TREASURY AND RESOURCES MINISTER
transfer of acquisition of land - major reserve
to Treasury and Resources department
1. Purpose of Report
1.1. The Minister is asked to agree to the transfer of the current budget and net expenditure contained in the Head of Expenditure (IXP008) ‘Acquisition of Land - Major Reserve’ from the former Property Services company (02320) to the Jersey Property Holdings company (01760).
2. Background
2.1. When Property Holdings was created in January 2006, the budgets and related expenditure of the former Property Services section of the (then) Environment and Public Services Committee were transferred to the Treasury and Resources Department.
2.2. The Head of Expenditure (IXP008) ‘Acquisition of Land - Major Reserve’, although within the Property Services company, was not transferred. The Minister is asked to regularise the situation by approving the transfer with immediate effect.
3. Comments
3.1. The Head of Expenditure has a net unspent budget sum of some £3.37 million at the time of writing, but this will be reduced by £1.7 million to support the capital programme, as agreed in the 2007 - 2011 States Annual Business Plan.
3.2. It is proposed that capital receipts from the disposal of properties be credited to this the Head of Expenditure and that it funds Property Holdings agreed contributions to future years capital programme.
3.3. In due course, should Property Holdings become a States Trading Organisation as envisaged in P93/2005, the Head of Expenditure will form the opening balance of that organisation’s Trading Fund.
3.4. It is further proposed that, once transferred, a budget of £250,000 is transferred to a new capital Head of Expenditure to facilitate design and other works on properties identified for disposal in the Property Plan.
3.5. As the Head of Expenditure is not currently within a ‘live’ company in JD Edwards, it is considered that there is no requirement to seek approval from any other States department.
4. Recommendations
4.1. That the Minister approves the transfer of the current budget and net expenditure contained in the Acquisition of Land - Major Reserve from the former Property Services company (02320) to the Jersey Property Holdings company (01760).
4.2. That the Minister approves a subsequent budget transfer from that Head of Expenditure to form a new Head of Expenditure in the Property Holdings company to facilitate design and other works on properties identified for disposal in the Property Plan.
5. Reason for Decision
5.1. To regularise the position of the Head of Expenditure (IXP008) ‘Acquisition of Land - Major Reserve’.
5.2. To provide funds to undertake design and other works necessary to facilitate the disposal of properties as identified in the annual Property Plan.
States Treasury Corporate Finance
29 May, 2007 for Decision Meeting 21/05/2007