Countryside Infrastructure and Environmental Protection: 2012 Carry Forward Funds: Allocation

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 5 September 2013:

Decision Reference: MD-TR-2013-0074
Decision Summary Title:	Request for the allocation of 2012 Carry Forward funds from Central Contingency to the Department of the Environment for Environmental Protection and Countryside Infrastructure		Date of Decision Summary:	28 August 2013
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:	Request for the allocation of 2012 Carry Forward funds from Central Contingency to the Department of the Environment for Environmental Protection and Countryside Infrastructure		Date of Written Report:	28 August 2013
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Allocation of 2012 Carry Forward funds from Central Contingency (one-off) to the Department of the Environment (DoE) for Countryside Infrastructure and Environmental Protection.
Decision(s): The Minister for Treasury and Resources approved the - budget transfer of up to £50,000 from Central Contingency (one-off) to a new capital head of expenditure for Countryside Infrastructure within the DoE (I00MF14015); and budget transfer of up to £200,000 from Central Contingency (one-off) to the revenue head of expenditure for Environmental Protection within the DoE.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources (T&R) is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The funding for Countryside Infrastructure is to enable DoE to achieve the Scrutiny recommendations to adequately improve the standard of maintenance of coastal paths and publicly owned land in the National Park. The funding for Environmental Protection is to enable DoE to achieve the Scrutiny recommendations for the strengthening of regulation of the Island’s Environmental Protection as highlighted in the 2012 Carry Forward report.
Resource Implications: The DoE new capital head of expenditure for Countryside Infrastructure (I00MF14015) will increase by up to £50,000 in 2013 and Central Contingency (one-off) to decrease by an identical amount. The DoE revenue head of expenditure for Environmental Protection will increase by up to £200,000 in 2013 and Central Contingency (one-off) to decrease by an identical amount.
Action required: Business Manager to notify the Financial Performance Reporting Manager and the Finance Manager, DoE that this decision has been approved
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Countryside Infrastructure and Environmental Protection: 2012 Carry Forward Funds: Allocation

- 1 -

Treasury and Resources

Ministerial Decision Report

Request for the allocation of 2012 Carry Forward funds from Central Contingency to the Department of the Environment for Environmental Protection and Countryside Infrastructure

Purpose of Report

To enable the Treasury and Resources Minister to approve two budget transfers from Central Contingency (one-off) to the Department of the Environment (DoE) for Countryside Infrastructure and Environmental Protection.

Background

2.1 Countryside Infrastructure

A funding pressure of £50,000 was identified by Scrutiny and detailed in the Medium Term Financial Plan (MTFP) Second amendment to “adequately improve the standard of maintenance of coastal paths and publicly owned conservation land in the National Park”.

The amendment was subsequently withdrawn following assurances given during the MTFP debate that funding would be provided to the department by the Council of Ministers from alternative sources. The 2012 Carry Forwards report identified £50,000 from Departmental under spends which could be used by the Department for Countryside Infrastructure from Central Contingency (one-off).

2.2 Environmental Protection

A funding pressure of £150,000 per annum from 2014 was identified by Scrutiny and detailed in the Medium Term Financial Plan (MTFP) Second Amendment for “strengthening the protection and regulation of the Island’s Environment”.

The amendment was subsequently withdrawn; however, the 2012 Carry Forwards report identified £200,000 from Departmental under spends which could be used by the Department for Environmental Protection from Central Contingency (one-off).

Discussion

3.1 Countryside Infrastructure

The 2012 Carry Forward report states:

“Funding pressure identified by Scrutiny and detailed in the Medium Term Financial Plan Second Amendment to adequately improve the standard of maintenance of coastal paths and publicly owned land in the National Park. This would reduce the decline in standards and risks of dangers to users in arising from intensification of use following successful tourism promotion for changes in local lifestyles.”

The planned expenditure meets the Generally Accepted Accounting Principles (GAAP) accounting definition of capital expenditure and therefore a new capital head of expenditure for Countryside Infrastructure (I00MF14015) should be created.

The States of Jersey implemented GAAP in 2009. GAAP accounting requires that expenditure should be accounted for as capital if it meets the GAAP accounting definition of capital expenditure, and revenue otherwise.

Previously, ‘capital’ budgets have represented whatever the States Assembly voted as capital. The States have already approved capital allocations for 2013 in the 2013 – 2015 MTFP. This budget transfer moves budget between revenue and capital so as to align the budgeting treatment of 2013 expenditure with the GAAP accounting treatment.

3.2 Environmental Protection

The 2012 Carry Forward report states:

“Funding pressure identified by Scrutiny and detailed in the Medium Term Financial Plan Second Amendment. Strengthening the protection and regulation of the Island’s Environment including scientific and technical studies to assist compliance with environmental regulation and increase the frequency of environmental monitoring, particularly Marine and Water Pollution”

The original MTFP amendment was proposed by Deputy John Young in response to the Environment Scrutiny Panel’s Review ‘Protecting our Marine Environment’ that was presented to the States on 9 Nov. 2011 (ref: S.R.15/2011)[1].

Major Key findings (findings 1 & 2) of the Review were;

1. Manpower and resources within the Department cannot always meet legitimate stakeholder aspirations, and in the event of a serious environmental incident the regular workload of the Environmental Protection team is compromised.

2. While some aspects of European legislation are adhered to locally, resources available are currently insufficient to permit full compliance with wider environmental directives, such as the Water Framework Directive. There is potentially some lack of clarity amongst the public concerning which elements are legally enforceable.

The funding of £200,000 will be used by the Department to help address the two key findings of the Scrutiny report as highlighted above.

4. Recommendation

The Minister for Treasury and Resources is recommended to approve the -

budget transfer of up to £50,000 from Central Contingency (one-off) to a new capital head of expenditure for Countryside Infrastructure within the DoE (I00MF14015); and
budget transfer of up to £200,000 from Central Contingency (one-off) to the revenue head of expenditure for Environmental Protection within the DoE.

5. Reason for Decision

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

The funding for Countryside Infrastructure is to enable DoE to achieve the Scrutiny recommendations to adequately improve the standard of maintenance of coastal paths and publicly owned land in the National Park.

The funding for Environmental Protection is to enable DoE to achieve the Scrutiny recommendations for the strengthening of regulation of the Island’s Environmental Protection as highlighted in the 2012 Carry Forward report.

6. Resource Implications

The DoE new capital head of expenditure for Countryside Infrastructure (I00MF14015) will increase by up to £50,000 in 2013 and Central Contingency (one-off) to decrease by an identical amount.

The DoE revenue head of expenditure for Environmental Protection will increase by up to £200,000 in 2013 and Central Contingency (one-off) to decrease by an identical amount.

Report author : Head of Decision Support	Document date : 28 August 2013
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2013-0074 - DoE funding Environmental Protection Countryside infrastructure\WR - Funding for Environmental Protection & Countryside Infrastructure.docx