Reason(s) for Decision: P.28/2020 Draft Public Finances (Amendment of Law) (Jersey) Regulations 202-, approved by the States Assembly on 24th March 2020, agreed a number of temporary modifications to the Public Finances (Jersey) Law 2019. The added modifications affect the way in which the Stabilisation Fund may be used, by allowing the Minister – • to transfer an amount from the Stabilisation Fund to any other fund and direct that amount to be expended directly from that fund; • to direct that an amount be expended directly from the Stabilisation Fund; • to direct that an amount be transferred to the Stabilisation Fund from any other fund; • to arrange for overdraft and other financing for the Stabilisation Fund; • to arrange that repayments of loans made from the Stabilisation Fund are credited to that Fund. There are other added modifications, which – • allow the Minister to transfer up to and including £400 million from the Strategic Reserve Fund to the Stabilisation Fund; • remove the requirement in Article 18 that if the Minister proposes to give a direction to re-allocate a head of expenditure, the Minister gives the States at least 4 weeks’ notice; • increase from £10 million to £100 million the amount which may be appropriated from the Consolidated Fund by the Minister without amending the government plan; • increase the limit on financing that the Minister may arrange in a financial year from £3 million to £500 million and the limit on total outstanding financing from £20 million to £500 million; • allow the Minister to make loans from the Stabilisation Fund (instead of only from the Consolidated Fund), and increase the limit on loans that the Minister may make in a financial year from £3 million to £100 million and the limit on total outstanding loans from £20 million to £100 million; • increase the limit on guarantees and indemnities that the Minister may provide in a financial year from £3 million to £100 million and the limit on the total outstanding guarantees from £20 million to £100 million. The amendment to P.28/2020, brought by the Corporate Services Scrutiny Panel and adopted by the Assembly, clarified that: • the amended powers expire on 30th September 2020; and • where the Minister has obtained financing, lent money or provided guarantees or indemnities under Articles 26 to 28 while Article 24(8) applied, the financing, lending or provision of guarantees or indemnities remain valid and are not included in any monetary limits set out in Articles 26 to 28 as those Articles apply after the expiry of the modifications. The Minister brought these amended powers into effect through MD-TR-2020-0029 by deciding that she considered there exists an immediate threat to the health or safety of any of the inhabitants of Jersey and to the stability of the economy in Jersey. The Government Plan 2020-2023 included a planned transfer of £28 million from the Consolidated Fund to the Stabilisation Fund in 2020. This transfer will not now be made. This decision enables that sum to be spent from the Consolidated Fund in 2020. |