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Economic Development Department: Use of additional Ofcom income and carry forward unspent balance to 2013

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.

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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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 7 December 2012:

Decision Reference:  MD-TR-2012-0082

Decision Summary Title:

Carry Forward of EDD Ofcom Income to 2013

Date of Decision Summary:

22nd November 2012

Decision Summary Author:

Director of Financial Planning and Performance

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Carry Forward of EDD Ofcom Income to 2013

Date of Written Report:

22nd November 2012

Written Report Author:

Business Manager

Written Report :

Public or Exempt?

Public

Subject:  Economic Development Department (EDD) use of additional Ofcom income and carry forward of unspent balance to 2013.

Decision(s):  The Minister decided to:

(a) agree that the unanticipated income of £212,216 to EDD in 2012 from Ofcom should be added to the Department’s approved revenue expenditure and recognised as income for 2012 and that any such income not spent by the Department in 2012 can be carried forward for expenditure in 2013

(b) agree that the £300,000 estimated income from Ofcom which was included in the 2012 Annual Business Plan would be subject to the usual carry forwards process.

And this is subject to the amount of such income to be carried forward being no more than the total underspend for EDD in 2012.

Reason(s) for Decision:  Under Article 19(1) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources can authorise a States funded body to withdraw from the consolidated fund during a year an amount not exceeding the likely excess of income over the amount approved in that year’s revenue allocation.  Under Article 18(1) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources can authorise any amount appropriated by a revenue head of expenditure, to be withdrawn from the consolidated fund after the end of the relevant financial year.

Resource Implications:  Recognition of income of £212,216 in 2012 and approval to carry forward any of this money unspent into 2013. Any additional underspend above this figure will form part of the carry forwards process. The Minister for Economic Development is clear that this funding cannot be regarded as ‘ring fenced’ should the total underspend for EDD as a whole be less than the amount of the unspent portion of this income.

 

Estimated income of £300,000 and expenditure of £300,000 has been included in the draft Medium Term Financial Plan annually for 2013 and 2014.

Action required: Business Manager to inform the Assistant Accountant, Financial Accounting and Control and EDD Finance Director that this decision has been approved.

Signature:

 

 

 

Position: Senator  P F C Ozouf, Minister for Treasury and Resources

               

Date Signed:

 

Date of Decision:

Hide report
Economic Development Department: Use of additional Ofcom income and carry forward unspent balance to 2013

 - 1 -

Treasury and Resources

Ministerial Decision Report

 

 

Carry Forward of EDD Ofcom income to 2013

 

  1. Purpose of Report

 

To enable the Minister to consider whether to:

(a) agree that the unanticipated income of £212,216 to EDD in 2012 from Ofcom should be added to the Department’s approved revenue expenditure and recognised as income for 2012 and that any such income not spent by the Department in 2012 can be carried forward for expenditure in 2013

(b) agree that the £300,000 estimated income from Ofcom which was included in the 2012 Annual Business Plan would be subject to the usual carry forwards process.

And this is subject to the amount of such income to be carried forward being no more than the total underspend for EDD in 2012.

 

2.   Background

 

EDD has  recently received funding from Ofcom in respect of Wireless Telegraphy Licence fees which the Department believes will be annually recurring until at least 2014, when impending changes to the UK Wireless Telegraphy Act are due to come into effect.

 

Income of approximately £300,000 is expected from Wireless Telegraphy Licence Fees for each of the years 2013 – 2014 (although the exact sums are not certain) and this has been included in the Medium Term Financial Plan.

 

Fees are collected by Ofcom on behalf of the States of Jersey, under authority of various pieces of legislation, most notably the Communications (Jersey) Order 2003, SI 2003/3197, arts 6, 7, Sch 2, para 91 (as amended by SI 2006/3324, art 4(2), Sch 2, Pt 2) and SI 2003/3197, arts 1(3)–(5), 2.

 

EDD considers that this funding provides the opportunity of ensuring ongoing investment in the development of the Island’s economy, without the need for further public funds to do so.

 

To date in 2012 EDD has received £512,216 from Wireless Telegraphy Licence Fees. This decision is requesting that the T&R Minister agrees that £212,216 should be carried forward from any unspent amounts to be spent for the purposes set out below in 2013. The remainder of any unspent income will be part of the carry forwards process.

 

3.   Proposed use of carry forward funding by EDD

 

The Department has proposed the following as the uses of the additional income:

 

  • Locate Jersey – Funding of £210,000 is required to underwrite a proposed bi-annual inward investment conference in Jersey and publish a “Doing Business in Jersey” report as an FT supplement; similar to a previous supplement in 2007.
  • Tourism – Increase marketing in under-funded European markets in particular; Germany. Funding of £250,000 was unsuccessful in the MTFP submission.
  • Single European Payments Area Project – Stimulus funding of £90,000 was carried forward in 2012 but due to continued delays by the European Payments Council, this will not be completed in 2012 and funding will be required from the EDD revenue budget in 2013.

 

It is unlikely that all of the additional income will be spent in 2012. EDD has therefore requested that it be allowed to carry forward the unspent amount into 2013 so it can be used for the purposes that the Department feels are appropriate.

 

4.   Recommendation

 

It is recommended that the Minister agrees that:

(a) agree that the unanticipated income of £212,216 to EDD in 2012 from Ofcom should be added to the Department’s approved revenue expenditure and recognised as income for 2012 and that any such income not spent by the Department in 2012 can be carried forward for expenditure in 2013

(b) agree that the £300,000 estimated income from Ofcom which was included in the 2012 Annual Business Plan would be subject to the usual carry forwards process.

And this is subject to the amount of such income to be carried forward being no more than the total underspend for EDD in 2012.

 

5.   Reasons for Decision

 

Under Article 19(1) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources can authorise a States funded body to withdraw from the consolidated fund during a year an amount not exceeding the likely excess of income over the amount approved in that year’s revenue allocation.

 

Under Article 18(1) of the Public Finances (Jersey) Law 2005 the Minister for Treasury and Resources can authorise any amount appropriated by a revenue head of expenditure, to be withdrawn from the consolidated fund after the end of the relevant financial year.

 

6.   Resource implications

 

Recognition of income of £212,216 in 2012 and approval to carry forward any of this money unspent into 2013. Any additional underspend above this figure will form part of the carry forwards process. The Minister for Economic Development is clear that this funding cannot be regarded as ‘ring fenced’ should the total underspend for EDD as a whole be less than the amount of the unspent portion of this income.

 

Estimated income of £300,000 and expenditure of £300,000 has been included in the draft Medium Term Financial Plan annually for 2013 and 2014.

 

Report author : Business Manager

Document date : 22nd November 2012

Quality Assurance / Review : Director of Financial Performance

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2012-0082 - Carry Forward of EDD Ofcom Income to 2013 - KH\WR - Carry Forward of EDD Ofcom Funding to 2013 - KH.doc

MD Sponsor : Treasurer of the States

 

 

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