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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Blue Island: Extension of Contract for provision of essential interim Air Connectivity

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A decision made on 27 November 2020

Decision Reference: MD-TR-2020-0147

Decision Summary Title:

Restart the Blue Islands Contract for provision of essential interim Air Connectivity

Date of Decision Summary:

27th November 2020

Decision Summary Author:

Group Director, Strategic Finance

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title:

Restart the Blue Islands Contract for provision of essential interim Air Connectivity

Date of Written Report:

27th November 2020

Written Report Author:

Group Director, Strategic Finance

Written Report :

Public or Exempt?

Public

Subject:

Approval of a restart to the arrangement with Blue Island for the provision of essential interim Air Connectivity to and from the Island.

 

Decision(s):

The Minister approved the restart to the arrangement with Blue Island for the provision of essential interim Air Connectivity to and from the Island.

 

Reason(s) for Decision:

 

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a Government Plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

 

The current Policy for Allocations from the Reserve agreed by the Minister for Treasury and Resources (published as R.80/2020) sets the requirement that all proposed allocations from the General Reserve (Covid-19), once recommended for approval by the States Treasurer (taking into account comments from the Principal Accountable Office), are referred for review to either the Council of Ministers or the relevant Competent Authorities Ministers prior to submission to the Minister for approval.

 

Funding of up to £330,000 was allocated to the Office of the Chief Executive (OCE) head of expenditure in 2020 through MD-TR-2020-0037 to allow Government of Jersey to contract with Blue Islands to provide air services for the movement of essential workers and non-emergency medical patients on a non-commercial basis.

The funding was originally provided for the initial minimum contract period of three months (as envisaged by the initial business case) but was subsequently extended (by MD-TR-2020-0074) for a further month (to the end of July). This extension responded to the circumstances whereby commercial flights to and from the Island did not recommence until mid-July.

Recent significant increases in the number of cases of Covid-19 in Europe, have led both the UK and Jersey Governments to implement stricter public health restrictions.  England is operating under a lockdown situation until (at least) 2nd December 2020. Inevitably these increased restrictions have negatively impacted the number of people willing or able to travel between the UK and Jersey (and vice-versa).

It is noted that on the 21st November 2020 the Competent Authorities Ministers endorsed the proposals to restart these additional flights to ensure minimum acceptable levels of air connectivity.

The proposal is for the Director of Partnerships, through OCE, to agree such routes as may be required and appropriate to service the Island’s immediate air connectivity needs with Blue Island, subject to such modelled costs being within the value of un-utilised amounts under the allocation to the OCE head of expenditure made by MD-TR-2020-0037.

Further to this update, the Treasurer recommends this further extension to the Minister for approval within the original funding allocation.

 

Resource Implications: The restart of the Scheme is forecast to be met within the initial allocation of £330,000 made in MD-TR-2020-0037 so there are no additional resource implications arising from this decision.

 

Action required: The Head of Financial Governance to advise the Group Director, Strategic Finance and the Head of Finance Business Partnering of OCE that this decision is approved.

 

Signature:

 

 

Position: 

Deputy S J Pinel

Minister for Treasury and Resources

 

 

Date Signed:

 

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