REPORT
Jersey Innovation Fund: Establishment, Funding and Operation (P.124/2012)
- Introduction
Following the lodging of P124/2012 on 20th November 2012 the Economic Affairs Scrutiny Panel undertook a review with the following terms of reference:-
1. To undertake an examination of key elements of the proposals to create a Jersey Innovation Fund (JIF), including:
- eligibility criteria and how ‘innovation’ is defined for the purpose of the Fund
- the constitution and role of the ‘Innovation Board’, and the associated role of the Minister for Economic Development
- the appropriateness of increased risk in the investment of public funds, and how such risk will be managed
- the processes to manage the Fund’s income and its operational costs
2. To establish what work has been undertaken on plans to enable equity investment, and what work remains to be completed.
3. To examine how the Jersey Innovation Fund compares to similar initiatives in relevant jurisdictions
The detailed review, which included meetings with Ministers and senior officers from Economic Development, Treasury, Chief Ministers Departments and key external stakeholders, resulted in a report being published on March 27th 2013.
The Scrutiny Report’s findings and recommendations have been welcomed by the Minister and, as a consequence, changes have been made to reflect fully or partially the recommendations made. The changes have led to the “Operational Terms of Reference” included in P.124/2012 being revised.
As a result, this Amendment to P.124/2012 has been brought forward to replace the previously lodged “Jersey Innovation Fund, Operational Terms of Reference, September 2012” with the ‘’Revised Operational Terms of Reference, Jersey Innovation Fund Grants and Loans – Phase 1, April 2013”.
2 Summary of changes to the Operational Terms of Reference to reflect the Scrutiny Panel’s recommendations
The areas of change in the Operational Terms of Reference to incorporate Scrutiny’s recommendations
Eligibility
i) The criteria have been amended to encourage applications from individuals, sole traders, all types of partnerships, any business registered in Jersey, or any organisation from the third sector.
ii) Access to the JIF will not be limited to projects in high value sectors. Eligibility criteria have been changed to encourage applications for projects from any sector with high growth potential that will create jobs for locals.
Level of Funding support
i) To be consistent with the Treasury Ministers maximum lending limits under the Public Finance Laws (Jersey) 2005, the maximum loan or grant available will remain at £500,000
ii) The proposed minimum level of £20,000 has been removed to encourage applications from early stage or small projects.
Corporate Governance
i) To strengthen the Board the number of private sector members has been increased to a minimum of 4 inclusive of the independent Chair
ii) Consideration will be given to commissioning organisations such as Jersey Business Ltd, Digital Jersey and the State’s Rural Economy Team to provide ongoing aftercare and monitoring functions.
Some of the Scrutiny recommendations refer to the Phase 2 of the project which, subject to States approval, will allow the JIF to make equity investments and move it towards a Partnership Model. During the development of the Report and Proposition for Phase 2 all the Scrutiny Panel’s recommendations will be carefully considered and where appropriate adopted.
3. Financial and manpower implications
There are no additional financial or manpower implications arising from this amendment.
4. Conclusion
The recommendations made by the Economic Affairs Scrutiny Panel have been welcomed and the changes made will, in Phase 1, improve access to the JIF and increase the amount of investment in all areas of innovation which overall should drive growth and create new exciting job opportunities for locals.
The Operational Terms of Reference, Application Forms and all supporting documentation have been amended to reflect the changes in eligibility, level of funding and corporate governance recommendations.