Income from Sale of Passports

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A decision made (10/04/06) regarding Home Affairs - Use of Additional Income from Sale of Passports.

Subject:	Home Affairs – Use of Additional Income from Sale of Passports
Decision Reference:		Exempt clause(s):		n/a
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		JS/1/10/04/06
Written Report – Title	Income from Sale of Passports	Written report - author		Jane Strecker
Decision(s): The Minister approves: that the Home Affairs Department may use the additional income of £60,000, from the increase in passport fees in 2006, to supplement the shortfall in the Customs and Immigration manpower budget. That all future non-contentious increases that require approval are delegated to the Treasurer of the States.
Reason(s) for decision The Department has advised that it is currently reviewing options to make up the shortfall in unfunded manpower costs. The additional fee income will contribute to providing a future source of income on a recurring basis.
Action required: Inform the Home Affairs Department of the Decision.
Signature: (Minister/ Assistant Minister)			Date of Decision: 10th April 2006

Income from Sale of Passports

TREASURY AND RESOURCES MINISTER

Income from sale of passports

1. Purpose of Report

1.1. To consider a request, from the Home Affairs Department, to approve the use of additional income predicted for 2006, generated from an increase in passport fees.

2. Background

2.1. A letter has been received from the Home Affairs Department, dated 20 March 2006, regarding income from the sale of passports. The letter is to inform the Treasury of predicted additional income expected in 2006 because of an increase to passport fees. Notification for the increase to the fee, which is based on the charge for a passport in the UK, was received too late to be included in the original budget.

2.2. In accordance with the Financial Direction No. 3.6, (Variations to Heads of Expenditure), the Minister must approve any requests where additional income is in excess of increased expenditure required to generate that income by more than 10% .

3. Comments

3.1. The budgeted gross income for passport fees in 2006, as included in the budget book, is £429,000. An increase of 10% is therefore £42,900 and in accordance with the Financial Direction No. 3.6 (Variations to Heads of Expenditure) the Department is permitted to use this additional income without the approval of the Minister.

3.2. The total additional income predicted by the Home Affairs Department for the increase in passport fees is £60,000. The Department is proposing to use the total sum to supplement a shortfall of £130,000 in the Customs and Immigration manpower budget. The excess of £17,100 (over the 10% limit) therefore requires the approval of the Minister.

3.3. Manpower costs in the Customs and Immigration Service are currently unfunded exacerbated by a recent increase in grade applied to the majority of Customs and Immigration Officers. The Department has advised that it is currently reviewing options to make up the balance of the shortfall.

3.4. The Financial Direction does not permit the use of additional income to fund recurring expenditure for which no future funding is secured. However this is not one off windfall income and therefore will be ongoing.

3.5. The reason for the increases in fees is to bring the charge in line with the UK. The increase on the 1st December was from £42 to £51 (21%) for an adult passport and from £25 to £34 (36%) for a child. The Department has advised that the same fees as the UK have always been applied locally, under the authority of the respective Lieutenant Governor. There is no legal agreement that Jersey is required to do this however this has been past practice for over forty years.

3.6. In communicating with the Department the Decision it will be necessary to remind the Department that if the charges are greater than the cost of providing that service then this would in effect be a tax and only the Minister can take tax proposals to the States.

3.7. In addition, the States Anti-Inflation strategy requires that all charges should be limited to 2.5% with compelling cases being subject to the approval of the Minister for Treasury and Resources. If there is a specific reason for the increases to be in line with the UK charge then these need to be identified before the increase can be accepted on a formula basis.

4. Recommendation

4.1. The Minister approves the use of additional income of £17,100 over the agreed 10% limit.

4.2. That the Minister delegate all future non-contentious increases over the 10% agreed limit, to the Treasurer of the States.

5. Reason for Decision

5.1. The Department has advised that it is currently reviewing options to make up the shortfall in unfunded manpower costs. This additional fee income will be on a recurring basis and therefore provide a future source of funding available.

5.2. The Minister is required to confirm any delegations made under the Public Finances (Jersey) Law 2005.

States Treasury Corporate Finance

12 April, 2006 for Decision Meeting 10/04/2006