Government of Jersey

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A decision made 4 December 2009 regarding: Report to the States: white paper - insolvency payments scheme.

Decision Reference: MD-S-2009-0067
Decision Summary Title :	DS Insolvency Report to States 2Dec09		Date of Decision Summary:	2 December 2009
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR Insolvency Report to States 2Dec09		Date of Written Report:	2 December 2009
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Report to the States: White Paper – Insolvency Payments Scheme
Decision(s): The Minister decided to present to the States a Report outlining the background to the release of a White Paper that proposes a statutory Insolvency Payments Scheme.
Reason(s) for Decision: A commitment was given by the Social Security Minister that proposals for a statutory scheme, as set out in the White Paper, would be outlined by the end of 2009 and that progress would be reported to the States. The introduction of an Insolvency scheme has been a matter of public and political debate in Jersey since 1993 and was widely consulted upon by the Employment Forum in 2006. A limited Temporary Insolvency scheme has been in operation since early 2009. Firm proposals are now being put forward by the Social Security Minister via a White Paper.
Resource Implications: It is proposed that the scheme will be self funding by applying a small increase (0.032%) to the Social Security contributions paid by employers. This would provide an insolvency fund of approximately £350,000 per year. The estimated cost to the States (as an employer) is approximately £40,000 per annum. The Temporary Scheme will continue to operate until the statutory scheme is implemented. It may be necessary to request additional funding to continue to provide payments under the Temporary Scheme.
Action required: Policy Principal to submit the documents to the Greffe for presentation to the States as a Report on 7 December 2009.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):