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States Owned or Controlled Companies - Rights and Responsibilities - Amendment (P100/2014 Amd): Ministerial Comment

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A decision made on 26 June 2014:

Decision Reference:  MD-TR-2014-0064

Decision Summary Title:

Comments on P100/2014 States owned or controlled companies - rights and responsibilities - amendment

Date of Decision Summary:

26 June 2014

Decision Summary Author:

 

Treasurer of the States

Decision Summary:

Public or Exempt?

 

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Comments on P100/2014 States owned or controlled companies - rights and responsibilities - amendment

Date of Written Report:

26 June 2014

Written Report Author:

Treasurer of the States

Written Report :

Public or Exempt?

 

Public

Subject: 

Comments on P100/2014 States owned or controlled companies - rights and responsibilities - amendment

Decision(s): 

The Minister approved his Comments on P100/2014 States owned or controlled companies - rights and responsibilities – amendment.

Reason(s) for Decision: 

To enable the Minister’s comments on P100/2014 States owned or controlled companies - rights and responsibilities - amendment to be presented to the States.

Resource Implications: 

None.

Action required: 

Greffier of the States to be requested to present attached comments to the States at the earliest opportunity.

Signature:

 

 

 

Position: Senator P F C Ozouf

Minister for Treasury and Resources

Date Signed:

 

Date of Decision:

 

States Owned or Controlled Companies - Rights and Responsibilities - Amendment (P100/2014 Amd): Ministerial Comment

Comments on States owned or controlled companies: rights and responsibilities (P.100/2014) – amendment

 

The Minister for Treasury and Resources opposes both this amendment and the main proposition.

 

Deputy Le Herissier’s amendment requests the Minister for Treasury and Resources, on behalf of the panel proposed in the main proposition, to present the draft Strategic Plan of each company to the States for debate at an interval of not less than every three years and to present the Business Plan of each Company to the States annually with any subsequent amendments being approved by the ministerial panel.

 

The Minister for Treasury and Resources has already strongly set out his opposition to the main proposition of Deputy Baudains and the reasons for that opposition. It is not the intention to reproduce the contents of those comments here. The amendment of Deputy Le Herissier serves only to strengthen that opposition as it is an illustration of how the business activities of the States-owned companies would become fettered by the involvement of the States Assembly. Many projects represent a long-term investment or shift in business focus that require a planning horizon of longer than three years. The Strategic Plans will also contain a high degree of commercial information which would be invaluable to competitors. The States-owned companies simply cannot be expected to operate successfully in such a climate of uncertainty.

 

The Minister for Treasury and Resources urges States Members to reject this amendment, and the main proposition.

 

Deputy Le Herissier does raise an interesting matter regarding the 2010 Deloitte’s review: “States of Jersey Owned Utilities Governance Review” (R.76/2010), presented to the States on 17th June 2010. The relationship between the Minister, acting as shareholder on behalf of the States, and the States owned companies has grown organically and been documented as described in the Minister’s comments to P.100/2014, largely through the Memoranda of Understanding. It may be opportune to review the recommendations of the Deloitte report against the current arrangements and explain the reasons for any divergence. The Minister commits to undertake that work and publish it to the States before the end of 2014.

 

 

Minister for Treasury and Resources

 

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