Government of Jersey

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 27 January 2012:

Decision Reference: MD-TR-2012-0012
Decision Summary Title:	Presentation of Contingency Policy to the States		Date of Decision Summary:	24 January 2012
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:	Presentation of Contingency Policy to the States		Date of Written Report:	24 January 2012
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Presentation of Contingency Policy to the States.
Decision(s): The Minister decided to present as a report to the States the policy for the Allocation to Contingency.
Reason(s) for decision: To comply with the Minister’s commitment to publish the policy for the Allocation to Contingency.
Resource Implications: None.
Action required: Head of Decision Support to request the Greffier of the States to present the attached report to the States at the earliest available opportunity.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Public Finances: Contingency Policy - Presentation to the States

The Allocation to Contingency

The Allocation to Contingency is a fundamental part of the Medium Term Financial Plan as it gives the States a degree of flexibility in managing its finances over a longer time period. The use of Contingency expenditure is set out in the Public Finances (Jersey) Law 2005 (Article 17).

There are a number of different ways the Allocation to Contingency can be made, as set out below:

Amounts set as part of the Medium Term Financial Plan.
Allocations from growth expenditure, as approved by the States as part of the annual budgeting process.
Transfers from a head of expenditure within or after a financial year, if approved by the Treasury and Resources Minister (and if the Minister responsible for the head of expenditure has approved the transfer).
Allocations from revenue heads of expenditure underspends that are not carried forward.
Allocations from departmental income that are in excess of expectations.

There is a clear requirement to set out a policy to be considered alongside the submission of the Medium Term Financial Plan. In advance of this, it is useful to set out how the new policy might be constructed by the Treasury and Resources Minister.

What types of expenditure can come out of the Allocation to Contingency

Contingency is set aside for unforeseen expenditure. It is proposed that three types of expenditure will come out of Contingency.

Permanent and Non Repayable – expenditure that is due to a change in circumstances or service requirements. The submissions for these allocations can be unlimited but cannot exceed the current balance of Contingency.
Short Term and Repayable – expenditure that arises from departmental opportunities for ‘Invest to Save’ initiatives that arise outside of the Medium Term Financial Plan and which cannot be funded within departmental cash limits. Limits may be set in the MTFP on the individual and total values of this type of expenditure.
Variations in Expenditure that have a ‘Net Nil’ impact – expenditure that may require variation between heads of expenditure (other than the need to comply with Generally Accepted Accounting Principles). These will have no overall impact on the Contingency balance but will be reported publicly as part of reporting on all transfers to and from Contingency as required by the law.

Proposed Allocation Process

A Department must present a case to the Treasurer of the States which explains:

The nature of the expenditure and the reason it has arisen.

Whether the expenditure is likely to recur and how future years will be funded.

Why the expenditure cannot be absorbed within current limits – this should refer to the most recent in-year financial monitoring report including current forecasts to outturn and whether departmental contingencies have been used or why other services can't be reprioritised.

The role of the Treasurer of the States will be to challenge the request, ensure a solution to its ongoing funding has been considered and that due process has been followed. This will then be considered by the Minister for Treasury and Resources and a report submitted to the Council of Ministers with a recommendation.

The Council of Ministers will consider the request taking into account the department’s submission and the Treasurer’s and Treasury Minister’s recommendation.

Minister for Treasury and Resources approval:

The Minister will take into account the comments of the Council of Ministers.

The Treasury Minister will either:

Refer unsuccessful requests back to the originating Department; or
Approve a “public” Ministerial decision for successful requests.

All relevant papers will be used to support the decision including the Council of Ministers’ recommendation and the Ministerial Decision of the requesting department.

All approved requests will be published by the Treasury and Resources Minister to the States on a 6 monthly basis.