 in 2019 and Departmental revenue heads of expenditure to increase by a total identical amount, as detailed in the table in the written report. The recurring effect of these allocations will be reflected in the next Government Plan 2020-2023. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
Action required: The Head of Decision Support to advise the Director of Financial Planning and Performance and the Finance Directors of the receiving departments that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Central Contingencies to various departments: Manual Workers and Energy Recovery Facility Workers' Pay Award 2018/19

States Treasury and Exchequer

Ministerial Decision Report

Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award

Purpose of Report

To enable the Minister to approve the allocation of £1,892,500 from Central Contingencies to various departments as detailed below, to cover the 2019 costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers.

Background

Funding provisions were made in the Medium Term Financial Plan Addition in the Central Contingency (Pay Provision) for anticipated pay awards across all pay groups.

Manual Workers and Energy Recovery Facility Workers

On 21st November 2018, the States Employment Board wrote to all employees to communicate the revised 2018/19 pay offers including that which had been made to Manual Workers and Energy Recovery Facility Workers. On 21st December 2018 this pay group accepted their revised pay offer of 4.5% in 2018 (consolidated) and 2.2% in 2019 (consolidated).

An accrual was made by departments at the end of 2018 for 2018 costs; MD-TR-2018-0141 and MD-TR-2018-0150 allocated the equivalent budget.

This decision allocates the recurrent impact of the 2018 award and funding for the 2019 award.

Recommendation

The Minister is recommended to approve allocations from Central Contingencies to the following departments in 2019 to cover the recurring costs associated with the 2018/19 Pay Award in respect of Manual Workers and Energy Recovery Facility Workers:

Reasons for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.112/2018) sets the requirement for all allocations from contingency over £50,000 to be considered by the Investment Appraisal Board, Principal Accountable Officer and States Treasurer prior to submission to the Minister for approval. The Board has recommended these requests for approval. The requests have also been recommended for approval by the Principal Accountable Officer and States Treasurer.

5. Resource Implications

Central Contingencies to decrease by £1,892,500 in 2019 and Departmental revenue heads of expenditure to increase by a total identical amount, as detailed in the table in the written report.

The recurring effect of these allocations will be reflected in the next Government Plan 2020-2023.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.

Report author : Head of Decision Support	Document date : 21st January 2019
Quality Assurance / Review: Director of Financial Planning and Performance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0008 - Contingency Funding for Manual Workers’ and Energy Recovery Facility Workers’ Pay Award
MD sponsor : Treasurer of the States